How do I get out of debt? Why did Albert Einstein say compound interest is the greatest invention? Does anyone still care about crypto and bitcoin? Wonder no more. We listed common questions from family and friends, Facebook groups, and jeepney convos. And we asked the country’s best and brightest financial gurus to answer them for you!
Whether you’re a newbie or seasoned investor, you’ll find fresh insights from timeless – if clueless – questions about money matters. Just as important, our financial gurus give you the answers with engaging wit and humor.
Today is the best day to claim abundance and find the right answers to your money questions. Today is the best day to take that first step to becoming rich in all areas of life. The more you have, the more you can give money, and the more you can give yourself to others.
Money Trouble Shooters Book Launch!
Edited by me, Burn Gutierrez, CPFI and fellow financial literacy advocate Rienzie Biolena, RFP, our publisher Pagejump Media has organized a book launch for our long overdue FAQ guide book about personal finance, investing, and business on June 8 at the SM Megamall Megatrade Hall during the Overseas Filipino Expo 2.
Catch our other contributing authors like Fitz Villafuerte, Seph Romana, Carissa Patag, Nikki Yu, Dr. Alvin Ang, Ronald Cagape, Laurent Dionisio, Paulo Tibig, Allan Ngo, Edmund Lao, Atty. Terence Camua, Don Crisostomo, Tanya Ilmedo-Espinueva, and Alvin Tabañag as they share their expertise about money management and get to have your book copy signed by them as well!
Also happening during the Overseas Filipino Expo 2 (OFE2) is the book launch of our friend Anne Quintos‘ student edition of AbroadME. The book aims to help Filipinos get a chance to study in other countries.
Wrapping up the Expo is the 2019 Angat Pilipinas Awards. This year’s edition of the Awards Night will recognize its partners, students, teachers, and volunteers who have worked with the organization and have brought great impact in bringing financial literacy to the grassroots level.
See the program schedule below.
Join us at the book launch of Money Trouble Shooters and AbroadMe during the Overseas Filipino Expo 2.
I have been an investor in high-risk assets like the stock market and equity/index funds for quite some time now. These are where I believe my money will grow significantly over time and they should be able to help me achieve my long-term financial goals.
But since equities are a volatile type of investment, I may incur paper losses along the way. And even though I know there will be no actual loss of money unless I redeem, I had to look for another option to somehow provide me a defensive wall against crashes and dips of the stock market.
I thought of investing in bonds to address my diversification needs of my portfolio. However, since most of my cash is invested in equities, businesses, and real estate, investing directly in bonds would require me to shell out at least P100,000. And I can’t afford to liquidate my equity investments in order to invest in bonds.
Good thing I found an alternative to direct bond investing for smaller investors like me.
I went to my BPI branch in Lipa City Highway and was able to meet Ms. Kyra Rivera of BPI Investment Management Inc. (BIMI) who introduced me to the different investment products they are offering under the ALFM Mutual Funds. Apparently, BIMI is the fund manager of ALFM Mutual Funds and is 100% fully-owned by BPI.
with Ms. Kyra Rivera of BPI Investment Management, Inc.
I explained to Ms. Kyra that I have been wanting to invest directly in bonds but I have limited amount of cash. She told me about the ALFM Peso Bond Fund and I thought it is a much better investment option for me. I decided to open an ALFM Peso Bond Fund account right away.
**For those who want to know how to invest in ALFM Peso Bond Fund, the first thing you will have to do is to approach a Mutual Funds Investment Counselor like Ms. Kyra.
But before you can have an ALFM Peso Bond Fund account, you will be required to answer the Client Suitability Assessment form in order for them to know what type of investor you are.
Step 1: Fill out the Client Suitability Assessment Form for Individuals * ALFM is a product managed by BPI Investment Management Inc. which is a subsidiary or 100% fully-owned by BPI.
They will provide you a recommended portfolio allocation based on the result of the client suitability assessment and you will then decide whether to agree on the recommended allocation or to create your own allocation.
The ALFM’s Recommended Portfolio Mix
While there are more popular investments like professionally-managed equity or index funds, there are also bond funds who are suited for moderately conservative investors. Ms. Kyra explained that moderately conservative investors who have limited investing budget can gain diversification in bond funds like the ALFM Peso Bond Fund.
When you invest in ALFM Peso Bond Fund, your money will be invested in different fixed income instruments like treasury bills and corporate bonds.
In my case, the assessment result showed that I am an aggressive investor because I am already exposed and invested in the stock market and other high-risk instruments. But since I wanted to diversify my portfolio further, I still pursued my desire to invest in ALFM Peso Bond Fund.
So I filled out a set of account opening forms. Kyra received and gave me the client’s copy of the forms I signed and informed me that the account will be opened at the BIMI Head Office. That fast and I am already an ALFM Peso Bond Fund investor!
ALFM Peso Bond Fund is a product managed by BPI Investment Management, Inc. which is a subsidiary or 100% fully-owned by BPI
Why I Chose the ALFM Peso Bond Fund
Considered as the largest mutual fund in the Philippines, I chose ALFM Peso Bond Fund because it carries these awesome features.
1. Affordability
You can start for as low as P5,000, then add P1,000 for succeeding investments anytime. There is no required monthly additional investment. This is very ideal for those who already have savings and want to earn a little more than what they can from traditional deposit products.
2. Shorter Holding Period
Unlike in direct bond investing where your capital will have to wait for at least a year before you can redeem it, ALFM Peso Bond Fund‘s holding period is just 180 days. It has no maturity date unlike in direct bond investing. This means more liquidity for you while opting to invest for the long term.
3. FREE Life Insurance!
When you invest in ALFM Peso Bond Fund, you are entitled to have a P200,000 worth of life insurance**. This free insurance rivals VULs or variable unit linked insurance products offered in the market. The returns are net and gives real returns to the client. There are no hidden premium fees or charges, unlike in a VUL where in there are costs and premium fees.
**A primary investor will only be entitled to the P200,000 life insurance if the ALFM Peso Bond Fund account is worth at least P100,000. It is also not automatic. An ALFM Peso Bond Fund investor will have to fill out the Individual Application for Group Term Life Insurance to avail this feature.
4. Accessibility & Convenience
The good thing about investing in ALFM is that it is linked in the online banking facility of BPI Express Online and BPI Express Mobile App. You just need to enroll your investment account online, then you can already view your portfolio and subscribe or redeem investments, in your PCs or mobile phones.
Ms. Kyra also discussed the Regular Subscription Plan, which really got me interested. It is an auto-invest facility, wherein you can make scheduled contributions to your mutual fund monthly or quarterly for as low as P1,000. For those who want to really invest consistently, like me, you might as well enroll in this facility.
If you have been looking for wiser investment vehicles that are safer than investing in equities, the ALFM Peso Bond Fund is the right option for you. Make your cash flow less stressful and your investment more enjoyable by choosing the ALFM Peso Bond Fund.
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.
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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