DAY 1

- Malaysian has low cash flow management and poor financial literacy due to high confidence
level.

- Poor financial literacy in terms of:

(i) 1 out of 3 Malaysian has no savings
(ii) 80% of Malaysian salary is below RM4k
(iii) Minimum of RM2.7k income required by a single adult in urban area
(iv) 74% of Malaysian doesn’t have rainy day fund
(v) 60% of bankruptcy involve youths

- Facts about financial planner (FP)

(i) Top 5 professions in US & Europe
(ii) Highest pay jobs in US
(iii) Relatively lower number of FP in Malaysia (ratio about 1 FP to 5k people)
(iv) Licensed under the security commission and BNM but subjected to RFP test by MFPC
(v) FP integrated psychological way + mechanical way with a ratio of (8:2)

- FP vs Insurance agents
(i) FP sells various products from various company (insurance, takaful, portfolio, trusts,
funds, retirement plan, investment, tax planning, estate planning, risk management,
cash flow management) while insurance agents sell only their company product like
PruLink
(ii) FP care about the benefit of his/her prospect (save money, max profit) while insurance
agents care about reaching their quota.
(iii) FP care about how many money (liquidity) in the market & how to plan it wisely.
(iv) FP = advisory services ; insurance agents = counter services.
(v) FP = customer oriented ; insurance agents = products & company benefit oriented

- Do Malaysian poor? No. GDP is good, Moody Ratings is good, standard & poor rating is good.

- Characteristics of FP:
(i) HOLISTIC
(ii) Value
(iii) Designer Solution (like design village – specific for needs and target group)
(iv) Non-bias
(v) Convenient
(vi) Professionalism
(vii) Human touch
(viii) Ethical

- Video Tips:
(i) 90% on quality, content & creativity
(ii) 10% on Youtube likes
 (iii) Touch about the life of a financial planner & industry exposure

- RFP Modules (Conventional & Shariah)

(i) Fundamentals of FP
(ii) Risk Management & Insurance & Takaful Planning
(iii) Investment Planning
(iv) Zakat & Tax Planning
(v) Estate Planning / Shariah Estate Planning
(vi) Retirement Planning
(vii) Applications in FP

DAY 2

- Malaysia GDP per capita indicates that Malaysia is almost a advance country.

- Financial Planning framework:

Relationship → Product → Insurance Need → Financial Plan → Financial Adviser → Customer
Experience

- Saving is short term while investment is long term.

- Wealth Planner / Financial Advisor declared by own (eg: insurance agency) without getting
licensed by BNM and SC could sentence to jail and fines.

- Market characteristics nowadays:

(i) Personalization
(ii) Variety
(iii) Value
(iv) Convenient (online & internet)
(v) Towards professionalism

- Financial Advisors is the best paying jobs for Millennials in USA. (Annual Salary about 118,050
USD or RM479,873 per year)

- Services provided by FP:

(i) Personal financial planning
(ii) Retirement & investment
(iii) Insurance & takaful
(iv) Employee benefit & talent retention
(v) Offshore insurance & investment
(vi) Will & Trust services (known as legacy planning)
- Wrap Account:
(i) Allow FP to wrap their clients investment into a single account (consolidation)
(ii) Easier to monitor & rebalance their investors portfolio through different investment and
economic cycle
(iii) More efficient, without additional switching cost, unlimited free switching between unit
trusts from same or different houses.
(iv) Grow on investment portfolio
(v) Encompasses commission and annual wrap fee for FP and advisors

- A true professional practice like a doctor. Professionalism & ETHICAL.

- Pathway to build Financial Advisor (FA) firm

(i) Finished RFP courses
(ii) Licensed by BNM & SC

- FA always faces various type of problem. Etc: hard to find customer, competition……. Problems
can be overcome by:
(i) Guts
(ii) Discipline
(iii) Platform
(iv) Method
(v) Coach

**It is boring to hit the ball for the same stroke for thousand times. But to be champion, you
need to do it. Do what you should do!

- Family Insurance consolidation (tailor need)

(i) Bulk purchase
(ii) Consolidation reduce cost
(iii) Medical, critical illness & life insurance…….which one is not important? LIFE INSURANCE!
Protection should came first!

- Prospecting (finding customer)

(i) 5P Principle
(a) Prospect – Selection
(b) Pitch – Approach
(c) Process – Advisory
(d) Product – Offering
(e) Pace – Timing
(ii) Through PDI (Position, Differentiation & Intention) to create IDU (Interest, Desire,
Urgency)
(iii) Fact Finding

- Comprehensive financial planning report cost around 2k