Income Management

Net Worth - Evaluating Your Current Situation

Knowing where you stand today in terms of your finances is the first step in developing any financial plan. Net worth (your assets minus your liabilities) is a tool that is able to give you a "snapshot" of your current financial situation. It will help you determine your and what resources you can apply to meeting your goals.

Net worth is the main measurement of wealth. The most straightforward ways to increase your net worth are to increase your assets (by investing current assets and accumulating more) or to reduce your debts. The other number to look at in evaluating your current situation is your net income (your gross income minus your expenses).

Cash Flow Management

Many people find they are spending more than they bring in. It's difficult to increase your net worth (and meet your financial goals) if you are constantly falling behind on the income front. Hence, cash flow management is key to achieving personal financial security.

For example, are you spending more on entertainment or other nonessential expenses than your income supports? Or are you spending more than you have to for necessities such as housing, an automobile, clothing, or other similar items? The answers will probably point you to one or more possible solutions, such as cutting back on the non-essentials or finding less expensive alternatives. Then, you can put the money you save to work toward meeting your goals.

Most causes of overspending can be addressed through use of a budget. Simply going through the process of putting together an annual budget can help you prioritize expenses and uncover areas where you may be able to free up more money to use for savings and investments.

Many people find that they can develop the discipline needed to put money aside on a regular basis by budgeting for savings and investments the same way they do for other expenses. A good way to make sure your budgeted amounts actually do go into savings and investments is to set up an automatic saving / investing plan with a bank or a mutual fund company.

Trimming Your Budget

Cutting your expenses will take some effort. You may have to delay some purchases and find ways to spend less on the things that you need to buy. By cutting costs, you should be able to afford to contribute more to your savings and investments. Similarly, if large debt payments are making it difficult to save, you need to look at ways you can reduce this burden so you can move ahead toward your financial goal.

Reduce Housing Costs

One good avenue to explore is the possibility of refinancing your mortgage. The rule of thumb is to consider refinancing your home when mortgage rates drop two percentage points or more below your current rate. But people who plan to remain in their home for a while can come out ahead with a rate reduction of as little as one percentage point.

Buy Smart

How and when you shop can make a discernible difference in your spending. Different items generally go on sale at different times during the year.

The meaning of Financial Planning

According to the Certified Financial Planner Board of Standard, financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child's education or planning for retirement.

The financial planning process consists of six steps that help you take a "big picture" look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.

The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans. As life and circumstance change, so your financial plan will need to be reviewed and revised on a regular basis:

• Ensure you are on track to meet your goals
• Identify and address new goals and
• Make sure the financial tools you are employing still meet your needs.

Education Planning

When should you start planning for a child's college education? Ideally, as soon as the child is born. The cost of four years at a private college or university currently is increasing faster than our inflation rate. Don't become alarmed if you haven't started planning for your child's college education. No matter what the child's age, strategies are available to help you come up with the necessary funds.

You can use the our Education Planning Calculator to estimate what how much is needed for your child's education and how much money you should be investing now to be able to meet those needs.

For young children, start putting money away regularly now, investing in higher-potential-growth securities and mutual funds as you would for other long-term goals, such as retirement. As your income increases, try to increase the amount you're investing. When a child reaches high school age, you'll probably want to begin moving college investments into lesser-risk investments.

Pengeluaran Pelaburan Simpanan Ahli

• Pengeluaran ini membolehkan ahli mengeluarkan sebahagian simpanan Akaun 1 untuk membuat pelaburan bagi menambah dan meningkatkan simpanan persaraan untuk menyara kehidupan semasa persaraan.
• Ahli boleh melaburkan simpanan tidak melebihi 20% daripada jumlah yang melebihi Simpanan Asas dalam Akaun 1 melalui Institusi Pengurusan Dana (IPD) yang diluluskan oleh Kementerian Kewangan.

Kelayakan Memohon
Anda layak memohon sekiranya:

• (i) Warganegara Malaysia; ATAU
  (ii) Warganegara Malaysia yang pernah membuat pengeluaran di
  bawah Pengeluaran Meninggalkan Negara Malaysia sebelum
  1 Ogos 1995 dan kemudian memilih untuk mencarum
  semula dengan KWSP; ATAU
  (iii) Bukan warganegara Malaysia yang:
  * Menjadi ahli sebelum 1 Ogos 1998; ATAU
  * Mendapat taraf Penduduk Tetap (PR)
• Anda belum mencapai umur 55 tahun pada tarikh permohonan diterima oleh KWSP; DAN
• Anda mempunyai simpanan Akaun 1 yang melebihi jumlah Simpanan Asas sekurang-kurangnya sebanyak RM5,000.00

Anugerah KLIFF 2009

Anak syarikat milik penuh Public Bank Bhd., Public Mutual Bhd. memenangi anugerah pengurus dana Islam terkemuka untuk tiga tahun berturut-turut pada majlis makan malam dan anugerah Forum Kewangan Islam Kuala Lumpur (KLIFF). Anugerah kali keenam tersebut disampaikan oleh Menteri di Jabatan Perdana Menteri, Tan Sri Nor Mohamed Yakcop. Ketua Pegawai Eksekutif Public Mutual, Yeoh Kim Hong menerima anugerah berkenaan yang diadakan di sini semalam.

Kim Hong bangga Public Mutual sekali lagi mendapat pengiktirafan yang berprestij itu. Katanya, anugerah ini merupakan anugerah ke-138 yang dimenangi oleh Public Mutual sejak tahun 1999. “Memenangi anugerah yang disanjung ramai ini membuktikan komitmen Public Mutual yang berterusan dalam memberi nilai yang tinggi serta memenuhi keperluan yang pelbagai untuk pemegang-pemegang unit kami,” katanya. Beliau turut mengucapkan terima kasih kepada pemegang-pemegang unit atas sokongan dan keyakinan mereka yang berterusan terhadap Public Mutual.

Public Mutual merupakan pemimpin dalam sektor dana unit amanah Islam swasta di Malaysia. Pada 30 September 2009, syarikat tersebut menguruskan 24 dana Islam dengan jumlah aset Islam di bawah pengurusan syarikat sebanyak RM13.2 bilion. Ini merupakan 58.3 peratus bahagian pasaran sektor dana unit amanah Islam swasta.

Public Mutual juga merupakan syarikat saham amanah swasta terbesar di Malaysia, mengurus sebanyak 71 dana. Syarikat tersebut mempunyai lebih dua juta pemegang akaun yang diberi khidmat oleh 40,000 perunding saham amanah. Pada 30 September 2009, jumlah nilai aset bersih dana yang diuruskan oleh syarikat tersebut adalah sebanyak RM33.8 bilion.

Soalan Lazim Pengeluaran Pelaburan Simpanan Ahli KWSP

1. Adakah KWSP bertanggungjawab ke atas kerugian pelaburan di Institusi Pengurusan Dana (IPD)?

Ahli bertanggungjawab sepenuhnya ke atas pelaburan dengan IPD. Ini bermakna jika berlaku kerugian, KWSP tidak akan bertanggungjawab untuk memberi sebarang ganti rugi kepada ahli.

2. Apakah Pengeluaran Pelaburan Simpanan Ahli dan siapakah yang layak membuat pengeluaran ini?

Pengeluaran ini membolehkan ahli KWSP yang belum mencapai umur 55 tahun dan mempunyai simpanan yang melebihi ‘Simpanan Asas’ dalam Akaun 1 untuk melabur sebahagian dari jumlah simpanan tersebut melalui IPD yang diluluskan oleh Kementerian Kewangan.

3. Apakah maksud Simpanan Asas?

Simpanan Asas adalah satu jumlah simpanan dalam Akaun 1 yang ditetapkan mengikut umur bagi membolehkan ahli memperoleh simpanan minimum sekurang-kurangnya RM120,000.00 ketika berumur 55 tahun dan ianya tidak boleh dikeluarkan sebelum umur ahli mencapai 55 tahun. Bagi maksud pelaburan, ahli dibenarkan membuat pengeluaran pelaburan sebanyak 20% daripada amaun yang melebihi Simpanan Asas dalam Akaun 1. Kuantum Simpanan Asas akan dikaji semula setiap 5 tahun.

4. Bilakah Simpanan Asas ini terpakai?

Simpanan Asas ini terpakai dalam dua keadaan iaitu:
(i) Pelaburan Simpanan Ahli (Akaun 1)
(ii) Pengeluaran Umur 50 Tahun mulai 1 Januari 2013.

5. Bilakah tarikh kuatkuasa Simpanan Asas ini?

Simpanan Asas berkuatkuasa mulai 1 Februari 2008 bagi Pelaburan Simpanan Ahli dan 1 Januari 2013 bagi Pengeluaran Umur 50 tahun.

6. Apakah tujuan Simpanan Asas?

Adakah ini satu lagi diskriminasi untuk golongan berpendapatan rendah?Simpanan Asas bertujuan untuk memastikan ahli mempunyai simpanan sekurang-kurangnya RM120,000.00 pada umur 55 tahun untuk membiayai keperluan persaraan. Jumlah ini membolehkan ahli menggunakan simpanan mereka sebanyak RM500.00 sebulan selama 20 tahun bermula daripada umur 55 tahun sehingga ahli berumur 75 tahun. Jumlah RM500.00 sebulan diandaikan boleh membiayai keperluan asas ahli setelah bersara. Ini bukanlah satu diskriminasi, sebaliknya untuk memastikan golongan berpendapatan rendah mempunyai simpanan persaraan asas yang mencukupi apabila mereka bersara kelak.

7. Apakah formula yang digunakan untuk mengira Simpanan Asas ini?

Pengiraan Simpanan Asas adalah berdasarkan jumlah amaun minimum yang diperlukan oleh seseorang ahli untuk membiayai keperluan asas ketika mereka bersara. Kajian KWSP telah mendapati seorang ahli yang telah bersara memerlukan sekurang-kurangnya RM500.00 sebulan untuk membiayai keperluan asas mereka. Tempoh 20 tahun iaitu 55 tahun hingga 75 tahun adalah berdasarkan jangka hayat ahli. Bagaimanapun, jumlah Simpanan Asas ini akan dikaji setiap lima tahun.

8. Adakah Simpanan Asas di dalam Akaun 1 boleh dipindahkan ke Akaun 2 bagi membolehkan ahli membuat pengeluaran pra-persaraan?

Tidak. Simpanan dalam Akaun 1 tidak boleh dipindahkan ke Akaun 2. Bagaimanapun, simpanan di dalam Akaun 2 boleh dipindahkan ke dalam Akaun 1 pada bila-bila masa bagi menambah simpanan persaraan ahli.

9. Bolehkan ahli menambah simpanan mereka dengan menggunakan kaedah caruman sukarela untuk mencukupkan Simpanan Asas?

Ya. Ahli boleh menambah simpanan mereka dengan membuat pilihan mencarum secara sukarela atau mencarum melebihi kadar berkanun. Bagaimanapun, caruman tersebut akan dimasukkan ke dalam Akaun 1 sebanyak 70% dan Akaun 2 sebanyak 30%.

10. Apakah syarat-syarat yang melayakkan ahli untuk mengeluarkan kredit di bawah Pengeluaran Pelaburan Ahli KWSP daripada segi kelayakan di dalam Akaun 1?

Ahli hendaklah mempunyai simpanan melebihi jumlah ‘Simpanan Asas’ dalam Akaun 1 pada tarikh permohonan dibuat bagi membolehkan amaun minima pelaburan sebanyak RM1,000 atau tidak melebihi 20% daripada jumlah yang melebihi ‘Simpanan Asas’ dipindahkan ke Institusi Pengurusan Dana (IPD) yang dilantik.

11. Bagaimanakah kaedah pengiraan untuk mengetahui kelayakan amaun pelaburan ahli?

Kaedah pengiraan amaun kelayakan pelaburan ahli adalah seperti berikut:
(Jumlah Baki Akaun 1 – Jumlah Simpanan Asas) x 20%

Contoh Pengiraan Kelayakan Pelaburan Ahli :

: Baki Akaun 1 pada 01.02.2008 adalah RM 55,000.00 dan
Umur ahli adalah 30 Tahun di mana jumlah Simpanan Asas ahli adalah sebanyak RM 18,000.00.

: (RM 55,000 – RM 18,000.00 ) x 20%
: RM 7,400.00

12. Berapa kerapkah ahli boleh mengemukakan permohonan untuk skim ini?

Ahli boleh mengemukakan permohonan setiap 3 bulan selepas tarikh terakhir pemindahan dibuat dengan
syarat baki dalam akaun 1 ahli memenuhi syarat kelayakan Simpanan Asas.

13. Adakah ahli yang berumur lebih daripada 55 tahun perlu mendapatkan surat pelepasan kawalan daripada KWSP untuk mengeluarkan simpanan mereka yang telah dilaburkan melalui Pengeluaran Pelaburan Ahli di Institusi Pengurusan Dana (IPD)?

Ahli hendaklah mempunyai simpanan melebihi jumlah ‘Simpanan Asas’ dalam Akaun 1 pada tarikh
permohonan dibuat bagi membolehkan amaun minima pelaburan sebanyak RM1,000 atau tidak melebihi
20% daripada jumlah yang melebihi ‘Simpanan Asas’ dipindahkan ke Institusi Pengurusan Dana (IPD)
yang dilantik.

Top 10 Question to Ask when Preparing for Retirement

Just because retirement seems like the right thing to do when you reach a certain age doesn't mean it's for everyone. There's also the issue of what retirement means to you. Do you consider retirement as a time to stop or as a time to just shift your focus? However you view retirement, you will need to make a decision at some point whether or not it is right for you. When trying to decide whether or not to retire, ask yourself these 10 questions.

1. Do I Really Want to Retire?
You've dreamed of the day when you can retire but do you really want to retire? With all the medical breakthroughs, people are living much longer than their parents or grandparents, so retirement could last 25 or more years. With out some serious planning, it might be difficult to survive emotionally or financially for that many years.

2. How Much Money Will I Need to Retire?
This is the question almost everyone wants answered when they start thinking about retiring. It is also the hardest one to answer because no one answer fits all. It all depends on their lifestyle and retirement goals.

3. Should I Accept an Early Retirement Package?
In an effort to cut costs, companies offer early retirement packages to some older employees. These severance packages can be extremely attractive but before you accept an early retirement package, be sure you evaluate whether or not it's a good decision for you and your needs.

4. Will I Work After I Retire?
Even though retirement is seen as a time to stop working, you might want to continue working well into your retirement years. There are some things you need to know if you plan to work after your retirement age.

5. Will Working After Retirement Affect My Retirement Income?
You have worked your entire adult life for retirement and now if you would like to work some while retired you should get all the retirement benefits you have earned. We all expect this but just like planning for retirement you should also plan your new career during retirement. If you don’t plan properly you could lose or be denied some of your retirement benefits.

6. Am I in My 50s or 60s With No Retirement Plan?
If you are in your 50s or 60s and have little or no retirement savings, don’t panic. It’s not too late but you shouldn’t procrastinate any longer. You will have to be very creative with your planning but it can be done.

7. Do I Know My Net Worth?
Your net worth is a good indication of where you are financially at this moment in time. I recommend preparing a Net Worth Statement at least once a year. The first time you prepare this statement will be the most difficult since you will be starting from scratch. Each time you figure your net worth in the future, you should have all the information and documents on hand.

8. Do I Have a Retirement Budget?
Budgeting after retirement is similar to budgeting before retirement. The same rules apply, just the outcome is different. Budgeting before retirement is done to help you reach your financial obligations and have enough set aside to meet your retirement goals. Budgeting after retirement is done to help you reach those goals and maintain funds through your remaining years.

9. Have I Reviewed My Retirement Plan Often?
A comprehensive review of your retirement plan every few years is almost as important as having a retirement plan. What you save for retirement is one of the most important financial challenges you might face in your lifetime so make sure you review and monitor it often.

10. Am I Prepared for Retirement?
OK, you’ve made up your mind that someday you are going to stop the 9 to 5 grind and kick back and enjoy yourself. If you are like most, you have some idea of what the ideal retirement should be. If you are like most, you procrastinate about preparing for retirement. If you are serious about your retirement goals, you must start to prepare right now, not tomorrow.

Dimanakah Tahap Kewangan anda?

Kali ini, saya ingin berkongsi artikel yang ditulis oleh ikon usahawan muda Malaysia, saudara Irfan Khairi. Artikel tips kewangan yang bertajuk “Di Manakah Tahap Kewangan Anda?” ini menerangkan 4 tahap kewangan seseorang. Berikut adalah ringkasan 4 tahap kewangan tersebut…

#1: Kewangan tidak selamat (Finacially not secure).
…tahap dimana tiada wang simpanan ataupun jika ada pun cukup untuk menyara hidup kita dan keluarga selama sebulan sahaja (tanpa bekerja).

#2: Kewangan Selamat.
…tahap dimana wang simpanan yang ada jika kita tiba-tiba hilang pekerjaan atau hilang mata pencarian, cukup untuk menyara hidup kita dan keluarga selama 6 bulan.

#3: Bebas kewangan / Mandiri kewangan.
…tahap dimana kita bebas memilih untuk bekerja ataupun tidak kerana mempunyai wang simpanan atau pun aliran pendapatan secara automatik yang cukup untuk menyara hidup kita sekeluarga sampai bila-bila.

#4: Tahap Terlalu Kaya atau Ultra Rich.
…tahap ini tak perlu dicerita lagi. Irfan Khairi memberi contoh nama-nama hartawan Malaysia yang berada ditahap ini seperti Tan Sri Mokhtar Bukhari, Tan Sri Daim Zainuddin, mendiang Tan Sri Lim Goh Tong dan Tan Sri Ananda Krishnan.

Mungkin ramai diantara kita yang telah terbaca artikel yang lebih kurang serupa isi kandungannya dengan artikel ini di mana-mana buku kewangan, majalah ataupun di internet. Namun adakah kita mengkaji atau menjawab persoalan tersebut? Dan yang paling penting, adakah kita mengambil tindakan yang perlu untuk memperbaiki tahap kewangan kita, terutama kepada yang masih ditahap #1.

Kepada yang sudah ditahap #2, walaupun dinamakan “Kewangan Selamat”, jangan fikir sudah selamat. Ini kerana dengan suasana ekonomi hari ini, wang simpanan yang kita jangkakan cukup untuk menyara hidup kita dan keluarga selama 6 bulan itu mungkin hanya dapat bertahan 2 hingga 3 bulan je… dan dalam tempoh tersebut mungkin kita belum dapat mencari sumber pendapatan yang lain.

So, konklusinya jangan berhenti menabung. Teruskan menambah wang simpanan seboleh yang mampu. Displinkan diri untuk menabung walaupun sedikit tapi konsisten. Sebaik-baiknya jumlah simpanan pun hendaklah konsisten, contohnya tetapkan sekurang-kurangnya 10% dari gaji bulanan untuk dijadikan wang tabungan.

Panduan untuk mengandakan Dana Persaraan KWSP Akaun 1

Pada masa sekarang yang kian maju dan moden dengan inflasi negara kita yang semakin meningkat banyak menyebabkan pesara-pesara di negara kita kekurangan wang persaraan untuk perbelanjaan harian mereka. Kebanyakannya terpaksa bekerja semula selepas persaraan untuk menyara keluarga. Semua orang masa sekarang mengidam-idamkan kehidupan yang bahagia dan tenang selepas persaraan tanpa tertekan dengan masalah kewangan. Disini saya sediakan panduan yang dapat mengandakan Dana Persaraan KWSP yang telah diluluskan untuk membesarkan lagi dana KWSP yang kita akan perolehi semasa bersara kelak.Berapa Banyakkah Wang Yang Anda Perlukan
Semasa Anda Bersara ??(Umur 55 tahun)

Tahukah Anda ??

Jumlah Simpanan=RM100,000
Penggunaan Sebulan=RM1,000
Berapa Lama Mampu Bertahan=8 Tahun 3 Bulan
Jumlah Simpanan=RM200,000
Penggunaan Sebulan=RM1,500
Berapa Lama Mampu Bertahan=11 Tahun

Jumlah Simpanan=RM400,000
Penggunaan Sebulan=RM2,500
Berapa Lama Mampu Bertahan=13 Tahun 3 Bulan


UNTUK KETERANGAN LEBIH LANJUT
SILA HUBUNGI :

ASRUL AZHAR
UNIT TRUST CONSULTANT
aloy113@live.com

MANFAAT MELABUR DALAM AMANAH SAHAM/UNIT AMANAH

Selain potensi untuk pertumbuhan modal dalam tempoh jangka panjang, amanah saham juga menyediakan manfaat lain yang dikenal pasti sebagai menarik berbanding kaedah pelaburan yang lain. Antaranya ialah:

1. Kepelbagaian: Kepelbagaian melibatkan proses menyebarkan risiko merentasi portfolio saham dan bon/sukuk yang luas dalam syarikat, sektor, negara atau rantau yang berlainan. Ini hanya boleh dilakukan dengan adanya jumlah besar wang untuk membeli pelbagai jenis saham. Amanah saham memudahkan proses kepelbagaian dengan menawarkan pelabur kecil, kaedah untuk mengumpulkan wang simpanan mereka bagi membeli portfolio pelbagai saham dan bon/sukuk yang dapat memberikan pemegang unit, pulangan pada risiko yang lebih rendah berbanding dengan pelaburan secara langsung dalam pasaran saham.

2. Pengurusan Profesional: Amanah saham sama ada melantik atau mempunyai pengurus dana profesional dalaman yang mempunyai kemahiran dan sumber bagi menguruskan aset dana. Oleh itu, para pelabur mendapat manfaat daripada pengurusan dana profesional bagi pelaburan mereka di dalam dana pada kos yang rendah (dikongsi).

3. Kecairan: Pemegang unit boleh menebus semua atau sebahagian unit milik mereka pada sebarang Hari Urus Niaga dan prosidnya akan dihantar kepada mereka melalui pos dalam tempoh 10 hari.

4. Urus Niaga yang Mudah: Amanah saham tidak memerlukan pemegang unit melakukan kerja pentadbiran,kertas kerja atau penyimpanan rekod untuk menguruskan pelaburannya.

5. Keuntungan Modal: Melalui penglibatan di dalam sekuriti, pelaburan amanah saham menyediakan peluang untuk memperoleh pertumbuhan modal sebagai sebahagian daripada pulangan pelaburan pemegang unit.

Bagaimanakah Untuk Gandakan Duit Simpanan?

Pada masa sekarang dengan kehidupan moden dan kos sara hidup yang semakin meningkat,ramai yang tidak tahu betapa pentingnya duit simpanan untuk kegunaan kelak.Hampir 80% rakyat Malaysia yang tidak mengambil peduli tentang hal ini,alasannya masih awal lagi untuk buat simpanan tetapi pada masa yang sama mereka tidak tahu bahawa lagi awal mereka buat simpanan,lagi banyak wang yang ada untuk kegunaan masa hadapan.Bagaimana untuk kita gandakan duit simpanan??jawapannya mudah sahaja,terdapat 2 cara :

(a)Regular Saving

1. Minimum RM1000 untuk membuka akaun simpanan.
2. setiap bulan hanya masukkan RM100 atau lebih dan terpulang kepada kemampuan @ auto-debit dari akaun gaji setiap bulan.

TAHUKAH ANDA DENGAN REGULAR SAVING INI:

Dalam masa 10 tahun >> total saving = RM13000
dividen per annum = 12%
saving + dividen = RM23234

(b)Lumpsum Saving

1. Minimum RM1000 untuk membuka akaun simpanan.
2. Jumlah simpanan terpulang atas kemampuan seberapa banyak yang mampu.

TAHUKAH ANDA DENGAN LUMPSUM SAVING INI:
contoh RM20000 lumpsum saving>>

Dalam masa 10 tahun>> saving = RM20000
dividen per annum = 12%
saving + dividen = RM62116

Dengan kedua-dua contoh yang saya berikan diatas,dalam masa 10tahun wang dapat digandakan dengan hanya membuat simpanan.

"Saving now for tomorow good life"

Untuk Keterangan Lebih Lanjut,
aloy113@live.com

How To Make Financial Planning Work For You

You are the focus of the financial planning process. To achieve the best results from your financial planning, you will need to be prepared to avoid some of the common mistakes by considering the following advice:

1. Set measurable financial goals.
Set specific targets of what you want to achieve and when you want to achieve results. For example, instead of saying you want to be "comfortable" when you retire or that you want your children to attend "good" schools, you need to quantify what "comfortable" and "good" mean so that you'll know when you've reached your goals.

2. Understand the effect of each financial decision.
Each financial decision you make can affect several other areas of your life. For example, an investment decision may have tax consequences that are harmful to your estate plans. Or a decision about your child's education may affect when and how you meet your retirement goals. Remember that all of your financial decisions are interrelated.

3. Re-evaluate your financial situation periodically.
Financial planning is a dynamic process. Your financial goals may change over the years due to changes in your lifestyle or circumstances, such as an inheritance, marriage, birth, house purchase or change of job status. Revisit and revise your financial plan as time goes by to reflect these changes so that you stay on track with your long-term goals.

4. Start planning as soon as you can.
Don't delay your financial planning. People who save or invest small amounts of money early, and often, tend to do better than those who wait until later in life. Similarly, by developing good financial planning habits such as saving, budgeting, investing and regularly reviewing your finances early in life, you will be better prepared to meet life changes and handle emergencies.

5. Be realistic in your expectations.
Financial planning is a common sense approach to managing your finances to reach your life goals. It cannot change your situation overnight; it is a lifelong process. Remember that events beyond your control such as inflation or changes in the stock market or interest rates will affect your financial planning results.

6. Realize that you are in charge.
If you're working with a financial planner, be sure you understand the financial planning process and what the planner should be doing. Provide the planner with all of the relevant information on your financial situation. Ask questions about the recommendations offered to you and play an active role in decision-making.

Managed funds vs. index funds

So, what's best for you? Historically, most index fund have beaten the vast majority (often over 75%) of all active funds. The reason for this is costs. Since fees leave most funds underperforming the market indices, the key is to find a fund that at least matches the market and has minimal fees, i.e., go for index fund.

Who Regulates The Unit Trust Schemes In Malaysia?

The Securities Commission is the main regulatory body governing the establishment and operations of unit trusts in Malaysia under the Securities Commission (Unit Trust Scheme) Regulations 1996. This requires that the Manager and Trustee execute a Trust Deed, registered with the Securities Commission. You may purchase a copy of the Trust Deed which is registered with the Securities Commission for inspection at the Manager’s office.

Comparison of Unit Trusts with Direct Investments in the Stock Market & Fixed Deposits

Unless a person has a very large amount of cash for direct investments in individual stocks, he may not be able to achieve a sufficient level of diversification. Losses in one or more of his stocks may substantially reduce the value of his portfolio. Unit trusts, on the other hand, have a diversified portfolio and losses in some of the stocks held are offset by gains in others. Nevertheless, a person with an undiversified portfolio may reap great returns if one or more of his stocks increase in value. Unit trust prices rise more gradually when some of its stocks' prices increase as the unit prices are based on the total value of the portfolio.

Fixed deposits are generally safe and the returns are guaranteed. Nevertheless the returns are generally lower and may be eroded by inflation. Unit trusts generally aim to achieve returns that are higher than fixed deposits but such investment carries the risk that losses may be incurred.

What are the Benefits of Investing in a Unit Trust?

Diversification – the spreading of risks over a wide variety of securities in different sectors. Normally to do this, you must have a substantial amount of money to buy a diversity of stocks. However, unit trust funds facilitate this by providing small savers with an opportunity to pool their savings to invest in a diversified portfolio of stocks or you could think of it as "not putting all your eggs in one basket".

Professional Fund Management – your ability to employ a team of well-trained, in-house investment professionals who conduct full-time regular investment research and analysis in managing the assets of the Fund. With such investment expertise, research facilities and information network, sound investment decisions may be made.

Liquidity – you can redeem all or part of your units on any Business Day and the Manager will purchase them.

Hassle Free – you need not trouble yourself with complicated decision making and arduous paperwork involved in investment in the securities market.

Affordability – you only need a small amount of money to participate in a professionally managed portfolio of investment and enjoy the same benefits accorded to others when investing in high priced securities. At the same time, you can also reap better returns from a portfolio of investment as opposed to the limited number of securities which one can invest individually.

What Is A Unit Trust And How Does It Work?

A unit trust is a professionally managed investment fund which pools your money with that of many other investors with similar investment objectives. The aggregate sum is then used by the fund to build a diversified investment portfolio which comprises stocks, bonds and other assets in accordance with the investment objective of the fund.

The price of a unit reflects its total Net Asset Value, commonly referred to as NAV (the fund’s assets less its liabilities, divided by the number of units in issue). Unlike stocks, whose prices are subject to change at each trade, the fund’s NAV is calculated only at the close of each day’s trading. Hence the fund’s unit price is quoted in major newspapers on the following Business Day.

To protect your rights and interests as investors, an independent Trustee is appointed to ensure compliance of the Manager with the requirements of the Trust Deed, Securities Commission Guidelines on Unit Trust Funds and Securities Commission (Unit Trust Scheme) Regulations 1996. The manager is also required to appoint an approved Company Auditor (within the meaning of the Companies Act 1965) for the purpose of conducting annual audits of the Fund’s accounts which must be included in the fund’s annual report.

How Much Money Do I Need To Retire?

One of the most frequently asked questions I receive has to do with retirement. In particular, people are wondering how much money they need to retire. I wish there was a simple answer, but it isn't an easy question. There are a lot of media outlets out there that will throw around a lot of numbers and say you need at least a million dollars in the bank, or have to save at least 15% of your income for retirement. While these may apply to some people, the problem is that everyone's specific retirement situation is unique and it's impossible to have this magic number that works for everyone.

So, how can you determine how much money you need for retirement? The younger you are, the harder it is to calculate because so much can change in terms of your situation and with things like taxes and economic conditions over the next thirty or so years. In situations like this, you should know that you'll probably need close to as much income in retirement as you need now (adjusted for inflation of course). As you get older and retirement gets closer, you really need to sit down and start to project your expenses. You should have a rough idea of whether or not you'll be receiving a pension, what your Social Security check will be, and realistically start thinking about life expectancy and your retirement goals.