Principles of Financial Planning you must know


Financial Planning is a professional service to individuals, their families and their businesses, to provide impartial assistance in analysiang and organizing personal financial affairs in order to achieve financial lifestyle goals.


1. Establishing and defining the client-planner relationship.

2. Gathering client data, including goals.

3. Analysing and evaluating the client’s financial status.

4. Developing and presenting financial planning recommendations
and/or alternatives.

5. Implementing the financial planning recommnedations.

6. Monitoring the financial planning recommendations.


1. Integrity

2. Objectivity

3. Competence

4. Fairness

5. Confidentiality

6. Professionalism

7. Diligence

Child Education Planning

There are many reasons why many parents do not plan early for child education. The main reason, I think, is that parents fail to understand how future costs can escalate to a level which is beyond their ability to finance child education.

Most parents still think that university education is too far away to be worried right now. There is plenty of time to plan, and child education can wait while money are spent on other things such as travel, new furniture, the car, golf, and a host of desirable items to enjoy. Sad to say, all these do not contribute to accumulating wealth or funds for child education.

As the old folks used to say “…at the blink of the eye, 30 to 40 years have passed us by.” Time passes by very quickly, and there is no turning back the clock. If savings and investments are not implemented early, parents will dearly miss the rule of compounding to meet child education objectives.

It is therefore important that parents embark on a regular savings program as early as possible in order to achieve the required child education fund. This is because inflation can erode the value of money over time and why your money should be put to work harder for you in order to compensate for the depreciation in value caused by inflation.

Hence, a child education plan is critical to help map out strategies for both investments and risk management to play its role effectively in the child education plan.

Retirement Planning

There are many reasons why many people do not plan early for retirement. The main reason, I think, is that many people fail to understand how future costs can escalate to a level which is beyond their ability to pay for their daily expenses upon retirement for the next 20 or 30 years.

Many other reasons which people are not aware of are:

  • Life expectancy is longer
  • Inflation is higher than they think
  • Medical costs can eat deeply into a retirement fund
  • They tend to spend their money in advance
  • They do not have a clue of how much is required for retirement

Retirement planning is therefore, about saving and investing your money early to achieve your retirement fund according to a plan, and that this retirement sum will be sufficient to last you for the rest of your life.

It is equally important to ensure you have a comfortable a life upon retirement which can only be achieved through an effective plan. After all, this is retirement.

Estate Planning (Wills and Trusts)

A. Write a Will

There are many reasons why many people do not consider writing a Will as early as possible. The main reason, I think, is that they fail to realize the difficulties faced by their families or dependents when they are no longer around.

Many people think they can always transfer their assets instead of writing a will. Sad to say, they may be left poor and alone if the new owners decide that they are no longer important.

A Will is therefore important, and should be written as early as possible to avoid any unforeseen possibilities.

Natural disasters and accidents are common examples of unforeseen possibilities. When this happens, assets are frozen and your family or dependents may suffer prolonged difficulties pending the issuance of a Letter of Administration should you die without a will.

Also, how young children may suffer if you have not make provisions for their education or appoint a guardian to look after them until they reach majority.

B. Write a Trust

Similarly, if you are wealthy and need to protect your wealth, you may want to consider, in addition to the will, also write a trust – which can be an investment trust, property trust or insurance trust.

7 Good Reasons to be in financial services

1. You are your own Boss and Businessman
Why be contented with a fixed-income job. Rushing to work each morning and hurrying home after work. Each year, you can only hope to get a small increment and year end bonus (provided the company you work for makes profits). Also, with increasing costs of living such as Food, Healthcare, Transportation, Education and so forth, one can never earn enough to save for retirement. That is why so many people who are supposed to be retired still had to continue to work.

Why not build a business of your own? You do not have to report to anyone. You need only to communicate with your associates and trainers who can help you build this business successfully. You can earn as much as you want, there is no limit. You do not wait for increments and bonuses, you create them to reward yourself substantially. Your income can grow very much faster than your yearly increments.

2. You are your own Time Manager
Why subject yourself to a 9am to 5pm type of job. You control your time and not let your time takes control of you. Being your own boss, you decide when you start work and when you retire for the day, and how many days you work a week. You will be taught time management when you do this business. For the first time, you will realize that all the time you spent on your own business can be so rewarding compared with the so called “overtime” as an employee. Best of all, you need not ask for leave from your company. You are the boss, so you decide when you take leave and how long you wish to be away for holidays.

3. You can create a substantial Passive Income
The wonderful thing about this business is that it allows you to recruit and network other people to build this business together. As a leader, you are able to leverage on their efforts and be rewarded based on the group sales. The more you build the more you earn. Now, you are not worried about your own personal income because other people are making money for you all the time as long as you continue to build and stay active and focus. Even when you take your holidays with your family, your group is still making money for you.

4. You can expand this business quickly nationwide
Besides your home market, you can plan your expansion into other states within Malaysia fairly easily. Unlike other businesses which require a careful study and time when one wants to expand, this unit trust business do not require both. All you need to do is to contact friends or people you know in other states, and actually recruit them fairly quickly by using this website for example. Everything they need to know about this business is described in this website. This saves you a lot of time (as you do not necessary have to travel all the way to meet them just to explain all the details) and costs you almost nothing. Once they are positive about being a UTC, you just follow through with the rest of the requirements.

5. You have the opportunity to travel the world free of charge
Each year consultants are rewarded with one or more regional or international trip when they qualify upon achieving the annual sales target. If you qualify every year, you actually have the opportunity to see the world. Different destinations or countries are selected each year to suit the majority of consultants’ preference. This year’s destination is PARIS. For more information , please check out the details about this promotion in this website under “Sales Promotion”.

6. You can learn a lot about finance and financial planning
This business is all about finance and financial planning, that is, if you are prepared to take a step further to sit the examinations conducted by the Financial Planning Association of Malaysia (FPAM). All we need is your commitment to learn as much and as quickly as you can about this financial services business. At the end of the day, even if you cannot make it, you have nothing to lose. At least, you will have learnt something very useful about finance especially under our intensive training program (see below). This new knowledge about finance will come in very useful in your other endevours.

7. You do not need to strain your cash flow to do this business
If you are positive about changing your career or earn extra income or wish to learn financial planning, this is a business which does not require high capital. All you need is about RM150 to RM250 to start with to pay for registration fees, examination fees, tutorial materials etc. Furthermore, there are no stocks to keep, no debts to collect, only some forms to keep. As you make progress and start to earn good income, you may want to invest in some computer software and a notebook.

Characteristics of a good Financial Planner

Commit to Excellence
He/she must address your needs and develop practical solutions that meet those needs. As your needs change over time, he/she must will make changes (if necessary) to match them. This is the essence of a financial plan – to ensure that your well-being and financial needs are accommodated in the ever-changing environment. It is therefore, in your interest to keep him/her informed of major changes in your financial situation.

Talk Investor Language
He/she must identify concern areas that you may not be aware of – such as the need for a proper investment plan for child education or retirement, not just simply investing in equities or unit trusts or buying an insurance policy with the hope that the money will be there when required. Also, there is a need to write a proper will to protect the family assets solely for the family or loved ones, and not just any will that omit to address the risks associated with wealth preservation and distribution. The objectives are to ensure that you understand your needs and help you meet those needs according to your affordability.

Let Investors have a choice
He/she must provide practical solutions that allow you alternatives that would meet your needs. There is always more than one way to reach a goal. It is unlikely that two different approaches will produce exactly the same result – usually different but may be equally suitable. It is like making a decision to buy a Darlie or Colgate toothpaste, or Lipton or Boh tea, or a plasma or LCD television. Most financial products or services are in this category – where all developers of such products claim to give the best value. His/her role therefore, is to help you select a solution (not just a product) that would best meet your objectives.

Add Value to Service
He/she must let you fully understand the plan they have written for you so that you can play an effective role in managing your financial affairs. To help you achieve this purpose, he/she must be share with you relevant information that will help educate you in the process. This is important as you are also responsible for the success of your own financial plan. Their role is to guide you along and help bring you back in line should you deviate from the plan.

You are free to communicate with us as and when you require advice relating to your financial plan.

Power Concept$ – For Investing Wisely

  • Why Do You Need To Invest
  • Understanding Risk
  • Basic Economic Indicators and How They Affect Your Investments
  • Strategies for Child Education and Retirement Planning
  • How To Prepare Your Budget and Manage Your Cash Flow

Managing Your Unit Trust Portfolio Well At All Times

  • Are Unit Trust Viable Investment Instruments?
  • Have You Invested In The Right Unit Trusts For Your Clients?
  • Basic Economic Indicators and How They Affect Your Investments
  • How To Re-balance Your Unit Trust Portfolio

The Investment Plan Is Your Blueprint For Success – How You Can Sleep Well and Accumulate Wealth

  • The Making of the Investment Plan
  • The Key Results Statement (KRS) to help you focus on what you do best
  • Relevant Economic Indicators and Indices
  • Child Education and Retirement Planning
  • Preparing the Investment Plan

How To Market Your Financial Products or Services Effectively

  • Know Yourself, Know Your Clients
  • Know Your Current Affairs
  • Know Your Marketing
  • Know How To Close

Marketing Your Way To Success

  • The Difference between Marketing and Selling
  • Know Your Clients and Assure Yourself of a Continuous Income Stream
  • How Some Marketing Laws Can Help You Triple Your Sales
  • How To Develop Your Marketing Plan and Key Results Statements

Financial Planning for a Businessman

ARE you generating wealth from your business?

So many people in small business work hard and often, without much return. In the first couple of years of my business, I was making enough money to pay the expenses with not much left over for myself.

I have come across many people recently who are doing the same years after starting their own business.

They may feel like they own a business but earning little or no money begs the question why are you doing it in the first place if there is not much money in it?

To grow wealth, it is important to understand the ins and outs of how to create it.

This may involve speaking to people who do this for a living such as a financial planner and your accountant.

These people can not only minimise tax but they can help to look at your longer term goals and maximise any long-term savings. For example, I recently read an article that explained self-managed super funds.

A self-managed super fund is where you are able to set up your own fund and transfer your super savings either individually or with your partner.

The article discussed recent changes to conditions affecting the funds. From July 1 this year your fund is able to borrow money to invest in cash, property or shares. This would mean that while you are running a small business, you may be able to buy a property with super and borrowed funds rather than negative gear it and fund it from your income.

Whether this option is right for you will depend upon your circumstances. I am in the process of researching this option and have made a time with my accountant and financial planner to discuss my options.

I have heard someone who does not create wealth for themselves in their own business described as being J.O.B. just over broke.

You may call it a business but when you are working for yourself, perhaps even harder than you did when you worked for someone else, does it make sense to only be “just over broke”?

Tips for creating wealth:

  • Pay yourself first, either a salary or into your super.
  • Talk to experts who help people create wealth for a living such as an accountant and financial planner.
  •  Take time to focus on growing your wealth.
  • Aim to have your business working without you in it full time.
  • Have an exit strategy from your business.


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