Thursday, January 1

Swabeng Realization: The Product of My Financial Literacy

Early last year (or I think as early as 2013), I began to take an interest in Personal Finance and Money Management. These are something that wasn't taught in schools (yet) nor from your parents but rather these are learned online (mostly) supplemented with some books authored by experts in Personal Finance like Robert Kiyosaki (Foreign), Francisco Colayco (Local) and the like. 

While I took my sweet time (almost two years to learn the basics (and I'm still learning), I didn't realize that I am slowly wasting time to start investing early. While I'm used to save (and spend) my paycheck with all the basics, I wasn't able to start ahead. Why? I guess I set my first target too high that eventually I had to make some changes (for the best). Anyway, I was able to spread-out half of my savings to some financial instruments that will help me achieve my goals in the years to come. 

During the last two months, I started investing in the Stock Market. Even with a little background on finance, I took the plunge and opened an account with COL Financial (Stocks). Why COL? Because its where most financial bloggers are entrusting their money with. While there are other reputable Online Trading Platforms in the country, I guess I'll put my trust with COL for the next couple of years. I won't divulge any information how much I invested but it grew by about 4% and I hope It earns more. While there are two (or more) ways to let your money grow in the Stock Market, I'll let the experts do their sharing (I'll do mine really soon) for now. 

Taken from Google

After having my feet get wet in Stocks, the next is to choose which Mutual Fund Company should I trust my money with. Initially, I am sold with First Metro Asset's Save and Learn Equity Fund (better known as FAMI's SALEF) because of its high return rate and low charges. But when I checked Philequity Management's Philequity Fund Inc (better known as PEMI's Philequity Fund) and compare it with the former, I got so torn I instead opened an account for both. As of writing, I have opened an account with PEMI and put my initial investment already (with some returns already) while with FAMI, I had to wait for my account number before I can place my initial investment (I have submitted all my requirements with them already. Anyway, we'll see who performs better for the next 3, 5, 10 years or even longer. In the end there can only be one. 

Taken from Google

Even before I opened an account with COL, I am already in contact with one of Sunlife's agents regarding their Variable Universal Life Insurance product (better known as VUL). They gave me a proposal (Sunlife Maxilink Prime) which was hard to refuse (or even resist). Their offer was like a part of your payment will be placed in stocks or in bonds (or a combination of both) for the next ten years but I prefer to have it placed in Stocks for a more better return. I just needed some time to think about it before saying yes to their proposal. I also asked for a modified version which of course the payement changes as well (didn't matter much to me anyway). I also checked what Insular Life has to offer (their VUL is similar to Sunlife's) but I was more convinced with what Sunlife. Well I thought after signing with Sunlife, its all a done deal. 

Taken from Google

But I have to undergo a Full Medical Exam to see if I am fit for their product (this means that my application is still pending and could possible be rejected and have my inital payment refunded). I only realized that its really best to get a VUL (or any life or term insurance) while you're still young and very fit to work. Just to be sure, I'm checking Philam Life's VUL as well as AXA and others. Its better to be protected than sorry. 

When we went home to my folks over the weekend, I also considered putting my money in Unit Investment Trust Fund (Better known as UITF). Since we have an account with BDO for the past couple of years, I got to check what they offer. Under high-risk and high-return, I was able to take a brief review on BDO Equity Fund, BDO Sustainable Dividend Fund, and BDO Focused Equity Fund. Their returns are all good and at the same time, the NAVPU for Sustainable Dividend Fund and Focused Equity Fund are still affordable. I'll take time (not that long) to choose the best and at the same time, check other banks who has the best performance for Equity Fund. 

Taken from Google

This year would also be my redemption against the 52-week peso challenge (50-peso version). Mid-way last year, I lost my battle as I wasn't able to temper myself back then and squandered all of what I saved from this challenge. But now I have already learned from my mistake and I have already revised my battleplan to conquer this challenge. It would still be the same mechanics like the one I posted a year ago. 

Not taken from Google XD

Wait a minute. Except for the 52-week money challenge, all financial instrument that I am venturing into entails high risk (since its focused more on equity/stocks). This may not be for the weak of heart especially there is a possibility of losing all money that I invested. But, I hope it would be the other way around as I learned how to control money instead of the money controlling me. 

I look forward to make my money grow not just for a year, but for the years to come. I hope you would try at least one of the financial instruments I'm venturing into, and this is for the long run. And also, sorry for the very long post. ^_^

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