Do I Need A Financial Planner?

What is Financial Planning?

In Malaysia, Financial Planning is a regulated activity. Financial Planning means analysing the financial circumstances of another person and providing a plan to meet that other person’s financial needs and objectives, including any investment plan in securities, whether or not a fee is charged in relation thereto. Hence, even a Financial Planning service that is provided for Free is deemed as a regulated activity too.

Personal finance is a topic that is very relevant to everyone. It is important but not urgent, if neglected, it will have a cascading effect on other areas of our lives.

Navigating the field of personal finance is akin to walking on a minefield. If you are not careful, or lack of some luck, you will probably steps on something that will cause damage. Worse, what we think is a safe step may eventually turns out to be a wrong step.  We are not short of news and stories of how people get short-changed by people with agendas who promote financial products.

Licensed Financial Planners, What They Do?

The good news, layman does not have to navigate this field alone. We can always get someone to walk us through, preferably someone we trust, someone knowledgeable, someone credible. In this case, a Financial Planner will fill up this role very appropriately.

A Licensed Financial Planner is the professional that is competently trained, certified, licensed to provide such service.

The first step to travel from Point A to Point B is, you got to know where is Point B. Many of us do not have a clear goals in mind, and we let life push and pull us in random direction. A Licensed Financial Planner understands that the core of the whole picture have to includes the life goals of the client, and they will invest a lot of time and conversation to help the client in determine their life goals.

Unlike a dream, a goal is a dream that is being pursue with strategies on how to achieve it. If we want something in life but are unwilling to do anything to get it, it will remain a dream.  Therefore, it is crucially important that we set our life goals, for without it we will be wandering in randomness.

How Will This Benefits Me?

Working with a financial planner can come with few benefits. A Licensed Financial Planner can help the client to formulate strategies that will improve the overall financial wellness. In doing this, a competent financial planner will examine your situation with a holistic view and provide you with a comprehensive financial plan that address your life and financial affairs in totality.

This will include constructing a cashflow statements, net worth statements to understand your current financial position, identifying the weaknesses or leakages that exist in your current system. Just like we take MRI, Blood test to know what is not right with our health system.

A Comprehensive Financial Plan usually covers the followings area:

  • Cash flow Planning
  • Net Worth Analysis
  • Investment Planning
  • Risk Management and Insurance Planning
  • Retirement Planning
  • Education Planning
  • Estate Planning
  • Tax Planning

The idea is to put together strategies that when implement should enhance the overall financial wellness of the client, and it puts the client in a better position to achieve their life goals.

You may want to plan for buying your first property, planning for your wedding and honey moon; You may want to know if you can afford to take a sabbatical leave, reclaiming your freedom. Above all, there are other life goals such as providing the best quality educations for children from primary schooling onwards, but what kind of impact will this have on our long term financial health? A long-term cashflow projection can help us to determine when client will face shortfall.

We often hear the saying that “Life is Short”, so we should ensure that we start pursue our life goals as early as possible. If we want to be at point B at 8pm, we don’t wait until 7:59pm only depart from our home.

Your First Step

Usually, a Licensed Financial Planner will meet with the client for a preliminary meeting to discuss the objectives and concerns of the client. This meeting also serves as a perfect avenue for clients to understand the processes and how the Financial Planner works with them. Besides, it is also imperative for client to know what experience the Financial Planner has, their limitation of their services, etc. A preliminary meeting is commonly provided free of charge and it usually takes about an hour. At the end of the meeting the Financial Planner will make a suggestion to client on the scope of service. After the client agrees to the terms and sign the letter of engagement, the Financial Planning process will commence.

Do you have worries, or concerned with your financial wellness? Are you certain that how you manage your wealth currently is appropriate? Do you faced issue with debt? Does your savings grow only to get depleted from time to time?

Many a time people think that engaging in Financial Planning means we have to be cheapskate and be frugal (Of course NOT!). On the contrary, this means we start take charge of our life, and allow ourselves more options and flexibilities.

If you would like to expel these worries and frustration, you can have a chat with us to start your first step in reclaiming your financial wellness.


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