There are a handful of personal finance challenges that are unique to women. From staying on top of their personal finance situation to surviving a divorce or the death of a spouse to planning for a longer life, women should learn how to prepare for a financially secured future.
Financial Planning Association of Malaysia (FPAM) Chief Executive Officer Linnet Lee stressed the importance of women taking more active roles in managing money. One reason for this is the fact that women tend to live longer than men and so may need to fund longer retirements.
Many are taking a backseat approach to their finances, allowing someone else, be it husband or partner, to take control. While the literacy rate for Malaysian women stands at 96.3%, they are not taking charge of their finances.
“Women are empowered to seek financial knowledge and make a goal to learn about investing in order to take control of their finances, better plan for the future and weather financial storms,” said Lee.
It is vital for women to have solid financial planning to achieve a secure financial future, and they should start with taking control of and understanding finances.
Speaking at the InvestSmart® Fest 2018, Lee outlined some steps on how women can tune or take charge of this aspect of their lives, including creating an emergency fund to last at least three to six months, having clear life goals, managing debts well and investing to make their money grow.
The next important step is proper protection, so that women can start investing to achieve their life goals with peace of mind. The investment process typically aims to hedge against inflation, with Lee noting it is important to “avoid putting all your eggs in one basket” while cultivating prudent asset allocations towards reaping a variety of returns in a portfolio.
For those keen on starting their investment journey, Lee said those requiring a better financial roadmap could seek the services of a licensed financial planner to help crystallise their goals, prioritise them and draw up a plan on how to achieve them.
InvestSmart® Fest 2018, an investor education initiative by the Securities Commission Malaysia, was held on October 12-14 with the aim of promoting awareness and knowledge relating to Malaysian capital market.
Themed Investing for a Sustainable Future, the event showcased 45 participating organisations comprising capital market intermediaries, regulatory bodies and other agencies under one roof. During the three-day event, 600 complimentary financial planning sessions were offered by more than 100 licensed financial planners.