12 April 2022

17 January 2012

"The Making of the Good Consultant"

Link to Financial Planner CTLA here

Module 1
Why do people need to invest?
Module 2
Don't Rent your money, Invest for More!
Module 3
How to maximise your returns using EPF funds
Module 4
The Relationship between Unit Trusts and the Stock Market
Module 5
Dollar Cost Averaging
Module 6
Dividends and Unit Splits
Module 7
Child Education Planning
Module 8
Retirement Planning
Module 9
How to market financial products or services effectively
Module 10
Understanding Economic Indicators
Module 11
Understanding Basic Accounting
Module 12
Corporate Investments
Module 13
Investment Tracking and Review
Module 14
Business Planning


Module 1:
Why do people need to invest?
  • The Effects of Inflation
  • Major inflation factors affecting the individual investor
  • The Power of Compounding
  • The Effects of Inflation vs. Capital Erosion
  • The Effects of Inflation vs. Capital Growth
  • Simple vs Compounded Interest (illustrated)
  • Compounded Value vs. Discounted Value (illustrated)
  • Computation of Yield or Interest Rate (for Business, etc.)
  • Power of Compounding (with lump sum annual investment)
  • The Power of Compounding 3 - percentage growth, Rule of 72
  • Types of Investment Products
  • The Basics of Bonds
  • Types of Risks in investing
  • How to read the Prospectus

Module 2:
Don't Rent your money, Invest for More!
  • Comparisons of Different Returns for Different Investments
  • The Risk-Return Relationship (different investments, different returns)
  • The Risk-Return Relationship (different funds, different returns)
  • The Risk-Return Relationship (similar risks, different returns)
  • Rule of 72 illustrated by chart
  • Regular Savings Plan (initial investment + monthly savings)
  • Regular Savings Plan (20 years)
  • Regular Savings (20 years) + Increase in Mthly Inv.
  • Regular Savings Plan (Unit Trust vs. Savings Account)
  • Regular Income Plan 1
  • Regular Income Plan 2
  • Asset Allocation (Live illustration of a simple portfolio)
  • Asset Allocation 2 - Can you beat your own inflation?
  • Asset Allocation 3- Maintaining your risk profile?

Module 3:
How to maximise your returns using EPF funds
  • How to calculate EPF Account 1, 2 and 3
  • How to calculate EPF Account 2, 3 and Total
  • How to calculate Account 1 from amount invested
  • EPF Balance (when will you become a millionnaire?)
  • Housing Account (Acc 2) can now be used for education.
  • Housing Account (Acc 2) can now be used for PC
  • KWSP Dividend History 1952 - 2004
  • KWSP Investment Portfolio in 1999 and 2000
  • KWSP Investment Portfolio in 2001
  • KWSP Investment Portfolio in 2002
  • Relationship between KWSP Dividends, KLCI & Unit Trusts
  • Comparisons between EPF Dividends & FD Rates

Module 4:
The Relationship between Unit Trusts and the Stock Market
  • Why invest in Unit Trusts?
  • What drive unit trust prices up or down?
  • What is a Portfolio? Who decide on what to invest?
  • When should an investor buy or sell?
  • Market Timing- "Time In" or "Timing"
  • Illustrating the Investment Concept of Unit Trust vs. KLCI
  • Unit Trust Profit Calculation made simple
  • % drop is not the same as % rise (multiple of 5%)
  • % drop is not the same as % rise (multiple of 1%)
  • Under what circumstances should you sell your investments?

Module 5:
Dollar Cost Averaging
  • Dollar Cost Averaging- Downtrend (Live Illustration)
  • Dollar Cost Averaging- Down and Up (Live Illustration)
  • Dollar Cost Averaging- Uptrend (Live Illustration)
  • Dollar Cost Averaging- Uptrend (Your Worksheet)
  • Dollar Cost Averaging- Flow Chart for EPF investment
  • Dollar Cost Averaging (when the market is down)
  • Dollar Cost Averaging by investing at the Start of the month
  • Dollar Cost Averaging by investing at the Middle of the month
  • Dollar Cost Averaging by investing at the End of the month
  • Comparison between Dollar Cost Averaging and Value Cost Investing

Module 6:
Dividends and Unit Splits
  • Which is better? Buy "cum" or "ex"
  • Dividends - (reinvested) -net result on Market Value?
  • Dividends - (taken out) -net result on Market Value?
  • Unit Split - what is the net result on Market Value?
  • Is Income Distribution better than Growth?

Module 7:
Child Education Planning
  • Why is Child Education Planning important?
  • Let your Money Grow together with your child
  • Future Costs of Child Education (local and overseas)
  • Child Education - Most Preferred Country
  • Child Education - Reaching Education Target

Module 8:
Retirement Planning
  • Why is there a need to plan for retirement?
  • Important Factors to consider when retiring
  • Lesson from the EPF experience
  • Retirement Planning (illustration 1)
  • Retirement Planning (illustration 2)
  • Present Value of a Future Retirement Sum
  • Different Returns for Different Investments
  • Regular Income Plan 1C

Module 9:
How to market financial products or services effectively
  • Difference between a Product and Service
  • Difference between Selling and Marketing
  • Marketing Concepts - The Old vs. The New
  • Marketing Tips for Success
  • The Laws of Marketing
  • Marketing Tips to stay Motivated
  • The 2 Horse Race (You don't make money on the No. 3 spot)

Module 10:
Understanding Economic Indicators
  • What are the major factors that influence the Stock Exchange performance?
  • What is M1, M2 or M3 or Money Supply?
  • Fixed Deposit Rates from 1987 to 2005
  • What is Gross Domestic Product (GDP)
  • Malaysia's 18 years' GDP Growth rate
  • Malaysia GDP Growth Momentum (Quarterly) 1997 - 2001
  • Malaysia's Trade Surplus (REVISED 15 NOV 2002)
  • New Economic Indicators effective 2001
  • Phases of an Economic Cycle (The Malaysian Experience)
  • Impact of US 911 on the Malaysian Market

Module 11:
Understanding Basic Accounting
  • Accounting Ratios you should know
  • What is Absolute and Relative Return?
  • What you should know about Beta ratios
  • How to read a Profit & Loss Account and Balance Sheet
  • How to read your Interim and Final Reports
  • How to read and understand the stock prices in the STAR or BT
  • How does Warrants, TSRs and ICULS work?

Module 12:
Corporate Investments
  • Difference between Personal and Corporate Investment
  • Who makes the decision? Personal vs. the Board of Directors
  • What are the important factors to consider and why?
  • Tax and Risks considerations
  • Conducting the Facts Find
  • Preparing the Proposal
  • What are the documents to use
  • Using Current Affairs and Economic Indicators
  • Submitting the Proposal only after a presentation

Module 13:
Investment Tracking and Review
  • Tracking the Investment
  • Keeping Clients informed of any drastic change in market conditions
  • Doing a Review; and the need to study the portfolio
  • Study the changing needs of the client
  • Providing a solution after the review
  • Discuss the review with the client before implementation

Module 14:
Business Planning
  • Budgeting and Sales Planning
  • Fact Find and using assumptions
  • Prioritise your objectives
  • Planning your Strategies
  • Applying Sensitivity Analysis
  • Managing your Cash Flow
  • Putting your Master Budget together




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