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

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.

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.


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

Personal Finance: PSEi 8000: Push Mo Yan! – My Takeaways

As mentioned in my previous post, I was able to attend BPI’s annual conference earlier today. I almost backed out but glad that I still attended.

My takeaways:

  • The stock market is not a one time thing. If you really want to be a stock market investor, you should invest time and effort to learn and practice it until it becomes a part of your system.
  • Different strokes for different folks. Each of the speakers have different stock market strategies. There is no one strategy that works for everyone. It took them time and effort to build their own strategies until they got the right mix for it.
  • A newbie investor may be overwhelmed to listen to all of them all at the same time because of the different points of view. So again, it all boils down to investing time and effort to learn the stock market if you want to go this route.
  • I realized that I am more excited with stock trading. I should devote more time in studying that and find a way to try it.
  • Like in everything else, planning is crucial. You have to have an entry and exit strategies, and what’s next after exiting in one or more stocks.
  • There are a lot of people who are willing to share their knowledge for free. Learn from them. But don’t depend on them to make decisions for you. They won’t and you shouldn’t ask them to decide for you in the first place, so do your homework. Sabi nga nila lagi, aral muna bago invest.
  • I wish they have sessions like this several times a year. From what I know, this is just an annual event. It’s worth what I paid for.
  • Money is not everything but money is a tool that would empower you to do the things that are important to you. So to have such resources, it is important to know how to make money work for you.

Cheers to everyone who are taking the time to learn about personal finance, especially to the newbies like me 🙂 . May we all find that strategy that is best suited with our lifestyle and personal advocacies.

Personal Finance: PSEi 8000: Push Mo Yan!

What better way to spend a school-free Saturday (prof has prior engagement, hence no classes today) than to attend a seminar on stock market. I learned about the event from a friend who has a friend with a BPI Trade account. I think it is exclusive to BPI Trade account holders so I emailed the organizer first to check if a) they accept walk-ins and b) non-BPI trade account holders. Luckily, it was yes for both, however, we were required to open an BPI Trade account, which I really didn’t mind because it has already been part of my plan to open one.

The conference is titled PSEi 8000: Push Mo Yan! They had four guest speakers, each discussing specific topics.

Some points I remember from each speaker:

Sir Marvin Germo

  • The market will not go up forever so it is important to have a plan
  • Build your skills, build your strategies, change as needed, refine if not working and do this repeatedly over a period of time
  • Make trading and investing based on your lifestyle
  • Leave emotions out of the door
  • Create a checklist of the parameters of the stocks you want to buy and use this checklist to trim down the stock list before you start buying
  • More time should be spent on pre-work while execution only minutes
  • Profit is made when you have conviction. You have conviction when you have confidence. You have confidence when you did all your pre-work!
  • Trade with an end goal in mind
  • Follow where the cash is. Capitalize where people spend their money on
  • Timing is everything

His book, Stock Smarts Stock Investing Made Easy, was also available so I was able to grab one. I’ll probably read this during commutes to work.

He also has a blog, which I came across when I was searching for references on personal finance.

Sir Mike Oyson

  • The party is still on-going at 11 PM (meaning it is still an uptrend in the stock market) but parties don’t last forever because earnings will drive performance
  • Investing is not a science but an art because Psychology comes into play
  • Global flows will dominate market movements in the next 12 months
  • Take note of the push (global) and pull (local) factors
  • The stock market is not really correlated to GDP but more correlated with the US market
  • We need more domestic investors to drive the PH market. Right now, it is still driven by foreigners
  • For long term investors, just be in the market
  • For short term investors, easy money has been made but there is still some money left
  • Differentiate the company and the stock (he mentioned about liking some companies but not their stocks because it is just too expensive)
  • Choose entry points
  • It is not about getting it right. It is how much money you put in the stock market when you are right.
  • SWAN – sleep well at night
  • Distinguish money for investing and trading
  • Do not be a battered investor. Know when to get out
  • Know what you own
  • Learn and practice

Sir Tony Herbosa

  • Trading is not just about percentage gains. You have to think out of the box and not linear.
  • Trading is an art form-all about intuition, gut feel, instincts, inspiration
  • The game is poker, not blackjack
  • Bagger strategy: position trading to the max
  • Entry strategies: should have a starting point
  • His most striking question: When the stock price of some companies were on an upward trend, what did you do?

He had slides about the waves. He also had some slides about the stocks he is or he has invested in. He was generous in sharing his buy and sell transactions.

Sir Tony is one of the people behind Traders Apprentice Pilipinas FB group, and more of a trader than an investor.

Ms. Salve Duplito

  • Her topic is about value investing which is not popular but this is the strategy used by Warren Buffet.
  • There is a difference between an investor and a speculator. An investor studies the company, while a speculator follows what the trends say.
  • It is not all about the money. Money should be used as a tool to do more.
  • Her advocacy is to help those who have lower levels of income be financially literate so they would also have the chance of making their lives better.

Ms. Salve is a resident financial adviser of the ANC show On the Money (which I regularly watch).

I emailed the organizers again to see if they can share to us the PowerPoint presentations they used today. I’ll share more should they send it.

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