Use financial planners

WE REFER to the letter by Sad retiree who lost RM30,000 in unit trust investments he had made with his EPF money, “EPF should not allow use of fund to buy unit trusts” (The Star, Feb 22).

We sympathised with Sad Retiree and others who may find themselves in the same situation.
The Financial Planning Association of Malaysia believes that investors should always proceed to invest based on a properly conceived financial plan.
At the same time, it is useful to bear in mind these investing pointers:

REALISE that where there are promises of higher returns, the potential for higher losses also exists.

BE SURE to understand the nature of your investment before you put money in it.
Ask searching questions and demand answers. Know the various costs (hidden or otherwise) involved and the factors that will cause the investment to either yield a positive or negative result. Choose reliable sources of information.

REALISE that investment decisions cannot be made in isolation to your existing financial situation, your current position in the life cycle, your personal risk and reward profile and other factors specific to you.

DO NOT hesitate to seek professional advice. Some financial instruments are more complex than what the layman may be used to.

Even in the case of plain vanilla instruments, professional advisers may be able to provide information that may not be previously known to an investor.
For those seeking assistance from professionals in analysing and planning their financial affairs in order to achieve their financial goals, seek properly qualified, licensed financial planners.
Financial planners in Malaysia are required to be licensed by the Securities Commission and they must possess qualification recognised by the authorities.
The Certified Financial Planner (CFP) designation is one such qualification that is well established and internationally recognised.

*Dipetik Dari http://thestar.com.my/news/story.asp?file=/2006/3/22/focus/13731534&sec=focus