Impact of taxes and fees on retirement savings and spending Let’s begin with a simple question. When it comes to managing money, how much impact do small mistakes or decisions make? Minor oversights like fund management fees or taxes? After all how much difference does
Actuaries are boring. Musings on actuarial careers One of my favorite interview question that throws candidates into all kinds of hissy fits is: “What do you think you will be doing every day once you start working at our firm. You walk in the door
The SOA 3F/MFE exam is a 3 hour long exam with no breaks in between. It consist of 30 multiple choice questions. MFE test theoretical basis of financial models and the application of those models to insurance and other financial risks. It is a little
As part of your preparation for your final attempt you have been looking for anything that can provide the extra edge for your MFE / 3F attempt. While the material below was not prepared keeping the SOA curriculum in mind it takes a hands on excel based approach in illustrating the many concepts covered in the MFE / 3F exams. Our hope is that this extra bit will clear the final muddle about that elusive concept that you had been struggling with. The links below covers interest rate models (CIR and BDT), Binomial Trees, Black Scholes Model, Pricing Derivative securities, differentiating between N(d1) and N(d2), exotic product and options, investment and portfolio management concepts
Solvency II Solvency II is an EU legislation that sets out the capital requirement rules for direct life and non-life insurance and reinsurance companies which are already established or wish to be established within the European Union. Companies that fall within the scope of the
Pre-requisite to this post: Review of International Accounting Standard (IAS) 19- Employee Benefits  In order to illustrate the IAS Disclosures that will be prepared for the given simple example let us first assume the following: Emily is the only employee covered by the plan
In the previous post we looked at the IAS 19 Disclosure relating to the reconciliation of present value of defined benefit obligations and fair value of assets to the assets (liabilities) recognized in the balance sheet. In this post we illustrate the disclosure related to
IAS 19 Disclosures Example: Reconciliation to Assets and Liabilities recognized on the balance sheet
A look at the disclosure showing the reconciliation of the actuarial liability and fair value of assets to the assets and liabilities that are recognized in the balance sheet.
IAS 19 Disclosures Example: Reconciliation of Present Value of Defined Benefit Obligation and Fair Value of Assets
A look at some of the disclosures made under the IAS 19 requirement.
The results of the gratuity valuation need to be tested for their sensitivity to key actuarial assumptions. Continuing with our simple example, we have carried out a sensitivity analysis on the Discount Rate and Salary Increase assumptions.