Many people are always wondering what or who a “Licensed Financial Adviser”(LFA)” or a Financial Adviser’s Representative (FAR) is. Also, many do not understand what is a “Financial Plan”.
Did you know that there’s only about 1,300 financial adviser in Malaysia, versus our population of 32 million?
When their numbers are small and very little is known about them, surely a lot of myth and misconception that happens.
How Can A Financial Adviser Help?
Why do anybody need a financial adviser while we already have banks, insurance agents, unit trust consultants, estate planners, lawyers and accountants? What resources or values that an LFA/FAR could assist or deliver impact into their life?
Most Malaysians have the impression that an LFA/FAR is “not focused” or “unprofessional” because he or she is able to provide financial services from multiple providers. For us Financial Advisers, financial providers are our resources and financial tools which are suggested to solve different individual or corporate needs.
To clarify this misunderstanding, a Licensed Financial Adviser DOES NOT represent any company or financial providers. They represent you.
All advice and solutions are solely based on your needs, and they will look into the financial market for the best financial tool to suit your life goals.
Usually we are too busy earning money with our job or business, or too busy with family, that we barely have time to deal with their financial planning. People who are too busy making money for them to make a living, paying off debts and liabilities, is hardly able to get the latest investment updates, market outlook, insurance plans and taxes.
Due to the lack of financial literacy and knowledge, many have become the victim of ponzi schemes or get-rich-quick schemes. This resulted in many Malaysians losing their wealth.
Some went into huge debts, by applying personal loans, credit card cash outs, or even loan sharks and ended up a bankrupt. This is one of the reasons why bankruptcy statistics increase gradually every year. It is human nature to take risk and gamble, but why gamble when a Licensed Financial Adviser can help you better manage your finances and investments?
Most of us gets mixed up with “investment” and “gambling”. Many Malaysians thought that investing in high-risk instruments like stocks, forex, crypto or private equities are similar to gambling. Whereas gambling is purely based on luck or a probability of winning chance.
A good investment is when you have the knowledge and understand clearly about the instrument along with the risks and rewards. You can predict the results, whether it is an instrument that comes with low risk with low return, or high risk with high potential return. Also the time frame and financial goal or purpose of a particular investment.
What’s even more important is to make sure that it is being regulated by by Bank Negara Malaysia, Securities Commissions Malaysia or Bursa Malaysia.
A wise man once said, “Fast is actually slow. Slow is actually fast.” Deep thoughts, deep wisdom.
A Licensed Financial Adviser is specialising in the Finance industry. They are well-trained professionals that are focused on Financial Planning. To deliver value to your family and businesses, solely based on your needs in order to achieve your life goals.
Don’t wait no more, get in touch with a licensed financial adviser today.
About the Author:
Cheong Kwang Siang, CFP Cert TM
FAR, CMSRL
Genexus Advisory Sdn Bhd
He can be contacted at cheongks@genexus.com.my
