FINANCIAL PLANNING
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Other FAQs on Financial Planning in Malaysia & Singapore

Things You Should Know Before Engaging a Financial Planner in Malaysia and Singapore

Whether you're in Malaysia or Singapore, financial planning is still the same -- financial planning is a multi-step process that provides you with two important things: (1) An in-depth review of your current financial situation, and (2) a personal financial plan that shows you how to achieve your goals and objectives for the future. It is important to remember that financial planning is a continuing process ... not an event. 
 

2. How does a financial planner create this personal financial plan?

It is important to remember to find financial planners who are committed to work jointly with clients to produce a comprehensive, custom financial plan and wealth / money management, enabling them to make wiser financial choices.

First they focus on your goals, objectives, priorities and values. For instance: the reduction of current and future income taxes may be an immediate goal, funding a quality education for your children and/or grandchildren may be an intermediate goal, and enjoying a secure financial future in your retirement years is likely to be one of your most important long-term goals. Another goal in life for some people is creating wealth and/or leaving a legacy for your chosen beneficiaries or charities. You may already be on the road to meeting these objectives and simply need a new strategy, professional insight, or to fine-tune your plan. You may just be starting out, or you may be somewhere in between.

Next, they collect detailed personal financial information and make a thorough analysis of this information: current financial situation, employee benefits, children's educational funding, retirement situation, pension and retirement plans, living estate, insurance and investment portfolios to produce a written financial plan with specific recommendations to achieve your goals.

Then, they share the results with the client, who determines if the recommendations are sensible and reasonable. Once comfortable and satisfied with the final recommendations, clients take action or direct them to take the steps necessary to attain their objectives. 

Finally, to achieve the intended results, you must implement and monitor your plan. Your financial plan is a living document, reviewed periodically for progress and adjusted appropriately. Whatever your unique situation may be, everyone needs a periodic assessment of where they are on the road to meeting their financial goals.
 

3. Sounds like a lot of work! 

It is, for the planners, but the good news is, if you follow your plan and maintain a disciplined approach, you can rest easy knowing you can reach your goals - financial freedom, money, ringgit. A good planner will try to make the process as easy as possible for you. In addition to receiving professional advice on your most important financial concerns, a good financial planner can also provide implementation and ongoing financial planning consultation services, if appropriate for your needs.
 

4. Who can benefit most from financial planning services? 

Any individual seeking financial peace of mind and financial freedom can benefit from financial planning services. Planners serve people at all income levels, from all walks of life. Clients have the flexibility to work with most planners on either a one-time, as-needed basis or an ongoing basis. Good financial planners welcome clients who simply need a one-time financial consultation or a second opinion, as well as those who need comprehensive financial planning and possible ongoing financial planning consultation services. In addition, any corporation or organization seeking quality, unbiased financial education for their employees or members can benefit from financial education programs.
 

5. Does financial planner only provide comprehensive financial planning? 

Although financial planners normally provide comprehensive financial plans which can provide the greatest benefits, good financial planners can also limit their advisory services to your specific goals, such as money management and budgeting, wealth management, retirement planning, investment analysis, college education funding, etc.
 

6. My spouse and I are just beginning to build for our financial future. There is so much to learn! We need help and guidance to get started. Will financial planners accept us as clients?

Yes. Some firms have income levels and/or net worth minimums but certain financial planners also recognize that everyone has unique financial needs. A good financial planner will be pleased to work with people from all income levels, and all walks of life. Remember, "You don't have to have a fortune to start building one."
 

7. I have already accumulated substantial assets and think I am doing quite well. But as I progress and build for the future, things seem to be getting more complicated. I want to be sure I am on track, but I don't always have the time or inclination to manage the myriad details by myself. Can a financial planner help me? 

Yes. People who need more sophisticated financial planning advice will find good financial planning services appealing and beneficial. If you have a desire to simplify your financial affairs, an ongoing retainer relationship may be right for you. If you are looking for a professional review or a second opinion to ensure you are on track, a good financial planning consultant can provide that, too.
 

8. What types of financial products do financial planners provide advice for?

If it has to do with money and finances, a good financial planner can provide counseling, guidance and/or resources for you. A good financial planner want their clients to know that they can call on them with any and all of their financial concerns. Clients are encouraged to call financial planners when they have a major life event, such as a new job, a baby, a marriage or divorce, or if they are planning to buy a new home or start their own business.

A good financial planner provides advice for all types of financial planning products - income protection, retirement, education, health, etc. Financial planners also encourage their clients to call with more common everyday questions, such as: "How should I invest for my retirement plan?"
 

9. Tell me about a good financial planner's investment philosophy.

Good financial planning advisors and consultants believe in the following fundamental principals with regard to designing an investment portfolio and making specific recommendations. The purpose of a client's investment portfolio is to fund current and/or future financial objectives. The design of the portfolio must take into account the client's financial objectives, tolerance for risk, needs for current income or liquidity, and special considerations such as income and estate taxes. 

One important thing to remember is that no one can predict the future. It is difference of opinion that makes a market. Investment and economic "experts" provided with the same information often come to different conclusions. Good financial planners do not suggest that they can, or that any of the money or mutual fund managers that they recommend, will make the correct decision every time. They do believe, however, that studying the historic trends and relationships of investment classes and the philosophies and approaches of successful investment managers can provide valuable insight.

The appropriate allocation of investment assets for your goals and risk tolerance is the most important component in developing an investment portfolio. A good financial planner believes that having a diversified, well-balanced portfolio, following long-term buy-and-hold strategies, and having patience, will increase the likelihood that one will achieve their long-term financial objectives. Diversification, dollar cost averaging, comprehensive portfolio reviews and analysis are beneficial methods of managing assets. They believe that mutual funds that consistently perform above average against their peers are wise choices. They also recognize the importance of culling a portfolio from time to time.
 

10. How does a good financial planner select investments for a client? 

Before a good financial planner recommend any investment, they consider the appropriate investment linked funds or mutual funds to meet your objectives. Then they consider the current economic conditions, the outlook for that asset class or type of security and how this investment fits within your portfolio given your objectives and tolerance for risk.
 

11. Once my financial plan is completed, will our relationship end? 

You choose to continue depending on your desires. A limited engagement of services may end but the majority of financial planners' clients choose to continue based on their needs and preferences. Many even become close friends and partners with their financial planners in their financial planning. Because financial planning is a process, not an event, good financial planners normally offer ongoing services, periodic reviews and day-to-day consultation as requested and/or needed.