Q&A
Common Questions and Answers Regarding Financial Planning Services
1. What is financial planning?
Financial planning is the process of assessing your financial situation, identifying goals, and creating strategies to achieve them, ensuring long-term stability and security.
2. What are the benefits?
Financial planning helps you manage finances effectively, achieve goals, secure your future, and make informed decisions about investments, budgeting, and risk management.
3. What is an example of a case a prospect may encounter where financial planning is beneficial?
This is an example of a case which you may encounter
"A 40-year-old professional earning RM 120,000 annually faces multiple financial challenges. They struggle to save for their two children’s education, costing RM 200,000 each, while managing a RM 2,500 monthly home loan. They aim to retire at 55 with RM 2 million but have only RM 300,000 saved. Their life takaful coverage of RM 500,000 may be insufficient to secure their family’s future. Additionally, they wish to budget for RM 10,000 annual vacations while balancing other obligations. They also want to set up a Wasiat to ensure proper estate distribution, leaving them unsure about how to allocate resources effectively and meet their goals"
A financial planner can analyze their finances, optimize savings and investments, ensure adequate insurance coverage, manage cash flow, and develop a comprehensive estate plan to meet these goals."
4. Who is a financial planner?
A financial planner is a professional who provides advice and strategies to help you achieve financial goals through comprehensive planning and proposes solutions for scenarios prospects may encounter, such as the case example above.
5. How is a financial planner different from a unit trust or insurance agent?
A financial planner offers holistic advice covering all financial aspects, whereas unit trust or insurance agents focus on specific products like investments or insurance.
6. What are the competency and licensing requirements?
Financial planners typically hold certifications such as IFP, CFP, or similar qualifications, ensuring they meet industry standards and legal requirements for professional advice. They must also register with the relevant regulatory body. For more details, visit the "About" page, scroll down, click "Biography," and scroll down to "Certification and Registered Person."
7. How do I get financial planning services?
Visit the "Contact" page and key in the appropriate information. If you want to know the full process , scroll down, and click the appropriate button to be directed to the “Step-by-Step Guide” page for detailed information on the financial planning engagement process
8. How much is the fee?
Fees are transparent and flat, as clearly stated in the Letter of Engagement (LOE).
9. Is there an agreement?
Yes, the agreement is formalized in the Letter of Engagement (LOE), which outlines the terms of the service.
10. What are the steps when engaging financial planning services?
Please refer to the “Step-by-Step Guide” page for a detailed process (See no. 7)
11. How does the financial planning service work?
Initially, the financial planning service involves a one-year engagement, covering all scopes outlined in the LOE, aligned with the client’s financial objectives.
12. What is the scope of financial planning?
The common scope includes investment, cash flow, budgeting, estate planning, education, and risk management. Details are outlined in the LOE.
13. How does a financial planner execute financial planning services?
A financial planner conducts a series of engagements or meetings, either in-person or online, as agreed upon with the client. Discussions cover the agreed-upon scope and address specific areas of concern to develop effective strategies
14. How do you gather my financial information?
Through a fact-finding process where you provide essential details such as income, expenses, liabilities, and assets.
15. Is my data kept confidential?
Yes, all data is private and confidential, protected under the Personal Data Act (PDA).
16. What if I don’t want to disclose information?
Without full disclosure, a proper analysis and suitable recommendations cannot be provided.
17. What happen to the information gathered?
Based on the information, a report will be produced and presented to the client. It will include tailored proposals and strategies to achieve their financial objectives and address their concerns. It may also propose solutions involving products such as takaful, unit trusts, or hibah, depending on the client's concerns and objectives.
18. Should I follow the recommendations?
It is highly recommended to follow the plan, but the decision is entirely at the client’s discretion.It may also propose solutions involving products such as takaful, unit trusts, or hibah, depending on the client's concerns and objectives.
19. What happens if the proposal cannot be completed within one year?
Clients have the option to extend the engagement for another year if required.
20. How long do clients typically engage with a financial planner?
The engagement duration depends on implementation progress and goals. Generally, it takes 2–3 years, with adjustments as goals evolve.