INVESTMENT PLANNING

Investment planning2

INVESTMENT PLANNING
As an investor, your ultimate objective is to achieve the goals you have written in your financial plan. When it comes to investing, “SUCCESS “is about having the money when you need it in order to allow you to achieve your goals.

There are so many options and information on how to accumulate wealth that most of us are not certain which is the best way to go about it.   Deciding on the right financial vehicles for you and determine the right balance of investments is not always easy. Investing with limited knowledge, experience or time to manage your investments in an ever-changing market environment could be the fastest way to lose a substantial portion of your wealth.

By engaging a good financial planner, can help you to understand the options, avoid costly mistakes, make smart choices and help you to have a greater certainty of meeting your wealth accumulation goals.

As part of your overall financial, we start with understanding your personal needs and time frame: What are the resources you have at the moment? What is the purpose of your wealth? When will you need those resources? These are important questions, because when you arrive at those points in the future, you want to be sure the resources are available to fund those goals.

Depending on the time frame of your cash flow needs, we will help you to structure a portfolio based on your financial objectives and risk profile.You are able to access to a broad range of investment assets, including bonds, equities,and unit trust funds.

What is best for you?
The strategy that’s best for you will depend on your financial goals, given time frame, the amount you have to invest and your risk appetite.

A diversified approach to accumulate wealth ensures that your risk is spread across different opportunities.  This means that if market is not doing well for shares ( during the Financial Crisis) and you have investments in property and bonds in addition to shares, you’ll be better off than those who are only invested in shares as your investments are spread across a range of asset classes.

Here’s a brief overview of some of the popular investments and wealth creation strategies:

Investment planning

Fixed Deposit
Similar to a savings account, but you commit to locked in your funds for a period of time, and the interest rate is fixed for the period.

Pros: safe, reliable
Cons: slow growth, penalties for early withdrawals
Borrowing to buy a home and then paying off your mortgageis one of the options for secure wealth. Property has generally been a solid investment, but carries associated costs and upkeep.

Pros: Own more equity; savings discipline; property grows in value over the long term Cons: Not easily be converted back to cash; high transaction costs, large initial payment, on-going maintenance costs.
For shares, you can invest in all the companies listed on the Kuala Lumpur Securities Exchange. Online direct broking services can provide a cost effective way to manage your own share portfolio.

You can also opt for Unit Trust (ManagedFunds) – where your money will be pooled with other investors to increase your buying power and diversification, funds will be managed by a Fund Manager. Unit Trust (Managed Funds)is also an easy way to access international share markets.

Pros: Potentially high returns, tax advantaged income, normally does well over long periods, usually easily converted to cash
Cons: moderate to high risk, price can be volatile
Private Retirement Scheme (PRS) is a voluntary long-term investment scheme designed to help individuals accumulate savings for retirement. The fund options under a PRS are intended to enhance long-term returns within a regulated framework. It is also a tax-effective vehicle for retirement savings. You can enjoy a tax relief of up to RM3,000 per year for contribution to the PRS.

Pros: tax-effective, discipline saving for retirement
Cons: Funds are locked until retirement age 55. To find out which wealth creation strategy is right for you come in for a chat with one of ourPlanner.