Financial Planning

is the process of meeting your life goals through the proper management of your finances. This could include getting out of debts, providing education for your children, living a comfortable retirement, achieving financial freedom, giving to charities, purchasing a home or simply accumulating some cash for rainy day.

It is not meant to achieve great riches although much cash savings can be gained through intelligent management and monitoring of investment activities.

The process often involves cash flow management, risk planning, investment planning, tax planning as well as estate planning. A detail financial needs analysis will assist the financial planner to discover the meaning of the problems (goals) and explore potential solutions to achieve these goals.

• Establishing the goals and objectives
• Gathering the information required
• Analysing the information
• Developing a plan of action
• Implementing the plan
• Reviewing and monitoring the plan regularly

Financial planning is a team approach process requiring advisors or professionals of various disciplines to optimize the potential solutions. In SFP, we believe a team approach coupled with the client will greatly enhance the viability and satisfactoriness of the plan.

The fees for the financial plan will vary considerably depending on the complexities and detailness. It may range from as low as RM 500 and beyond. In order to assist our client arrive at an acceptable fees, we propose an initial no-obligation meeting to establish the detail and complexity before we propose a fee for the plan subjected to the client acceptance in writing.

We welcome and encourage enquiries to discuss further. Please e-mail to admin@sfplanner.com

Financial Planning | Cash Flow Planning | Tax Planning

Cash Flow Planning

Cash flow is the river of life. It is life's energy. It is something everyone is searching for from kings to beggars. If you don't generate it and manage it, you will be at risk of losing not only your self-esteem but also life itself. How much cash flow you generate is dependent upon a variety of factors. The principal factor would be your education and skill level. The economics of life is based on man being the provider of goods and services and also the consumer of goods and services. It is an ever flowing and ever changing cycle. If you stop producing, consumption stops and if you stop consuming, production stops. We do this as a family, group, community, nation and the world. So a vital subject like cash flow management needs careful analysis.

Cash flow is generated either actively through employment or business, or passively, through savings and investments. Each period in your life cycle, will determine the appropriate activity. In the early stages of life, cash flow will be actively generated, and later in life and through retirement, passive income will be more prominent. The ultimate aim is to replace your active income with passive income as you reach retirement.

Cash flow planning involves a dual approach of, containing unwanted expenses and allocating them efficiently to achieve desired returns. Investment planning for returns and lifestyle choices to prune expenses, is a basic activity of Financial Planners. This is a vital activity for all clients. To do this a personal financial statement must be constructed showing income and expenses on one sheet and assets and liabilities in another. An analysis must be made as to the strengths and weaknesses of both these statements. Financial Planners will only advise financial products against this financial backdrop. Superimposed on this framework will be the person’s risk and thrift profile. Working together with the planner the client will set his priorities and start implementing his plan to achieve his goals progressively. Cash flow is at the center of all this.

Tax Planning

Tax is an unavoidable expense in our lives. Minimizing that expense is a universal quest. Because tax pervades all aspect of our lives it has to be understood very well. Savings mechanisms, savings vehicles, timing of entry and exit for capital gains computation and a multitude of other factors require the full utilization of tax planning to expand the after-tax cash flow. An important aspect of tax planning is the utilization of the economic workplace to fund retirement and other life goals.

Facts determine the outcome of most tax appeals. Therefore it is expedient that the taxpayer organizes his tax affairs so that the least amount of tax is imposed upon him or her. Tax is a vast net that captures even the most astute. But the effort is worth the while as tax planning has a direct impact on the cash flow.

The tax laws of the country keep changing and individuals are always finding it a task to keep up with these changes. A financial planner will most certainly keep a tax consultant in his team of advisers.