Tag Archives: Mutual Funds

Impact of Global Investment Trends on OFW Finances and Opportunities for Investment

26 Monday Aug 2024

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The current positive outlook in global and Philippine investments is having mixed effects for Overseas Filipino Workers (OFWs). While a stronger peso means a lower exchange rate—currently 1 SAR equals 14.82 pesos, compared to the previous 15.5 pesos—this doesn’t necessarily translate to lower living costs in the Philippines. For OFWs with fixed-rate mortgages, the benefits of a stronger peso may be offset by stagnant prices of goods and materials.

Despite the exchange rate improvement, prices for essentials and materials in the Philippines remain high, which can strain OFW budgets. Additionally, if this trend continues, interest rates may eventually decrease, but this hasn’t yet alleviated the current cost pressures.

It’s crucial for Filipinos to adapt to these changing financial conditions by exploring investment opportunities. Investing in Real Estate Investment Trusts (REITs) or mutual funds offers a chance for passive income and potential growth. Now is the time for OFWs and other Filipinos to consider these options to enhance their financial stability and take advantage of rising investment opportunities.

Is it Safe to Invest in Mutual Fund?

02 Tuesday Sep 2014

Posted by in Personal Financing

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Mutual funds

Picture Credit : murraycoulterandassociates.com

The title of this post is a common question I encountered when I am conducting seminars and group study about Financial Literacy.

So is it really safe to invest in mutual fund? My answer depends on your definition of safe.

First of all there is No Risk Free Investment. Different type of Investment has its own associated risk. It only depends on how much risk you can take to define it as safe.

Mutual fund is managed by a fund manager, who are trained to manage pooled money. So with decision making with regards to fund allocation I can say that mutual fund is safe. Mutual Fund is also govern by SEC and have pass with different government strict rules before it could operate and received new funding from investor.

In addition, the money is being held by its associated banks and the money and not by the Fund Manager. Fund Managers only manage the transactions.

Money value of the funds depends on the daily NAVPS of a certain fund. There are days that the NAVPS is low and there are days that NAVPS is high. If the current NAVPS is lower than your purchased cost per unit then you are losing, but if the current NAVPS is higher than your purchased cost per unit then you are gaining. Of course purchased cost per unit includes fees ad other charges of the mutual fund company.

There are different types of Mutual Fund to choose from, they Equity Funds, Balance Fund, Fixed Income Funds (Bonds) and Money Market Funds. There are other type of funds but those mentioned are the common types of Mutual Funds.

Equity Funds has the highest risk while the Money Market Funds has the lowest risk. But you should also understand that the higher the risk of an investment the higher also the potential gain of it.

Before investing in Mutual fund you should asses your goals/objective. If the length of time is short then it is not recommended for you to proceed with risky investment. But if the length of time is long then an investor could go to a riskier investment. (ie. Saving for your 1 year old son college expenses)

I hope this simple post gives you an idea to answer the question mentioned in the title, “Is it Safe to Invest in Mutual Fund?”

Learn first before investing. Happy Investing.

I also believe in the saying, “If your fail to Plan then You Plan to Fail”.

Investing Even in Debt?

20 Wednesday Aug 2014

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Image Credit : investprogram.org

Seminars about investing and YouTube videos about investing are now easily accessible. Facebook post and updates talks about investing and savings. In reality it makes our drive to invest as soon as possible more.

So what if you want to start investing and yet you are filled with credit card debts, Will you start investing in Mutual Funds or stock market even if you are in a big financial mess? For me it’s a big NO.

What I meant is that paying of your credit card debt or any debt is the start of your investing. While paying your credit card, you will start the habit of saving a portion of your salary or income to pay off your debt. Normally I recommend 70, 20, 10. 70 % of your income is for expenses, 20% of your income is for your investment and 10% of your income for your Tithes or Love offerings. Use the 20% to start paying off your debt.

When time comes that you have paid off your debt, you will then be in a habit of saving a portion of your salary. The same amount that you used to pay your credit can now be used to build you emergency funds. After the emergency funds then you can go into Mutual Funds or even stock market if you can take the risk.

The idea is that you should not be investing in Mutual Funds or Stock Market if you don’t have Emergency Fund and still in debt because if time comes that you need money due to emergency, chances are you will get your investment even if it is still losing.

So be wise in your investing decision. In addition you need to set your goal prior to Mutual Funds or stocks investing. Knowing your goal will determine the amount of risk that you can take. Knowing your risk, may allow you to determine the type of investment portfolio will you go.

So be wise and Happy Investing. Study first before investing.

Suze Orman advises Filipinos to invest in Philippines

15 Wednesday May 2013

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Suze Orman, American author, financial advisor, motivational speaker, and television host, in the United States advises Filipino to invest in the Philippines. She firmly believe in Philippine economy and she even suggest investing through mutual funds. It was also mentioned in the interview that one should not be engage in Credit Card debt bondage, and if ever engage with it you need to get out as soon as possible. She also discuss the importance of having an emergence fund and then investing after reaching the goal of having an emergency fund.

ABS CBN even twitted quoting Suze Orman that she will invest in Philippines.

suze orman

Meanwhile, Philippine Stock Index have again reach an all-time high at 7392.20, today.

You may see the interview of Suze Orman in the embedded YouTube video below.


IMG (International Marketing Group) Review and Reasons in Joining

08 Monday Apr 2013

Posted by in Daily Dose, Personal Financing

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First of all I need to introduce you to IMG which means International Marketing Group. IMG is a marketing company that is dedicated to serving the financial needs of individuals and families from all walks of life. They also conduct FREE Financial Literacy Seminar to educate people on how to manage their money. In Philippines, members can get the full set of FREE seminars in the Head Office.

Even I am in Saudi Arabia, I have completed the 2 FREE Seminars customized for OFW which is being conducted by IMG wealth Academy. I am also being mentored by Fely Santiago, of the IMG – Truly Rich Maker Group.

Yup, IMG also exist in Saudi Arabia.

IMG

IMG helps people makes critical financial decisions that can help move them from where they are to where they want to be. The 2 seminars give details about the importance of 6 steps to Financial Security.

Through the seminar, listener would be able to understand about the importance of financial planning and how your present situation could affect your future.

I have learned through that seminar that, there is a high percentage of OFW, which are not financially literate and ended up working in Saudi Arabia for a long time without any goal in life.

There were also times that an OFW who resign from his work in Saudi Arabia, ended up having a misery life because he was not able to prepare for his future. It is also sad to know that there are some Filipinos who work in Saudi Arabia for a long time, 15 years perhaps, and retiring poor in Philippines. Those OFW did not think about their future but instead, spend all their money on wants and not on needs needs. It is one of the reasons also why I joined IMG, to have a planned financial future.

In IMG they make sure that your practice what you preached.

This is the Common Pinoy Financial Mistake as mentioned in the seminar:

  • Overspending / Not Living Within One’s Means
  • Credit Mismanagement
  • Overly conservative in Investing Money
  • Lack of Financial Education

Our mission is To Make Your Family’s Dream into Reality. We are committed in helping families achieve your dreams, through our business opportunity, as well as our products and concepts.

Actually IMG is a one- stop shop, for every Financial Investment Vehicle that Filipino may need. Ranging from Insurance, Mutual Funds, Stock Market, Real State, Non-life Insurance and more.

You could actually earn form your own investment portfolio.

I could actually see a big business potential with-in this company, members will not only be financially literate, but will also be financial secure during retirement age.

IMG is teaching individual on how to have a strong foundation about financial security.

Perhaps this link could give you more idea about the company – http://img-corp.com/company.php

I know I have lots to learn from the company, but I believe that I have made a step towards my Family Financial Security.

I have been in Saudi Arabia for 10 years, and If I only became financial literate long time ago, I would be probably a millionaire and a big time investor by now.

I always believe in Proverbs 19:21

Many are the plans in a person’s heart, but it is the LORD’s purpose that prevails

As well as Jeremiah 29:11

For I know the plans I have for you,” declares the LORD, “plans to prosper you and not to harm you, plans to give you hope and a future.

That is why I know that being financially prepared is the will of the God. God doesn’t want us to be poor during our retirement age.

Do you want to learn more about the IMG and Wealth Academy and how you can attend the FREE Financial Literacy seminars? Then just enter your details below, and I will contact you as soon as possible. If you are not within my vicinity, I will let our IMG associates contact you as soon as possible.

You could be in any part of the world.

 






And as I detailed my journey to Financial Freedom, I will continuously update our readers of my journey to Financial Security.

Complete Pesos and Sense Season 1 Youtube Links

27 Wednesday Feb 2013

Posted by in Personal Financing, Stock Market

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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.

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.