My mother used to work as a clerk for a Chinese businessman in Binondo back in the early 70′s when she was still single. But she decided to stop working when she met my father until they got married in 1975. Given the very short time that she spent for working, she did not get to contribute that much for her Social Security.
Fast forward to 2012, my mother asked me if she could continue to contribute to SSS so that she could receive the pension when she reaches her retirement age. After giving her a computation on how much (little) she could get from SSS, I convinced her that she should not rely her retirement years from SSS alone.
In fact I told her that it would be better to allocate a portion of the money I’m giving her on a monthly basis and the profit she is getting from her small business of made-to-order delicacies to invest in the stock market.
And so she did in December 2012.
What Set of Companies Is My Mom Investing In?
Believe it or not, my mother’s investing in at least 10 great, blue chip companies in the land. Trumpets and drum roll, please.
Not only is she investing in great companies. She’s also diversifying her investments through different types of industries and securities.
See that 5%/6% “Short-term deposits” in her portfolio diversification? That’s right, aside from investing in equities, she’s also entrusting her money in BSP’s Special Deposit Account or SDA.
How Is She Doing All That If She Has No Financial Background?
To clear things out, my mother has very little knowledge about investing. In fact, it’s only through our informal talks that she gets what investing in stocks mean. Because of that, she decided to entrust her small earnings to a fund manager.
That’s right. My mother is investing “indirectly” in the stock market through BDO’s Equity Fund via their Easy Investment Plan (EIP).
With as little as Php2,000 per month, she’s investing in those great companies in the Philippines. And as she invests, I continue to feed her “elementary” information on how to improve her finances and make the little money that she makes grow further for her retirement years.
It’s never too late to learn. Anytime is the best time to invest!
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P.S. 1. Bro. Bo Sanchez has appointed me as a coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at firstname.lastname@example.org if you have any questions. Click here to join!
P.S. 2. We just opened up the enrollment for our “Money Tree System” online program. Read the entire letter as this is a limited opportunity. Remember, the enrollment is open until this Friday, August 29 only. So you better act now if you want to join the “New Rich“. Click here to reserve your spot.
P.S. 3. If you have friends who are struggling professional musicians and artists, please invite them over to attend our FREE Personal Finance Management Seminar for Artists and Musicians focused on improving one’s behavior towards money and how to properly manage it. This is happening on October 26, 2013, 3PM at The 70′s Bistro in Anonas Street, QC. They can text 0916-3624596 or email email@example.com for reservations. Visit www.pinoymundobiz.org for updates.
P.S. 3. The Angat Pilipinas Coalition for Financial Literacy and OFW UsapangPiso Forum will be conducting its first ever webinar in 2013 entitled “Creating Wealth – Smart Personal Finance Habits for OFW’s” on February 28, 2013 at 3pm (Philippine time). The webinar will feature my fellow blogger and personal finance advocate Fitz Villafuerte and he will discuss about how one can spend less than what he earns, being frugal and saving money, finding ways to earn more income, learning more about investing, and paying it forward and giving back. And by the way, the webinar is also open to non-OFW’s. Register here now! P.S. 4. OFW’s based in Dubai, UAE and Muscat, Oman will get to experience the passion and wisdom of personal finance guru Randell Tiongson this coming March. You may get in touch with me if you would like to attend the coffee table sessions with Randell right after the Ayala Land events so we can coordinate for a slot. You may send an e-mail to firstname.lastname@example.org. Kindly indicate your full name and mobile number in your email.