Category: Personal Finance

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Money Mindset Personal Finance Truly Rich Club

Giving back by running Bo Sanchez’ Kilometer for Kerygma (K for K) Fun(d) Raiser

This coming Saturday, May 29, 2010, my wife and I, along with my in-laws, will be one of the thousands of people flocking the SM Mall of Asia grounds at 5:30 in the morning!  No, it’s not because of a SALE 🙂  It is to join Bo Sanchez’ Run a Kilometer for Kerygma fun(d) raising activity to support the many ministries of Bo Sanchez.

I have always felt blessed throughout my whole life.  Even having learned 5 money habits that will never make me rich, I still felt blessed.  This is the main reason I want to give back in one way or another.

I have personally experienced visiting Anawim (Bo’s charity home for abandoned children and elderly) during one summer in my College days, and all I can say is that it is truly an amazing experience seeing lives being transformed before your eyes.  Not only is it a great blessing for the abandoned elderly and children seeking comfort in the loving home of Anawim, but more for those donors and volunteers caring, loving and serving selflessly.

Be part of the K for K and bring a smile to the hearts of many people!  Live the life of abundance!

P.S. You Can Grow Your Financial Abundance—No Matter Where You Are. Join Bo Sanchez’ Truly Rich Club Now!

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Investing Personal Finance Truly Rich Club

How To Profit From Real-Estate Investing Thru Private Lending

One of the main financial concerns I have been facing lately is the need to learn to invest and grow my money.  To solve that problem, I’ve tried investing through stocks, RTBs, and also started exploring internet marketing.  While all three have been a great learning experience so far, one investment vehicle I’ve never had the chance to explore is investing through Real-Estate.

That changed about 2 weeks ago.

My Very First Real Estate Investment Thru Private Lending

As I was browsing through the popular real-estate investing site foreclosurephilippines.com by Jay Castillo, I came across an article about the Trace Trajano’s Apprentice Challenge.  In that article, Jay and his partners in RYP Realty Team shared some of their experiences in the Apprentice Challenge as well as their need for investor partners to help them out in one of the challenges.  I signed-up right that instant and I’m glad I did since it’s been an exciting experience ever since.

A few days after I filled up the investor’s form, I received a message from Ebb Magtuba, the CEO of RYP Realty Team, one of Jay’s partners in the Trace Trajano’s Apprentice Challenge.  I met up with Ebb over a cup of coffee, and he shared his story on how he got involved on real-estate.  I also learned that RYP Realty team was the leading contender in the Apprentice Challenge.  To someone who has limited experience when it comes to real-estate, I felt a whole new world was opening before my eyes.

The following week, my wife and I met up with Ebb again.  This time, Ebb was with Eden Alemania-Dayrit, the very successful real-estate investor who was the one structuring the whole deal.  Both Ebb and Eden went with us to checkout the property that we would be investing in.

As investor, the opportunity was to get into a private lending deal that could potentially earn us a little bit of “passive” money, without us having to do any of the hard work of doing renovations, processing legal papers, as well as marketing and selling the property.

The 3 Questions You Should Ask Before You Lend Your Money

Before investing our money though, there were 3 things we were concerned about.  First, how soon can we get the money we lent back?  Second, what is the worst case scenario?  Lastly, what’s the track record of the other party we’re dealing with?

For the first question, Eden confirmed that we can expect to receive our money back plus interests in not more than 4 months, regardless if the property is sold or not.  After we get our money back, Eden’s plan is to use her earnings from her other successful real-estate deals to continue to market the property.  At that point, we would now be risk-free since we already made our money.

For the second question, the absolute worst case scenario would be us ending up with the property.  When you think about it, it would not be that bad at all since we would have gotten a great property at below market price.  Since we were able to visit the actual property, we already know its exact condition, how much renovation it probably needs, and how conducive the neighborhood is for home owners.

While going around the area, we also managed to find out how much other similar houses were being sold for.  So at least, we got some idea whether the price of the house we were investing in was within reasonable range. Add it to the fact that Eden was also able to sell a similar property in the same neighborhood for a higher price.  So in the point of view of the end-buyer/home owner, it would come out as a great deal.

For the last question, it was interesting that even at a young age, Eden has already done more than a dozen similar deals, some even in the same area where the property we were investing in was located.  She’s definitely not a beginner.  Even with her success, she still manages to stay humble and seek out the support of other successful real-estate investors like Trace Trajano and Larry Gamboa who continue to mentor and help her out in case an unexpected scenario happens.

Out of curiosity, I also asked her what was the worst thing she experienced so far as a real-estate investor and she willingly shared a problem about a tenant who encountered financial difficulty and was not able to pay up on time.  The good news was that even with that problem, she was still able to get her money back.

Ready, Fire, Aim

In the end, even though there’s a certain amount of risk involved, the answers to these 3 questions and the legal papers that support the “worst case” scenario as well as the integrity of the people we’re dealing with was more than enough to calm my nerves.  But as with anything related to money, only time will tell whether it is really a good deal or not.

At this point in my life, however, I would like to believe this is a very good opportunity to learn the world of real-estate investing first hand.  It matters not whether my decision will result into success or failure.  What matters more to me is the realization that I can be courageous enough to take action in spite of my fears and be willing to fail and learn to gain actual real-estate investing experience.

In all honesty, the whole experience made me anxious and excited at the same time.  With the experience, I have more reason to continue learning about real-estate investing so that I can manage the risks better in my next deals.

As always, whatever I learn from the whole real-estate investing experience, I will gladly share them to you through this blog.

How about you?  How’s your experience investing in real-estate so far?

P.S. Do you want (or know anyone who wants) to make 10-15% return on their money per year with little or no risk?  Fill-up the investor form to find out more about this opportunity.

Categories
Life Lessons Money Mindset Personal Finance

3 Ways To Save Money on Your Next Vacation

I’ve been very busy the past month…going out to the beach every weekend! 🙂

The first one was to enjoy a summer outing with my wife’s high school friends.  The second, to attend a beach wedding of one our office mates.  The last, to celebrate my sister’s graduation with an overnight stay at a white-sand beach paradise in the north of the Philippines — Pagudpud, Ilocos Norte.

What can I say? It’s summer time in the Philippines!

la_luz_beach_loft_room_for_10 The Philippines, with its 7,107 islands boasts of very beautiful coastlines and mesmerizing beaches.  Enjoying a weekend at the beach, however, need not be expensive.  Here are some saving tips I learned while enjoying my summer vacation.

1) Share a ride

Share a ride together with friends to save on gas and/or travel expenses.  Do a carpool. 

The first time I shared a ride, I was the one driving.  Me, my wife and her friends went out on a summer outing to La Luz Batangas, a 3-hour drive south of Manila.  Two of our friends rode with us on that beautiful Sunday morning.  My wife enjoyed the trip because she was able to catch up and share stories with her friends while I busy myself driving us to our destination.

The second time I shared a ride, my wife and I attended a beach wedding.  One of our friends was gracious enough to offer us a ride going to the venue which was (surprise! surprise!) the same beach we went to the previous week for our summer outing.  Even though it was the same beach, we were still thrilled because it was our first time to attend a beach wedding. 

One thing I noticed while driving in the Philippines is that majority of Filipinos drive a van or something large to fit the whole family.  This is nice because you can save on gas if the whole family is riding with you.  But if you’re the only one in the car, you’re actually losing money because you consume more gas than if you were only driving a small car.  Just a little something to keep in mind when deciding to buy a car. 🙂

2) Share a room

Share a room with your friends.  You not only save on accommodation, you even get to spend more time with your friends.  The great thing about going to the beach with friends is that you get to share stories with them.  Sometimes, you even remember “old” funny moments together and laugh your hearts out reminiscing those days.

Besides, if everyone is having so much fun, finding the time to sleep is the farthest thing on everyone’s mind.  🙂

In both the summer outing and the beach wedding, we were able to share a room together with friends.  Our expense is about PhP 500 each per night.  That’s 10 of us.  So the room is actually around PhP 5,000 (US 100) for a one night stay.  Not too pricey. But it’s a big savings for us considering that if my wife and I got a room for ourselves only, we would have spent around PhP 3,000.

Of course, if you’re on a honeymoon, that’s a different story. You obviously cannot share a room with your friends. 🙂

3) Cook your own food

If your resort allows it, it’s cheaper to prepare and cook your own meals.  We were able to take advantage of this while celebrating my sister’s graduation since the resort we got was actually owned by one of my mother’s distant relative.

My aunt and mom prepared the meals together and I helped out grill the pork and fish.  Unfortunately, the weather was not helping out that time since it was raining hard while I was busy grilling.  One thing I learned — It’s hard to grill fish against a windy rain! 🙂

The morning after, the weather was better.  We were able to enjoy and swim on the beach and take a few pictures just like this one. 

saud_beach_pagudpud_ilocos_norte

Hope the above tips help you save money on your next vacation!  Cheers!

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Bonds Business Credit Card Investing Make Money Online Money Mindset Mutual Fund Passive Income Personal Finance Stocks Truly Rich Club

Bo Sanchez’ Truly Rich Club Review

I’ve been wanting to do a review on Bo Sanchez’ Truly Rich Club for quite some time but I’ve been putting it off due to busy schedule at work.  When I read about Bo’s recent article “How To Be a Billionaire”, I thought people need to find out more about this.

Before I say anything else, please bear in mind that I am (well, technically I am not, but my wife is) a member of the Truly Rich Club, and if you sign-up to the Truly Rich Club, I (or my wife) earn a little income as an affiliate commission.

That being said, this review is not to persuade you to do something you don’t want to do.  My hope is that by sharing my personal experiences with the club, it will help you decide if joining the club will be of help in achieving your financial goals.

 

How did you find about the Truly Rich Club?

A couple of years ago, I was an OFW working as a Mainframe Test Lead for a credit card company in Malaysia.  When I came home to the Philippines for a 2-week vacation, I came across Bo’s 8 Secrets of the Truly Rich book.  At that time, I was really trying to find out ways on how I can grow my hard earned money.  After reading the book, I realized he was actually holding Truly Rich Seminars in the Philippines.   Since I only had a few days left in the country before going back to Malaysia, I was not able to attend the seminar.

A few months after, I learned that Bo created the Truly Rich Club.  Because I wasn’t able to attend the seminar – I was very eager to try out the online club!

Since my wife was the one who has a credit card, I talked my wife into joining the club.  I am very blessed to have a very supportive wife.  She agreed to join in. The next month, we received the 2 months worth DVD videos and Audio CDs we ordered from the club.

 

Why did you join the Truly Rich Club?

I was in a foreign country.  My options were limited.  I couldn’t attend any seminar in the Philippines because I was out of the country.

I didn’t know anything about investing in mutual funds, stocks or internet businesses, especially in the Philippines at that time.  Yes, I learned a thing or two from various blogs and personal finance sites.  In most cases the specific advise on these sites were only applicable to other countries such as the U.S.  I didn’t know if the same thing can be done in the Philippines.

So when I came across the Truly Rich Club, it was like a dream come true.  Joining the club allowed me to learn how to grow my money in the Philippines! Moreover, through the monthly DVDs, I got to watch Bo Sanchez’ interviews and talks.  It was like attending the Truly Rich seminars virtually.

 

What did you like about the the Truly Rich Club?

The content is simply amazing.  When I started, I was looking forward to the next month’s issues.  My wife and I would always checkout the mail box just to see if the DVDs for the month have already arrived.

What I really liked are the very specific information shared through the various interviews on very successful businessmen.  You can see how they view money, their mindset in terms of relationships and on building businesses and character.

The club products are full-packed with information.  I can’t keep up.  There’s a lot of information to learn.  I’m still catching up with the rest of the power talks.

Bo also sends out a weekly Newsletter where he provides stocks update, business advise, and more.  The content is really overflowing, I only wish you could also learn from those DVDs and Audio CDs and get the financial information first hand.

One thing I really appreciate was the smooth transition of delivering the DVDs after my wife and I finally decided to come home to the Philippines last year. We wanted to have the audio CDs and DVDs delivered to our home in the Philippines instead.  We only had to email them our new address and voila! We received the products to the new address.

 

What I didn’t like about the the Truly Rich Club?

When we first started with the club, there were times when the DVDs arrived late.  Since we were always very eager, waiting for the next issue was a torture.

It would also be a great idea to have a forum exclusive to club members where lessons can be discussed or shared with each other.  The feeling of being in a community would certainly help boost members’ confidence when they start to struggle in taking action on those valuable financial tips.

 

Why I recommend joining the Truly Rich Club?

I honestly believe that in today’s world, information is king.  If you are not informed, you will be left out.  You will always be wondering how come others are getting financially ahead while you’re still stuck working at a dead-end job you really hate.

There were a lot of times when I wanted to share the incredible products I’ve watched or heard from the club, but it’s hard because there are copyright issues.  I don’t want to go into the business of piracy.  More importantly, I don’t want to profit from stealing other people’s products.

Thankfully, there’s one “legal” way to help share these products to you.  That is, if you decide to be a member of the club as well.  The Super Gold Package (DVD video +  Audio CD) costs PhP 997 ($37 for International Membership) monthly at the time of this writing.  The Gold Package (Audio CD only) costs PhP 497 ($39 for International Membership) monthly.  The Audio CD is basically a recording of the same DVD video so if you are interested only in listening to the presentations, you can take the Gold Package.  What I do is I copy the audio over to my iPod and I listen to it while working.  The great thing about it is that I can listen to it over and over again.

Bo Sanchez is a preacher so a lot of his talks contain references to passages in the bible.  While I don’t mind since I am a Catholic, others may not be as forgiving.  So if you don’t like hearing the word “amen”, please bear this in mind when you join.

How has the club helped you so far?

After my wife and I finally came home to the Philippines to settle for good, we immediately attended Bo’s Truly Rich seminar.  Even though he was discussing the same basic concepts from his book and the club, it’s still refreshing to see Bo presenting the ideas with my own eyes.  It’s a bit surreal. You can learn more about my experience on the seminar here.

My wife and I also attended the financial coaching program a few weeks after.  After the seminar, I was really excited to finally get started.  Here are 3 things I’ve been exploring since I started taking action on the many lessons from the club and the seminars:

  • RTBs – my wife and I finally started investing in RTBs.  You can learn more about how we opened an account. Here’s an update after we received our first interest income.  And, only a few days ago, we already received the 2nd quarterly interest income.  Yey!
  • Stocks – I’ve started investing in stocks.  I’ve invested through EIP for a couple of months now.  These are small (PhP 5,000) monthly investments on the most stable companies listed in the Philippine Stocks Exchange.  My basic strategy is to take advantage of the dollar cost averaging.  I’ve also learned another strategy from Bo’s Stocks Update that I may try out soon – that is, Super EIP (I think this was coined by Bo himself).  If you want to find out, you can sign-up to the Truly Rich Club or wait for my updates by subscribing to this blog via RSS or Email. Subscription to Rich Money Habits blog is FREE!.
  • Internet Marketing – I am a techie. Having spent the last 8 years of my life working in IT, I am very fluent in more than a dozen languages. Unfortunately, only 3 of them can be understood by human.  No, I am not an alien.  Most of the languages I know, only computers are able to understand.  I can communicate (i.e. program) in Visual Basic, C, Mainframe Languages, Assembly Language, and more.  Which brings me to my point.  I want to be able to communicate to fellow human beings as well as computers.  I want to find out how to present an information product on the internet in a way that the other person will be able to know exactly what he is getting into.  If it is something that will solve his problem, well and good!  If not, at least he doesn’t have to waste his time digging deeper, seeking clarification on that specific product.

What will you get when you join the club?

While reading Bo’s newest book “Choose To Be Wealthy: 8 Habits of the Happy Millionaire” which was launched last Saturday at SMX Convention Center, I got the most updated list of the 11 Big Blessings you will receive if you decide to join the Truly Rich Club.  The list is so much more now than when we signed-up more than a year ago.  It’s really great that Bo is giving away so much.

Here’s a sneak peak of what you will receive:

  • 2 Powertalks every month (instant access via MP3)
  • Bo’s Success Mentors Collection every 3 months
  • 4 Wealth Strategies newsletter every month
  • Daily God’s Whispers email
  • How To Be Truly Rich Seminar
  • How To Conquer Your Goliaths Ebook
  • How To Turn Thoughts Into Things Ebook
  • My Maid Invests in the Stock Market Ebook
  • Monthly update of what Bo invests in
  • Earn passive income by becoming Bo’s affiliate in the Truly Rich Club
  • Earn passive income with Bo’s other internet work

There’s even an amazing “wow experience” guarantee. Here’s how it works.  Should you decide to cancel your membership during your first month of membership, after receiving the stuffs above, the money will be returned to you no questions asked.  You even get to keep all the stuffs that have already been sent to you – an amazing $251.50 value.

That’s all I can share for now.  If you do decide to join the Truly Rich Club, congratulations to you!  My hope is that you become Truly Rich in every sense of the word and share your blessings to other people!  Good luck!

 

P.S.  CLICK HERE  to sign-up to Bo Sanchez’ Truly Rich Club. Once you get started today, I will give you as FREE BONUS my $605.66-value ebook “Rich Money Habits – 8 Ways to Shift Your Money Habits and Be Rich!” Bo Sanchez himself wrote the Foreword to the ebook saying “This ebook contains the most essential tools you need to start your journey towards becoming truly rich.” Simply send me a message through my Facebook Page @ http://www.facebook.com/allaninocente111 after signing up so I can verify and email you the instructions on how to download the ebook. Congratulations in advance to the start of your exciting financial journey!

RMH ebook 3D pic

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Business Credit Card Investing Life Updates Money Mindset Mutual Fund Online banking Passive Income Personal Finance Stocks

Rich Money Habits Carnival – The Psychology of Money

Welcome to the third edition of Rich Money Habits Carnival – The Psychology of Money.  The top picks of this edition all share the same common theme – discovering the psychology of money.

How is Warren Buffet, one of the richest people in the world, different from the rest of us?  Why is it that some people make excuses and others continue to blast their way to success?  How can you get what you want by also giving someone else what he wants?  Find the answers out by reading through our top picks for the month of March.

Rich Money Habits’ Top 5 Picks

  • Your Best Library presents 10 Signs You’re a Financial Disaster posted at Your Best Library, saying, “If you show these 10 signs, the chances are high that you’re a financial disaster.” [RMH] Hilarious! I couldn’t stop myself from nodding my head at the 10 signs of being a financial disaster.  Witty, funny and definitely spot on.
  • Silicon Valley Blogger presents Basic Business Advice from an Accidental Entrepreneur posted at The Digerati Life, saying, “My own story on how I became an online entrepreneur.” [RMH] This article is an honest take on the life of an accidental entrepreneur.  The author said it best in “it’s (NOT) enough to say that your business is filling a need…you should actually be good at filling that need.”
  • Joe Plemon presents Are You An Opportunity Seizer or an Excuse Maker? posted at Personal Finance By The Book, saying, “Some find opportunity when it seemingly doesn’t exist. Others make excuses when opportunity knocks. A great rich money habit is to learn how to seize those opportunities.” [RMH] Great article on why we need to stop making excuses and take advantage of opportunities that come our way.  While reading the post, I remember the movie “Yes, Man” starring Jim Carrey.  It’s a feel good movie about saying yes to opportunities that life has to offer you.“
  • Writers Coin presents Warren Buffett’s Investment Advice: Why It’s So Hard to Follow | Wise Bread posted at Wise Bread, saying, “I almost made a ton of money and then almost lost a ton of money in the stock market. Just goes to show you how hard it is to follow Warren Buffett’s advice on being greedy when others are fearful and fearful when others are greedy.” [RMH] Great article on why it’s so hard to invest like Warren Buffet.  I totally agree that investing is more than money – sometimes it is also about handling your own emotions.  As Warren Buffet said ’be fearful when others are greedy and greedy when others are fearful.’  Unfortunately, working with these 2 emotions is precisely the reason it is not easy to invest and go against the crowd.
  • Learn Save Invest presents Know your position posted at Learn Save Invest, saying, “A personal story of how I saved money on truck repairs just by realizing my position, and asking for a break.” [RMH] Inspiring story on how it pays to know what the other person wants when you try to ask for a discount.  In the end, the goal should be to have everybody win.

Other interesting articles in this edition

On Taxes

Investing

Banking and Credit Cards

Personal Finance

That concludes this edition. Submit your blog article to the next edition of Rich Money Habits Carnival using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Life Updates Passive Income Personal Finance

Announcing the winner of the FREE Rich Dad Poor Dad book!

First of all, THANK YOU very much to all those who participated in the first-ever Rich Money Habits Readers’ Survey. 

Your inspiring life’s stories, financial goals and dreams and suggestions on how Rich Money Habits can be of help to you are very much appreciated.  Rest assured, we’ll definitely keep them in mind as we aim to constantly improve the Rich Money Habits blog to be more relevant to your financial needs.

Without further ado, I am very delighted to finally announce the winner of the FREE Rich Dad Poor Dad book as part of our first ever Rich Money Habits Readers’ Survey promo. 

And the winner is… Lunining Arabiran! 

Luningning_Arabiran_Rich_Money_Habits_Readers_Survey_Winner

I was so amazed at the personal finance tips and stories Lunining shared that I want the readers of this blog to learn from and be inspired by it as well. 

Here’s her answer to the question “What are your money habits and how they have affected your life?”

I’m earning a little over minimum wage and I was "awakened" that after 3 years of working I had so much less than what I was hoping for. I cleaned up my act….

  1. I love Manga (Japanese animation) so much so that a large chunk of my money goes here. I curtailed the Manga-buying impulse. (I still do buy but occasionally).
  2. I don’t use my credit card except when buying groceries twice a month.
  3. I bring lunch to the office.
  4. I had my mom invest my money that has a 12% APY.
  5. I read about how to invest in the stock market.
  6. I built up and completed my 1 year emergency fund.
  7. I am building up my retirement plan. I’m also looking into consulting someone who works for the SSS. So I can compute the actual amount of pension I’ll be receiving when I’m 60.
  8. I am taking up my Master’s degree so I can go ahead and get side jobs. (This wasn’t really necessary to get the jobs but understanding more concepts and theoretical background would help) and I’m almost done, just the thesis left.
  9. Next time I get to be in another country, will be saving my per diem like crazy. Last time I was in the US, I spent my money on a lot of souvenirs.
  10. I created a budget.

All of those things are the stuff that I’m doing, have done and will be doing. There are a couple things more but I think this is getting too long.  Basically, knowing and being conscious of how money is spent has taught me that when you spend money now, you’re not only giving up that money in that instant but you are also forfeiting the right that, that money can earn in the future.

 

How about you?  What are your money habits and how have they affected your financial life?

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Investing Money Mindset Passive Income Personal Finance Stocks

Where to Invest in 2010 Part 3- Investment with Tax Incentives: PERA vs CTRP

This is part 3 of the “Where to Invest in 2010” series which tries to compare the two investment vehicles with tax incentives: PERA and CTRP.  Part 1 dealt with the Filipino investor profile while part 2 discussed the 5 stages of Life Cycle Investing.

In your journey to financial freedom, one inevitable expense that you would have to deal with is taxes.  It is not enough that you make a lot of money.  It also matters how much you keep. 

Who is richer? A person who makes $100,000 a year and pay $50,000 in taxes?  Or someone who earns only $70,000 and only pays $5,000 in taxes?  The answer is simple.  The one who keeps the more money (after taxes).

Investment w/ Tax Incentives: PERA vs CTRP

According to Efren Cruz, the author of the book “Pwede Na! The Complete Pinoy Guide to Personal Finance”, there are two investment vehicles that offer tax incentives.  There is PERA (Philippine Equity Retirement Account) and CTRP (Comprehensive Tax Reform Package). 

Here are the main differences between PERA and CTRP:

Criteria

PERA

CTRP
Contribution
  > Non-OFW
  > OFW		 <= PhP 100,000
<= PhP 200,000		 no limit
no limit
Max # of accounts 5 none
Tax Benefits on Financial Instruments    
  > Capital Gains
  > Interest Income		 exempt
exempt		 exempt if tenor > 5 years
exempt if tenor > 5 years
Tax Benefits on Stocks    
  > Capital Gains
  > Interest Income		 exempt
exempt		 taxable
10%
Tax Credit 5% of contribution none
Administration with none

 

As you can see there is a LOT of tax advantages for both types of accounts.  Having a tax exempt investment is like saving at least 20% of your income.  It’s money that you keep. 

Rich Money Habits Thoughts:

To be honest, I haven’t given much thought about retirement until I learned about the tax incentives from the seminar.  I understand that there’s a mandatory SSS or GSIS in the Philippines.  I also read about 401K and Roth IRA accounts in the US but I am not sure if there’s anything similar to it in the Philippines. 

There’s still a lot more to learn about retirement accounts in the Philippines, but the tax incentives definitely caught my attention. The tax benefits from PERA and CTRP are incredible. 

Unfortunately, for reasons I still don’t understand, PERA is still not available in the Philippines.  I guess I’ll have to wait until it becomes available.  As for CTRP, it was my first time to hear about it during the seminar, so I really don’t have any clue. 

My only hope is that I’d be able to learn and take advantage of both financial vehicles and share it to readers of this blog some day.

 

How about you?  How are you planning for your retirement?  Have you taken advantage of any tax incentives for your investment accounts?

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Investing Money Mindset Passive Income Personal Finance Stocks

Where to Invest in 2010 Series: Part 2 – Life Cycle Investing

This is part 2 of a series of articles discussing the lessons and tips from Moneysense Live’s Where to Invest in 2010 Seminar.

Part 1 of the series introduced the Filipino investor profile and shared the overall financial outlook for 2010 along with some tips on how to invest in the coming year according to one of Citibank’s financial analysts.

This time we will be sharing the 5 Stages of Life Cycle investing which was discussed by a BPI representative during the seminar. 

5 Stages of Life Cycle Investing 

  1. Orientation
    • Eager Beginner (mid 20’s and younger)
    • Learn the different types of savings
    • Cultivate the habit of savings and investing
  2. Exploration
    • Investment Apprentice (mid 20’s to 30’s)
    • Gain knowledge and experience on the different investment options
    • Develop skills to choose the right type of investments and avoid scams
  3. Accumulation
    • Wealth Builder (30’s to 40’s)
    • Optimize returns
    • Accumulate wealth by owning a home, new car, higher education, etc
  4. Preservation
    • Asset Protector (50’s to 60’s)
    • Seek less risky investments to protect money accumulated
    • Live on interest
  5. Disposition
    • Legacy Bestower (60 and above)
    • Self-sufficient
    • Leave heirs with as much assets as possible

Rich Money Habits Thoughts

The above 5 stages of life-cycle investing allows you to assess your financial situation and where you’re supposed to be at specific points in your life.  It is a handy guide to achieving your dream of financial freedom. It is a financial roadmap.

If you’re still young in your 20’s, it would be to your advantage to start learning how to personally manage your money as soon as possible.  This is very hard to do especially when you’re young.  You would rather enjoy life and spend as much as you can than worry about saving and investing your own money. 

If you’re in your 40’s and still struggling to save, that’s an obvious sign that you urgently need to start catching up fast.  Decide now to learn about the various ways to save and invest your money while you still have some time. 

If you’re looking for ways to build your retirement fund, you’re in luck as part 3 of the series will discuss the available retirement accounts in the Philippines (PERA vs CTRP) as well as the tax incentives from choosing one over the other.  The article will also touch a little bit on REITs.  So watch out for that in the coming weeks.

If you’re already approaching retirement, I wish you well.  I hope your retirement income from your investments can support you to live out your dream of financial freedom!  Have fun and enjoy life!

 

P.S.  Watch out for the announcing of the winner of Rich Dad Poor Dad book by Robert Kiyosaki from our first ever Rich Money Habits Readers’ Survey!

P.P.S. We will also be launching the Rich Money Habits Newsletter this month which includes a special section showcasing the results from the first ever Rich Money Habits Reader’s Survey.

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Rich Money Habits Carnival – Frugality and Success

Welcome to the second edition of the Rich Money Habits Carnival!

In this edition we will highlight the top 5 frugality and success articles out of the tons of money stories we’ve received during the month of February.  May these articles inspire you to live a wealthy and successful life.  Enjoy!

Rich Money Habits Top 5 Picks

 

  • Steve C presents Why Being Frugal Can Only Take You So Far On Your Path To Wealth posted at MyWifeQuitHerJob.com. RMH – A great read on the age-old dilemma of going too cheap.  Steve argues that raising your income by working on your business gives back way bigger returns than the measly saved income you gain from cutting back  expenses.
  • Faizal Nisar presents Secret of Success: YOU | Be Truly Happy posted at Be Truly Happy, saying, “Creating money begins in the mind. Once you learn that success is a mindset, you can become rich in any industry.” RMH – Inspiring article on taking responsibility for your own success.  The question at the end says it all, “will you take responsibility for your success, or blame others for your failure.”
  • KCLau presents Focus: Achieving Goals posted at KCLau’s Money Tips, saying, “A guest post by Sayeed, a senior manager in a large MNC in Penang on how he achieved his financial goals.” RMH – Interesting article on why we should keep on dreaming.  Sayeed offers 5 tips on how to focus on your dream and achieve it.  My personal favorite – “get 15 minutes a day to read a book, best before going to bed. Develop the habit from there…”
  • FIRE Getters presents A Simple Budget That Works? posted at FIRE Finance. RMH – Very helpful tips on how to make your budget “actually” work.  The article aptly describes the problem of budgeting as being “too complex and rigid” while real life demands “flexibility and simplicity.”
  • Wenchypoo presents Ending Bureaucracy posted at Wisdom From Wenchypoo’s Mental Wastebasket. RMH – Great article explaining what bureaucracy means.  While reading the article, I couldn’t help but compare it to how big companies “bureaucracies” disguised these things as “processes”…in reality, all these “processes” do is delay you from doing what you really need to do in the first place.

Other interesting articles in this edition

Money Stories

Business

Personal Finance

Investing

Other

That concludes this edition. Submit your blog article to the next edition of Rich Money Habits Carnival using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Personal Finance

Where to Invest in 2010 Series: Part 1

Last Saturday, I attended after I received an invitation from the event’s organizers. 

In the next few weeks, I’ll be sharing the lessons I’ve learned from the seminar through a series of articles.  This is part 1 of the series which tries to present the investing profile of Filipinos as well as the overall investment climate in the world and in the Philippines for 2010. 

The Filipino Investor Profile

The first part of the seminar showcased some very interesting statistics based on a survey conducted by the event organizers.  Here are some of the highlights.

  • 50% of the participants are of age 31 – 40 years old
  • 50% of the participants are single
  • 46% of the participants are just starting to invest
  • 77% of the participants want to have financial freedom

While the numbers are not reflective of the whole nation’s investing profile, it is very interesting to note that “a lot of single Filipinos in their 30’s are starting to learn how to invest in the hope of achieving financial freedom.”  This is definitely a good sign! 

Unfortunately, the reality is that only less than 1% of Filipinos are currently investing in the various financial vehicles in the Philippines.  Most are still unaware of the different options to grow their money.  Some have no savings at all.  Others are still struggling with debt. 

Whether the statistics are encouraging or not, the challenge still remains – how to encourage more Filipinos to invest and be smarter with their own money so they can achieve their dream of financial freedom.

Overall Financial Outlook for 2010

During the seminar, a speaker from Citibank noted that on a macro level, financial growth will be driven more by the emerging markets (e.g. China, South America, etc).  Developed nations such as those in Europe and the US have been hit hard by the financial crisis and their growth will not be as fast as the emerging markets. 

According to him, the Philippines is expected to grow slowly but surely, fueled by the strong domestic demand as well as the very strong remittances from Overseas Filipino Workers.  In addition, there is also some expected volatility on the market due to the upcoming presidential elections.  Stock markets may go up or down depending on the investor sentiment on who will be elected as President of the Philippines.

For those planning to invest in 2010, he offered the following tips:

  • Assess your financial goals
  • Know your risk profile: risk-averse, conservative, balanced, growth
  • Consider investing long-term to reduce volatility and risk
  • Do not time the market
  • Harness the power of compounding – reinvest cash flows
  • Invest regularly to benefit from cost-averaging
  • Rebalance regularly to reduce your risk
  • Consider managed funds if you do not have the time and expertise

Rich Money Habits Thoughts: The tips above are nothing new.  Even though it’s important to know what’s happening all around the financial markets in the world and in the Philippines, I think it is NOT as important as discovering and unleashing the investor in you.

The battle of whether to invest or not is happening only in your own mind.  The hesitancy is paralyzing.  If you want to invest, take the first step.  It’s important to learn from books and seminars, but it’s even more important to take action and actually invest.

At the end of the day, in spite of all the ups and downs of the market, your tendency will always be to turn to your own money habits.  Do you save or invest regularly?  Why not?  Make it a habit.  Start now.  Invest and be financially free.

Watch out for part 2 of the Where To Invest in 2010 Series: 5 Stages of Life Cycle Investing!