Credit cards are neither good or bad. It’s merely a financial tool that affords the cardholder certain conveniences and access to exclusive perks and benefits like discounts on some brands and restaurants, as well as access to airport lounges and freebies.
After going on a 3 week holiday with Tricia to Bangkok, Singapore and Laoag, I was back to my usual weekend grind of attending Financial Literacy seminars on a Friday, a weekend.
Randell Tiongson, one of the country’s most respected experts in Personal Finance, and the Director of RFP Philippines was the first speaker during the seminar. During the seminar, Randell reminded us once again about the basics of investment planning, and how to properly plan and select our investments. I know a lot of people who want to invest but are clueless as to which investment is right for them and how to get started; but they are also not willing to spend time to learn and hear from industry experts. Instead they go to social media and ask in different Facebook groups for advice where they get trolled, or scammed. Every day I see people asking the same questions; “What is the best investment?”, “Where should I invest my 100K with a potential to earn X amount in 1 month?”, “Should I invest in Real Estate?”, etc. Despite the fact that there are a LOT of other financial advice and posts where they can freely READ information on how to plan investments and where they can go to seek professional advice, some people still prefer to just get spoon fed. Too lazy to do the necessary work. They would rather have someone else do the thinking for them.
One of the Key points that Randell discussed during the seminar was that one should select investments based on his or her Risk Tolerance, Objectives and Timeframe. If you’re a person who is about to retire 5 years from now, investing in the Stock Market is probably not the right investment for you. Stocks may have been great when the market was bullish a couple of years ago, but now that the market is bearish and with no clear signs of reversal yet in sight, you might lose sleep and leave this mortal plain early due to the anxiety if you invested in stocks today. If you are in your 20’s or 30’s then by all means go all-in on stocks because you will have more than enough time to recoup your losses and wait for the market to reverse in case the market stays bearish for a long time. If you’re planning on saving for your child’s education 10 years from now, investing in Time Deposits will not help you achieve your target amount. We need to remember that there is no such thing as BEST INVESTMENT. It all depends on what is suitable for you. Investing is never a One Size Fits All solution.
Even after you have already selected your investment, the work does not stop there. Once you have begun funding your investment, make sure to monitor it periodically. If for example you invested in the Stock Market a couple of years ago, your portfolio right now will be in the red or close to it because the recent drop has wiped out all of the gains from 2018. Analyze your positions and determine if you should add more. If you are an investor and have 20-30 more years before retiring, then you might want to add to your positions now that the index heavyweights are cheaper. If you are a trader, then you might want to avoid the market for now and put your funds somewhere else or remain in cash. After you’ve done your analysis, and studied your options make the necessary adjustments and re-balance your investment portfolio accordingly to ensure that your investments are still able to beat inflation significantly and that you are able to make money. I remember early this year during Money Talks 2018, one of the people I follow, Tony Herbosa said that we need to be like water. Don’t be too rigid. Adjust to the situation accordingly.
If you want to learn how to invest, and pick the right investment for you don’t just go to Social Media and ask questions in forums. 90% of the time you’ll only get trolled or flooded with answers that don’t make sense like, “PM me”. Go to a Financial Advisor. Ask a Financial Planner and get professional advice. Attend a Financial Literacy Seminar. Be informed so that you can make an informed decision and not just follow anyone’s advice and end up making the wrong decision, or worse- scammed. Financial Literacy seminars will only cost you anywhere between AED 100-250 depending on the topics discussed, and some are even free; but I guarantee you that the amount you’ll lose to scammers and wrong investment decisions because you didn’t have the right information are going to be way higher.
If you think education is expensive, try ignorance. -Jeff Rich
According to the most recent statistical data, there are about 10 million Filipino OFWs all over the world. 1 out of 10 are financially broke, while 8 out of 10 will go home with no savings, or funds for retirement. If you are an OFW, those are scary numbers and those numbers are REAL!
In the first quarter of 2017, talks about VAT being introduced in the UAE, and other parts of the GCC caused quite a stir among the residents- expats and locals alike- and for good reason. The GCC has been tax free for a very long time, making it one of the most competitive regions in the world to do business. Personal Income tax is also inexistent in this part of the world making it one of the most attractive places for expat workers since they get to have a higher take-home pay at the end of each month.
Near the end of 2017, the PSEi (Philippine Stock Exchange Index) rallied to New Highs as it broke past 8500 levels and went as high as 8900 in the first week of trading for 2018. Many stock market investors and traders, myself included were jubilant to say the least after learning that the market has finally broken through the 8500 levels after going sideways for quite some time.
Planning on getting married in a couple of years? Have plans to put up your own business? Travel Plans? Want to buy your dream house one day? Want to be able to retire comfortably and not just rely on your Social Security Cheque? Then you need to Invest, and do it NOW!
There are so many reasons why we need to invest, but let me give you my Top 5 Reasons why.