Personal Finance: Financial Seminar by BDO

BDOFinancialWellnessSeminarI’ve shared about BDO’s seminar previously. Lucky that a friend and I got seats so off we went last Saturday to attend.

The speaker was Sir Efren Ll. Cruz, a registered financial planner, personal finance coach, and a bestselling author. I have read his book entitled “Pwede Na! The Complete Pinoy Guide to Personal Finance”. I loved his book because it was very easy to read and understand so somehow, his name was kept somewhere in my memory. I have also heard of him from a colleague when she shared that she and her husband availed of his service as a financial planner. My friend’s friend and his husband also got him as their financial planner.

The seminar’s title was “How to Break The Rules of Thumb in Personal Finance”. Here are some of the things I was able to take note of.

100 minus age Rule

According to this rule, the difference when you subtract your age from 100 should be the percentage of your portfolio that is invested in the stock market. However, it is still case to case. For people who just started saving for their retirement few years before they retire, they should be more aggressive in their investments.

Diversification Rule

As a rule of thumb, we must diversify but we also need to ensure that we don’t over-diversify because in doing so, we may lose our chances of higher gains. According to Sir Efren, stock performance is 92% based on the market performance, 5% by the fund manager, 2% timing and 1% sheer luck.

Buy Low, Sell High

This is a little bit tricky because we only know when it is the lowest price or the highest price after the fact. The brain needs something to compare it to before it can conclude that it’s the lowest or the highest.

His recommendation is to set a target and look for stocks that can return your target then sell when your target is met. Looking for stocks entails a lot of studying and analysis, he says.

20:20 Retirement Rule

The rule states that if you will retire for 20 years, you should start preparing for your retirement 20 years prior your target retirement age.

On the contrary, we should start planning for our retirement as early as we can so that we can take advantage of time and also the years that we don’t have much responsibilities and bills to pay yet. At 20 years prior target retirement age, you may already have started a family so there are more expenses to pay and saving for retirement may become the least priority. So it’s better to start as early as you can.

Buy Your Own Home Instead of Renting

While there are more affordable properties in the market now, you should really assess first if you are ready to transition to home ownership. You should consider all additional costs that it entails. If you think you are ready, then go ahead. Otherwise, there is nothing wrong with renting while you are saving up for the budget needed for home ownership.

After presenting the above rules, his next question was, “Are you all S.E.T?” where SET was used as an acronym for:

S – size of fund
E – expertise in investing
T – time available in investing

For us to be successful direct investors, we need to have a sizable fund, we need to be experts in investing and to be an experts, it is a full time job, and we should have the time to learn the ropes, do a lot of research, and come up with our own investing strategies.

However, most of us are not really S.E.T. So his recommendation was to hire professionals to do the investing for us. In doing so, we take advantage of the skills of the fund managers for a minimal fee. If we go this route, we can choose from Mutual Funds (MFs, offered by Mutual Fund companies), Unit Investment Trust Funds (UITFs, offered by the Trust arm of banks), or VULs (offered by insurance companies). I won’t elaborate on each of the options as there are a lot of resources available online for the differences of the 3 and which companies offer what.

His parting lines were:

  • Focus on the life events you want to achieve, not the money.
  • Strongest currency is FAITH.

A speaker from BDO was next and he presented the available UITF options that their bank offers.

Personal note:
Others may or may not agree and that’s fine. After all, personal finance is still really just that…PERSONAL. As for me, I am thankful for opportunities such as this. Nothing beats learning for free. With J.Co donuts and coffee for snacks pa. San ka pa. Thanks, BDO! 🙂

2016 Week 10 Recap: Hectic But All Good

March 7-13, 2016

Work
It was a bit stressful last week but we got by so still good in general. Some of my timelines were affected though so need to strategize on those this week.

Living Quarters
I was expecting Sky Cable last Saturday to disconnect my line and get the digibox. I waited until 6 PM but no one came. Need to follow up again. Kaloka sila.

Weekend
One word-hectic. Hehe. But all good.

We attended the Financial Wellness seminar last Saturday sponsored by BDO. I learned new things, and some of my personal thoughts were validated. More on this in another post.

We also watched Les Miserables on Saturday night. Those actors and actresses must be so talented, skilled and focused to be able to memorize everything, act, sing and set up their props real time. While I have watched the movie in the past, seeing the play on stage was a totally different experience worth spending time and money for. It was a night to remember.

On Sunday, we were supposed to visit the National Museum. Oh wait, we were already there at around 2 PM. However, the line was a little bit long and slow moving and the sun was so unforgiving emitting so much heat. We just aborted the plan and decided to visit another time but ensuring that we go there early the next time around.

From National Museum, we went to Rustan’s to avail of Wacoal’s promo and a little window shopping for luggage.

Went home earlier than usual as I still had to attend the mass at 6PM and should be home before 8PM for my massage.

I hope you all had a great week. Cheers to another great week ahead.

Personal Finance: BDO’s Financial Wellness Seminar

BDO is offering a financial wellness seminar for free this Saturday! Since it’s free, and a friend and I are suckers for free seminars, we registered the other night. We haven’t received the confirmation email yet, but still crossing our fingers.

You may check this page for more details and to register if you’re interested.

BDOFinancialWellnessSeminar

Update (03.11.2016): My friend and I received an email confirmation from BDO yesterday. We’re in. Yay!

Personal Finance: My Niece’s First BDO COP

COPNalyn_smI was able to get my OFW niece’s confirmation of participation from BDO last Thursday. I’ve shared in one of my posts before that I encouraged her to set up an investment account before leaving for her place of employment, so that she has a facility to put in her savings.

I’m glad that she listened to my advice and realized the importance of starting early. I am happy that she is still committed to her savings plan for her daughter’s college fund. I’m thankful with the technology because she is just a PM away when I want to randomly check on her savings goals. I pray that she will be blessed with a steady source of income so that she can achieve her goals for her family.

On a different note, I have not seen Ms. Joan during my 2 previous visits at the bank. Ms. Joan was the one who helped us open an account for my niece last year. I wonder if she resigned. Good thing that the teller who attended to me last Thursday maybe still remembers me because when I requested for my niece’s COP, she did not ask for my ID anymore and she knew which family name to look for. Thank you, Ms. Teller. Note to self – get the teller’s name on my next visit.

How about you? Do you have family members abroad? Any tips for OFWs so that their hard earned money won’t go to waste?

Related Posts Plugin for WordPress, Blogger...