The millennial investor
How great is it to be young and being able to invest?
How great is it to be young and being able to invest?
It would take long lines, a clean bill of health, early-morning appointments and lots of patience before one gets a chance to work in another country to earn better pay than that offered locally.
Financial experts say one needs discipline to save money. However, it is very clear this is hardly ever practiced. It is, indeed, challenging to save if your mind is not appropriately conditioned. Therefore, the primary thing one needs to do is to set one’s mind that “There is a need to save!” After that, one is now ready to save on everyday expenses and there one sees how simple decisions help one to save money.
There’s a general concession that life is full of surprises. In a moment, everything may change—for better or for worse. If it benefits you, you may relish the euphoria of things unfolding and revel in the happiness of the moment. Conversely, you could find yourself so helpless in trying to get everything fixed. Sadly, there are things you may need to sacrifice just to resolve something. In dire situations, you may even be forced to do things you hate doing.
One of the most impeding factors why many Filipinos are hesitant to make investments these days is the fear that their hard-earned money invested would not make profits and, worst, could be just taken away by a single market event. Managing risk is one of the most challenging work you will do throughout your investing voyage.
SUPPOSE you hold a mining stock, what would you do if the government imposes stringent rules in the mining industry? How about one day a retail stock you hold is not be able to pay its obligations to stakeholders hence declaring bankruptcy? You might be holding an old corporate stock that still has views of accelerating prices and robust operations, but what if innovative competitors come in the picture? The answers may diverge but it will fall into a bottom-line—“You’ll lose,” therefore, risk is in the picture, and as always.
People are natural spenders but they can also be wise about it. People are not innate savers but can be excellent savers. Saving and spending are opposing forces, much like a boxing match. They are like two suitors wanting to win a girl’s heart where only one could win. They are much like oil and water.
IF you are given an option to choose between an apple and an orange, what would you choose? Or, say, for instance, either a house or a car of the same price? In either case, you will need to assess the pros and cons. But given the same quality or quantity, the ultimate choice would boil down to “what’s in it for me?” There explains what a person values more.
IN a typical Filipino teleserye, we can easily predict what will happen in subsequent scenes. That’s because most of the soap operas on TV have the same plot—the same storylines. Say, for instance, the bida would be from a poor family, and the rich kontrabida would bully or oppress the bida in the opening scenes. Then later on, as fate would have it, the bida would eventually escape the grip of poverty.
I remember the first time when a financial advisor tried to introduce life insurance to me. I immediately cut off the conversation for it reminded me of my death. The idea of dying scared me. Then I met another insurance agent. I remember him asking for ample time to discuss my finances. Because he’s a friend, I agreed to meet him. In our meeting, he introduced to me his company, highlighting its achievements and many years of operation. Then he proceeded to analyze my finances. I raised queries much as I answered his questions. Later, he offered me a product that he believed was very right for me to consider. I said “No,” for I could not appreciate its importance.
WHEN we are sick, we consult our doctor. When we want to put up a house, we discuss things with our engineer. When we need an accounting service, we check with our accountant. When we need to have a good haircut, we seek for a barber. When we need someone to take care of our kids, we look for a nanny. When we need someone to drive for us, we get a driver.
WE have thousands of financial advisors in the country and one of the key aspirations is financial literacy. But the big question is, “Are we worth delivering the highest ethics in our professions?” I have seen few who are stirred with the client’s net worth thus propose products which they could get the highest commissions. I have seen few who do not comprehend the true value of what they are offering. I have seen few who are not really into advising but simply selling. I have seen few advisors who are product centered, that the products offered are not really suited to the goals and objectives of the clients.
THE public and private sectors have helped us sustain our several undertakings in bringing a more financially literate Philippines. The Department of Social Welfare and Development (DSWD) and BPI Globe BanKo has launched the Pantawid Pamilyang Pilipino Program (4Ps), helping 200,000 household beneficiaries be given financial literacy instructions. The Philippine Deposit Insurance Corp., on the other hand, has partnered with the Department of Education (DepEd) to integrate in the high-school curriculum the concept of saving with effective learning methodologies. The BSP has also tied up with the DepEd to recognize top-performing teachers in refining the habit of saving for elementary students. The private sector, including insurance companies, banks, investment firms and small groups, has also been an integral part of this pursuit. Many of these institutions have created programs for students, parents, employees, retirees and overseas Filipino workers.