How to Add Funds to Your Stock Broker?

07 Thursday Mar 2013

Posted by in Daily Dose, How To

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First of all, stock broker is the agency who buys stock for us, investor. I have an account with COL Financial and therefore the instruction mentioned herein is based on my experience with COL Financial.

I have told you before that I am an OFW, in Saudi Arabia whenever we send money to Philippines in a single account we have to pay SAR 18 (Approximately Php 200) so if we are not wise enough and we will send our funding through this method we will already loose some of our capital.

So how do I send funds to my COL Financial account? It’s easy I use online banking from my bank in the Philippines. In my case I am using Metrobank as my financial hub. I send money to my Philippine Bank Account (Metrobank) and from there I will distribute my remittances, credit card payment, including funding to ColFinancial. So in this case I am only paying once in sending money from Saudi Arabia to Philippines. But there is a catch, In Saudi Arabia, there is a certain limitation on the amount of money that we can send to Philippines depending on our work permit. In my case I don’t have problem since my visa category have high limitation.

We have also checked the BPI Pinoy online banking and I can confirm that they have the capability of sending funds to COL Financial.

For COL Financial users, you just have to get your user id and place it in the space provided by Metrobank (Subscriber/Account No.) . After your first transaction it will now be located in your banks dashboard and all you have to do Is just to choose this in the option.

So here is the guide:

1.) Press Pay Bills

2.) Go To Special Bills

3.) Look for Col Financial Group Inc. and Enter your account number

4.) Enter your desired amount

5.) Put your phone number and then wait until it will appear in your Col Financial Dashboard (Better expect the transfer to be done within one day)

It would be faster if you will inform Col Financial and send them a screen copy of your payment.

You may also want to check my post in my other blog: How Online Banking System Can help OFW

Metrobank

Metrobank Screen Capture

I have been doing Internet banking for more than 9 years and I could say that I did not face any problem with Metrobank. They are strict when it comes to adding beneficiary since you have to do it on your local branch. But in funding your COL Financial you don’t have to go to the branch in order to add them in you bills payment.

For those asking about bank charges, I have not seen any deduction in any of my transfer to COL Financial.

COL Financial’s Claim Procedure in Case of Stock Holder’s Death

06 Wednesday Mar 2013

Posted by in Stock Market

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TaxYesterday I sent clarification to COL Financial regarding the procedure on how will the heir can get stock proceeds in case of Stock Holder’s Death and here is their reply:

In the unfortunate event of an account holder’s demise, the following are the documents to be submitted by the surviving spouse/heir:

  1. Death Certificate
  2. Either one of the following:
    1. If with testate or intestate proceedings, a court order appointing the executor/administrator and authorizing him to close the account and collect the proceeds;
    2. If without testate or intestate proceedings:
      1. If there is only 1 heir – Affidavit of Self-Adjudication
      2. If there is more than 1 heir – Deed of Extra-judicial Settlement of Estate
      3. In either (i) and (ii), submit also proof of filing of the Affidavit or Deed, as the case may be, with the office of the register of deeds
  1. Release, waiver, and quitclaim, holding COL free and clear from any action, claim or liability brought by third parties in relation to the closing of the account and release of the proceeds thereof.
  2. Proof of payment of estate tax or BIR Certification that the same is exempt from estate tax
  3. Identification documents of surviving heirs (photocopy of 1 government issued ID, with picture and signature)

Surviving heirs may then open an account with us to transfer all stock and cash positions from the deceased client’s account to the surviving heirs’ account.  Surviving heirs will have to submit identification documents and POB and accomplish account opening forms.

So it is clear based on COL Financial’s response that a proof of payment for the estate tax is necessary before a heir can claim the stocks. To all those who have account with COL Financial better share this post to your love ones so they know what to do just in case.

What is Estate Tax? | The Importance of Insurance

05 Tuesday Mar 2013

Posted by in Personal Financing

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TaxIn my continued learning about Personal Finance, I came to know that there is Estate Tax in the Philippines. Estate Tax is the tax being charged to any heir of a deceased person.

Did you know that all property under your name as shown below is subjected to Estate Tax in case of your death?

a)   Real or immovable property, wherever located

b)   Tangible personal property, wherever located

c)   Intangible personal property, wherever located

All mentioned property would be subjected to Estate Tax equivalent to almost 20% of the Net property. Property includes Real State, Money in the Bank, Mutual Funds, Stocks in the Stock Market and more.

According to BIR the following items will be deducted from the Gross Asset to get the net value of the Net value to be taxed.

  • GSIS proceeds/ benefits
  • Accruals from SSS
  • Proceeds of life insurance where the beneficiary is irrevocably appointed
  • Proceeds of life insurance under a group insurance taken by employer (not taken out upon his life)
  • War damage payments
  • Transfer by way of bona fide sales
  • Transfer of property to the National Government or to any of its political subdivisions
  • Separate property of the surviving spouse
  • Merger of usufruct in the owner of the naked title
  • Properties held in trust by the decedent
  • Acquisition and/or transfer expressly declared as not taxable

It was also a discussion in the TGFI Facebook group that if the owner of the stocks became deceased, stocks will not be withdrawn or liquidated as along as the real estate is cleared and paid. Joint account can’t also protect the account since if either one of the account holder died, the account will be frozen and will be subjected to Estate Tax.

There is a deadline in paying the Estate Tax as shown in the BIR page as follows:

File the return within six (6) months from decedent’s death. However, the Commissioner may, in meritorious cases, grant extension not exceeding thirty (30) days.

The Estate Tax imposed shall be paid at the time the return is filed by the executor or administrator or the heirs. However, when the Commissioner finds that payment on the due date of the Estate Tax or of any part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the courts or two (2) years in case the estate is settled extra-judicially.

According to experts, in order for us to be protected we need to make sure that we have Term Insurance or any other Insurance. Term Insurance is the Insurance with the lowest premium but there is no Return of Investment for any payment. So it is just like paying insurance for your car. But instead of paying for your car you are protecting yourself for anything that might happen in the future.

So it is very important that if we have an asset, we need to make sure that our family is prepared in paying the estate tax in case of death.

For further reference about the Estate Tax please proceed to BIR Page here. Be informed that nobody is excused due to the ignorance of the law.

Image Source : Blog.nolo.com

Complete Pesos and Sense Season 1 Youtube Links

27 Wednesday Feb 2013

Posted by in Personal Financing, Stock Market

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pesos-and-sense-2

Learning about investing can be done through reading and Watching Videos.

I have informed you before that I am part of the Facebook group called TGFI (The Global Filipino Investors ). The group members is helping me to learn new things about Stock Market as well as importance of insurance. Today I have seen a collection of Youtube links for Pesos and Sense headed by Aya Laraya. I would like to give credit to Khristian Santos (TGFI Admin) for his research for this videos.

I believe that the below mentioned videos is a must see for newbies and those who are starting to invest.

Episode 1: Stock Market

Part 1 Part 2 Part 3 Part 4

Episode 2: Mutual Funds

Part 1 Part 2 Part 3 Part 4

Episode 3: Insurance/VULs

Part 1 | Part 2  Part 3 | Part 4

Episode 4: Scams

Part 1 Part 2 Part 3 Part 4

Episode 5: Starting Early

Part 1 Part 2  Part 3 Part 4

Episode 6: Budgeting and Personal Finance

Part 1 Part 2 Part 3 Part 4

Episode 7: Understanding Credit

Part 1 Part 2 Part 3 Part 4

Episode 8: Aya’s Investment Diagram

Part 1 Part 2 Part 3 Part 4

Episode 9: Long Term vs. Short Term Investment

Part 1 Part 2  Part 3 Part 4

Episode 10: Insurance 2

Part 1 Part 2  Part 3  Part 4

Episode 11: OFW Investments

Part 1 Part 2 Part 3 Part 4

Episode 12: Social Cost of Investing

Part 1 Part 2 Part 3 Part 4

Episode 13: Diversification

Part 1 Part 2 Part 3 Part 4

Credit for Video and Image : http://pesosandsense.com/

Please Report any Broken Links and let me know your thoughts about the video.

Invest and Get More Source of Income To Increase Your Giving

13 Wednesday Feb 2013

Posted by in Daily Dose, Personal Financing

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Invest and Get More Source of Income To Increase Your Giving

Increase Your Giving

A pleasant day to all our readers, I Just want to give all of you some insights about investing and giving.

From the time I learn about Financial Literacy and Investing, I make it a point that I will NOT stop being generous to those who are in need. I believed that when I give, I am also investing, because this is what the bible teaches us. We need to understand that we don’t have to be ruled by money but instead we have to rule our finances. That is why giving is always in my formula.

Salary – Giving (Tithing) – Investment = Expenses

I want to share you what I have read from Rich God Poor God book of Ptr. Chinkee Tan;

Sixteen of the 38 parables deals with possession and money. The Bible has 500 verses both on prayer and faith but more than 2350 verses on money and possession. There are more than 2,350 verses on money and possession. there are more verses that relates to money and possession than heaven and hell combined.

So money must be important that is why it has been given emphasis in the bible. Lord want’s to warn us on not to be controlled by money.

I believe that even you have lot’s of investment and you know your action plan in investing but you fail an important thing which is to give, you will not succeed. I also believe that I need to start investing and get more sources of income so I could start giving more. Not only to my family but also to other people who will be in need.

I also believed that we are being blessed so that we can bless others. Whatever faith we have, I believe that giving is a general teaching that all people should adhere.

I also believe that poor people will have a hard time to give because they don’t have source to give, we can only give if we have something to give. Motivational speaker like Zig Ziglar, Robert Kiyosaki, John Maxwell and more also teaches that giving is important in our financial life.

Believe that everything on earth is from God as mention in Genesis 1:1, And Our God is able and willing to bless us more to increase our habit of giving.

Don’t forget to sign in our mailing list to be informed about our latest post.

Picture Credit : stleodegarshunston.co.uk

How to Start Investing?

09 Saturday Feb 2013

Posted by in Daily Dose, Stock Market

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This is the same question that I got one year ago, when I saw a blog post and Facebook group comments last year.

I started investing in Stock Market about a year ago. If you do not know how to start stock market better check my post on “How to Start on Stock Market”. Starting in investing is all about mind setting, you have to make a mindset that there is no business without risk and if you don’t want to take risk you cannot gain.

There are lot of ways to start in investing and it depends on your risk appetite. If you are not a risk taker and you do not have any mentor or you are lazy to study on how to invest, I would suggest starting in mutual fund. In mutual fund there will be a fund manager who will take care of your finances. They have the full discretion on where to put your money. By the way Mutual Fund is not a risk free investment. But risk is lower than going to stock market by yourself.

You may also check your banks for UITF (Unit Investment Trust Funds).

As of now I don’t have any investment in Mutual Fund but I am planning to take a mutual in the future as part of my diversification. It is a decision, to do it by my own for the mean time that is also the reason why I made an account with COL Financial.

I have also read a lot of book saying that an emergency fund (3 to 6 months equivalent of your monthly expenses) needs to be establish first before investing as well as insurance coverage. But as of this time, I have not made any insurance which I also plan to take this year.

As a start, I make it a point that I have updated my SSS and my other small insurance coverage.

I am considering my Stock Market Funds as my emergency fund since it is a liquid investment that I can take out anytime in the future if need arise.

As a new investor or would be investor you need to change you financial formula from:

Income – Expenses = Saving Investment

to

Income – Tithing – Savings & Investment = Expenses

I believe that we need to give our tithes for the work of God’s ministry in the earth. I always believe that the bible is the source of information about investing. It is also what Zig Ziglar, Robert Kiyosaki, Bo Sanchez, Chinkee Tan and Other known book author believe.

I also suggest joining forum, Facebook group for mentoring purpose. There are lots of Facebook group who have very helpful members who are there to answer you basic question for free. And don’t forget to join our mailing system for you to be updated on our post. I am planning to be more active in writing on this blog.

PHILIPPINE BUSINESS BANK IPO

07 Thursday Feb 2013

Posted by in Stock Market

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I just want to share you that I have been included in COL Financial raffle for IPO of PBB. I have received the following email today.

Please be informed that we have allocated 500 shares of PHILIPPINE BUSINESS BANK with the amount of PHP 15,750.00. We have debited your account accordingly. Thank you. COL Financial Group Inc.

It feels good to be included from the 151,200 shares that was raffle out from COL..I came to know that there are lots of investor in the Facebook group where I belong that received a regret letter from COL Financial. But for the newbie in stock market, you might be asking on what is IPO? IPO means Initial Public Opening. In the normal scenario, buying IPO stock is always buying bargain stocks, but there are also time that upon completing the IPO, the value of stocks goes down. Take for example on what happen when Facebook have it’s IPO, it was first in the rise then suddenly it fails lower than IPO. In the local market, it also happen to CAL (Calata).

I have also taken the following report from DA Market Securities Inc.into consideration, when I made my request to be approved for this IPO as follows:

At 2011 actual EPS of 2.17, the P/E will be at 14.5x. However, using trailing 12 month EPS or 2012 est. EPS of 2.39, P/E is at an improved 13.2x.

After the offer, Book Value (BV) will increase to 21.58, translating to a Price-to-Book Value of 1.46x

Considering improved market conditions and optimistic outlook on the industry’s growth momentum, the company lists at an attractive valuation. Recall that EW listed in April 2012 at a price of 18.50/share, and using 2011 actual EPS of 1.54, the offer was at 12x P/E. BV 13.72, 1.34x PBV.

Later I will report the result of this investment. And I hope it will goes up.

The Tentative listing date will be on February 19, 2013. I hope I made a right decision in getting PBB IPO.

How To Start Investing in Stock Market

03 Thursday Jan 2013

Posted by in Stock Market

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Stock MarketYesterday I shared a Youtube video in my Facebook wall that says more and more Filipinos are now starting to invest in stock market. The post catch the attention of some of my online friends as well as relatives, which eventually started a conversation about stocks. Here are some of the questions and answer that I made during my conversation for the benefit of those who also want to learn investing in Stock Market

I have heard that investing in stock market is risky and it is like gambling? Are you now into gambling Dexter?

Well this is my answer, Stock market has two kinds, one is investing and other is trading. When you say trading, it is almost equal to gambling since, what you bought today might be sold out before the market close or could be sold by tomorrow. It is good if the market goes up, but what if the market goes down it is a sure lost. Trading is also buying speculative stocks, which means that a trader is buying a stock which does not have any history or anything to prove as a company. They just buy because of rumors that it will be high tomorrow.

I must confess that when I started stock market, I did the same because I do not know the difference of investing and trading. I do not have any mentor and I just visit some blogs and forums for information. I have not even read any book to learn first before going to stock, but as what the saying goes experience is the best teacher.

Investing is buying stocks with good market reputation, they are usually called blue chips stocks. After buying, investors tend to let their money grow for some time. It might be 1 year, 2 years, 10 years or more. If you know Warren Buffet, this is the system that he is using. He study the market buy the sticks and forget about it and he let it appreciate from time to time. Investors also earn in two ways, one is price appreciation and the other is through dividend. There are time also that investors will buy stocks and wait for his Target Price before selling his shares.

So is it Risky to Invest in Stock Market?

Actually in reality there is no safe investment. Investment will tend to gain or lost. As an investor you need to be financially literate to know what you shall behave in good times or bad times. If you cannot watch how the market moves, it would be better to go to Mutual Fund (less risk) or Equity Fund (high risk), where there is fund manager who can watch over the movement of your money. I have heard that Mutual fund performs well last year which have 30+% interest. Of course nobody knows if it will still be the same this year. Your risk appetite will definitely determine your gain. Less risk – less gain and the higher the risk – the higher the gain. I myself have 17.78% gain last year.

So how much do I need to start to Invest in Stock Market?

Good to inform that nowadays you can start at an amount of 5,000 through colfinancial.com, all my stock transaction is made through online since I am outside the country I managed to get a broker that can serve me through online. One better thing in COLFINANCIAL is their EIP system, where they will allow you to invest on a monthly or weekly or quarterly or whatever is your preferred frequency of payment with a fix amount. It is also called Peso Cost Averaging

So how did you enroll in COLFINANCIAL?

I have filled up their application form, then scan the documents and send it to Colfinancial for checking and after they have checked my details they told me to send the original documents to their Ortigas Office. After they have received the documents they send me my login details and the bank reference that I will use to start investing in the stock market.

There are still lots of Q&A that I have responded yesterday and I think I can make the other conversation in future post. So keep on sending question though the comment section so that we would be able to respond to your question. If I can’t answer the question I will try to ask some of friends to respond for us. Make Sure to provide us your email as shown in the side bar for you to be updated on our post.

Photo Credit : Flickr username 401(K) 2012

Update : Great Information from Philippine Stock Exchange on Investing Procedure ( Courtesy of The Global Filipino Investors TGFI Facebook Group)

Action Plan: Increase Assets That Could Produce Additional Income

02 Sunday Dec 2012

Posted by in Personal Financing

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Personal Finance

Source : https://www.facebook.com/FinancialIndependence

I saw the above photos from my Facebook groups which was first shared from Journey To Your Financial Independence, I do not know the owner of the photo so I just credit it to the page.

Anyway, I got a good idea from this simple flow chart, and if all people will just realize the power of the above mentioned flow chart, people will be able to gain financial freedom. I think the hardest part of the diagram is the “reduce expenses part”, especially if most of the expenses are fixed and cannot be adjusted. What I love are the steps on the left which is to increase the assets that gain income. As a person who wants to be financially free, increasing an asset that gives income is a way to have a debt free lifestyle. For me, I would choose having an asset that could give me a passive income. Mindset, Goals and Financial Planare very important since without it, a person would not be able to move from his present situation.

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My 10 Year Old Son is Now an Investor

29 Thursday Nov 2012

Posted by in Daily Dose, Personal Financing

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SMPH Stocks
Image Credit: pse.com.ph

I started doing investment in stock market last January 2012, and now since Asian economy is booming my portfolio have increased 15% from my capital. You might say that 15% is low if the market is booming and you are right. It is actually low since I am doing trading before rather than investing. When I tried stock market I don’t know the difference between trading and investing, I thought it’s just the same. Through reading, I came to know that trading is like gambling and it is really dangerous while investing is saving for the future by trusting the company where you put your investment.

Speculative stocks or penny stocks are the stocks loved or hated by the traders while blue chips stocks are investor’s baby. When I say blue chips stocks it means big companies who have an increasing price based on their history. It is a stable company which are normally suggested by brokers like Citiseconline.

Daily while I am bringing my son and daughter to their school, investment is one of our discussions. So yesterday, when I and my son are chatting, he decided to invest his savings to the stock market. My 10 year old son decided to put his 80 Saudi Riyals (850 pesos) in my care by investing to SMPH (I ask him to choose from MBT, BDO, MPI and SMPH). Since I do hold some stocks position at SMPH, I sell part of my stocks to my son at the amount of 15.12 pesos (It is just an internal agreement since he cannot have an account in Citiseconline at his age). My son also decided to give his monthly saving to me in the future to add up is portfolio. He has also installed Bloomberg Applicationon his iPad to monitor the movement of his stocks.

There was a time that me, my wife, and my son is watching Warren Buffetinterview, we have learned through that interview that Warren started doing investing in the stock market at the age of 11. I told my son that if Warren started at 11 and he can start at 10 there is a big chance that he will also be a billionaire like him. And I saw a smile in my son’s face.

So if my son is now eager to learn the stock market at his early age, why don’t you start learning how to invest also? If only there are people who teach me about investing at my early age, I would have been an investor at my early age.

Update: I came to know about ITF From COL which enable my son to have his own account, I will study and inform our readers in the future.

Difference Between Bad Debt and Good Debt

06 Saturday Oct 2012

Posted by in Personal Financing

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Difference Between Bad Debt and Good DebtMany think that all debt is bad and there is no good debt. Now let me just share you some thoughts on what I understood about the bad debt and the good debt.

One might ask, is there any difference between the two? I believe yes there is difference. Almost all businessmen succeeded in their business through borrowing. The borrowed money is used to finance their business, but before they go to borrowing a feasibility study is being made in order to know the cash flow of their business.

I can say that anything that will give you income after borrowing is a good debt. That means if you borrow money and then the money will be used as a capital and later will give you income then it is a good debt.

As an example a certain entrepreneur borrowed money to buy for a Van which will be used on his school transportation business. He needs to pay 10,000 monthly in the company and he anticipated of having 15,000 monthly incomes for his business. A certain amount needs to be saved for the monthly maintenance say 2,000. With this given scenario a 3,000 monthly income is seen. Therefore this is what I call good debt.

And so what is bad debt? Bad debt is borrowing for pleasure only. As example buying new mobile phones and using credit with zero interest. Even if it is zero interest, the phone needs to be paid monthly but there is no ROI (Return of investment). So if you really don’t need a new phone don’t use your credit card and wait for the time that you have an extra money to buy for yourself. However if this phone is a necessity for a business and you believe that your business can pay off the monthly bill then it is a good debt.

Bad debt leads to headache and stress. For sure if one is into a bad debt it is impossible to save for emergency fund.

As a general rule when you borrow the money and it earns an interest then it good, if it is outgoing without any return of investment then it is bad debt.

Hope you like this post.

I Need to Start Saving for My Emergency Funds

03 Wednesday Oct 2012

Posted by in Personal Financing

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My Emergency Funds I actually do not know about the emergency funds, until such time that I have heard about this topic in you tube through ANC Money. Emergency funds is a fund that is ready at any time if the need arise. According to one of the financial adviser that was interviewed in ANC Money, emergency fund shall be at least 3 to 6 months of the monthly expenses of a single individual.

I also learn that emergency funds can be place in an investment portfolio that can be withdrawn at a maximum of 3 days. All I thought is that emergency fund should be placed in the bank, but I learn that the bank is not the only option to place the emergency fund.

The technique is that we need to look for a place where it can give higher yield than that from the savings bank.

I still don’t have emergency funds but I have stocks through COL. I will start saving for the emergency fund amounting to 10% of my salary until such time that I can complete the 3 to 6 months emergency funds and I hope to start it soon.