It’s yesterday once more

Even since my young age, I was already fascinated by science fiction movies, especially about space and time travel. I have watched many time travel movies like Timecop and Back to the Future, to name a few.

These led me to think what if someone makes time travel possible? Can we alter the present by altering the past? What happens if we meet our younger self? Can we interact with people from the past?

It would surely be good to go back to the past and undo the mistakes we did. The only problem is that if everyone can travel back in time, then the present and future might be chaotic due to our top human nature: greed.

We all know that time that passed by will never return. Wasted time equates to wasted money because time is the real money. Anyone who disagrees just needs to look at his paycheck and see how it was computed.

As early as my first salary, I started to save and invest because I want my money to make more so that I need not exert too much effort to grow it. Starting early was an advantage because I was young then and I have time on my side. As my income went up, so did the amount I allotted for investing.

One day, a colleague asked me if I have accumulated a certain amount (he specified). I confirmed. He was surprised because I was hired later than him and yet I saved more. When we computed how much he needed to save regularly to catch up with me, he found it difficult to do. I jokingly told him to go back to the past and tell his younger self to seek my advice.

Is time travel possible? In the field of investment, a resounding yes!

I remember our CEO Rex Mendoza of Rampver Financial mentioned in our past training that “history repeats itself, people never learn.”

As of February 4, 2020, the Philippine Stock Exchange index is at the 7,300 level. By looking at the historical chart, this was also the level in May 2013.

What does this mean? History did repeat itself and it’s yesterday once more. It is as if we are in the year 2013.

In this case, we did not go back in time, but time came back to us and for us. Whoever failed to invest in 2013 can invest now (as if it was 2013) even if it is now 2020. This will be their biggest opportunity to catch up with those who invested in 2013.

The 2013 investors can also use this opportunity to add more at the same level (especially if they run out of funds that time). Once the market breaches past 8,000, it may never look back anymore as it is projected to go up even higher. Busy employees who want to take advantage of this rare opportunity but have no time to monitor the market can go for managed funds as there are expert fund managers who know the ins and outs of investing in the market on their behalf.

Here are some pointers:

1. Start investing as early receiving the first paycheck. Time is our friend when we start early as compounding is at the maximum potential for long term investment.

2. Invest regularly. Time can grow wealth but we must not forget that money begets money. The more frequent that we add to our investment, there will be more employees (money) working for us 24/7. At the same time, investing regularly means we are doing cost averaging where our total share price will be between the highest and the lowest. And that level will make our whole portfolio gain when the market recovers and goes up.

3. Look for mentors. No man is an island. Look for same minded people who are knowledgeable and seek wise counsel. In times of crisis where we are emotional, we need experienced mentors who are logical and can remind us the reason we invested. Never be emotional when it comes to investing. As RFP Marvin Germo often says, jokingly: “Leave your emotions to your spouse.”

4. Be informed. As information is now easily accessible, it pays to research and be educated. Education is still the best antidote to fear. The more we are informed; the better is the decision-making.

Don’t be left behind again. This might be the only time that it’s yesterday once more. Happy investing!

Edmund Lao is registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 82nd RFP program this March 2020. 

To inquire, e-mail or text <name><e-mail>
<RFP> at 0917-9689774.


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