Vivfpjourney

28/08/2024

The Silent Threat To Your Wallet

In recent months , many of us have noticed something troubling at the grocery store, our favorite restaurants, or even in the quality of services we receive.

Prices are going up, but what we’re getting in return seems to be less than what we paid for before.

If this sounds familiar, you're witnessing what economists are now calling "greedflation" and "shrinkflation."

What is “Greedflation” & “Shrinkflation”?

Greedflation happens when companies raise prices more than necessary, even when their costs haven’t gone up as much.

They do this to make bigger profits, which ends up costing consumers more for the same products or services.

On the other hand, Shrinkflation occurs when companies keep prices the same but reduce the size or amount of the product you’re buying.

You might not notice it at first, but you’re getting less for your money than before.

Why Does It Matter To Us?

Greedflation and shrinkflation can significantly impact families, affecting our financial stability, quality of life, and overall well-being.
Here’s how these economic phenomena can influence families:
🚨Increased financial strain
🚨Reduce value of money
🚨Strain on mental and emotional well being
🚨Long term financial implications

What Can We Do?

There are steps we can take to manage the impact of rising prices and shrinking products:
✅Create and stick to a budget that fits within your means.

✅Pay off high-interest debt, like credit cards and payday loans, promptly.

✅Get in the habit of negotiating, even for those things not typically negotiated, like apartment rentals.

✅Optimize your finances by making every Ringgit not being spent work for you.

✅Build up a fully funded emergency fund.

✅Diversify your investments and focus on inflation-stable investments.

As Malaysians, it's essential to be aware of how greedflation and shrinkflation impact our daily lives.

By understanding these trends, we can make better informed decisions, protect our finances, and advocate for fairer practices in the marketplace.

But remember, these challenges aren't going away anytime soon.

It’s up to us to stay vigilant, adapt to these changes, and take control of our financial future before these hidden costs control us.




Credit picture: The New York Times

24/07/2024

A Cautionary Tale..

A few years ago, while waiting for my mom’s radiotherapy session, I had the chance to talk to him.

He left a lasting impression on me, particularly about the importance of managing debt before retirement.

He had always planned to retire comfortably, with dreams of traveling and spending quality time with his family.

He had a few loans that he hadn't fully paid off, a mortgage, a car loan, and some personal debts.

He always believed he had enough time to pay them off before retiring.

However , life had other plans.

His health took a turn for the worse. A serious medical condition forced him to retire earlier than expected.

Suddenly, without a steady income, the burden of these unpaid loans became overwhelming.

In a desperate attempt to manage his debts, he had to dip into his Employees Provident Fund (EPF).

The EPF, which was meant to secure his retirement, was significantly depleted as he used it to pay off his loans. This left him with an insufficient retirement fund.

Moreover, his insurance plan had not been as helpful as he had hoped.

Over the years, he had depended heavily on his company's insurance plan, which covered him well while he was employed.

Unfortunately, this reliance made him neglect securing a robust personal health insurance plan. When he retired, his company insurance ceased, leaving him vulnerable and inadequately covered in his time of greatest need.

With his savings exhausted and his EPF nearly gone, he found himself relying heavily on his children to bear the financial burden of his healthcare expenses.

The stress of mounting debt, combined with his health issues, made his retirement years far from the peaceful, relaxing time he had envisioned.

Through his story I could sense a mix of regret and wisdom.

Indeed no one can predict the future, especially when it comes to our health and the ability to continue working.

Planning ahead is not just about peace of mind; it’s about preparing for whatever life throws our way.

As we prepare for our golden years, let's remember to take proactive steps to ensure a secure and stress-free retirement.

15/07/2024

Wakeup call about money..

↳Most people don’t have an emergency fund. One crisis can ruin you.
Be prepared!

↳If you don’t budget, your money will disappear.
Budget smartly!

↳Saving a little now means having a lot later.
Start today!

↳Impulse buys today can mean regrets tomorrow.
Think twice!

↳What you don’t know about finances can hurt you.
Educate yourself!

↳ Without insurance, unexpected events can wipe out your savings.
Protect yourself and your family!

↳Retirement will come sooner than you think.
Plan ahead!

↳Most people avoid estate planning, leaving their loved ones with chaos and stress.
Plan your estate today to secure your family's future!

Remember , you have the power to craft your own money destination.

20/06/2024

Are you good to Go…

She had always been the backbone of her family.

After her husband passed away, she became even more determined to ensure her two children had a secure future.

As she entered her late 60s, she knew it was time to think about her own life after retirement and the future of her family.

One evening, while having dinner with her sister, she shared about their childhood friend who had recently passed away unexpectedly.

And he had not prepared an estate plan, believing he still had plenty of time.

His sudden death left his family in turmoil.

All his assets were frozen, and it took months for his family to access his bank accounts.

His children struggled to pay for his funeral expenses, and his wife was forced to navigate complex legal processes to claim what was rightfully theirs.

The lack of an estate plan created unnecessary stress, financial strain, and emotional hardship during an already difficult time.

Her childhood friend's sudden death had left a lasting impression on her. She did not want her family to experience the same ordeal.

She decided it is time to plan out her estate plan, to ensure her loved ones were protected and well-provided for after her passing.

Here’s what she did:

✅Evaluated her Assets and Liabilities
✅Create a Will
✅Undated her insurance plans
✅Organized her financial documents
✅Communicate her plans with her children
✅Planned her funeral

We’ve all heard the saying, “death is the great equalizer of human beings.”

It’s something we all eventually have to face, as this is part of life, we can’t run from.

Yes , talking about and planning for death may feel uncomfortable at first, but it can ease your anxiety about the future and provide clarity as you determine what’s important to you.

Most importantly, it helps you protect and provide for the people you love.

So don’t let the mere topic of death scare you off from getting your affairs in order.

If you're interested in learning more about estate planning and ensuring your family's future is secure, join us for an estate planning webinar on June 26, 2024, at 8 PM.

We'll explore essential steps and strategies to help you get started. Feel free to join us and ask any questions you might have.

Register Link :https://forms.office.com/r/wjLjz9

19/06/2024

Gen X , let’s face it, we’re now sandwich generation..

At 45, he’s steadily climbing the corporate ladder over the years.

However, even with a five-figure salary, he still faces financial pressures.

His parents, who grew up in a time when retirement planning was minimal, are solely depending on him for financial support. As a result, he has to cover their medical bills and contribute to their daily expenses.

At the same time, he’s saving for his children’s college education and trying to pay off the mortgage on their family home.

The weight of these responsibilities often keeps him awake at night.

As he constantly worries about his own retirement, questioning whether his EPF savings will be enough.

“I don’t want my children to shoulder the burdens I’m carrying now,”

“They are not our retirement plan.” he often thinks.

He wants to ensure that their retirement needs are prioritized, and ensure his son will not have to support them financially when he grows up.

He represents the challenges that many in Generation X are navigating today.

Frequently, Generation X faces some unique struggles when it comes to retirement planning.

They are often referred to as the ‘sandwich generation’ because they have both dependents who must be raised and aging parents who require care.

This means managing several financial obligations while still aiming for a secure future with adequate savings for retirement, requiring them to find balance among these goals.

It can be overwhelming with all the responsibilities that Gen X carries, but achieving your goals is possible.

You don’t have to sacrifice pursuing a career, while raising your family or saving for retirement.

Advance planning is the key to make it work.

Gen X ,if you think you may be headed for the sandwich, it’s time to take stock of your options and do a little planning ahead.
✅Prioritize your long term goal
✅Getting to know your parent’s finances
✅Keep an open conversation with your children about money
✅Review your budget, make adjustment to spend , saving and income planning
✅Revisit estate planning for you and your parents
✅Establish a regular financial health check

Remember, it is never too late to craft your financial destiny.

Gen X, you can do this !

12/06/2024

17/01/2024

“Life is all good when you have a job and good health. I still can afford to feed my family and provide them with financial assistance.”

“However, after seeing my friend pass away unexpectedly , and leave his family in a divested situation, financially and emotionally. It makes me think about my family.”

"I have a minor , and I am the sole breadwinner in the family.My worries are if I pass away one day my family may lose everything, and I don’t think my wife can handle it emotionally and financially.” He said.

“Should I have life insurance , and how much do I need for this life insurance coverage? He continued to say.

Indeed, life is unpredictable.

If you pass away unexpectedly today,
❓What would happen if you were no longer there to provide for your family?
❓Are you certain your loved ones would have enough money to live comfortably in your current home and remain financially stable?

The primary objectives of life insurance planning is to make sure the beneficiaries stay on track :-
✅to pay off the mortgage
✅pursue secondary education
✅retire on time
✅reach the other financial goals both of you had made together.

It protects your family from the sudden loss of income they could experience. Life insurance won’t help you reach your goals, but it ensures that your loved ones still can when you’re gone.

There are several different types of life insurance in Malaysia such as
1️⃣Term Life
2️⃣Whole Life
3️⃣Saving and Investment- Link Life Insurance

But what they all have in common is that they pay cash to your loved ones in the event you pass away. This lets your nearest and dearest remain on firm financial ground even though your earnings have stopped.

Often, when it comes to planning for life insurance , many may ask “How Much Life Insurance I Need”?

Well, it depends on many other factors such as on your financial plan, your insurance needs changes, which require you to go through a proper diagnosis and analysis to justify whether you are currently under or over insured.

Here are a few factors to consider when it comes to planning for your life insurance;
✳Age
✳Debt
✳Family Situations
✳Financial goals
✳Other financial obligation
✳Funeral Expenses

Bear in mind that, Life insurance needs often decline over time, so the amount of insurance you need now will be far greater than you might need in 15 to 20 years later.

So, continuing to have a regular review and adjusting your life insurance, and make sure you’re adequately covered, but also that you’re not paying for more insurance than you truly require.

10/01/2024

His late mom appointed him as the Will’s Executor, and he had no objection to this appointment.

Sadly his mom passed away unexpectedly last year.

Right after settling down, he decided it was time to execute the Will.

Little by little he started to learn that there were so many procedures that were required to produce. Such as;-
✅Apply for Grant of Probate from the High Court
✅Calling in assets and determine the liabilities
✅Paying off the deceased’s debts and liabilities

Then , he realized that the responsibilities given as an Executor are not as easy as he thought.

As they need to follow up with various parties on the matters which are time consuming and very arduous, which also distracts him from focusing on his current job.

Due to his past experiences, he is now more aware when it comes to appointing an Executor.

Being chosen as an Executor is both an honor and responsibility.

However, before accepting, you should fully understand what you're getting into.

As an executor, you will be administering the deceased’s affairs, such as the payment of estate debts and expenses, as well as distributing the deceased’s assets and properties.

As a result, the primary role of an Executive is to ensure that all the wishes in the deceased’s Will are fulfilled.

Here are the duties of an executor:-
🔶Locating the Will
🔶Apply for the Grant Of Probate from the Court
🔶Determine all the Beneficiaries
🔶Settle all the debts left behind by the deceased
🔶Distributing all the assets according to the wishes stated in the Will
🔶Setting up a bank account for the estate

Being an executor isn't easy.

It’s required to perform their tasks in accordance with the will and in compliance with the probate laws. The executor is also required to perform their duties diligently and in good faith.

Often it can take up a lot of time and energy, and it might be the last thing someone feels like doing when they're grieving.

So it's important that you think carefully about who you choose , and explain what’s involved and make sure that they're willing to take on the responsibility of the role.

09/01/2024

Should I get a health plan before I retire?”

“ All these while I am depending on my current company’s health coverage.”

“It just never struck me to get my own personal health plan.. “

“Until recently I was admitted to hospital and the health coverage that the company provided was insufficient , and because of it I forked out of my own pocket to pay for the medical bills.”

“Due to this incident, I am worried about my medical plan during my retirement.. With healthcare inflation rising each year, I believe that I will not be able to pay for the medical bills if I am diagnosed with any terminal illness, especially when I am retired. I think it is better that I do something about my medical plan…”

Frequently it is common that most organizations or companies will offer medical coverage as part of their employee benefits.

Due to this reason, many individuals may question whether it is necessary to purchase their own personal medical insurance.

First , you need to understand how Group Medical Insurance and Individual or Personal Medical Insurance works.

Normally ,most companies offer group insurance as part of their employee benefits package. Depending on the organization, the benefits could include basic health insurance coverage, partial or full reimbursements of your medical and dental expenses, or even insurance coverage for critical illnesses and so on.

However, often most company insurance is served as a one size fits all package. Some organizations may offer different coverage to employees depending on employee grade level or even age, such as higher benefit limits for higher-ranked employees.

Meanwhile, for Individual or Personal Medical Insurance, the policyholder owns the contract of the insurance. The insured has the right to make the change on their individual policy, and each policy is tailored and made according to the insured risk factors and needs.

For this reason , it's important that you have sufficient personal insurance. Besides getting the protection you’ll need, having your own personal insurance also means you’ll have something to fall back on should anything happen to your job and the coverage that comes with it.

No doubt that your employee medical insurance can help you cover some of the costs of healthcare, but you shouldn’t solely rely on it.

Here are three reasons:
✅Limited Coverage
✅You lose your coverage once you leaves or retire
✅Changes in employment situation
✅No Tax Saving

Company insurance can be great when it provides the coverage that you need. But most times, you don’t have a choice in the kind or amount of protection you’re getting. You also risk being underinsured or getting stuck in the future if you rely solely on your company insurance.

As a result, perhaps it is time for you to start building your own Personal Health Plan that matches your specific needs and financial goal.

09/01/2024

Do you know that “Mastering cash flow is the key element when it comes to managing personal finances?

Frequently, people will jump straight into investment without finding out their current financial position.

By assuming the investment products that they invested in are the right path to achieve theirs goals.

When any unforeseen life event arises the first thing they do is dig into their investment that they hope not to touch for years.

Frequently some of us may end up making some financial decisions that can be quite pricey and have repercussions on our financial futures.

Often some of us would end up delaying our other priorities and our long-term goal, such as retirement.

This is the same old scenario that I had encountered since I started to practice Financial Planning.

But what does “mastering the cash flow” mean?

It is about
✅what it costs to fund your lifestyle
✅understanding what you can consistently save and invest.

You may wonder “ Viv, this simple saja , just jot down all my monthly expenses and allocate what I left monthly into my savings and investment respectively loh !”

Well, it may sound easy peasy lemon squeezy, however in order to balance these two things are arguably the hardest part of all of personal finance.

With the high financial commitment that we committed, we may struggle when it comes to balancing the money we earn with how much we need to spend on bills, plus other goals like emergency savings and retirement planning.

However, in order to master your cash flow it doesn't have to be impossible , as long as you follow the right strategies.

Here are few tips to Mastering your Cash Flow:
1️⃣Knowing your current financial position
2️⃣Slash your Expenses
3️⃣Creating a budget
4️⃣Automate your saving
5️⃣Reduce and manage your debt
6️⃣Monitor and adjust regularly.

Taking control of your finances is a journey that requires discipline, patience, and ongoing process.

No doubt It may not be fun.

But the longer you do it, the easier it becomes.

Before you know it you already on your way to achieving financial success and building a prosperous future.

13/09/2023

“Sebab arwah ayah, I nak buat Wasiat”..

“Masa arwah ayah meninggal, kami sekeluarga jadi berhura-hara sebab arwah tidak berwasiat, dan semua harta pustaka yang tinggalkan tu frozen..”

“Bila I dan adik-adik I start buat permohonan pembahagian harta pusaka arwah ayah, barulah kami tahu betapa rumitnya prosedur tu. “

‘ I tak nak anak-anak I ni melalui apa yang I melalui. So I decided nak buat wasiat semasa I masih ada lagi…” Said Puan.

One of the functions in planning and managing a person’s wealth distribution is to avoid assets from being frozen once a person passes on.

But more than 90% of Muslim still have not done their Wasiat yet due to lack of awareness on the importance of estate planning , according to MAIS (Selangor Islamic Religious Council).

When a Muslim passes on, under the Shariah law of inheritance, Faraid will apply in respect of the distributions of the deceased’s estate.

However without a Wasiat, all the rights for the lawful beneficiaries of the Faraid heirs would not be automatically transferred. In order to claim the rights and portions of the Faraid heirs, they would need to vested through legal process, otherwise all the estate will remain frozen.

As a result, they may have to appoint an administrator who is a person to administer the deceased’s estate and distribute it according to Faraid law.

In Islamic Financial Planning, there are various types of instruments that can be used and practiced in planning and managing according to Shariah Law and principle.

When it comes to wealth and estate transfer , estate distribution can be done with various financial instruments , such as Wasiat , Hibah, Waqaf , Amanah etc

What is Wasiat ?
Basically , A Wasiat is an Iqrar (promise) made by a person during his lifetime with respect to his property or benefit thereof, to be carried out for the purposes of charity or any other purposes permissible by the Shariah Law, after his death.

A Muslim is allowed to make a Wasiat for the distribution of his or her property. The Wasiat can only distribute one-third(⅓) of the estate for Sadaqah and Waqaf purposes , while the remaining two-thirds(⅔) must be distributed according to Faraid law (Islamic law of inheritance).

For Muslims, a Wasiat could be his/hers last act in this World.

They may give their final instructions on how they wish their estate to be distributed. They can have good deeds performed on their behalf for the Hereafter.

By having an effective Wasiat, the appointed executors would be able to distribute the wealth and estate properly to the named beneficiaries.

This would save time, emotional distress between family members and beneficiaries and the cost of distributing the estate.

Estate Planning is not a topic that most people enjoy talking about.

But it is always best to get it sorted out as early as possible .

After all, you don’t want to leave something as important as that till it’s too late.

12/07/2023

“My name might be in the retrenchment list!”

“If it really happens, will my current resource be sufficient enough for me to get through it?”

Lately the company he is working with has been retrenching globally.

His gut feeling tells him that it is time to start looking for a new company to work with.

But before he does it, he needs to get a reality check on his finances.

He needs to prepare for the unexpected , and minimize the financial fallout that can follow retrenchment.

Retrenchments are one of the most traumatic events that a person can go through.

While you are in a fragile emotional state, you will be called upon to make lots of important decisions about unfamiliar financial issues.

These decisions will have massive financial implications later in your life.

It would be wise to use this time to think about how you can be ready for it in the future.

Here are a few steps to take if you were caught unprepared retrenchment :
1️⃣Review your family budget .
🔴Cut down unnecessary expenses, and have a discussion with your financial situation with your family member so they are aware of the need to make some sacrifices until you land for another job.

2️⃣Take a look at your emergency fund.
🔴Make sure you have 6-12 months worth of monthly living expenses in it. For example if your monthly expenses is Rm5000, then you should aim to have an emergency fund of at least Rm30,000 (5000 x 6 months ) to Rm60,000 (5000 x 12 months) to help you cover your basic needs during this period of unemployment.

3️⃣Consolidate your debt
🔴Choose the ones incurred highest interest , like your credit card, prioritize them and pay them off ASAP. Whereas your housing loan repayment you could consider making a withdrawal from EPF Account 2 to help cover your monthly housing loan installment for a minimum period of six months, or until you land a job.

4️⃣Claim your EIS
🔴Do you know that the SOCSO, the EIS scheme was introduced to help retrenched workers get by while they look for a new source of income. If you were to retrench, the EIS will pay you a percentage of your monthly salary for six months. On top of that, you will also be eligible for a monthly allowance of up to RM600 for up to three months. Even though it is not much , at least it will help you get through this tough time.

5️⃣Understand your retrenchment package
🔴Make sure you clarify on the amounts that you will be paid , and put everything in writing before leaving the company.

6️⃣Keep your Resume Up- To- Date
🔴Remember to update your CV with new skills, courses and experience. Not forgetting your LinkedIn profile as well.

Dealing with retrenchment can be overwhelming. But with proper planning , it will help you prepare for the unexpected that will come along during this difficult time.

Always bear in mind never lose hope, there's always a light at the end of the tunnel.

You’ve got this!