There are a handful of personal finance challenges that are unique to women. From staying on top of her personal finance situation to surviving a divorce or the death of a spouse to planning for a longer life, women should learn how to prepare for a financially secure future.
Financial Planning Association of Malaysia (FPAM) chief executive officer Linnet Lee stressed the importance of women in taking an active role in managing money. Women, for one, tend to live longer than men and so may need to fund a longer retirement.
Many are taking a backseat approach to their finances, allowing someone else – be it husband or partner — to take control. Data shows that the literacy rate for Malaysian women is 96.3% but they are not taking charge of their finances.
“Women are empowered to seek financial knowledge and should make it a goal to learn about investing in order to take control of their finances and plan for a better future and to weather financial storms,” said Lee.
It is vital for women to have solid financial planning to achieve a secure financial future and they should start with taking control of and understanding finances.
Speaking at the InvestSmart® Fest 2018, Lee outlined some steps on how women can tune up or take charge and this includes creating an emergency fund enough to last at least 3-6 months, having clear life goals, managing debts well and investing to make their money grow.
The next important step is proper protection so that women can start investing to achieve their life goals with peace of mind.
An investment process typically aims to hedge against inflation and Lee said it is important “to avoid putting all your eggs in one basket” and have an appropriate asset allocation to reap a variation in returns of a portfolio.
For a start, Lee said those requiring a better financial road map, could seek the services of a licensed financial planner to help crystallise their goals, prioritise them and draw up a plan on how to achieve it.
InvestSmart® Fest 2018, an investor education initiative by the Securities Commission Malaysia was held on October 12- 14, was aimed at promoting awareness and knowledge on the Malaysian capital market.
Themed “Investing for a Sustainable Future“, the event showcased 45 participating organisations comprising capital market intermediaries, regulatory and other agencies under one roof.
During the three-day event, 600 complimentary financial planning sessions were offered by more than 100 licensed financial planners.