Tag Archives: negosyo

Money Concerns After A Stroke

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TEDxWooster-Peter Abramo: Entrepreneurship and...

TEDxWooster-Peter Abramo: Entrepreneurship and the Liberal Arts (Photo credit: jonny goldstein)

Inquirer:

i’m a stroke victim and i am now 57 years old. i am totally broke. i was able to read the investment in mutual funds. can you share me your ideas how would i do it.? i am planning to have a loan at bank of the philippine island with the amount of P30t. the 5t i’m going to invest it for mutual funds and the rest of 25t for food business.

Guita of Colayco Foundation

A loan is a serious financial obligation. When you take out a loan you should know how you intend to pay it back, regardless of the outcome of your business and investments. Manalo, matalo kailangan binabayaran pa rin ang utang.
Both business and mutual funds carry risks – businesses can fail and mutual funds are affected by the growth and decline of the stock market. For both, returns, income, growth are NOT GUARANTEED.
So if you have a fixed obligation (loan) and you use the money in something NOT GUARANTEED you need to have a good payment plan for the loan (just in case) otherwise you’ll be in deeper trouble compared to where you are now.
Are you earning any income? If yes then this could be ‘plan b’ for paying off your loan if your business and investments don’t do as well as you hope.
It would be more prudent at this point to find an income earning opportunity and save up for a mutual fund investment and for part of your capital for a business. This helps you manage the risks and obligations of running a business and taking a loan to fund that business.

BDO Equity UITF or FAMI SALEF?

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Ruckers-Taskin (1646/1780) harpsichord, (Paris...

Ruckers-Taskin (1646/1780) harpsichord, (Paris, Musée de la Musique) (Photo credit: Wikipedia)

 

 

Inquirer:

 

Which do you recommend, BDO’s UITF-EQTY or FAMI SALEF?

 

Guita of Colayco Foundation:

 

Both are good instruments managed by trusted experts. I suggest you check their historical performance-analyze and compare how each took advantage of good investing climate and managed during not so good or bad investing climate.

 

Inquirer:

 

I heard MFs charge higher fees than UITFs? Is that true?

 

Guita of Colayco Foundation:

 

Yes but the difference is marginal. And MF Managers tend to be more aggressive in growing your money than UITF managers.

 

Compare performances on www.pifa.com.ph (MF) and www.uitf.com.ph (UITF)

 

Networking Questions

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English: Description: Social Networking Source...

English: Description: Social Networking Source: own work Author: koreshky Date: 12/10/2007 (Photo credit: Wikipedia)

 

Inquirer:

what can u say about networking?

is it safe to join in networking?

 

Guita of Colayco Foundation:

Networking is a good active income earning opportunity. Just make sure of the following

1. you are connected to a legitimate company with legitimate products

2. you should earn more from the product than referrals of new networkers

3. you have the skills and enthusiasm to sell the product

Networking only works if you are willing to work hard in selling a good product.

 

If a networking company is legitimate then you have no problem. Remember however that you make money in networking companies through your own hardwork – by selling the products or by recruiting other sellers. If it is not something you like doing, it will be unlikely that you will earn from it.

 

Save and Be Grateful Snippets

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A few months back, Renzie Bailon, Arthur Ladaga and I were working on really short articles to publish in a lifestyle magazine…some of the articles didn’t make the cut. Still we’d like to share them with you. :)  

savings1

Save Twenty, Spend the Rest: Immediately save twenty percent (20%) of your salary. According to Francisco J. Colayco, savings is your first expense to be wealthy. By saving first, you are free to spend your remaining cash for your needs. Make it a habit throughout your life. If 20% is too high right now, start with what you can and increase it every year until you reach 20% lYou’ll get a hang of it eventually!

 

Be Grateful!

Within your first year of working share the blessings you’ve received by treating out or giving gifts to the people that mean most to you.

  1. Your Parents: It’s your way of thanking them for looking out for you and for providing for your whole life (so far).
  2. Your Significant Other: Thank your partner for supporting you especially as you enter into this new – work phase of your life.
  3. Your closest friends: These are the people who accepted you, even at your worst. Work can be very stressful, your friends will provide the much needed respite from the monotony and the concerns of work.

 

Create a “Wants Fund:” 

Spend for the things you want (new clothes, jewelry, mobile phones, etc.) using money made by money! Your hard earned income should be used to spend on your needs and not pay for growing credit card debt. So instead of paying for your wants with cash or borrowing money through your credit card, save and grow then spend. Invest your money in a mutual fund earning for you an average annual return of 8-20%! Though the returns are not guaranteed, if can sustainably fund your wants over a long period of time. For more info about mutual funds visitwww.colaycofoundation.com

Shed Pounds and Save Money!

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A few months back, Renzie Bailon, Arthur Ladaga and I were working on really short articles to publish in a lifestyle magazine…some of the articles didn’t make the cut. Still we’d like to share them with you. :)  

Weighing-Scales-1
Shed Pounds and Save Money!
 
1. Cook it yourself! When you eat at a restaurant or fast food (or if you take it to go), you are paying 3-4 times more the cost of cooking your own food at home. Cook your food yourself and not only will you save money, you’ll know exactly what stuff you’re putting in there.
 
2. Eat before you Go! Heading out to party, friendly get together or a dinner date? Eat a heavy snack (or even a full meal) before going out. Not only will you save money by ordering less, you will also be gorging on less of the fattening stuff. 
 
3. Stop Cooking for One. The energy (LPG or electricity) you use when you cook for one person is the same as cooking for four persons. So instead of cooking just one serving why not cook more and freeze the rest? Besides doesn’t adobo, caldereta, arroz caldo, sinigang, menudo taste better reheated?

Can MFs Fail?

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Faith and Failure

Faith and Failure (Photo credit: Wikipedia)

 

Inquirer 1:

 

sa experience nyo po ilang Big companies sa mga mutual funds na ang nakita nyo na bankrupt? at sa insurance industry like CAP….

 

 

 

Inquirer 2:

 

may chance po bang bumaksak ang isang mutualfund company? and kung sakaling bumaksak po, makukuha paba po namin yung perang nainvest namin? salamat po.

 

 

 

Guita of Colayco Foundation:

 

A mutual fund company is the manager of a mutual fund. When you invest, you invest in a mutual fund and not the company. When something unfavorable happens to the company managing the fund, shareholders (investors of the fund) can make actions to change the management of the fund in order to safeguard the value of the fund. More often than not, management of funds are transferred from one company to another.

 

 

Mutual funds that are not performing as well as the managers intend are often sold to other mutual fund management companies. For example the Odyssey Funds were formerly managed by ING Asset Management and now are managed by BPI Asset Management.

 

 

 

Inquirer 1:

 

ah so ni buy out pla po… malas na lng pla kung ang nag buy out nun company eh unreliable… like sa All asia plans na ni buy out ng Legacy… kaya halos lahat ng plan holders wala nakuha…hmmmp…

 

 

 

Guita of Colayco Foundation:

 

In mutual funds, investors have some measure of control. When you invest in a mutual fund, you are a shareholder of the fund. And thus you have voting rights. In other financial instruments like pre-need plans – you are a client.

 

 

 

 

 

 

 

 

Too many Mutual Funds?

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Inquirer:

 

Growth

Growth (Photo credit: AdamSelwood)

 

I have invested on the following at BPI :

 

1. BPI Balanced Fund

 

2. BPI Equity Value Fund

 

3. BPI Global Phil Fund  ( $)

 

4. BPI Phil Dollar Bond Index Fund  ( $)

 

5.ALFM Dollar Bond Fund ( $)

 

6. Phil Stock Index Fund ( Mutual fund )

 

7. ALFM Growth Fund ( Mutual fund )

 

8. Odyssey Diversified Capital Fund

 

9. Odyssey Diversified Balanced Fund

 

10. Odyssey Phil Equity Fund

 

11. Odyssey Phil High Conviction Equity

 

12. Odyssey Asia Pacific High Dividend Equity Fund ( $ )

 

13. Odyssey Phil. Dollar Bond Fund ($)

 

 

 

I don’t have any professional basis why I have chosen and put my money on the above investments . I want to know if what I did was right and I want to know if I should consolidate some of the investments into fewer investments / simplify and group some of them into one  instead of having 13 .

 

 

 

What do you suggest ? Do you have other investments( UITF or Mutual fund )  other than BPI to invest ?

 

 

 

I am asking your advice what to do .

 

 

 

 

 

 

 

 

 

Guita of Colayco Foundation:

 

First, it is good that you are invested in many different funds. This helps you diversify your risks. However, I need to point out areas of caution:

 

 

 

Thought BPI is a reputable and good performing company, by investing only w/ BPI you are exposing yourself to the following risks:

 

1. What if something happens to BPI / BPI Asset Management?

 

2. BPI Asset Management has a certain investment style and philosophy which is applied to all the funds. Investing w/ a different fund manager is also prudent.

 

 

 

In addition, several of the funds are very similar to one another – you are exposing yourself to the same risks.

 

 

 

For example the following are all Philippine Equity Funds:

 

2. BPI Equity Value Fund

 

6. Phil Stock Index Fund (Mutual fund)

 

10. Odyssey Phil Equity Fund

 

11. Odyssey Phil High Conviction Equity

 

 

 

Invested in one stock market by the same fund managers, your savings are exposed to the same risks and it’s growth dependent on the same skills/knowledge of the fund managers. The only thing that differentiates these funds are the guidelines that govern the management of the fund and the asset base of the fund.

 

 

 

The same is true for:

 

1. BPI Balanced Fund

 

7. ALFM Growth Fund ( Mutual fund )

 

 

 

and

 

4. BPI Phil Dollar Bond Index Fund  ( $)

 

5.ALFM Dollar Bond Fund ( $)

 

13. Odyssey Phil. Dollar Bond Fund ($)

 

3. BPI Global Phil Fund  ( $)

 

 

 

For the above – Of course performance depends on the management of the individual funds. But risk wise, this exposes you to foreign exchange or currency risks. Whether the fund is invested in Asia vs. US or Europe also matters.

 

As a rule of thumb however, we recommend that you invest in the currency you earn or spend in as converting PHP-USD and vice versa just to invest starts you off in a negative position

 

 

 

Take note of the following:

 

1. What is your purpose for each fund? Why are you invested there?

 

i.e. I invested in Phil Stock Index Fund ( Mutual fund ) for my retirement…

 

Match a fund (or 2 funds) with a specific purpose – or use for the money (and its growth). You don’t need 13 funds. Consolidate based on purpose.

 

 

 

2. Consider other fund managers. The performance of a fund is heavily dependent on the skill of its fund managers. BPI Asset Management is consistently one of the best. But there are other fund managers that have proven that they are equally if not more adept at growing and protecting their funds. A full list can be found for MFs on http://www.pifa.com.ph and for UITFs onwww.uitf.com.ph

 

 

 

3. Consider other investment instruments. Growth is important but so is protecting your wealth. While other instruments may have less return they are also less risky. Depending on your needs in the future, age and risk profile you can study long term savings plans such as (pension plans or endowment plans), certain tips of investment linked insurance products and government securities.

 

Related articles

 

Debt Dilemma

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Debt Payment

Debt Payment (Photo credit: Images_of_Money)

 

Inquirer:

 

I am in a dilemma right now with 2 credit card company where I was a member since 2004. I was able to pay my obligation with this bank for few years while I am still living in manila where business is fine. But due to inevitable circumstances, we transferred our residence in Bicol. Business didn’t went well and ultimately wasn’t able to pay even my minimum due since it swell bigger than I am able to pay. I cut off all my communication with them because the 2nd month I’ve been answering their call and trying to negotiate to give me a longer (5years) term they couldn’t give me. I don’t have any means to pay. I have maxed out the 2 credit cards to 120k each.  But now, I received a postal mail from one of the bank’s legal collectors, it jumped up to 240k. They said, they will file a case against me and my wife.  My wife doesn’t know about my dilemma, should she know, it will another dilemma.  I admit, failures on this and willing to get out of this. But It seems growing and growing.

 

May I appeal to your good heart to give me a good advice on how I could get out of this mess, except for killing myself.

 

 

 

 

Guita of Colayco Foundation:

 

 

To get out of this problem, you and your wife need to work together so find a way to tell her of your dilemma. The presence of a counselor (or priest/pastor) may help you explain the situation to her.
Do you have a job or any means of earning regular income?
Do you have other financial obligations? I.e. Children, other debts?
Do you have any assets?
Here are initial steps you should take:
Step 1: Get in touch with the credit card company itself. The letters and calls are probably from a 3rd party debt collection agency. Ask for a statement that lists exactly how much you borrowed and also how much interest and fines were added resulting in the current total. This is important because when renegotiating, some of the interest and fines can be waived.
Step 2: Identify what assets you can quickly sell and approximate how much that would give you. This is because when you renegotiate, they will ask for a lump-sum payment.
Step 3: Spend only on what is EXTREMELY necessary and Identify how much monthly payments you can afford regularly. You and your family will have to give up luxuries and divert all excess funds to paying off the loan. Otherwise you will be in debt for a long time.
This is the start of your journey to Being GOOD – Growing Out Of Debt. It is do-able and MANY people have done it in the past. The following article can help you in greater detail: Debt Repayment Plan to manage your debt. But before all of that you need to be honest with your family, they are the ones that will assist you in growing out of debt.

 

First Time Investor

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Inquirer:

I read that for first time investors, we should try first investing in mutual funds. Let’s say that I have invested already, what are the things I should do next? How many years should I invest in a mutual fund? Thanks po. :)

wrong decision pic

Guita of Colayco Foundation:

Yes, I recommend you start investing first through mutual funds until you have sufficient savings.

While you are investing in mutual funds, use the time to STUDY other instruments such as stocks, business, real estate, deposit accounts, etc.

‘Sufficient savings’ will really depend on your personal financial and lifestyle profile and not a specific amount or length of time. It’s important to first have a plan. You need to set your financial targets. This determines 1) how much you need to invest, 2) what kind of investment instrument, 3) when you can/should redeem your investment.

Learn Financial Planning for yourself. Join the Pera Mo Palaguin Mo Workshop this May 25. 

Sell House Quick!

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Metro Manila - Quezon City Metro Manila Philip...

Metro Manila – Quezon City Metro Manila Philippines Townhome For Sale (Photo credit: International Real Estate Listings)

Inquirer:

Gusto ko pong advice on How To Sell my house quickly before the end of this year.

I got a few querries from Sulit.com from state agents and private individuals.

However, the state agents in Pinas work differently with what we are used to here in London. In Pinas they want money upfront before they do the job, whilst in London’s state agents works as in ‘No sale No fee’ which is more secure and dependable! And the buyers and the house owners do not communicate directly but through their own representing lawyers. Unlike in Pinas, its very dodgy, they even asked for my bank account to put their payment in without me agreeing with their pulling bet yet! Oh what a Laugh, absolutely ridiculous!

Thank you po.

Guita of Colayco Foundation:

If you are looking to sell fast, there are usually ready buyers however note that you will most likely have to sell it at a low price (lower than market value).

For better or worse the situation is different in London and in Philippines.

If this is your concern it would be best to go through a licensed real estate broker, they will of course charge a certain commission but in return they will handle everything for you.

One of our contacts, Ms. Grace Pekson may be interested in your property please send her an email with details at gracepekson@gmail.com.

Please note that Ms. Pekson is not a member nor representative of Colayco Foundation. Any dealings with her will be between the two of you only and we are not liable for any communications and agreements you may engage with her in the future.