A Case Study on Effective Financial Planning in Malaysia

Abstract

the pension fund is currently inadequate for most people. According
to the Malaysian Financial Planning Council, financial independence
is vital for Malaysians to accumulate sufficient wealth for retirement.
This paper studies on how effective financial decision is important for
long term retirement planning. A comprehensive financial data are
obtained from a married working couple with children to evaluate
their net worth, insurance needs, investment portfolio rebalancing,
education planning and retirement planning. The results highlight that
financial planning is essential to achieve financial independence,
especially for insurance needs, education planning and retirement
planning. The existing resources affect post-retirement lifestyle,
medical funds and education funding. Suggestions are proposed to
household to ensure that there is sufficient insurance coverage, lower
all unnecessary expenses, re-structure of cash flow, and investment
portfolios so as to rebalance in gaining greater wealth.