WHAT IS FINANCIAL PLANNING?
Financial planning is the process of meeting your life goals through
the proper management of your finances. It is an interactive and
ongoing process shaped around your financial life cycle needs, for
example buying a home, saving for your child’s education,
supporting your ageing parents and preparing for your retirement.
Financial Planning can be divided into 3 areas:
• Personal Risk Protection
The failure to protect the family in the event of the main earner's
death is one of the most common occurrences in modern financial
planning. This could apply to the corporate world as well, where
businesses are lost when a key director or partner dies.
Knowing that your family is protected in the event of your
ultimate death can provide enormous peace of mind.
• Asset Accumulation
Once living expenses and insurance costs have been met, it’s
important to build a basic fund - “nest egg” for your financial
goals. Asset Accumulation helps to provide for your future cash
needs or prepare for your retirement by means of building your
wealth through investments.
• Asset Distribution
Asset Distribution assures that your estate is distributed efficiently
and tax effective way after your death. The main aim is to try to
avoid the likelihood of your love ones suffering financially. It also
helps to minimise the risk of family squabbles about who gets what.
Hence, there are certain decisions in your life that you have to
make in advance of your death. Such decisions could involve the
maintenance, disposal and use of your estate, cash, investments,
business possessions and life insurance.
A comprehensive financial plan includes Cash Flow Planning,
Personal Risk Management, Investment Management, Retirement
Planning, Tax and Estate Planning. A change or more in any of
these areas may affect you in achieving your financial goals.
| For an endless streams of income, you need a financial plan |
"Wealth Creation Through Financial Planning"
Financial Planning
Investment Planning
Insurance Planning
Tax Planning
Retirement Planning
Estate Planning
Copyrights 2010 by Sigma Wealth Sdn Bhd. All Rights Reserved.