145) What UTC share with their clients?

145) What UTC share with their clients?

  

Many people think UTCs only talk about investments.  

In actual fact, investment is only a small part of what you can discuss with your Unit Trust Consultants (UTC).

The UTCs will be very happy to discuss about anything related to you. It is about your life. They will talk about your past, current and future life needs. 

Spending Habits

You can ask your UTC to review about your past money habits. Your income and expenses have resulted into your current financial situation. If you spend more than what you earn, you will end up having many unsettled credit card bills. When you have your UTC review your expenses, he or she will be able to highlight expenses that can be reduced.

Home Ownership

You may just be starting out and wish to buy a house or condominium. You know that you need to save enough money to pay for the down payment, sales and purchase fees, legal fees and other fees. Your UTC will be able to assist you to plan on saving up the amount.

The amount estimated will depend on;

a) property price

b) down payment amount

c) inflation rate for the property

d) time you need the money

e) amount you already have

Education Planning

When you have children, then the UTC will be able to assist you on planning for your children's education fund. Ask the UTC to calculate for you the amount required for a tertiary education. From the current education fees and living expenses, the UTC can project the amount required in the future. The amount estimated will depend on;

a) your children's age

b) course of study

c) country of study

d) years to complete the course

e) inflation rate for education fees

f) living expenses

g) inflation rate for living expenses

Retirement Planning

You may also want to start to think for your retirement. No matter how young or old you are, you are fully responsible for your older self. The earlier to start to plan, the easier is the plan.  

The main advantage all people have is TIME. 

Investments, like a fruit tree, need time to grow. If you take care of the fruit tree, it will grow very healthy and big, with many fruits for your future consumption. A good planning will definitely give more advantages to the tree.

Discuss with your UTC on what kind of retirement you wish to have. 

Where do you plan to spend retirement days? 

What you want to do during your retirement? 

How much you want to prepare for retirement expenses?

Your UTC will be able to calculate the future amount needed to prepare for your retirement.

The amount estimated will depend on;

a) your age

b) retirement age  

c) monthly expenses

d) inflation rate for living expenses

e) how many years of expenses required

Other Life Planning

Besides the above planning, you may also wish to plan for other things. For example, down payment for a nice car, a nice holiday trip to Europe. There are others who wish to fulfill their religious plans by going for a pilgrimage. No matter what your dreams are, your UTC will be able to help.

The amount estimated will depend on;

a) amount required

b) years to save up

c) inflation rate of the expense

d) amount you already have

Failing to Plan is Planning to Fail.

Investment Types

Your UTC can also share with you their knowledge on different types of savings and investments. 

In Unit Trust, the investments are mainly categorized into 3 main asset types:

a) Money Market and Cash Deposits

b) Bonds

c) Equity or Stocks

The UTCs will be able to recommend money market or cash deposit funds that you can place your money for a few short months. For short period of 12 to 24 months, there are also bond funds that you can consider. 

For longer term, the UTCs can recommend you suitable balance funds or equity funds. Depending on your risk profile, the UTC can recommend funds which are balanced. That means the funds has a good mixture of equity, bonds and money market instruments. 

If you are willing to take higher risks, there are funds that have a larger percentage in equity. Equity funds have the most varieties. The equity funds can be divided further into different:

a) Conventional or Islamic

b) Market Capitalization - Small, Medium and Large

c) Local, Country, Regional or Global

d) All sectors or specific sectors/themes

As you can see, there are more than just investments. You can discuss on what you really want in your life. The UTC will assist you to plan and get what you want.

 

If you look at the things your UTC do for you, there is 

No Selling, Just Sharing.

For all the sharing you get from your UTC, ask him or her how much they charge for the knowledge.

You will be surprised on what is the fee charged. 

Contact your UTC and find out for yourself.