What newbie investors need to know

    




Newbie? Here's what you need to know. 





Investing Early is key. I have been emphasizing this over and over again in my blog.

With this post, I will teach readers the 2 types of investments:

1) lending investment
2) ownership investment.

What is lending investment?
It is actually “lending your money to institutions in exchange for a profit. Putting money in the bank is lending investment. Money in a savings account or in a time deposit is actually a loan to the bank.

What is ownership investment? 
It is the acquisition  of OR OWNING assets (shares of stock, property, etc.) with intention of periodically earning income from these assets. In ownership investment gains or losses are actualized only when the asset is sold. This type of investments are generally  more suitable for long term goals.

Now the more important stuff. Guides in Investing:

Know that:
a) the higher the return, the higher the risk;
b) the longer the time, (investment period), the lower the risk; and
c) the longer the time, the higher the return

Investing is a choice. Retiring rich is a choice. If you know what you're doing early on, nothing will stop you from retiring rich. Doing something NOW rather than later (or none at all) IS A FAR BETTER CHOICE to make.

Again, it’s developing the habit that’s more important. When you muster the discipline, you will retire rich.

Good luck and happy investing!

The best mutual fund products in the Philippines

I am sharing this so people will know options.This is a series of posts. I intend to feature the best mutual fund products in the Philippines. For today, it is going to be Sunlife of Canada's Money Market Fund.

I love this product of Sunlife of Canada. Click here

Sunlife of Canada's Money Market Fund - One of the most conservative mutual funds
you can buy.

As per Sunlife:

Money market funds are designed to provide current income at competitive yields with minimal risk to your principal investment. Compared to other existing mutual funds, money market funds are at the top of the heap when it comes to low risk.

Money market funds are comparatively low risk mainly because of the securities in their portfolio. These types of funds only invest in securities that are “short-term,” meaning those with a term of one year or less. As a general rule, short-term securities are less riskier than longer-tenor securities.




Compared to other mutual funds at this time therefore, it is one of the most conservative mutual funds in the country, perfect for somebody who wants to “try out” investing in mutual funds.

There are no fees to pay upon investing. This means that your Php 10,000 initial placement is invested wholly into the fund, thereby maximizing its earning potential. Subsequent investments can also be made for as low as Php 5,000.

It is also tax-free. Unlike bank products that provide tax breaks on your interest earnings only when you stay with them until your money “matures”, your mutual fund proceeds are not subject to the usual 20% withholding tax.

So if you're in your early stages of investing. I recommend this.

In my next posts, I will feature the other products available in the market for Filipinos to try out.

What's the latest PH stocks update

Image via WikipediaHappy easter everyone. What a nice long weekend we had, huh?

I waited for Tue to come so as my 1st post after the holy week break would be the latest PH stocks update. So here goes. Again, briefly and in bullet points:



LATEST PH STOCKS UPDATE:

• The main-share Philippine Stock Exchange index gained 56.6 points or 1.32 percent to finish at 4,331.37.
• Services led the day's upswing, rising by 2.3 percent 
• Financial, property and mining/oil counters all went up by over 1 percent.
• There were 96 advancers as against 46 decliners while 23 stocks were unchanged.
• Gainers: PLDT, AGI, First Gen, Megaworld, Lepanto A, Metrobank, AEV, URC, Philex, EDC, Metro Pacific Investments, FLI and FPH led the index higher. Non-index stocks Lopez Holdings and Digitel also gained on heavy volume.
• DMCI, Semirara, Manila Water, Aboitiz Power and Jollibee traded lower.

Very very god news still, i must say. Over-all, the country gained. So there really is no reason for investors for corporations in the red to panic. We're good. Relax.

My take:

I'm looking at my personal investments as getting stronger. I am very much satisfied. I'm confident my chosen corporations shall have me bringing home the bacon  one day.

So how about you? Have you decided on joining us investors yet?

Related articles

• Five Stocks Insiders Are Buying Like Crazy (businessinsider.com)

Loans

I'm thinking of creating a directory of Financing Institutions available for the Filipinos.

Why? Because i personally believe that loans are not bad. We Filipinos must learn to disassociate loans from the normal lines of thoughts such as "utang na loob" or "pabigat".

Let me tell you a story I keep on telling to people afraid of taking out loans:

You see, I work for a financing company. And for over a decade now, i have seen people actually make good with their loans from us. Almost all our clients, actually. Of course we also have delinquents.

This is why  I do not discourage people from taking out loans.

You know what's bad? If he uses that loan to buy something which WILL NOT earn - like a cellphone, or a watch, or a TV set. Then he's in trouble.

On credit cards:
Image via Wikipedia
One of my staff is very enterprising. Do you know what she uses her credit cards with high credit limits for?  Strictly for BUSINESS only. How? Here:

With high, i mean up to P200k per card. She has friends who do not have credit cards but are so bent on  buying high end items such as new refrigerators, tvs. aircon, etc. So she offers that she uses her card to buy them the items, but she'll collect monthly from them. for principal, interest AND, check this out, a little patong (profit). Isn't that clever? That's making money out of plastic.

I haven't followed her footsteps, by the way. First, because i do not have credit limits that high (i get awed at how high credit limits credit card companies can actually afford to give middle-income earners nowadays). And i'm not much into usury.

But i must say, this is a smart way of making extra money. (By the way, have you been checking out my page about "earning extra"?. Click here)

So you see, as long as you use loans to make money, nothing is wrong with it. Investing is the name of the game. Saving money is not enough (read my post about what to do with money saved here). One needs to find ways to create money and build wealth.

Let's start looking at loans the positive way. The old way is not applicable anymore. The world has changed.

Information is key, people!

PS
You might want to read:

Mutual Funds Performance update - Q1 2011 report

Let me refresh your memory, dear readers:


Image via WikipediaWhat is a Mutual Fund?

A mutual fund collectively pools money from individual and corporate investors. These funds are managed by a professional fund manager who invests the collected money in financial securities such as stocks, bonds, or money market instruments. In local lingo, this is one type of  "bakas" system of investing, as I mentioned in a previous article of mine. (Read about it here). 


Our friends from the Investment Company Association of the Philippines (www.icap.com.ph).has made public the Philippine Mutual Funds Performance Report for the 1st quarter, 2011, as follows:

In bullet points:

• Mutual funds in the Philippines were off to a not-so-good start in 2011, as most funds registered negative returns during the first quarter of the year.
• This was in stark contrast to the funds’ performance during the similar period last year, wherein all but one mutual fund were in positive territory.

Note: 

a) Figures in (xxx) below denote a loss; 

b) In blue means a gain 

EQUITY FUNDS (primarily invested in Peso equity securities): 
Sun Life Prosperity Phil. Equity Fund – (1.18%)
Philequity PSE Index Fund – (1.31%)
Philequity Fund – (1.52%)
United Fund – (2.11%)
Philam Strategic Growth Fund – (2.78%)
Philippine Stock Index Fund – (4.18%)
First Metro Save and Learn Equity Fund – (4.86%)
ATR KimEng Equity Opportunity Fund – (5.46%)

FOREIGN CURRENCY-DENOMINATED EQUITY FUND
ATR KimEng AsiaPlus Recovery Fund – (0.05%)

BALANCED FUNDS (primarily invested in Peso debt and equity securities)
Sun Life Prosperity Balanced Fund – (1.51%)
Optima Balanced Fund - (2.29%)
Bahay Pari Solidaritas Fund – (2.79%)
GSIS Mutual Fund - (2.82%)
Philam Fund, Inc. – (2.82%)
NCM Mutual Fund of the Phils. – (2.86%)
First Metro Save and Learn Balanced Fund Inc. – (5.16%)
MFCP Kabuhayan Fund – (5.90%)
ALFM Growth Fund – (6.74%)


FOREIGN CURRENCY-DENOMINATED BALANCED FUNDS: 
Cocolife Dollar Fund Builder – 0.68%
Sun Life Prosperity Dollar Advantage Fund – 0.19%

BOND FUNDS (primarily invested in Peso debt securities)
Cocolife Fixed Income Fund – 1.33%
First Metro Save and Learn Fixed Income Fund – (0.13%)
Grepalife Bond Fund Corporation – (0.24%)
ALFM Peso Bond Fund – (0.37%)
Philequity Peso Bond Fund – (0.82%)
Sun Life Prosperity Bond Fund – (1.00%)
Ekklesia Mutual Fund – (1.28%)
Philam Bond Fund – (1.32%)
Prudentialife Fixed Income Fund - (3.01%)
Sun Life Prosperity GS Fund – (3.06%)

FOREIGN CURRENCY-DENOMINATED BOND FUNDS:
PAMI Global Bond Fund – 0.41%
Philequity Dollar Income Fund – 0.02%
ALFM Dollar Bond Fund – (0.04%)
Grepalife Fixed Income Fund Corp. – (0.22%)
Grepalife Dollar Bond Fund – (0.31%)
Sun Life Prosperity Dollar Abundance Fund – (0.90%)
Philam Dollar Bond Fund – (0.93%)
ATR KimEng Total Return Bond Fund – (1.35%)
ALFM Euro Bond Fund – (1.73%)
MAA Privilege Euro Fixed Income Fund - (2.90%)
MAA Privilege Dollar Fixed Income Fund – (4.76%)


MONEY MARKET FUNDS (primarily invested in short-term Peso securities)
ALFM Money Market Fund – 0.41%
ATR KimEng Money Market Fund – 0.34%
First Metro Save and Learn Money Market Fund, Inc. – 0.29%
Philam Managed Income Fund – 0.14%
Sun Life Prosperity Money Market Fund – 0%

My take:
Although the rate of return is a good measure of performance, other things such as consistency of return and exposure to risks must also be considered. Note that past performance of a fund is not and cannot be a guarantee of future returns.


So there. Again, INFORMATION IS KEY! Be wise with your investments, readers.

You may also want to read my article on : Earning while sleeping. Read here.
Hesitant? Read my article on hesitation here.

Money saving tip

I'm going straight to the point - saving is a skill. It takes 3 things: discipline, discipline and discipline.

But let me ask you first. Why do you save? Why not just spend? Which is harder to do, saving or spending?

The rich have a different mindset on wealth creation - It's not how much money you make, but how much is left after paying all the bills. Think about it. No matter how big your salary is, what matters more is how much are you able to save before it runs out. And, what are you going to do with the excess, if any.

Let me share with you my story:

Believe it or not, but if i choose to, i can go to my  (daytime) work, and back home without spending a single penny. Of course proximity is a huge consideration, but that's besides the point i'm trying to focus on. You see, i believe i have already mustered the art of discipline. It's all about planning and execution and willpower. I consciously practice this "zero" expense ritual every now and then. And everytime i succeed, i pat myself on the back. For not only do i save in the process, but i also prove to myself that i can choose to NOT be a slave of money. I can survive the day without being tied up to my expenses or budget.

Oh, my secret? The ever-reliable lunch box. 

Simple living is the name of the game. What i save, i can invest anew. So, don't i have a sweet, sweet life? Then, from my work-at-home job at night, i make money some more and therefore save some more.

We Ilocanos are something, huh?

Earn extra cash. Be a VA

Once again readers, information is key.

Why not be a VA in your spare time? What is a VA? It is short for Virtual Assistant. It is the next big thing. And it is now in the Philippines.  DO NOT BE THE LAST TO KNOW.

Google search box below. Type in the words “ Virtual assistant”

Custom Search

Or click www.odesk.com

Or www.elance.com

Or www.rentacoder.com

If you know your way around the internet, and have extra time, you can be a VA.The playing field has just been leveled. Especially for us in the Philippines, age, nationality, sex, appearance, etc have just been erased as factors for employment.

Yes, the world has changed. A new age has begun. You may even quit your present job and work full time as a VA. Think about it: no more traffic, no more office politics.

Hesitant still?

Here’s another essential news: There is a seminar to be conducted in Taguig this coming Apr 5.Using the search box above, google” Jomar Hilario VA seminar”. Get ready to be surprised.

Be in the know, people. Filipinos in the Philippines are actually doing it. Even I am doing it.  So what are you waiting for? 

Earn money while sleeping

This is what I love about investing: You get to earn cash while you sleep. There is no greater feeling than knowing that your money is working for you than you working for money.

Investing is my life. It has been so since i made the U-turn a couple of years ago.


As you now know, among other stuff, i preach about the stock market. A good way to invest really, is in the stock market. If you were following my posts, yesterday i wrote about Philippine-based companies who did well lately. Now i dare you readers to

Making the U-turn - a true story

,

When we got married 7 years ago, my wife and I were making what I used to call “just right” income. We both have good jobs. We both drive our separate cars (which in the Philippines is uncommon) . Life was so good I was never complaining. We were content with our salaries taking care of the food and rent (yes, we were renting).

2 years into married life, I began questioning