About The YMH Model For Financial Freedom
The Yap Ming Hui (YMH) Model for Financial Freedom is a comprehensive and dynamic model conceived by renowned independent financial advisor, Yap Ming Hui to help more Malaysians achieve financial success and, ultimately, financial freedom.
Adapted from Whitman’s successful Family Office principles for high net worth clients, the YMH Model for Financial Freedom debunks all fallacies and myths surrounding financial freedom. In essence, it is a fool proof guide for anyone who wishes to have a systematic approach to realise their financial goals.
‘YMH Model for Financial Freedom’ is a 4 step approach that includes the following:
- Define Your Good Life
- List your Assets
- Optimise Your assets
- Grow Your Assets
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Step 1: Define Your Good Life
What does ‘having a good life’ mean to you? For some, having a good life means being a multi-millionaire. For some it means being rich beyond their wildest dreams. The problem with such an approach is that these people often forget that money is, sometimes, merely a means to an end. After all, what is the point of being rich, but not living the life you truly desire?
So, to define your good life, first, understand that everyone is unique. Each of us has different needs, wants, strengths and weaknesses. What may mean a good life to you, may not to another. Once you have defined your good life, you need to identify the financial resources needed to support your goals. For example, if your ‘good life’ requires you to stop working at age 50 and start pursuing your hobbies, you will need to have enough assets and income to support your lifestyle after the age of 50.
We have developed a tool called, ‘YMH Good Life Worksheet’ to help you define your good life and encourage you to fix specific dates to achieve your personal financial goals.
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Step 2: List Your Assets
Do you know where you stand financially? Most people think they know the answer to this. However, when they consider the question in detail, they realise they don’t even know what their assets and liabilities are. Sometimes, they don’t make use of their assets to achieve their financial freedom.
A very important step, therefore, is for you to assess your current financial resources. Our tool called ‘YMH Financial Wealth Inventory’ will help you list down all your assets, liabilities, sources of income and expenses, thereby, creating a personal income statement, personal balance sheet and detailed asset list.
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Step 3: Optimise Your Assets
Optimising your assets is about matching your current financial resources with your future financial goals and reviewing the outcome. Here you will calculate, analyse and plan your journey to achieve holistic financial freedom. If there is any gap in your plan, you can take the corresponding measures to fill bridge that gap.
By optimising your assets, you will know where you stand TODAY on your journey to financial freedom. Without knowing where you stand, your financial freedom efforts are at risk. For example, you might discover that your current average investment portfolio return is only 4%. To achieve your financial freedom, you will need a 7% annual return. With this information, you can put additional effort into growing your investments instead of exposing them to adverse risk that may deplete your capital.
Our tool called, ‘YMH Roadmap to Financial Freedom’ is designed to show you where you stand today and, thereafter, guide you towards attaining that financial freedom.
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Step 4: Grow Your Assets
Today, growing your assets is not a choice, but a must. Even if you have enough financial resources, the reality is that you will need to grow your assets to protect them against inflation. Besides, if you grow your assets, you will have more options to improve the quality of your life. For instance, if you grow your money at a more optimal rate, you will be able to help your grandchildren or extended family members. Without growing your assets effectively, your options are limited and you may even fail to achieve your financial freedom.
To help you grow and protect your assets, we’ve developed a tool called ‘YMH Holistic Investing Approach’. By using this tool, you will produce your own asset allocation statement, investment action plan and performance monitoring system to help you invest your money based on your unique financial goals and risk tolerance. You will avoid investing your money based on the latest trends and ad-hoc advice from investment salespersons.
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