BETONG: Financial planning is a strategy in life geared towards sustainability and prosperity.
Experts will readily agree with this dictum but, unfortunately, in reality a great many do not engage in any form of financial planning for one reason or another.
Some cite insufficient funds for not being able to do so while others blame it in on a trying economic situation.
i-CATS University College Associate Professor Dr Bolhan Budeng the issue needs to be looked into seriously.
Clearly, investment is a good plan compared to just saving and not spending, he said, reacting to Malaysians admitting to not having a documented financial plan here, yesterday.
It is therefore necessary to study the investment sector that is sustainable and profitable in the long term as well as the organisation that carries out the investment.
“Don’t get entangled with investments that promise instant profits due to the high risk of loss.
“Active investment boosts the country’s economy as a whole,” he said.
Bolhan however stated that individuals over the age of 60 should not bear the risk of investing if they have enough savings to continue living.
A few days ago, based on a Wealth Perception Survey conducted by Hong Leong Bank Berhad (HLB), 12 per cent of Malaysians considered themselves rich.
The survey involved more than 1,000 local respondents aged between 18-77 years.
But 79 per cent of respondents admitted that they do not have a documented financial plan due to the assumption that they do not have enough funds to start a formal wealth management plan.
Fifty-seven per cent said they invested in shares, closely followed by 56 per cent who allocated funds for ASB/ASM schemes and 54 per cent who were involved in gold investments.
Only 44 per cent of respondents chose fixed deposits as their primary investment approach.
