Module1: Personal Financial Planning Basics
This module introduces the essential steps in financial planning process, financial management and the code of ethics and standard of practice in personal financial planning.
Introduction to Personal Financial Planning
Overview of the objectives of personal financial planning, components and essential contents in a comprehensive financial plan.
Time Value of Money
Concepts and calculation of time value of money. Factors that affect the future value, present value, required rate of return, cash flows and length of the investment period.
Discounted Cash Flow Analysis
Calculation of NPV, IRR, modified IRR and payback period.
Code of Ethics and Professional Responsibility for Financial Planners
Ethical issues in financial planning and Principles of ethical practice in financial planning. Application of the Code of Ethics and Professional Responsibility in financial planning services.
Financial Planning Process
Six-step financial planning process in financial planning services: Establishing client-planner relationship; Gathering client's data; Analysing client's financial status; Developing and Presenting the financial plan; Implementing and Monitoring the financial plan.
Overview of Financial Management
Overview of the functions of financial management and forms of business.
Personal Financial Statement Analysis
Personal balance sheet, income statement and cash flow statement. Calculation and analysis of financial ratios.
Module 2: Retirement and Insurance Planning Basics
This module introduces the essentials of retirement plans in Hong Kong, risk management in personal financial planning as well as regulatory frameworks of MPF system and insurance industry in Hong Kong.
Retirement Plans in Hong Kong
Key features of and types of retirement plans and retirement savings products available in Hong Kong.
MPF System in Hong Kong
Key features of and types of MPF schemes in Hong Kong. Interface between ORSO schemes and MPF schemes.
Challenges in Retirement Planning
Health costs, inflation risk, investment risks, longevity, etc.
Cash Flow Management in Retirement Planning
Retirement needs analysis, income projection, budgeting techniques, liquidity needs in personal financial planning.
Overview of Risks and Risk Management Tools
Types of risks, functions of insurance and application of personal risk management in financial planning.
Medical expenses needs, long term health care needs, disability needs, etc.
Insurance Industry in Hong Kong
Introduction of the types of insurance business, the self-regulation mechanism, structure of insurance companies, the types of insurance intermediaries, the types of insurance policies and annuities in Hong Kong.
Features of different life insurance policies; features of different annuities.
Introduction of regulatory frameworks on MPF systems and insurance industry in Hong Kong.
Module 3: Investment Planning Basics
This module introduces interest rates, bonds, equity, options and foreign exchange in the context of personal financial planning. Students will learn to calculate the potential return and risk of different investment product sand how to match the investment products with the clients' requirement in financial planning.
Financial System and Markets
Introduction of money market and capital market; primary market and secondary market; major exchanges and stock indices.
Asset classes and financial instruments
Overview of the instruments in different asset classes such as equity, debt and derivatives.
Calculation of effective interest rate and annual percentage rate; nominal rate and real rate.
Bond price and yield to maturity; overview of different types of bonds and risks involved in bond investment.
Dividend discount model, free cash flow and enterprise value. Overview of fundamental analysis and technical analysis.
Overview of the payoff and risk of the buyer and seller of call options and put options.
Foreign Exchange Basics
Overview of the types of foreign exchange quotation such as direct quote, indirect quote and cross rate. Purchasing power parity, interest rate parity and international fisher effect.
Investment Return and Risk
Computation of investment return rate and overview of types of risk involved in different investment instruments.
Regulatory Framework of Securities Industry in Hong Kong
Overview of regulatory framework of the securities industry in Hong Kong.