Difficulties are opportunities!

Don't give up in your difficult situation!

Fight inflation!

Learn the effects and how to fight it!

The types of Mutual fund

know the types of mutual fund you should invest in.

How to open a Mutual fund account?

Find out how simple it can be!

What should come first?

Find out why financial education is a must before investing.

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Monday, October 28, 2013

The Types of Mutual Fund Investments

Not many people know that there are types of Mutual fund, I will just name 3 just to simplify things. So here are the 3 types:

1. Equity fund
2. Bond fund
3. Balanced fund

What is an equity fund?

Equity funds are the high risk stocks, these are the stocks with so many movements, really up and down in the charts. Please note that these stocks are also the good type (high grade), for example, we have Ayala here, SM, BDO, BPI etc., these are the big companies.

Of course, with high risk, you can get high returns and since it’s called high risk, you may also lose big here. (But with proper financial education, there is nothing to be worried)

This is the fund type that would make money for you, returns from this fund may be somewhere at 12% or even higher a year! (Depends on the markets)

So if you plan to make money, choose this fund, this is ideally for people who still have the capacity to work or make money.

What is a Bond fund?

Bond funds, from the word bond (in finance) means to lend something financially, so when you invest in bond funds, you are actually lending your money and since you are lending your money, you will earn interest.

Interest in the bond funds, unlike the equity, are very conservative. Interest per year in the bond funds may reach somewhere around 5% more or less. (I’ve seen it grown up to 10% though)

Bonds are mostly from government securities and corporate securities.

It so conservative that it rarely goes negative in returns. Back in 2008 when the global financial crisis erupted, the bonds in the Philippines had a return of 2%. Yes! Positive 2%, so if you have invested in the bonds back in 2008, you still earn money.

Bonds are ideal for our retiring friends, why? Because in the bonds, it rarely goes down, so you can be confident that money still grows even if you have retired.

What is a Balanced fund?

Balanced funds are just combined Equity and Bond fund, so the earnings here are not as much as the equity and the losses are not much as the equity as well. These are ideally for people who are not willing to take so much risk in investments.

In our practice though, we do not go for balanced funds, we balance them ourselves by having 1 equity account and 1 bond account. The reason for this, in worst case scenarios, if my equity losses, my bonds does not, so I still have money. In balanced funds, normally if the equity goes into negative, the balance funds does as well.

So in summary:

Equity funds - will make more money for you because of its high risk profile. The higher the risk, the higher the return.

Bond funds - this will keep your investment afloat but is conservative.

So which is best? Everything, it all depends on your risk intake and purpose.

Have a blessed journey!

God bless!

Picture is not mine, it belongs to recycledwax from http://www.deviantart.com/art/Money-Tree-141825169

Tuesday, October 22, 2013

How to open a Mutual Fund account?

A lot of my friends ask me how could they invest in the Mutual Fund. How do we put our money in the Mutual Fund?

Quite frankly, I had these questions too! I was so excited but I thought that "Hey, with all these stocks and what not, I m pretty sure that investing is going to be difficult." WRONG!

Mutual fund investing is as simple as ABC. Here are some steps to help you open a mutual fund account:

1. Just like opening any savings account in the bank, you fill up forms and show some identification plus the cash. It is the same with opening a mutual fund account. All you need to do is fill up so forms, show some identification and VOILA, you're good to go!

2. Just like opening any savings account as well, there is an initial deposit. When you open a mutual fund account, all you need is 5000 Pesos and with that, you're off buying your first few shares! Please note that most mutual fund companies offer 5000 Pesos as initial investment.

3. When adding additional investments, the minimum amount is 1000 Pesos. All you need to do is fill up some forms still. :)

Since the mutual fund takes away the stress from the investor by letting experts manage it, there is a little, teeny weeny fee every time you invest in a form of percentage. It often ranges from 2% - 3.5%. Consider it as a fee for your funds being managed by experts.

Well, there you go. Simple and easy, isn't it? So are you ready to invest in the mutual funds?

God bless you!

Have a successful journey!

Picture is not mine, it belongs to EndlessSecrets from http://www.deviantart.com/art/Questions-268221719

Wednesday, October 16, 2013

How to prepare financially for an earthquake!

Yikes! On October 15, 2013, a huge earthquake rocked Bohol with a magnitude of 7.2. In connection, Cebu was hit with a 7.0 magnitude quake! What a ride!

Buildings destroyed and some lives taken.... It was truly a tragic and fearful day but we kept our faith up. We know that this too shall pass! Praise be to God!

Just to show you some of the damages that we got, here are some pics from rappler.com:

 Photo by: Robert Michael Poole
 Photo by: Robert Michael Poole
 Photo by: Robert Michael Poole
 Photo by: Jose Farrugia
Photo by: Cebu Provincial Government FB page

So how to prepare financially? Here are 2 steps:

1. Always have an emergency fund! You can never go wrong if you have an emergency fund, do not put all your emergency fund in the bank or in the bonds, always have some cash with you at home.

2. Prepare your health care card. A quake as strong as this may cause some injuries, if so, get to the nearest hospital and have your health card with you! With a health card, you need not worry about hospital bills.

2 simple steps yet should be very effective. I pray for a quick recovery to Cebu and Bohol.

God bless you, God bless Cebu and God bless Bohol!

Wednesday, October 9, 2013

True Story | Your current situation has a great purpose!

Back in 2006, I was 4th year high school, was about to graduate from high school. It was going to be another highlight of my student life, I was going to college!

When I was 4th year high school, I was really a fat person, I weighed around 210 lbs., my waist line was around 45 inches. When ever I go to malls to shop for shirts or pants, I always have to go to the "American Size" section because non of the local shirt or pants would fit me.

For my shirt, it always has to be XL the minimum and most of the times I often buy XXL or XXXL! My pants, always around 45. That was me when I was 4th year high school and I did not like my body shape at that time, I truly hated how my body was and always wanted to get rid of it!

The thing is, I was too lazy to exercise and go on a diet, I loved eating! Amazingly, the body that I always hated protected my life.

September of 2006, It was a Sunday, went out with my classmates and went to an Internet cafe and played DOTA. We were having so much fun. I normally place my phone in front of me and suddenly, someone grabbed my phone and walked out!

I thought it was my friends playing a trick on me but realizing that they were not, I went out and chased this snatcher and tried to get my phone back.

I ran to him, somehow "wrestled"with him and to my shock, he pulled out an ice pick and stabbed me on my chest nearing the armpit. (When we sing our national anthem, you put your hands over your chest, on your fingertips, that is the area where I was stabbed but only on the right chest.)

Long story short, I was rushed to the hospital, got treated and got an x-ray. Miraculously, none of my muscles got hit, no internal damages and not any human meat got hit, why? My fats protected it. It was only the fat that got hit! Nothing else.

The thing that I wanted to be gone had a purpose and served it. God meant that I become lazy at that time, God meant that I do not go on to a diet because He knew that this would happen. God still protected me through my body, through the fat.

After recovery, I finally went to a diet and exercised. I weigh 160 lbs now. (Still needing to lose more) 

Friends, you may not understand what you are going through now, you may hate your situation. You may be broken hearted, you may be in a financial difficulty, drowning in debt, having family problems, jobless or you are trying to change yourself physically.

Let me tell you this, everything that is happening now has a purpose, my fat body protected my life, your problems are not different. Your problems now will make you stronger and after having served its purpose, your happy days will come!

Have a blessed journey!

God bless!

Picture is not mine, it belongs to DeeZeL86 on http://www.deviantart.com/art/Purpose-95765850.

Saturday, October 5, 2013

Your words are powerful!

Did you know that our words truly have powers? I am not talking about powers that we see on TV like power to fly, power of fire etc. The power of our words could either create or break us.

We should be careful in our words because our words are like weapons if used badly, on the other hand, our words could be like water that showers the plant to grow.

In  Proverbs 16:24, it says "Gracious words are like a honeycomb, sweetness to the soul and health to the body."

Our words can add sweetness to the soul and health to the body. When was the last time you praised someone? When was the last time you tapped someone at the back and say "Good job!"? I encourage you, compliments someone today, you may not know but your words may actually bring wellness to the person.

On the other hand, our words could be very dangerous.

Proverbs 12:18 says "There is one whose rash words are like sword thrusts, but the tongue of the wise brings healing."

When was the last time you got angry? When was the last time you were not able to control yourself? I know it's difficult to contain ourselves but when anger does come, I have fallen to this many times and still counting but here is what I do if I turn angry, I count up to 10 then I speak again, if I am still angry after 10, count to another 10 until the anger subsides.

When we are angry, there are words that would come out our mouth that may hurt others. As Proverbs 15:1 says "A soft answer turns away wrath, but a harsh word stirs up anger."

Friends, let us use our words to help others, not to put them down. Hey, I know it's difficult but practice makes it perfect!

God bless you!

Have a wonderful journey!

Picture is not mine, it is from http://www.flickr.com/photos/feuilllu/739173692/.