Introduction
We often hear about wealth management for individuals who memounyai high net asset value. However, wealth management is not just for individuals but also for businesses.
WHAT IS WEALTH MANAGEMENT?
Wealth management is about managing methods wealth or surplus funds to achieve a financial goal, for example, to ensure that the capital invested is guaranteed or to ensure risks are managed investments for each time. Money or wealth is defined as net asset you, after deducting the debt (or liabilities) you.
HOW TO START
Sebekum you decide how your money should be managed, you need to determine the financial position and financial goals you and your company. For this purpose, you need to:
· Understanding business and personal financial goals you and constraints faced
· Analyze the company's financial position and your personal analysis by the net asset value and cash flow
· Assess the risk profile of your business and personal risk
You have to take into account your personal financial position as a business owner, your financial situation is closely related to your business situation. Once you determine your net asset value and setting financial goals, you need to have a plan of action to achieve that goal.
WHAT ASPECTS OF WEALTH MANAGEMENT?
At present, many companies manage their wealth through insurance and investment instruments. Comprehensive wealth management plan generally must include ways to maintain, develop and distribute assets include the following:
· Planning a debt / cash flow to enable the use of efficient and optimal credit for business
· Planning and investment management to maintain wealth and provide a reasonable return
· Planning for the protection of insurance business (for example, fire, theft, or marine insurance for employees utama0 and personal protection (death, disability, critical illness and households)
· Tax planning to minimize the outflow of liquidity and ensure the efficient management of cash flow
· Planning for retirement and welfare of employees to retain key employees for business continuity
· Retirement and succession planning to ensure business operations continue smoothly when business owners leave the business
· Estate planning to ensure the transfer of wealth to the successors or beneficiaries efesien
CASH FLOW PLANNING
The first step to understanding your financial situation better is to manage cash inflows and outflows. Cash flow management that better enable you to use any surplus funds for your benefit. Cash flow management is dependent on the availability of funds in the short, medium or long term in addition to allowing you to meet your financial obligations when they fall due.
PLANNING AND INVESTMENT MANAGEMENT
Plan your investments depends on your goals and your willingness to take risks. You need to monitor or review from time to time your investment performance to ensure the achievement of your goals is as scheduled. Investment plans can be modified depending on your investment performance or market conditions change. In formulating an investment plan, you should consider:
· The goal of your investment
· Asset allocation strategy to achieve your investment goals
· The type of investment product or instrument for achieving your goals
WHAT TYPE OF INVESTMENT PRODUCTS SUITABLE FOR YOU?
Your understanding of investment products is essential before you invest because each investment products have different levels of risk and different periods of time for the member products best results. The chart reflects the potential risks and returns of investment products are common.
The higher returns that might be obtained, then the higher the risk that may be faced.
Certainly there is a positive relationship between risk and pulangan.Dengan, you are advised to invest only in products that are consistent with your risk appetite. To get more information about the factors that should be considered before investing.
INSURANCE PLAN
Insurance program should be part of your plan to cover the risk of unexpected financial losses. This includes protection against loss due to fire, flood and other risks to your business and purchase health and life insurance for yourself and your employees. Amount of insurance depends on the needs, circumstances and objectives. Insurance coverage should also be reviewed from time to time to ensure that protection is adequate to your current position.
TAX PLANNING
The goal of tax planning is to arrange your financial affairs for meminiumkan tax payable. Total tax payable will influence your decision on the following matters:
· Investment
· Loans
· Savings
RETIREMENT PLANNING AND REPLACEMENT
Retirement planning is an important aspect of wealth management. As a business owner, you should consider some of the following issues:
· Penetration time to retire
· The amount of money you need to continue to enjoy your current lifestyle
· Replacement plan on who and how the business will be run after you retire. This is to ensure that the plan will maximize the selling price of your business or allow your business or enable businesses continued with little interruption
· Evaluation / future retirement needs analysis
· Analysis of the standard / current lifestyle and future expenses
· Analysis of the collected funds (investment & savings) with regard to inflation, insurance and taxation
· Family situation (number of dependents, age, educational requirements, etc..)
Replacement plans allow business owners conduct its business in an orderly manner in the event of sudden death, the full and permanent disability or retirement. Death of a business owner suddenly without succession planning is more important if family members are not business owners have the knowledge, expertise or interest to take over and run the business. As a business owner, you should start at an early stage of succession planning to ensure an orderly transfer of ownership and efficiently. By having a succession plan, you can:
· Minimize the risk of family disputes and business interruption
· Maintain dal family business holdings or give it to an individual of your choice
· To plan your retirement from the business
ESTATE PLANNING
Estate planning is the process of setting appropriate to redistribute wealth and manage one's estate after death. It also seeks to avoid the legal and administrative complications arise. Estate planning benefits include:
· Smooth transfer of wealth and efesien to family members or loved ones (taking into account the legal complications and timely action)
· Management and / or the distribution of wealth / good business
· Avoiding disputes / legal struggle in relation to the distribution of wealth
Wills, trusts and foundations are among the methods commonly used in estate planning.
WEALTH MANAGEMENT INSTITUTE
You may want to seek professional advice as involving various aspects of wealth management. There are many institutes that offer wealth management services, such as commercial banks, merchant banks, trust agencies or entities that specialized in financial planning. However, not all institutions offer all types of wealth management services. You need to check and assess their reputation as well as to select the information on the qualifications of the institution before you make a choice. For example, financial advisers either licensed by the Securities Commission for providing financial advisory services relating to insurance products and services.
Criteria that you need pertimbangankan including:
· A wide range of products and services, wealth management services are available
· Quality officer of wealth management, whether the institution is operated by professionals who are knowledgeable
Reputation of the institution. Choice institution with an excellent track record
WHAT YOU NEED TO HAVE IN THE PLAN?
Wealth management institutions will provide a written plan based on the information you give him. You should make sure that all the facts and figures are accurate and provided strategies and recommendations to meet your goals. The plan should:
· Outlining the current financial position and your financial goals
· Describe the overall strategy to achieve your goals
· Propose investment and other strategies in the management of your money
· Explain how the proposed investment strategy to achieve your goals
· Discuss the risks associated with each complete investment options
· Disclose all fees and commissions
YOUR RESPONSIBILITIES AS A CLIENT
As a client, you will be asked by wealth management institutions to provide a reasonable amount of information about your company and owner of the company, that you and your business partners. This is so that wealth management institutions can result a financial plan that suits your financial goals and to comply with Anti-Money Laundering Act 2001.
INVESTING THROUGH INSTITUTIONAL WEALTH MANAGEMENT
Most of the wealth management institutions will set minimum account size for an investment of between RM50, 000 to RM1 million. The Fund may invest in various types of investments such as fixed deposits, listed equity, corporate bonds, unit trusts or structured products.
Before recommending any product to you, wealth management institutions need to determine your risk profile. Every wealth management institutions using risk profiles and examples make investment plans.
Before signing any agreement for a client wealth management institution, you are entitled to:
· To ensure that the institution has clearly defined all the information on services
* Seek clarification if necessary
· Verify fid an appropriate charge to your account
O Get a statement of all transactions carried out by you, just in time
O Get a monthly statement showing the summary of investment portfolio and transactions for the month
· Review your investment performance over time by comparing the time-weighted rate of return for your portfolio
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