Many yearn for financial freedom as that would enable one to have more time to spend with loved ones, and have the ability to help others in need. But with surging inflation, global economic and political uncertainties, can the average Malaysian ever hope to retire and live comfortably in his twilight years?
Yap Ming Hui --- the founder and managing director of Whitman Independent Advisors Sdn Bhd, a holistic wealth management company --- believes the goal can be achieved if one invests discerningly and avoids mistakes along the way.
The 52-year-old financial advisor said Malaysians who has a stable career and does proper planning can achieve financial freedom at age 55 or 60.
"In finance, doing the right thing is going against human instincts. However, due to lack of knowledge, support and advice, many follow their instincts and get derailed from their path.
"Buying too many insurance policies, buying a house that is too expensive once they start working, investing in the wrong schemes and even putting money in the bank without investing it --- all these can be deemed as "mistakes".
"For instance, retirees should not use their EPF savings to settle their housing loan. Most people do this when they retire or get access to their EPF money. It depends on each individual's circumstances but for someone who does not have a huge sum of money, settling a mortgage could affect their cash flow.
"Since the bank interest on a mortgage loan is still low, there is no need to rush into settling the debt as banks will not give them another loan if an emergency arises. I also would not encourage retirees to start a business in their twilight years as that requires a huge capital outlay.
"In this present day, one should start a business when they are in their 30s or early 40s. Not in their 50s," Yap said.
"A licensed financial planner will be able to assess your current financial status and provide the best advice. If you were to listen solely to your friends or a unit trust agent, their advice may not be in your best interest.
Yap, from Kota Bahru but moved to Kuala Lumpur with his family during his primary school days, is the eldest among a family of three children. His family had struggled to pay the rent and the school fees, and that he believed was what made him persistent to succeed in life.
If not for the Lee Yan Lian Charitable Foundation, Yap said he would not have been able to graduate from Universiti Teknologi Malaysia in Johor with First Class Honours in Business Management.
"Because this foundation had helped me, I always strive to give back to the community as a way to pay it forward," he said.
Yap had been generous in sharing his knowledge by contributing articles to mainstream newspapers over the years. Yap is also the author of six financial books to date.
Unlike most authors, Yap encourages readers to share his works online if they find something of value in his books.
His most popular book to date is "Roadmap To Financial Freedom", which is a national bestseller.
In the early years of his career, Yap had worked as a corporate trainer in a leading local conglomerate for four years. However, Yap found no satisfaction in the work he was doing.
"I wanted to make a difference in people's lives. So I bought the Rockwills Franchise. I was among the first 100 franchisees. Two years later, I qualified as a Chartered Financial Consultant, and that was how my journey as a financial advisor had started," he said.
Twenty two years ago, holistic wealth management was unheard of in Malaysia.
There were neither peers nor seniors for Yap to benchmark his business.
"I read many finance books, visited successful practitioners in Australia, Singapore and the United States and brought all the knowledge and best practices back to Malaysia. But Malaysia is different, so I had to localise the business in terms of pricing and delivery, and how often I should meet clients.
Starting out as a "lone ranger", Whitman today has more than 50 financial advisors serving 3,000 clients. Whitman's mission is to promote portfolios so that their clients can grow their wealth with certainty to achieve financial freedom.
