THE ART ?IN FINANCIAL PLANNING

Illustrated byJaslinah Rahman CFP ® IFP TM B.Acctg Univ. Malaya

Financial Planning – methodology inspired by Da Vinci ?

The most Stable Formation – PentagonAs depicted by the Vitruvian Man (Universal Man) as drawn by Da Vinci

“Golden Ratio” represents true

biological proportions

- draws together concepts of mathematics and physics with biology and anatomy;illustrate the importance of physics in our lives (used in

historical architecture, industrial design,

mathematics, music and now in FINANCIAL

PLANNING *)* According to Jaslinah Rahman

The Pentagon of Islamic Financial Needs

Holistic Presentat

ion via

Financial PlanningApproach

Liabilit

y &

Cashflow

Management Risk

Management

Wealt

h

puri

fica

tion

Wealth

Distrib

utio

n

Wealth AccumulationDRAW this diagram to start your SALES

PRESENTATION

Liabilit

y & C

ashflow

Management

Risk Management

IslamicFinancial Planning

Approach

Takaful Plans

Zakat

Budget & Cashflow

Wasiat, Hibah

(wakaf)

Syariah Savings & Investment

Wealt

h p

uri

fica

tion

Wealth

Distrib

utio

n

Wealth Accumulation

Islamic Financial Needs & Tools

Then add the different SYARIAH TOOLs used for each NEED.

Investment Plans (Wealth

Accumulation & Wealth Distribution)

is easier to implement once

the “Basic Wealth Protection” is established.

Islamic Financial Needs & Tools - level of importance

Often people are confused where to START. This diagram may help them prioritize : Protect Accumulate (unit trust) Distribute

AS ISLAMIC FINANCIAL PLANNER, WE MUST APPRECIATE THE ISLAMIC VIEW ON WEALTH ACCORDING TO SYARIAH PRINCIPLESUnderstanding these principles and concepts, will enable you to conduct a more meaningful Sales Presentation and touch the core needs of a Muslim.

This is part of your “ibadah” where you help educate the public. This way, you will be rewarded even if the prospect client doesn’t buy your product.

Refer Articles – The Financial Planning Verse

UNDERSTAND HOW HUMAN MIND & EMOTIONS WORK ALSO HELPSBy having a Financial Plan, they become less emotional (as depicted by diagram next page). Investor will FOCUS more on the Plan rather than the ups & downs of stock market. Help them focus at achieving the RESULT at the end of a Retirement Plan, Education Plan, Haj & Umrah Plan etc.

Financial Planner must also understand that a PLAN requires sufficient time to achieve results. Thus, appreciate the illustration (forecast only and NOT guaranteed) of “Time Value of Money” using PMB Pocket Calculator.

WHY WE NEED FINANCIAL PLANS

Investor’s Psychology

15

UT

Use the “friendly” PMB Pocket Calculator -“mark” how money expected to grow over time. Impress the prospect “how they can achieve millions of Ringgit” with a low startup investment and time via UT.

16

FD

TH

ASB

UT

EPF

Use the “friendly” PMB Pocket Calculator – share (not show ! ) how different investment tools achieve different results over time.

WHY 12% FOR UNIT TRUST ?

The following Returns over investment (ROI) are usually used in Sales Presentation :• Fixed Deposit (bank) 3%• Tabung Haji (net zakat) 5%• KWSP/EPF 6% (last year 5,8%)

Use 12% as ROI per year for UT investments above 5 years (ideal investment period as ONE economic cycle usually comprise about 2 years down + 3 years up periods). The 12% is a benchmark of performance of Malaysia UT.

Do remember we usually impress prospect with Public Ittikal consistent performance which is above 12% per annum to justify why they should invest with PMB UT funds.

WHY 12% FOR UNIT TRUST ?Once you have “caught” the prospects attention with :• Syariah Financial Planning overview• Syariah compliant tools for each financial

purpose• How money grow over time• How money grows differently with different

Investment• Can also enlighten prospects “Why ASB is NON-

syariah compliant” according to Securities Commission.

Next, you will start drawing and illustrating how the PLAN WORKS.

Remember, to always acquire more Syariah Financial Planning knowledge. The easiest way is to register for the ISLAMIC FINANCIAL PLANNER certification (6 modules , do the first module at least). To continue your Sales Presentation, go to page 19 - 30 of “Sales Presentation – FP way”