Investing 101: Investment Types and How They Work For You

There was a time when Filipinos viewed investing as something that was only for the wealthy. Buying stocks, trading, or buying and selling were activities thought of as something only the foreign nationals living here did. In recent times, however, more Filipinos have become more open to investing. PawnHero looks at different kinds of investments and how you can maximize what you get from them.

Filipinos took great pride in these investments because now they can call themselves entrepreneurs and business owners instead of just being plain workers. Many years after, small investments became the name of the game with the arrival of multi-level marketing companies.

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Networking and Investing

Popularly known as “networking,” this type of investment enticed young people, as well as those who were easily lured by the promise of easy cash and significant returns. Alas, only a handful do succeed, and many feel that they have just thrown away the money they invested. Truth be told, the world of investment does not operate in such a simplistic way. If you really want to learn how to invest, take a look at these investment types and see which one is best suited for you. Let’s break them down into three main categories namely ownership type, lending, and cash equivalents.

Ownership

Ownership investments are things that you buy as an asset, which are kept with an expectation that they will increase in value. This is the broadest investment category because it includes investing in different things for profit or resale purposes.

    • Stocks – Filipinos are becoming more interested in trading in the stock market. Ordinary folks are now buying stocks from large companies, and trading and selling them for profit. You don’t need a big investment to start here, as even a few thousand pesos will do. This is the reason why even college students are able to try investing in stocks. You also don’t have to be very knowledgeable about it since there are financial advisers whom you can turn to for advice.
  • Real Estate – This is for people with large sums of money to spend. Buying land, houses and lots, or condo units is a lucrative trade, but you would need a large capital for it. Also, you must be very patient because selling pieces of property takes longer than say, jewelry or appliances.
  • Precious metals, Art, Collectibles – You may not realize it, but the “buy and sell” business falls under this category too. Some people buy jewelry and sell them at a markup, well this is like that but on a couple of levels higher. Gold, silver, diamonds and precious art are bought and sold to interest parties. Investment is also big here, but very rewarding.
  • Business – Opening a company selling a product or service is always a good way to invest.

Lending Investments

Lending Investments is also a good way to earn returns, and you won’t have to wait that long to get your money back. This is a low-risk and low-reward investment that includes bonds, certificates of deposits, and other types of loans. Here, the investment is purely cash, and there are no items or physical products that are bought or sold. Because of the lack of something physical that needs to be maintained, the expenses with this type of investment are negligible. Just be careful of who you lend to and make sure that you protect yourself.

Cash Equivalents

Cash equivalent investments are also low risk and little return. These include treasury bills, bank notes, corporate commercial papers, and more money market instruments. One important thing to note is that this is actually a relatively secure type of investment especially if you go for those backed by the government. Not a lot of people go into this kind of investment here in the Philippines though.

Filipinos would rather go with ownership and lending investments because they can immediately see, or at least project, how much they will be making. While the little return might put you off, it’s certainly higher than what most banks offer. This makes for a great alternative to a purely passive savings account.

As with any investment, there are highs and lows. In case you need extra cash to top up your capital for your online store or food business, don’t hesitate to check out PawnHero, the first online pawnshop in the Philippines. They accept appliances, gadgets, and other items allowing you to meet your short-term cash necessities right at the comfort of your home!

Rock your way to abundance!

#moneyliferockandroll

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ICON 2016 Teaching Filipinos to Own their Market

Majority of Filipinos have a mindset that investing is only for the rich, and tends to shy away when financial planning is discussed. That’s why the catchphrase, “the rich get richer and the poor get poorer” was used to express economic inequality. It’s time for Filipinos to be educated and equipped on how to run their own market.

Randell Tiongson, along with well-known financial leaders, wants to change the game by gathering all Filipinos in the biggest investment conference in the Philippines where various topics will be covered. From the rich to the poor and from the young to the old, everyone is invited to conquer the world of investment.

ICON 2016 will be held on May 28, 2016 from 8AM to 5PM at the SM Aura Samsung Hall, Taguig City. One whole day of fresh learning where everyone can gain practical knowledge and wisdom from the best, and also meet like-minded people who strongly believes in financial advocacy. The event will provide basic information about personal finance, as well as new market outlook and trends in businesses and investments.

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Every year Philippine market rises higher and higher, and every year ICON makes sure to bring only experts who are up to date both to local and global market. Columnist, Registered Financial Planner and best-selling author of “Money Manifesto,” Randell Tiongson, will be leading again this year’s Investment Conference, together with our special guests: Diwa Guinigundo, who is the Deputy Governor for the Monetary Stability Sector of Bangko Sentral ng Pilipinas. Marvin Germo, who’s known as “Mr. Stock Smarts” due to his popularity in stock market trading and bestselling book, “Stock Smarts” and also one of the organizers. Our motivational-entrepreneur speaker, who is a former executive of Hewlett Packard Philippines now the owner of Moriah Farms Inc. and HA-Moriyah, Inc., Dodong Cacanando. Paulo Tibig, dubbed as the “Entrep Champ” and is one of the directors of the Freeport Area of Bataan, Board of Regent, Bataan Peninsula State University. The CEO of Rampver Strategic Advisors, and also one of the directors of Globe Telecom, Rex Mendoza. The President of Sun Life Asset Management Company, Inc. (SLAMCI), Valerie Pama.

ICON 2016 opens its doors to over one thousand registrants to attend this conference and make investing for everyone. All students and retirees, employees and business owners are welcome to participate. ICON 2016 has provided a platform for all Filipinos to discover more investment vehicles and help each one be financially equipped. It’s time to play the game with the fast growing market, break the cycle this May 28, 2016, and be a game changer!

Find more about this event by visiting Randell Tiongson’s ICON Facebook page and log on to icon2016.info to reserve seats. Follow us on Twitter (@icon_ph) and Instagram (icon_ph) for more information

How To Keep Your Debts Low

Are you worried about your current debt, or unsure whether you can make your payments on time? Don’t panic! Just like any other money problem there is, find out how you can make the situation less heavy on  your wallet by first looking for the root cause of where all your money is being shelled out on. We’ve rounded up the top helpful tips to help you get back on track and keep your money health in good shape. Continue reading How To Keep Your Debts Low