PERSONAL FINANCIAL PLANNING

About this Course

This course introduces the students to the personal financial planning. The syllabus for this course provide with the basic understanding of financial planning concept.

Course Learning Outcomes

1) Assess components of consumption, savings, investment, and retirement planning in personal financial planning main areas.
2) Analyse personal financial statements and personal income tax assessment.
3) Evaluate basic stock portfolio for personal investment.

Course Syllabus

+ Course Syllabus

1) Personal Finance Basics
The Process for Making Personal Financial Decision.
Personal and Economic Factors Influence Personal Financial Planning.
Time Value of Money.

2) Money Management Strategy
Definition and Importance of Money Management.
Preparation of Personal Balance Sheet and Cash Flow Statement.
Financial Ratios.
Personal Budget.

3) Income Tax Planning
Malaysian Tax System.
Assessment of Income.
Employment Income.
Tax Strategy.
Tax Rebates.
Types of Tax Assessment.
Format of Tax Computation.

4) Investing Fundamentals
Preparing for an Investment Program.
Factors Affecting the Choice of Investments.
Asset Allocation and Investment Alternatives.
Factors that Reduce Investment Risk.
Sources of Investment Information.

5) Investing in Stocks
Common and Preferred Stocks.
Evaluating Stocks Investments.
Numerical Measures that Influence Investment Decision.
Mechanism of Buying and Selling Stocks.
Different Trading Techniques used by Investors and Speculators.

6) Investing in Bonds
Characteristics of Corporate Bonds.
Reasons for Company to Issue Bonds.
Reasons for Investors to Purchase Bonds.
Bonds Evaluation.

7) Investing in Mutual Fund
Reasons for Investors to Purchase Mutual Fund.
Classification of Mutual Funds.
Evaluating Mutual Funds.

8) Investing in Real Estate and Other Investment Alternatives
Types of Real Estate Investments.
Advantages and Disadvantages of Real Estate Investments.
Investing in Precious Metals, Gems, and Collectibles.

9) Retirement And Pension Planning
Importance of the Retirement Planning.
Estimate Retirement Needs.
Planning Retirement Income.
Employees Provident Fund (EPF).
Public Service Pension Scheme.

Frequently Asked Questions

Q1 : Why should I hire a financial planner to manage my money?
A1 : A financial planner will be able to connect all of the financial dots in order to provide you with an overall plan to meet your financial goals. He or she should have training and experience in all kinds of financial products and financial aspects of your life – equities, bonds, insurance, taxes, and estate planning – in order to make the right recommendations for your personal situation. A financial planner can also save you thousands of dollars in tax deductions and find higher-yielding investment products at little or no extra risk.

Q2 : How much does a financial planner cost?
A2 : The fees will vary depending on the education and experience level of the financial planner, and how the fees are assessed. In general, a financial planner will charge based on one of two ways: commission or fee-only. If the planner charges based on commission, the amount will usually be a percentage of each transaction or assets under management. If the compensation structure is fee-only, he or she will typically charge an hourly rate or will quote a specified fee for the services provided.

Q3 : Which certifications should my financial planner have?
A3 : There are a number of different financial planning certifications. While a financial planning professional can have any of several designations or certifications, at the very least you should make sure that he or she is licensed and in good standing with the licensing authority. Three of the most common designations are Certified Financial Planner, Chartered Financial Consultant, and Registered Investment Advisor. A Certified Financial Planner (CFP) has competency and experience in all areas of financial planning. A CFP has completed courses of study in over 100 topics of financial management including equities, taxes, and retirement planning. He or she must also follow the Certified Financial Planner code of ethics. A CFP has a fiduciary responsibility. A Chartered Financial Consultant (ChFC) also has extensive experience in helping individuals assess their financial goals. In order to obtain the ChFC certification, a candidate must complete the program and pass the tests administered by the American College. A Registered Investment Advisor (RIA) doesn't need any special training or certification. However, a RIA must be registered with the security agency of the state in which he or she does business, and must also be registered with the Securities and Exchange Commissio