Updated September 26, 2025 by Samantha

The financial planning pyramid shows how to build financial security: start with protection at the base, grow through accumulation, and complete with distribution. Skipping protection or distribution can cause financial setbacks, even if you focus on investments.

The Secret Behind the Financial Pyramid: Why Most People Get It Wrong

Why every individual have one own financial planning pyramid ? And how this pyramid works and have domino effect .Lets imagine your pyramid is similar to wood game ?
The bottom part start from wealth protection ,accumulations in the middle and distributions at the top . 

And why the bottom part which is the biggest part is protection? 

Most Malaysian make the mistake , they will focus on middle part which accumulate the wealth as much as they want , so they will start to doing different investment that are business , properties , shares , bitcoin & etc . And 2nd mistake is they don’t think of the distribution the part . Too focus on the wealth accumulation. 

What is wealth distribution? 

A legal way in Malaysia to transfer your estate to your next loved ones by writing a will . For example , if husband and wife share buy property and getting loan together,1st party charge same person in S& P and loan , they will assume if anyone of them passed away , the half portion of property will automatically give to the spouse. But this assumption is wrong , if the person died without will , the estate will follow distribution act. And the process is complicated and tedious. 

Why domino effects? 

Imagine if a person too focus at accumulation part, if he didn’t get any un circumstances happens and not getting the right and enough coverage , at the end its back to square , means the person will need to force to sell all investment for example sell property or refinancing to get fund to pay hospital bills or sustain family monthly expenses . We know Malaysian very high in household debt as % ( forget GDP) . And the liquidity is also a main problem because tangible asset is not easy to liquid and some investment will tied with lock in period or return is not guarantee. So , the first is start with the right protection, transfer the risk so that your pyramid will not falls easily and you can assure your family with financial security and peace of mind .

Whether you want to safeguard your family, expand your wealth, or explore new career paths, FTA is here to guide you every step of the way.

FTA Wealth Solutions is a one-stop financial consultancy in Malaysia, offering holistic services from financial planning and nomination to will writing. As an approved HRDF Corp (Human Resource Development Fund) training provider, we also deliver structured financial literacy and professional development programmes. With over 20 years of industry experience and partnerships with leading providers, we help Malaysians protect, grow, and secure their wealth with clarity and confidence.

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