Podcast
Questions and Answers
What four concerns should guide the development of a financial plan?
What four concerns should guide the development of a financial plan?
What is the importance of liquidity in a financial plan?
What is the importance of liquidity in a financial plan?
According to Principle 4, what should be considered in financial planning?
According to Principle 4, what should be considered in financial planning?
What is the relationship between Principle 7 and financial planning?
What is the relationship between Principle 7 and financial planning?
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What is the outcome of balancing earnings and spending in financial planning?
What is the outcome of balancing earnings and spending in financial planning?
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What does financial planning ultimately aim to achieve?
What does financial planning ultimately aim to achieve?
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What is one of the benefits of wise financial planning?
What is one of the benefits of wise financial planning?
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What is a factor to consider when selecting a financial advisor in Malaysia?
What is a factor to consider when selecting a financial advisor in Malaysia?
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What is one of the qualifications of a financial advisor?
What is one of the qualifications of a financial advisor?
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Why is it essential to conduct a background check on a financial advisor?
Why is it essential to conduct a background check on a financial advisor?
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What is a key aspect of a financial advisor's code of ethics?
What is a key aspect of a financial advisor's code of ethics?
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Why is it essential to have a written agreement with a financial advisor?
Why is it essential to have a written agreement with a financial advisor?
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What is a potential drawback of a commission-based payment structure for financial planners?
What is a potential drawback of a commission-based payment structure for financial planners?
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What is an alternative payment structure for financial planners?
What is an alternative payment structure for financial planners?
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Study Notes
Principles of Personal Finance
- The 10 principles of personal finance: knowledge, planning, time value of money, taxes, liquidity, smart spending, protection, risk and return, mind games, and taking action.
Developing a Financial Plan
- Four concerns that should guide the development of a financial plan: flexibility, liquidity, protection, and minimization of taxes.
- Without a plan, nothing happens, and spending is easier than saving.
Principles 4, 5, and 7
- Principle 4: consider tax implications of earning and investing to maximize available money after paying taxes.
- Principles 5 and 7: parallel principles of plan development, emphasizing unexpected events, access to cash, flexibility, and insurance protection.
Financial Planning
- Involves obtaining financial resources, planning for current and future expenses, saving, borrowing, spending, managing risk, investing, retirement, and estate planning.
- Benefits of wise financial planning: increased effectiveness, control, personal relationships, freedom from financial worries.
Selecting a Financial Advisor in Malaysia
- Factors to consider: relevant licenses (SC, CFP, RFP), qualifications, trustworthiness, experience, code of ethics, availability, and written agreements.
- Remuneration options: commissions-based, one-off professional fee, retainer, and free advice (with potential biases).
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Description
Test your understanding of the 10 principles of personal finance, including the importance of knowledge, planning, and smart spending. Learn how to make informed decisions about saving, investing, and managing risk.
