By Kian Ng
What car does a financial planner drive? Wealth Vantage Advisory (WVA) is pleased to launch our “Have a Plan: How I Ride” series. Our financial planner for this edition is Kian Ng. This is the story of how he rides – both literally and financially.
Hey there, I am Kian and this is how I ride, financially and realistically.
Q1. What Car Do You Drive?
I drive a second-hand Honda Insight that I got from a friend in cash. This is my second car after my BMW 3 series. I found owning a luxury car is not my transportation of choice anymore as I have since realized that the maintenance and repair expenses could cost a bomb at any given time!
Kian’s second-hand Honda Insight, bought in cash.
Q2. What Influenced Your Car Choice?
My experience driving the more prestigious BMW was that it was a cool ride. It was the most expensive car I had owned.
However, other than this good feeling when driving it, I needed to spend more on hire purchase repayment as the loan amount was high. The quarterly maintenance cost was waived for the first 2 years at that time and eventually the rest of the cost was on my side! I remembered vividly the cost of changing a pair of tyres was a shocking RM 3500, excluding the workmanship charges.
With that in mind, I start to look for a car that is reliable, of a car brand is trusted, not necessarily must be brand new, and most importantly spare parts can be found easily. My timing was just right as this Honda Insight that checked all my boxes came from a dear friend who was getting a company car. We quickly got the transfer process done and the car was all mine.
I’ve already passed my 10th anniversary of driving this Honda Insight and I am still pleased with the car’s performance and enjoy driving it. Very importantly too is how pleased I am with this car from the perspective of cost savings.
Q3. How Do You Approach Your Personal Finances?
I plan my personal finances by adopting these 9 golden rules :
1. Know your current financial standing by talking to a Certified Financial Planner.
2. Ensure you stay focused on your personal financial goals.
3. Review your current financial standing.
4. Prepare sufficient emergency funding.
5. Protect against all possible risks.
6. Invest your assets smartly.
7. Constantly review your investment.
8. Plan your estate in case misfortune strikes.
9. Reward yourself occasionally.
Q4. How About Your Investing Approach?
I am a strong believer in investing. I constantly ensure that my monthly cash flow is at a surplus before I deploy any investment plans.
First is to pay myself sufficiently, in terms of personal and family expenses. With that in mind, I will have the surplus channeled to my savings and retirement needs. I always follow the rules to invest my surplus so that it can grow towards my financial life priorities. I invest regularly in using automation where possible. On top of that, I use a robo-advisor to help me to gain my targeted returns.
I always ensure that I have the right assets allocation amongst various investment schemes available to optimise my portfolio returns. Proper assets allocation reduces the volatility of my investment by 90%. I always check portfolios that at least have 3 years worth of track records. I understand the risks I am exposed to when I invest and also the potential returns.
My principle in investing is to ensure I can gain in whatever economic situation.
Q5. What is your financial tip for all Malaysians?
Get a financial plan from a Licensed Financial Planner that provide professional advice which is personal. It may be simple but it has to be aligned to your personal financial goals. The only thing required from your side is self-discipline. It is not easy but I am sure a simple plan will help you get a small step ahead of your personal finances.
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Do you have any stories on how you ride? Share with us in the comments section below.
“How I Plan” is a series focusing on personal stories by licensed financial planners and Malaysians.