The Financial Model That Never Fail

April 13, 2016 — Leave a comment

Unless you fail to stick to the plan!

What does Nutritionist and and Financial Planner have i common?

They don’t build pyramid like people use to do during ancient times, but they utilise the concept of pyramid when when it comes to planning for food intake or managing your hard earn money.




This is my Step by Step when doing a plan for my client.

i usually don’t straightaway sell them any financial products. in fact i will go through with the client level by level base on the financial model.

The rule is you don’t jump level.


Level 1:

Cash Flow planning is how you manage your income and expenses. i also call this budgeting. if you a tech savvy and you wanna keep track of your income and exposes to the core, there are tons of budgeting apps you can download.


money wiz


I’m using  moneywiz apps . Just like any budget apps on the market, you can key in your spending on the go, but thats not the main reasons i buy this. The best features is you can link it to you Maybank or CIMB bank. which means, you don’t have to login to your maybank or CIMB acc to check your bank balance. they apps will show you ur current bank balance.

Emergency Fund: this is very important. i call this rainy day funds. you don’t know when the rain gonna come, so you prepare an umbrella in your car just in case.

some goes to your wallet, you never know when you car is breaking down, when you need to repair your gate, clinic bill, or when you get fired from you job? need the buffer for the unexpected.

Rule of thumb, you need at least 3 months to 6 months of buffer. thats minimum.


Level 2: This part It all about Insurance protection.

Income protection: Do you have a beautiful spouse with lovely children’s and they depend on your income?

What if you are no longer in the the picture (Death)? or worst still you become disable and unable to work for life? who are going to take care of them?

in this stage, you need to make sure you buy enough life insurance (term or whole life) to make sure in the event of death or disability, the insurance payout can sustain your family yearly expenses for at least 10 years.


Health Protection:

medical bill is not cheap. if you want to become your own insurance company by all means just go ahead, but im stingy, i don’t want to use my to pay for the medical fee.

get yourself a medical card, what you should aware of when buying a medical card?

  1. how much is the annual limit?
  2. how much is the lifetime limit?
  3. Room & Board?
  4. cancer treatment limit per year?
  5. kidney dialysis treatment per year?
  6. is outpatient cover?
  7. if the medical card co-insurance, co-payment? or deductible?
  8. is it standalone or under attached to a plan?
  9. list of Penal Hospital

Debt Protection:

i believe majority of us have debt, student loan, car loan, house loan, credit card, personal loan etc… you need to make sure this debt will be taken care of when you are no longer with your family, or when you are unable to generate income.

you don’t wanna burden your family with all the debts right?? – Please let insurance to do their job for you.


Level 3

Retirement Planning. if you think you are just 25 years old and said retirement is too far away, think agin. lets look at some data provided by HSBC.



my 1st rule of thumb is, save at least, MINIMUM 10% of your income. invest wisely, and find a financial planner who can help you to optimise your portfolio return.

my 2nd rule of thumb is, the earlier you save, the less stressful you will be when you reaching your retirement. Lets look at an illustration below.


bruno and fredo


see the difference? if you start earlier, you will have a better heads up for compounding effect to work on your saving. The bottom line is, start early,


Children Education:

i wrote an article about children education. Please feel free to read this through. how you should plan for your children education its not how your insurance agent should plan it for you.



level 4:

there are a whole section in book store talk about this topic. but sadly only less then 20% of us will spend the time to read a book about investment.

investment can be a very board subject. i am no expert on all those subject. investments can as simple as ASB, to very complex form of warrant and stock, it also can be as liquid as forex to as hard as precious metals. not to mention residential property and antique paintings.

so for me. regardless of what you invest in you need to monitor your total ” return on Nett Worth” in your portfolio, not ROI (return on investment) on your single invesments.

ok its kind of confusing,, let me elaborate.


  1.   RM200K invested in Fixed Deposite with 4% return p.a —-> this is call ROI.

TOTAL portfolio return 4%


2.    RM100K invested in UT with 8% return p.a

RM100K invested in Fixed deposit 4% return.

 TOTAL portfolio return 6%


3.   RM100K in UT 8% return p.a

RM75K in structure fund 10% p.a

RM25K in Fixed D 4% p.a

TOTAL portfolio return 8.25%


you must be wondering how the portfolio return will effect your investment?

simple, the higher the portfolio return the better it is for you. The table below explain everything.



last but not least

level 5: will & Trust.

This is the part where you distribute your assets- cash, investment , property , lands, shop lots, donation, etc to your next generation according to you desire. So Please attach to a professional will writer. that will advice and plan you wealth distribution when you are no longer with you love one.



DO NOT, DO NOT SKIP LEVEL, all the level in the financial model. it is design in such a way that you must put attention energy and focus on the base of the pyramid and and work your way up to financial security and eventually to achieve your financial freedom and peace of mind.


i hope you enjoy this article and if you do please like my FB page for more updates.

thanks and god bless.



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