How to make your money grow

READERS responded positively to Sunday Star’s front page story “Can you retire?” last week. Many sent in their feedback and described the “wake up” call for early planning for one’s retirement as a “community service”. 

Many also felt more should be done by various parties, including the Government, to ensure that retirement does not become a burden on retirees. See readers’ views in accompanying story. 

There were also queries on how one can effectively plan for one’s retirement. In response to such queries and for a more in-depth look at how people can invest their money at different stages of their lives, Sunday Star will feature a six-part series on financial management with retirement in mind. 

The series, which begins next Sunday, will be written by the Financial Planning Association of Malaysia and seeks to cover the following areas: 

How much money do I need when I retire?: The most frequently asked question and the most difficult to answer as it involves many factors and differs from individuals to individuals. We will look at some of the main considerations one needs to take into account.  

When should I start my retirement planning: It is never too early to do so. We will introduce the magic of compounding, the capacity to take on more risk when one is younger and therefore avail oneself of opportunities with higher rewards. 

Retirement planning is not for those about to retire. 

Different folks, different plans: We will provide generic solutions to a few cases based on where people are in the life cycle eg. Young, single, working adults, married adults with young families, middle aged adults with college-going or working children.  

DIY or work with Investment Advisers: We will examine the pros and cons of working out a retirement plan yourself or engaging a professional adviser, and in the case of the latter what are the questions to ask. 

So are you ready for retirement: Besides the key issue of adequate financial resources, we will also look at other significant issues that impact a retiree’s well being, including health, social support, and continuing interest in the world around them. 

Don’t forget estate planning: Retirees need to be reminded of the need and importance for proper estate planning so that their hard earned, accumulated wealth can be utilised optimally in the best possible manner to benefit their loved ones or causes.  

About the Financial Planning Association of Malaysia (FPAM) 

FPAM was established in 1999 with the purpose of seeing to the proper development of the financial planning profession and industry. It introduced and administers the CFP (Certified Financial Planner) certification programme with the aim of ensuring that the industry is served by professional, properly certified and ethical financial advisers.  

The CFP qualification is recognised by both the Securities Commission and Bank Negara for licensing purpose. 

FPAM currently has 42 Charter and Corporate members and about 10,000 individual members, of which about 3,800 are fully Certified members.  

Its Charter and Corporate members are drawn from a wide cross section of the financial sector. They include many of the major foreign and local banks, unit trust companies, life insurance companies, trustee firms, security houses and financial planning firms.  

Its individual members are drawn from the ranks of these firms and also include those who are accountants, lawyers, members of the academia and the commercial sector. 

FPAM is an affiliate of the Financial Planning Standards Board (, an international body that owns and oversees the development of the Certified Financial Planner mark and certification programme worldwide. 

The Securities Industry Act 1983 requires any person who acts or represents himself as a financial planner to be licensed by the Securities Commission.  

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