MANY people yearn for financial freedom as that would allow them to spend more time with their loved ones or to help others in need.
But amid the global economic as well as 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 that the goal can be achieved if one invests discerningly and avoids mistakes along the way.
The 52-year-old financial adviser said Malaysians who had a stable career and did proper planning could achieve financial freedom at between the ages of 55 and 60.
"In finance, doing the right thing is to go against human instincts. However, due to a 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 Employees Provident Fund (EPF) savings to settle their housing loan. Most people do this once 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 can affect their cash flow.
"Since the bank interest on a mortgage loan is still low, there is no need to rush into settling it 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.
"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 is the eldest among three children. His family had struggled to pay the rent and their school fees and that, he believed, taught him persistence and eventually 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 with first class honours in business management.
"Maybe because of the help I received from this foundation, I always strive to give back to the community as a way to pay it forward."
Yap is the author of six financial books to date and he has also shared his knowledge through his columns in mainstream newspapers.
He encourages his readers to share his work if they do find something of value in his books.
His most popular book is "Roadmap To Financial Freedom", which is a national bestseller.
In the early years of his career, Yap worked as a corporate trainer at a leading local conglomerate for four years. However, he 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 adviser started."
Holistic wealth management was unheard of in Malaysia 20 years ago. 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 was different and I had to localise the business in terms of pricing and delivery."
Today, Whitman has more than 50 financial advisers serving 3,000 clients. Its mission is to help its clients grow their wealth and achieve financial freedom.
The writer was a journalist with the New Straits Times before joining a Fortune Global 500 real estate company. This article is a collaboration between the New Straits Times and Tradeview, the author of 'Once Upon A Time In Bursa'.
