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Why Consulting A Financial Planner Can Be Beneficial To You

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Mr. Lee (not his real name) is in his 30s and is working in the sports industry, with a government body looking to develop one of our national sports. We both happen to work out at the same gym, and that’s how we met. Knowing that I was from the financial planning industry, Mr. Lee approached me to get some advice on his personal finances.

We then met at a nearby cafe one day and I shared with him the scope of my work as a financial planner. I explained how I advised my clients on achieving their financial goals through the financial planning process and my areas of specialty which
were in insurance and investment planning.

He had a large amount of debt (more than RM100,000) from personal loans, credit cards and car loan. This debt was a result of impulse buying, sports betting and large purchases.

The interest rates for the personal loan and credit cards were about 12-18% per annum. He was lost and needed a way to get out of his debt situation.

I then did an analysis of his financial situation. His monthly income was about RM9,000, and roughly RM4,000 was going towards debt servicing for his loans. I knew that he first had to reduce the interest amounts he was paying and recommended that he restructure his loans and consolidate it to a lower interest rate.

Using a personal loan with a much more favorable rate, he was able to lower the amount of interest he had to pay to nearly 6% per annum. It went down from RM4,000 to RM2,000 monthly. We were able to do this because he had a consistent stream of income from his job with the government body.

I focused on helping Mr. Lee to resolve his main priority which was debt cancellation before moving on to other areas such as income protection via insurance, and investments to grow his wealth. Through my advice, Mr. Lee now had clarity on what steps he needed to take and was now able to see the light at the end of the tunnel.

He had a basic insurance plan covering medical and critical illness. Soon, Mr. Lee shared that he had a job opportunity abroad in Europe in the sports industry. He has the skills and experiences to increase his income level and it would enable him to pay off his debts faster.

Two years later, Mr. Lee is now back in Malaysia. He is now debt-free and is looking to start his own business start-up in the sports industry with his savings. I believe he will do well with his networking skills, experience and drive in this industry.

We got in touch again, and I will be working with him on his future plans in the areas of investment and insurance planning. I will be advising him on how to allocate his income for investment and retirement planning in the near future once he generates cashflow from his business.

About the Author

Nicholas Wong insurance

Nicholas Wong is from IPPFA Sdn Bhd

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