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Monday, July 30, 2018

6 Questions to Test if You Know Your Money

The one and only trait of all the wealthy people is - Understand Your Money. Do you really know about your money? Here are 10 questions to test yourself! If you can answer all clearly, congratulations, you are on your way towards the wealthy people! 

6 Questions to Test if You Know Your Money

Q1: Where did my money go last week?
Wealthy people know exactly where they spend all their money. Having said that, the wealthy people have allocation/budget for all expenses. So if you don't, it's not too late, take 10 minutes to review your bank and credit card transactions. Did you stay within your budget last week?

Q2: Where will my money go this week?
If you did not stay within your budget last week, no worry, this week is your redemption! If you have overspent last week, what can you cut down this week to make up the difference? Review your budget again to figure out how much exactly you can spend on each categories this week.

I don't even have a budget?
At this juncture, if you cannot answer the two questions above, then you really gotta start from the beginning! Get yourself a notebook for tracking of all your income and expenses, call it "My Money Book". If you are Go-Green supporter, you can set up a spreadsheet using Excel or Google Sheet to do the tracking. To help you kick-start your financial management, you can download #YourFinanceDoctor Template here. 

Q3: What do I want in 5 years that I need to save/invest for today?
"Direction is so much more important than speed. Many are going nowhere fast." I bet many of you have not really thought of what you want in 5 years that you need to save/invest for today. You probably just work work work work work. *plays Rihanna's Work* Here are some examples:

"In 5 years, I would like to have RM100k to buy a house." 
"In 5 years, I would like to have RM50k for vacation in Europe for a month." 
"In 5 years, I would like to be financially independent with a passive monthly income of RM5k."

Q4: What is the one major goal you want to accomplish in a year?
Long term goal does not motivates you in short term? Set yourself some short term goals as well. Big goals can be broken down into small goals so that they looked more achievable. Here are some examples:

"I want to pay off all my credit card debt."
"I want to accumulate RM10k for emergency fund."
"I want to start invest RM1k per month."

Q5: What should I do this week to move closer to my goal?
"A dream is only a dream if work don't follow it." You can dream all you want but if you don't put it into action, you can never achieve them. So ask yourself, what step will you take to move yourself closer to the goal? Here are some examples:

"I will track every dollar I spend this month to see where my money is going."
"I will stop using my credit cards so that no new debts added."
"I will stop all entertainment expenses until I have accumulate RM10k emergency fund."

Q6: What can I do this week to further my money knowledge?
Learning is a lifelong journey. But this is simple. You are already doing this right now!

"I will Like & Follow #YourFinanceDoctor blog."
"I will make appointment with #YourFinanceDoctor to better manage my finances."
"I will read a chapter from a personal finance book."
"I will attend investment conference to keep myself up to date."

6 Questions to Test if You Know Your Money

Like the saying goes "你不理财,财不理你". If you dont take care of your money, your money will not take care of you too. So you should always be proactive for your personal financial management. Start now so that 5 years from now, you will look back at all these steps you have taken and thank yourself for how far you have achieve. It's never too late to start NOW.

Monday, May 14, 2018

How The Market Will Be After Election?

A historic win at Malaysia's general election by the opposition alliance, Pakatan Harapan, unexpectedly beat the 60 years of ruling Barisan Nasional coalition. While the news is excellent for democracy, market uncertainty is likely to linger. Thankfully most are positive that the volatility will be temporary. 

Prime Minister Tun Dr Mahathir Mohamad swiftly named a senior cabinet portfolios and a “council of elders”is likely to soothe investor sentiment within a brief period.

Council of Elders:
1. Daim Zainuddin
2. Zeti Aziz
3. Hassan Merican
4. Robert Kuok
5. Jomo Kwame Sundaram


Related Quotes:

Amy Yuan Zhuang, Research Analyst at Nordea Markets
The unexpected election result is MYR negative in the near term, but once political uncertainties fade away, the MYR will likely strengthen against the USD, supported by expected USD weakness, high oil prices and solid macro conditions.

Aninda Mitra, Senior Sovereign Analyst at BNY Mellon Investment Management
The bottom line is that while a long-term fix of governance, institutions and public life is now in sight, near-term policy uncertainty will be high. That will take a toll on the ringgit at least until more clarity emerges.

Teera Chanpongsang, portfolio manager at Fidelity International
Short-term, we may see market volatility given uncertainty around policy implementation. However, we may see some opportunities should policies move in the right direction. 

Gan Eng Peng, Director of Equities Strategy and Advisory at Affin Hwang Asset Management
While we acknowledge the possibility of short-term capital outflows because of policy uncertainties, we firmly believe the newly-formed government presents an opportunity, as it is comprised of a group of senior ministers with strong credibility.

Datuk Shahril Ridza Ridzuan, CEO at Employee Provident Fund
Short term volatility is natural given this is the nation’s first experience of a power transition, but the smooth process seen so far will assure investors that Malaysia is a mature democracy and economy. The new government’s call for greater enhancements to local institutions’ corporate governance practices and independence, together with greater scrutiny by strong regulators, such as Bank Negara Malaysia and the Securities Commission Malaysia, would bode well for the local business environment.

Anushka Shah, Sovereign Risk Group Assistant Vice-President at Moody’s 
The Government’s debt burden is relatively higher than other A-rated sovereign states and this will likely remain a challenge for the country’s credit profile. 

Anthony Dass, Chief Economist at AmBank Group Research
Removing the GST and introducing the SST and other subsidies will act positively on the economy, as they help to improve the disposable income of households, and thus, spending. This will help buffer any shortfalls from the GST. Besides prudent financial management as we have seen in Selangor and Penang, a more transparent public procurement system or tendering process will improve competition and lower margins for players and ease budget strains. Dr Mahathir’s strong track record, added with Datuk Seri Anwar Ibrahim as the prime minister-in-waiting and the maturity of Malaysians as reflected in this GE, augur well for the country. These are positive signs on the business and consumer confidence.

Simon Chen, Investors Service Financial Institutions Group Vice-President at Moody’s 
We are closely following the developments around some campaign promises that could have a negative impact on market sentiment and trigger volatility in the financial markets. These dynamics will take time to unfold and a lot will depend on what the new Government unveils in the coming weeks and months.

Tan Sri Muhammad Ibrahim, Governor at Bank Negara Malaysia
Malaysia was no stranger to short-term volatility, as the country's open economy was highly integrated with global markets. Industry players should not to overreact to market noises, especially when it was caused by factors which were temporary in nature.

Tan Sri Azman Mokhtar, Managing Director at Khazanah Nasional Bhd 
On managing investors’ perception during the transition of power, he said there could be the usual gyration in the market in the short-term, but the current environment provided a fantastic opportunity in the medium-to-long term. So, from the market, ringgit standpoint, I think clearly the confidence is actually the biggest factor. I think with the new reset, this will come through. 

Thursday, March 8, 2018


Have you come across "PRE-AUTH DEBIT" and "PRE-AUTH REFUND" with the amount of RM200 in your bank transaction statement? Well don't be shocked, these are actually the bank deduction when you swipe your card for self-service petrol pump at petrol station. 

As you know, #YourFinanceDoctor is a frequent user of Caltex given that there's BPoint to earn. And recently, Caltex is promoting on the Wave & Win with Visa Paywave, so I started to use the self-service pump. Which explains why recently there's such deductions in my bank statement.

To be honest, I don't always check my bank account statement, but I was shocked at first too for not knowing what it is, but given that there is refund so I am not too worried. After a quick search in Google, then only I found out...

PRE-AUTH = Pre Authorization

Basically the bank will deduct RM200 for Pre Authorization IF AND ONLY IF cardholder pays for petrol at a self-service pump. This amount will be refunded within 3 to 5 working days. So if you do not wish to be deducted, just proceed to the counter to use your card.  

Why do they want to deduct?
Well, since the amount of money to pump petrol is not known yet until you are done and put back the pump nozzle, so they have to deduct a fixed amount of RM200 first just to make sure that the card has sufficient credit before the transaction. So if your account has lesser than RM200, you would not be able to proceed to use. 

Can I avoid being deducted?
Not unless if you opt to use pay-over-counter. But if you insist to use self-service pump, perhaps you can consider to use CIMB Card with no deduction but only at Petronas

So the next time if you see such deduction, don't be scared or shocked, you will be refunded! 

Wednesday, February 21, 2018

3 Years Since I Quit My Engineering Job And Start My Own Business As Financial Advisor!

As many of you would know, I used to be a product regulatory engineer in Keysight Technologies (formerly Agilent Technologies) for 3 years before I quit my corporate job to start my own business as a Licensed Financial Advisor/#YourFinanceDoctor

 Top Advisor under Advisory Fee in 2017

After completing my 2 years Certified Financial Planner® part time course and exam, I was eligible to upgrade myself from being a unit trust consultant/insurance agent to Licensed Financial Advisor (FA) by applying for the licenses from Bank Negara Malaysia and Securities Commission Malaysia. Read more on why I want to upgrade to being a Financial Advisor. Recently, I even gotten myself Shariah Registered Financial Planner (RFP)! 

Those were the days as engineer! 

Throughout the 3 years, many were curious on what business I am into, am I doing well or not, and even asked if I would consider to go back engineering job. I am not going to lie, but these 3 years has been really tough, so much so that it was way beyond my expectations. Nevertheless, I am still going strong and determined than ever, just like the mantra of the Survivor, "Outwit, Outplay, Outlast!". 

Completed both CFP and Shariah RFP

So here are the most commonly asked question and answer.
What business you are into?
Licensed Financial Advisor. I help my clients to achieve their financial goals through proper comprehensive financial plan, which helps them to see the big picture and set both long and short-term life goals. In return, it's easier for them to make financial decisions and stay on track to meet their goals. 

Any difference from insurance agent/unit trust consultant(UTC)? 
Since I used to be both agent and UTC, I know exactly how it is like. A simple multiple choice question exam with just SPM certification, one can be easily qualified. Besides, being financial advisor means I have to resign from any insurance company and unit trust company, and become independent-unbiased advisor that only represents client

How do I know if you are really who you claimed to be?
If seeing is believing... Check out these websites:
Certified Financial Planner (CFP): C005430 (
Shariah Registered Financial Planner (RFP): M30012221 

Financial Talk in universities and multinational corporations.

How many FA in Malaysia?
Many people would have thought that they have heard or known about financial advisor, but those that they know are probably insurance agent/unit trust consultant calling themselves financial advisor. In Malaysia, there's only about 600 REAL financial advisor out of 32 million Malaysia's population! In fact, misusing the term "financial advisor" without the license from BNM will be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both. (Section 139, Financial Services Act 2013)

What is your Unique Value Proposition?
There are too many people that are simply selling product and collecting commission. They are driven by the incentive trips and bonuses provided by the companies, to the extent that you would start wondering if they are putting client's interest first or their wallet first

Since a financial advisor does not represents any insurance companies/fund houses (not entitled to any of those incentive trips/bonuses too!), I can sell anyone of them which are best suited to the client. I will need to research the marketplace and recommend the most appropriate products and services available, ensuring that clients are aware of products that best meet their needs and then only securing a sale. 

Is that consider as a business?
Yes, we are required to register with Suruhanjaya Syarikat Malaysia (SSM). In order for Bank Negara Malaysia to give us the license, we will need to provide a statutory declaration where we declared as non bankruptcy and also pass all the "Fit and Proper" criteria.

Do you get a base salary as a financial advisor? 
No I do not. As a financial advisor, we are all self-employed

If not, how do you earn?
I am a Fee-Based financial advisor, where I charge both fees and commissions based on the investment or insurance products I sell. I charge a fee based on client's annual household income and also a fee on asset under my management for my client. 

As far as I know, there is still no "Fee-Only" financial advisor in Malaysia given that the awareness on financial advisor is still far too low. But given the rise of fin-tech, I hope one day I would be fully converted to "Fee-Only" financial advisor.

Being awarded as the Top Advisor in collecting Advisory Fee in 2017.

All in all, I believe in proper financial planning, which by having a comprehensive financial plan, it is the best way to help you to make sensible and informed decisions about money that can help you achieve all your goals in life; it's not just about buying products like a medical card or a saving plan.

Gain control and peace of mind today, contact #YourFinanceDoctor! 
Give me a call: 016-427 0233 or shoot me an email: TODAY!

Thursday, January 18, 2018

Net Asset Value - NAV

What is Net Asset Value - NAV?

Net Asset Value (NAV) is the value per unit of a unit trust fund or a mutual fund on a specific date. The per-unit amount is based on the total market value of all the securities in a unit trust fund's portfolio (Total Assets minus Total Liabilities) and divided by the number of units outstanding. Hence, it is the price per unit of the fund which used for subscribing (buy) and redeeming (sell). 

What is the difference with share price?

Unlike share price which fluctuates throughout the day, NAV per unit is only computed once per day based on the closing market prices of all the securities within the unit trust fund's portfolio. So, investors usually can only get to know the NAV per unit the next day. However, all the subscription and redemption order will be processed using the NAV of the Transaction Date. 

Investor A bought RM10,000 into Unit Trust X on 10/1/2018 (Transaction Date).
But Investor A can only get to know the NAV he bought on the following day, 11/1/2018. (T+1)
In other words, today you only get to know the NAV of a unit trust fund for the day before.  

What else I need to know?

Unlike share price of a share company, the NAV of a unit trust fund does not depends on demand and supply of the unit trust fund. In order to buy a share at a certain share price, one would need wait for a matching seller and vice versa. But for unit trust fund, one can always make subscription and redemption at anytime. 

From the NAV formula, only increases in Total Assets or decreases in Total Liabilities can directly affect NAV of a unit trust fund. As a result, changes in NAV are not the best gauge of a unit trust fund performance. Many other measures such as Annualized Return, Sharpe Ratio, Alpha, Beta and so on, would be much better indications of a unit trust fund performance. 

Tuesday, December 19, 2017

What's your New Year's Resolution?

We are entering towards the last few weeks of the year, probably you have started thinking about your new year's resolution and how you are going to be better in the new year. But, chances are that you would probably end up the same like any previous year.  

Every year, you stopped at just having the thought but without any actual actions. Then, time flies by in the blink of an eye and turn that into a vicious cycle. You aged year by year and as you get older, you start to stay in your comfort zone and too afraid to try anything new or even to take the leap of faith. 

But deep down, you know you have to make a change. So here's how!

Decide to do something different!
How bad do you want it? You may have heard about this a lot but nothing can really happen until you actually make the decision. You have to decide what you really want and what you are willing to sacrifice to exchange for it. Tell yourself, "I will do whatever it takes to get me there!". 

Set Goals!  
Imagine how a runner can win a race without knowing where the end point is? It's like kicking football penalty without a goal post, shooting basketball without a hoop or even driving without a destination! How horrible would you be feeling? And set a SMART goal, make sure it is specific, measurable, attainable, relevant and time-bound. 

Make Plans!
Many people just start right away without a plan, which is also why they failed halfway through. Yes you may have your eyes on the prize/goal/destination, but without knowing what actually you need to do is not going to get you there. It's just like in order to get you to your destination, how much petrol you need to pump into your car, how much money you need to prepare for the toll, what are the directions and most importantly, can you arrive on time? Make a thorough plan!

Take Action!
3....2....1... Action! Life is pretty much like a movie where you are your own main actor/actress, as well as the director, except that there is no take two in life and you just wasted another day or another year. There is certainly no stuntman to replace you too, you just have to do it all by your own. So, can you be the best actor/best director for your own life movie? You can and you should

And again, this may be just another typical articles that you read which could only sparks for a moment for you. You may find it inspiring, liking the post or even sharing to your friend. But at the end of the day, it is you who is going to change your own life! Take action now!

#YourFinanceDoctor is Licensed Financial Advisor with CFP®! He helps his clients to achieve their financial goals through proper comprehensive financial plan. He also provides unbiased and independent professional financial services including financial plan, investment, insurance, will and trust. Hire #YourFinanceDoctor today

Wednesday, November 8, 2017

Time for Private Retirement Scheme (PRS) Again!

Every year I have written one to two posts on the Securities Commission (SC) Malaysia regulated Private Retirement Scheme (PRS). This year I will do the same as well since we are going towards the end of 2017 and it's about time to invest in PRS again! 

If you have read my previous PRS post back in 2015, you would have known all the advantages of investing in PRS. Up to date, the advantages are still remain the same, which include:

  1. Set aside another retirement saving on top of Employee Provident Fund (EPF)
  2. Enjoy up to RM3,000 Tax Relief allowable by Lembaga Hasil Dalam Negeri (LHDN)

And also the newly added and change to the advantages:
  1. Nominate for your loved ones
  2. Get rewarded with RM1,000 Youth Incentive (Only for Malaysian aged 20-30)  

If you happen to be one of #YourFinanceDoctor's clients, one of my advice is to invest at the end of the year. PRS allows you to enjoy the RM3,000 tax relief regardless of when you invest the money, as long as it is within the calendar year. So why not make good use of the money first in the beginning of the year, be it to invest in share market or unit trust, then only invest in PRS at the end of the year. 

Of course, this does not apply to all, especially those non-financial savvy person or those without the discipline to keep the money, which may ended up with no more cash at the end of the year. So in this case, #YourFinanceDoctor may advise you to just apply for a monthly auto deduction (direct debit authorization) from your bank account to PRS. 

So regardless which type of person you are, if you are reading this and you have yet to invest in PRS, NOW IS THE TIME! I strongly believe that you should be investing in PRS as long as you fulfill the following criteria:
  1. Your Income is Tax Liable (You are required to pay tax!)
  2. You are Malaysian aged 20-30 (More reason to invest!)

In other words, I can't think of any reason for you to say no to PRS unless you are:
  1. Your Income is not Tax Liable (You doesn't need to pay tax!)
  2. You are older than aged 30

So let's get it done! Then, your next question will be...  Which PRS Fund to Invest? Similarly, I have written in 2015 (click here to read) on the 3 methods for you to determine which fund to invest out of a total of 56 available PRS funds.  

Contact #YourFinanceDoctor now to kickstart your PRS!

Next PRS post I will be writing about the newly added advantage of Nomination and the change of Youth Incentive from RM500 to RM1,000. Stay tuned! 

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