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 10 great, blue chip companies in the land. Trumpets and drum roll, please.
Not only is she investing in great companies. She’s diversifying her investments through different types of industries.
See that 7% “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 age.
It’s never too late to learn. Anytime is the best time to invest!
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P.S. 1. 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. 2. 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 email@example.com. Kindly indicate your full name and mobile number in your email.
P.S. 3. Four years ago, I joined the TrulyRichClub. It was one of the best decisions of my life. Founded by Bo Sanchez, its purpose is to “help good people become rich”. Because of the guidance I get from the Club, I’m now investing in the Stock Market (and mutual funds, bonds, UITF’s) each month! It’s amazing how I’m personally growing in my finances. I’m inviting you to join the Club too. If you’re interested, then join the TrulyRichClub NOW! And email me at firstname.lastname@example.org if you have any questions.