Issue No.


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Why You Should Plan Financially

This article is reproduced with permission from
Normandy Advisory Services Sdn. Bhd (Licensed Investment Advisor)
15th Floor Menara Multi-Purpose, No 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur
Tel : 03 - 469 5560 Fax : 03 - 294 5561

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Think of your retirement
Perhaps the most important reason why we invest is to preserve enough funds for our "golden" days. But the problem is that not many individuals place even the slightest emphasis on retirement planning. Try talking to anyone in their 20s about planning for their retirement and they will probably just laugh at you.

As we get older, we incur more financial commitments. Without proper planning at the initial stage of our life cycle, we are likely to encounter financial worries and depending on the degree of the problems, we may run into insolvency.

In short, one should start thinking about what is ahead of you. Think beyond the short-term. You should start your investment plan without any delay to ensure greater assurance for you and your loved ones during your retirement period.

You should think and start planning straight away. Remember that the current interest that you gain from your RM100,000 fixed deposits will not be enough to secure your future.

wider investment menu

There are ample of alternatives that one can do in order to maximize investment returns. The global and Malaysian financial markets are getting more sophisticated. Today there are many alternatives that one can consider when investing both on-shore and off-shore.

You should seek advice from professionals advisers if you are not familiar about any financial gameplan.

The impact of inflation

Inflation, a critical economic variable, affects the value of the money that we earn. Inflationary impacts such as rising medical costs and other basic needs require greater reserves be created for tomorrow's needs.

Adjusted for inflation, the RM2 that you spend to buy a bowl of noodles today may not even be enough for a cup of coffee 5 years from now. You should therefore not rely solely on rising current personal income to determine future wealth. Effective investment planning will serve as a hedge against inflation.

Be responsive to market changes

Rather than sticking to well-tried opt ions such as the property and fixed deposits, investors should widen their investment selections. Although low risk, your inherited piece of land or house will unlikely protect you in the future.

Look beyond the traditional boundaries. There are many other opportunities with different risk categories that offer you a more "productive" return.

An investment tool such as an aggressive unit trust fund investing in small-capitalization stocks that involves more risk should not be just shut off completely. It can deliver attractive returns if it were to be managed by a capable fund manager. Study thoroughly any of the new investment options that is recommended to you before investing.


An investment gameplan is actually a simple process but if you are not familiar with the world financial markets, make it a point to talk to someone in a similar field who knows what is best - an investment advisor.

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Reproduced with permission from Normandy Services Sdn Bhd, Tel:603-4695560 Fax:603-2945561