My Cup Overflows

continued from our June 24 post:

Buy a Life Insurance

This is not a pitch for life insurance agents but I encourage you to listen to one. If there are people already depending on your income, do not delay in buying a life insurance policy. Premiums are much cheaper if you buy it before you hit 30 and I also notice that premiums rise sharply when you hit your 30s and 40s. Just remember to buy a policy you can afford. There are many kinds of life insurance policies but I would suggest a Variable Universal Life insurance or VUL. VULs give you the benefit of both life protection with an investment opportunity thru high-interest yielding funds. That means, your Premiums are invested in local and international stocks (depending on your risk appetite) to grow your Money, better than bank-interest-rates (which are less than 1% per annum). And the cost? You will be surprised…it ranges from only 3% to 10% of the Face Amount – the total amount of your protection. Benefits? I can give you the first two (2): INCOME PROTECTION and CRITICAL ILLNESS PLANNING. Want to know more about Investing? Come join me in achieving Financial Abundance!

Invest Only What You Can Afford to Lose.

Investing is important, but so is eating and keeping a roof over your head. It's unwise to take short-term funds (i.e. money for the house mortgage or groceries) and invest them in stocks. As a general rule, investors should not get involved in equities unless they have an investment horizon of at least five years, preferably longer, and they should never invest money that they can't afford to lose. I call it your NET INVESTIBLE INCOME (NII) – the part of your Income that you save for investing. Remember the 50-30-20 Rule – this is the 20% of your income that you separate and invest.

Continued from June 24 post:

2. PESO COST AVERAGING

The most important thing to keep in mind during an economic slowdown is that it's normal for the stock market to have negative years—it's part of the business cycle. If you are a long-term investor (meaning a time horizon of 10+ years), one option is to take advantage of the COST AVERAGING. Simply put, peso cost averaging means you buy stocks or securities for a set amount of money each month, quarter or year over the medium- to long-term (5 to 10 years). By purchasing shares regardless of price, you end up buying shares at a low price when the market is down. Over the long run, your cost will "average down," leaving you with a better overall entry price for your shares. THEREFORE, this is the RIGHT TIME to purchase and/or ADD SHARES - NOW that the local market is down.

A bear market refers to a market-wide decline in stock prices of at least 15-20% coupled with a pessimistic sentiment about the market. Clearly, these times are nothing to look forward to. Don't despair—there is hope! Here, I will walk you through investment strategies and mindsets to help you stay calm when the stock market takes a swipe at your returns.

1. KEEP YOUR FEARS IN CHECK

There is an old saying on Wall Street: "The Dow climbs a wall of worry." This means, in local setting, over time, the market (PSE index) has continued to rise despite economic woes, terrorism and countless other calamities. Investors should try to always separate their emotions from the investment decision-making process. What seems like a massive global catastrophe one day may be remembered as nothing more than a blip on the radar screen a few years down the road. Take a look at the 10-year PHL Stock Market performance from 2006 to 2016.

Personal Financial Planning

You're earning Php 100,000-200,000 a month for a MNC engaged in the BPO. Part of your benefit is a 24-month Group Life insurance coverage. Wow! That's equivalent to Php 2.4 Mn to 4.8 Mn. But that's only for 2 years coverage...2 years of your current lifestyle.

One of the principles I teach in Personal Financial Planning is taking out your own Income Continuation and Health & Accident Plans. This is for a lifetime of Financial Security for you and your Family.

Ask me how!

Why is Protecting Yourself and Your Family so Important?

In truth nobody really wants to think about getting sick or dying, but life is full of unexpected “SAD” events (sickness, accidents, disabilities) and protecting your family with life insurance is one of the most important financial decisions you can make. It means your family could get a lump sum if you expire or become seriously ill, or you could receive an income if you are unable to work because of an illness or injury. This will help maintain your standard of living and make sure that your spouse and children could have all the opportunities you’d love them to have, such as enjoying an above average lifestyle, travelling and going to college.

Parents naturally tend to insure their assets such as their home and their cars, but often neglect to insure their most valuable assets, their income and their lives. Yes, you often mistake that the objective of Life Insurance is only to insure your very own Life. You neglect it and move on to (you think) “more important things.” You live from paycheck to paycheck; you manage the thriving family business; pay the children’s tuition fees; do the monthly groceries; spend a small percentage of your bonus for a family vacation; and of course, give tithes. Then an accident happens…a member of the family…the breadwinner suffers a stroke, becomes bedridden and disabled. Suddenly, the Family Income stops.

A responsible Dad/Mom will always think and plan ahead for the Family. Would my family be able to put my children through College in the event of my unexpected death? Would we be able to live off my savings if I was unable to work due to illness or injury due to an accident? I know that any extra/unforeseen medical expenses will hurt my Family savings fund. Have I put a plan in place to look after my family should anything happen to me? To my spouse?

Book a meeting with your Financial Advisor. A Financial Consultation maybe the best decision you’ve ever made in your career.

PSEi will move sideways again for the week until we see positive news of TRAIN and release of Q2 earnings of Top Companies. Immediate support is at 8,300 while the index retries to breach the 8,500 resistance level anew before month-end. News of a lower inflation might trigger the index to new highs.

“The best time to start investing is not yesterday, not tomorrow, but TODAY.”

Money Talks
Randell Tiongson, RFP writes...

Most Filipinos are not financially prepared for their future. Studies show that more than 90 percent of us are not on track to be able to comfortably retire. Too many people have bought into the lie that one day when we have more money we can start planning for the future. That kind of thinking is what ensures retirement never comes. ��Setting aside P5,000 one time won’t change your financial future. However, setting aside a little bit of money consistently over a long period of time will build great rewards for the future. There’s no amount too small to start saving and no better time than now. You may not be a millionaire, a celebrity or a stock broker, but that doesn’t mean you can’t start saving. Daily diligence with what you have can lead to long-term benefit. ��Jesus has an incredible future planned for us, and when we save what we’ve been given, we free ourselves to act on what God wants to bring us in the future.
�------
�“For I know the plans I have for you, declares the Lord, plans for welfare and not for evil, to give you a future and a hope." Jeremiah‬ ‭29:11‬ ‭ESV‬‬

The first two (2) weeks of July saw the local bourse moving sideways. I believe it's taking its sweet time to consolidate and is poised to make a run and break again the 8,000 resistance level. It's the right time to invest.

So where do you put your hard-earned money?

VUL is a wise investment of any INDIVIDUAL, SOLE PROPRIETOR, BREAD WINNER, COMPANY INCORPORATORS.

3 Benefits of a VUL Insurance Plan | Brighter Life Philippines VUL has become the most popular insurance plan in the past decade. If you’re considering a VUL plan to beef up your portfolio, these features of the VUL may convince you.

Many times, I say, many times have I encountered this situation: a friend from the Oil & Gas business suffered Cancer, a colleague in the Telecom company needed emergency treatment for a heart illness. Others were unfortunate and experienced death in the Family. Truly heartbreaking. What's more excruciating is the fact of financial loss - critical illness procedures, such as diagnosis, major surgery, and medications will surely eat up a huge chunk of your savings. Because of the severity of the disease, it will have a devastating potential to wipe out everything you worked hard for in years. Critical illness is indeed a serious health matter that requires your attention, NOW. Are you protected?

I do not want this to happen to you. Let's create a mitigating plan for you and your Family.

In Sickness and in Poor Health, Getting Protected Can’t Break You Apart | Brighter Life Philippines My wife's illness carried that devastating potential to wipe out everything we had saved up and worked hard for in years. Critical illness was indeed a serious health matter that required huge financial obligation.