4. Key Needs of Financial Planning
Priority
Investment Planning
Objective
- To accumulate wealth
Purpose
- To increase returns on investment
Principle
- Rebalance portfolio with suitable risk (**Refer to investment risk management).
- Maintain a minimum of 10% of total income as annual savings (exclude EPF)..
How to achieve?
- Unit trusts, PRS, money market instruments, shares, property investments and EPF self-contribution
- Avoid risky assets if risk tolerance is low and time horizon is shorter
Timeframe
- Medium-term goal is to increase the return within one to three years.
