Assembling of data

You will need to provide your personal data to your unit trust consultant so he or she can get a clearer picture of your financial position and put together an investment plan for you. Important figures that may be needed include your assets, liabilities, and cash flow.

Analysing and evaluating of financial status

Your unit trust consultant will then find out your short-term and long-term goals in the most detailed fashion possible by evaluating your financial situation. Other things that need to be considered are your liquidity requirements, risk tolerance, and investment time horizon.

Developing and presenting investment planning recommendations/alternatives

Based on the data collected, your unit trust consultant will then come up with a proper asset allocation plan that would match your risk profile and financial goals. Good communication is key at this stage as you and your unit trust consultant discuss and determine how to work towards meeting these financial goals.

Implementing/Executing the investment plan

Continue to work closely with your unit trust consultant as they carry out the investment plan and ensures it stays on course to meet your investment goals. Meanwhile, you should practise Ringgit-cost averaging (RCA) and portfolio diversification to mitigate the effects of market volatility.

Monitoring the investment plan

In addition to managing the investment plan, your unit trust consultant would update you periodically on the progress of their portfolio. An annual review will also take place to ensure the portfolio is aligned with your long-term investment objectives.

Getting the Best Out of Investment Planning

Investment planning can transform financial goals into realities. However, investment planning involves more than just picking the 'right' investments. Here are some tips to get the best results your their investment planning efforts:

Set measurable investment goals

You should set specific targets of what you want to achieve and when you want to achieve those results. For instance, instead of saying you want to be 'rich' by the time you hit 50 or that you want to lead a 'comfortable' life upon your retirement, you need to quantify what 'rich' and 'comfortable' means so that you will know when you have reached their goals. An example of a clear investment goal would be to save RM200,000 for child's education within the next 20 years.

Re-evaluate investment objectives periodically

Major life changes such as an inheritance, marriage, birth of a child, house purchase or job switch may change your investment goals over the years. Hence, you will need to revisit and revise your investment plan as time goes by to reflect these changes so that they stay on track with their long-term goals. Discuss with your unit trust consultants on whether there is a need to switch from equity funds to bond or money market funds or vice-versa due to the change in circumstances.

Start as early as possible

Do not delay planning for your investments as those who start early tend to do better than those who wait until later in life. Understand the power of compounding interest and how starting early can help you do better and meet your financial goals. Similarly, by developing good investment planning habits early in life, you will be better prepared to meet life changes and handle emergencies that usually arise during their later years.

Be realistic in expectations

Investment planning is a lifelong process of managing investments to meet one's life goals. However, there will be events beyond control such as economic downturns or stock market crashes that will affect investment results. It is, therefore, imperative that you remain realistic, focused on and committed to your long-term goals.