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!

See this yahoo featured article about how to retire a millionaire

Yahoo featured this today. Click the link.

start-with-10k-retire-millionaire-marketwatch: Personal Finance News from Yahoo! Finance

For most of us Pinoys, around P10M (instead of $1M) is enough retirement fund. So do the math. $:P exchange rate is around P42. This should give us an idea of how much to target monthly and how long.

Good luck, people. Information is key!

Investing 101 - a guide for the newbie Filipino investor

Where to invest spare money

So you have extra cash? Wondering how to start investing and creating wealth? Here are choices a wise man (and woman) can consider:

The banks in your locality: The good-looking tellers there are your friends. Think more than just opening and maintaining a savings account. Consider Time deposits: Your money will be kept by the bank for a fixed period (30 days, 60 days, 90 days or more) in exchange for a higher interest rate than an ordinary savings account. How about a fancier product

THE TIME TO ACT IS NOW

Sounds cliche, but i'm starting off with this statement: The time to act is now.

You see, a lot of us Filipinos don't realize that the world does pass us by quicker than we could ever act. Before we know it, our youth is gone; our dreams; our aspirations. For most of us, we make the same mistakes our parents did when they were young.

I hope to inspire readers by FIRST, pointing out what we are doing wrong, then EVENTUALLY offer ways out. If you’re in your twenties, you are very lucky. The world is at your fingertips. For the rest of us, we have a lot of catching up to do. Hence, the time to act is now. Not tomorrow, not next week.