Here are the suggested 8 areas that we need to take note.
1. Investment Planning & Management
Identify Risk Tolerance
Emergency fund requirements
Short and long-term goals
Review current investments.
A number of proven scientific investment methodologies can help to optimise returns while minimising risk.
·Asset allocation strategies
·Best of Breed investment selection
·Rebalancing
·Long-term investing
·Dollar cost averaging
2. Risk management and insurance
To start, analyse the risk factors you are exposed to, quantify your possible financial loss and identify the necessary insurance products for your needs. Secondly, review and summarise your current insurance policies and decide whether to maintain, amend or cancel them.
3. Children’s tertiary education planning
Consider whether you opt for a local or international institution. Will your child aim for a scholarship or would you pay for the tuition?
4. Retirement planning
What is your investment risk tolerance and how much do you plan to live on? Also consider inflation. What’s the nest egg you need to retire?
5. Asset protection
Your assets carry various risks like fire, loan exposure, business, professional or personal liability. Find ways to protect these assets. Perhaps set up a trust.
6. Estate planning
When a person dies, his heirs must obtain either letters of administration (where the testator leaves no will) or a grant of probate (where there is a will). The process can be long and complicated. To smoothen the process, ensure that you have a will in place now. Go that extra mile by creating a trust for your children and nominate your beneficiaries in your insurance policy and EPF. If you need to appoint a trustee to look after the children’s welfare, check that the fee is reasonable. Trustees’ fees can vary by between 50% and 200%.
7. Debt and Loan management
Review all property loans, personal loans and credit card facilities.
Do you need to restructure them for better financing terms and interest rates?
8. Tax planning
Explore various ideas to reduce your tax payment legally.
9. Giving
Man becomes happier when he gives.
Reference:
https://www.thestar.com.my/business/business-news/2013/09/14/money-optimisation-is-beyond-investing/
3. Children’s tertiary education planning
Consider whether you opt for a local or international institution. Will your child aim for a scholarship or would you pay for the tuition?
4. Retirement planning
What is your investment risk tolerance and how much do you plan to live on? Also consider inflation. What’s the nest egg you need to retire?
5. Asset protection
Your assets carry various risks like fire, loan exposure, business, professional or personal liability. Find ways to protect these assets. Perhaps set up a trust.
6. Estate planning
When a person dies, his heirs must obtain either letters of administration (where the testator leaves no will) or a grant of probate (where there is a will). The process can be long and complicated. To smoothen the process, ensure that you have a will in place now. Go that extra mile by creating a trust for your children and nominate your beneficiaries in your insurance policy and EPF. If you need to appoint a trustee to look after the children’s welfare, check that the fee is reasonable. Trustees’ fees can vary by between 50% and 200%.
7. Debt and Loan management
Review all property loans, personal loans and credit card facilities.
Do you need to restructure them for better financing terms and interest rates?
8. Tax planning
Explore various ideas to reduce your tax payment legally.
9. Giving
Man becomes happier when he gives.
Reference:
https://www.thestar.com.my/business/business-news/2013/09/14/money-optimisation-is-beyond-investing/
No comments:
Post a Comment