In our modern society, it's proper financial planning which can tide us through in life

In Malaysia, financial planning is often seen as something to think about "later," but the reality is, whether you're running a family or a business, good financial planning is essential for securing your future. It’s not just about growing wealth, but also about protecting what you’ve worked hard to build. Let’s take a closer look at why financial planning matters, and how various tools like unit trust funds (we simply call it unit trust), insurance, will writing, and keyman insurance can help.

1. Unit Trusts: A Simple Way to Grow Wealth

For many families, investing in unit trusts is one of the easiest and most accessible ways to grow wealth over time. Unit trusts pool money from many investors and invest in a diversified portfolio of stocks, bonds, and other assets. The best part? You don’t need to be a stock market expert to get started.

Let’s say you’re a parent in your 30s, thinking about saving for your children’s education or even early retirement. You could start investing in a unit trust with as little as RM1,000 and set up a regular savings plan to add to it each month. Over time, the power of compounding and ringgit-cost averaging (investing regularly a fixed amount, regardless of market ups and downs) will help your investment grow.

But here’s a tip: when investing in unit trusts as a family, consider the option of jointholdership. A jointholder arrangement ensures that if something happens to the (primary) unitholder, the jointholder (could be a spouse) can easily continue managing or withdrawing the investment without any legal hiccups.

2. Will Writing: Protecting Your Assets for Future Generations

We often avoid talking about writing a will because it feels uncomfortable. But in reality, a will is a critical part of financial planning, especially for families. If something unexpected happens, having a clear, legal document that outlines how your assets (including unit trusts, property, and bank accounts) should be distributed is vital.

For example, let’s say you’ve invested in multiple unit trusts over the years. Without a will, your family might face months of delays in getting access to those funds. In Malaysia, assets without a will can be subject to a lengthy probate process, which means your loved ones might not be able to access money when they need it most.
Writing a will ensures your family gets what you intended and helps avoid unnecessary legal complications.

3. Insurance: A Safety Net for Uncertain Times

Insurance is another essential pillar of financial planning. Whether it’s life insurance, health insurance, or even medical coverage, having the right policies can make all the difference when life throws unexpected challenges your way.

For families, life insurance ensures that, in the unfortunate event of a breadwinner’s passing, the family’s financial needs—like mortgage payments, children’s education, or everyday expenses—are taken care of.

In a business context, insurance plays a huge role too. Imagine you own a small company with a handful of employees. You’ve put years of hard work into growing it.
Now, what if a key employee—like a top sales manager or a co-founder—suddenly passes away or becomes unable to work?

This is where Keyman Insurance comes in. This type of policy protects the business by providing a payout in case something happens to an essential person in the company. That payout can help cover losses, find a replacement, or keep the business afloat during a tough transition period.

4. Keyman Insurance for Business Owners

Let’s dig a little deeper into keyman insurance. As a business owner, you probably have certain employees or partners who are critical to the success of the company. Without them, the business might face severe financial strain.

For instance, if you run a small tech startup and your co-founder, who handles all the client relationships, suddenly falls ill, the impact could be huge. Keyman insurance would provide the business with financial support to hire someone new or navigate through the challenges while the key person recovers.

Even better, keyman insurance can help secure business loans. Banks are often more willing to extend loans to businesses that have keyman insurance because it reduces the risk of losing key talent.

5. Combining Financial Tools for a Comprehensive Plan

Financial planning isn’t about using just one tool. It’s about creating a comprehensive strategy that combines different financial products to protect and grow your wealth.

For example, a well-rounded family financial plan might include:

• Unit trusts to grow wealth over time.
• Life insurance to provide a safety net for the family.
• A will to ensure that assets are distributed smoothly and according to your wishes.

For businesses, a good plan could look like:

• Keyman insurance to protect the company in case a crucial employee is lost.
• Business insurance to protect the company’s assets and operations.
• A succession plan to ensure that the business can continue smoothly even if something happens to one of the owners.

6. Why Start Now?

The best time to start financial planning is always "now." Whether you’re a young family looking to build wealth or a business owner trying to protect your company, financial planning is an ongoing process. The earlier you start, the more options you’ll have and the better prepared you’ll be for whatever life throws your way.

In Malaysia, financial tools like unit trusts, will writing, insurance, and keyman insurance are easily accessible. These tools provide peace of mind, knowing that both your family and your business are protected in good times and bad.

Conclusion

Financial planning is not just for the rich—it’s for everyone. Families need to plan to ensure their loved ones are financially secure, while businesses need to protect themselves against unexpected events that could hurt their growth.

Whether you’re investing in unit trusts, writing a will, or taking out keyman insurance for your business, these tools are essential to securing your financial future. So, take the time to explore your options and create a plan that fits your unique needs. Your future self—and your loved ones—will thank you.