In our experience handling high net worth and middle class clients’ wealth, we have consistently helped grow and increase their net worth by 60 to 180%. To illustrate our promise, please refer to the case study below:
John’s Financial Background
- 36 and wife 34. Children age 8 and 5
- Combined annual income : RM165,000
- Current life style: RM108,000 per year
- Annual insurance premium – RM40,000
- Retire at 55 with RM84,000 living expenses
- Provide RM200,000 for each child’s university education
Financial assets
- House – RM500,000 with RM250,000 mortgage loan
- Shares – RM 30,000
- Unit Trust (Bond) – RM200,000
- Unit Trust (Balanced)– RM30,000
- EPF – RM200,000 (H), RM150,000 (W)
- Bank Deposit – RM450,000
- Average Investment Portfolio ROI – 3.87%
Without Holistic Wealth Management
The following net worth projection chart shows that John’s net worth at age 60 is RM2.22M (if he continues to manage his personal finance as it is)
CHART1
With Holistic Wealth Management
To help John increase his net worth, we have identified and streamlined the following money optimisation actions:
- Increase annual savings from RM 0 to RM 28,000.
- Cover for critical illness RM 300,000 each.
- Reduce insurance premium from RM 20,000 to RM 11,800 annually.
- Increase rental income from RM 0 to RM 15,400 annually.
- Increase investable assets’ average portfolio return from 3.87% to 6.70% by:
- Cutting under-performing unit trust funds
- Cutting the loss making shares
- Investing the idle cash
- Utilizing EPF money to invest into higher yield investments
- Investing in premium ready-built properties
By following the above actions, the adjusted net worth projection chart above shows that John’s net worth is RM5.49M at age 60.
Result
John’s net worth had increased by RM3.27M (a 147% increase from the original RM2.22M net worth before taking any actions).
As you can also see, none of these actions requires John to make any major changes or to take big risks in his life.
For more information, talk to our advisor without obligation.