Archivos de la categoría ‘Investing’
Publicado por sam - 30/04/08 a las 04:04:25 pm
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I read in the internet that the Philippine Peso will appreciate against the US dollar to P39 at the end of the first quarter this year and will appreciate further to P35 by end of 2008. Is this a possible scenario? I’m currently in a dilemma whether to convert into pesos my USD time deposit. — Vic
The hedging facility launched by the government financial institutions is not good enough if the OFW is earning only a meager amount of $500 per month. If an OFW is earning $1,000,000 or more then he stands to benefit from the program. But how many OFW’s earn more than $10,000.00/ month? — Romeo
An estimated 8.2 million Filipinos are based abroad, many of whom regularly remit part of their earnings to the Philippines. For this reason alone, the rate of exchange between the peso and various foreign currencies will be a major socio-economic policy concern for a very long time. Seguir leyendo How currency hedging works…
Publicado por sam - 30/04/08 a las 04:04:36 pm
I am greatly interested in investing but nowadays there are so many options available that it gets confusing sometimes. Where should a young professional invest? I am 23 years old and making enough to invest in a strategic fund and get a couple of insurance policies. I recently got out of credit card debt too by refinancing it with a cheaper two-year loan. I am thinking of buying a condo unit so I can diversify my investments. Any thoughts? — Nancy (not her real name)
This question is an extension of the one asked by Erick last week . While Erick is at the earliest stage of saving awareness, Nancy has already taken concrete steps towards specific investments and managing her debt. What investment opportunities would give Nancy more returns?
We need to know as much of the full market of investment opportunities out there. Investing cannot be done in a vacuum and comparisons are inevitable. At the end of the day, though, not all instruments are for all investors all the time. We should only focus on instruments that fit both our specific investment goals and the realities of our resources.
When I am asked which instruments make good investments at this time, my reply has always been the same bland line: It depends on what you have, what you need and what investment horizon is involved, instead of playing the “favorite-for-the-season” game.
Seguir leyendo What kind of investor are you?…
Publicado por sam - 30/04/08 a las 04:04:42 pm
I am Erick, 23 years old, and work in a call center. I earn P20,000 a month and barely spend this amount since I am single and live with my parents. But my problem is that I find my wallet empty at the end of the month inspite of having more than what I need. I am just wondering what is the best way to start an investment?
In the last six paragraphs of this piece, I share with Erick some financial instruments he may want to consider. However, the context of that short version starts from another question. Seguir leyendo What is the best way to start an investment?…
Publicado por sam - 30/04/08 a las 04:04:03 pm
The quiet quandary among savers lately is finding opportunities that provide good returns. Basic bank deposits — although more for parking funds than outright investing — now have near-zero returns. Some banks require a minimum outstanding balance for the depositor to even qualify for interest. For those that still offer some interest, the lowest that I have seen is a rate of about one-tenth of one percent and this is still taxable at 20 percent withholding tax.
At this rate, your monthly return for an outstanding balance of P50,000 comes out roughly to about P3.33 — an amount small enough to miss out among your transactions but big enough to be a nuisance if you try to balance your books before you get your printed statements. The other way of looking at this interest rate is that you have to set aside and keep untouched a balance of P400,000 in your account so that your net interest affords you a small-sized serving of French fries from a popular burger franchise every month. Seguir leyendo Alternatives to low interest-bearing deposits…
Publicado por sam - 30/04/08 a las 04:04:20 pm
I am an OFW from Leyte with three kids, all in college. I have a dollar savings account and it pains me everytime the peso strengthens against the dollar. Do you recommend that I should withdraw my dollars from the bank before it goes down to P35 per dollar? Is the weakening of the dollar temporary? — Mr. Jacinto
Over a period of time, I have been collecting your tips and to learn a little about investing. To take the first step forward is bit difficult though specially the timing. Kindly advise if this year 2008 will be a good time to invest in mutual funds. With the current economic situation in the Philippines being affected by the economy in the US, is it advisable to invest this year and where? — Efren
These two questions are typical of the queries that we have been getting and the concerns are perfectly understandable. Seguir leyendo How to deal with topsy-turvy markets…
Publicado por sam - 30/04/08 a las 04:04:34 pm
Questions:
At present, interest rates are so low that the net interest income we get is almost nothing. Is there some investment out there that we can consider without really taking tremendous risks? — Ysah
My wife and I now have a one-year-old daughter. We live in a rented place and budgets are tight but workable. My wife and I have to negotiate our lease almost yearly and that uncertainty is getting difficult to bear with our young baby in mind. We have a small piece of land but it is far from where we work and we cannot borrow much from a bank to build a suitable home of our own. Would you have any suggestions? — Mike
These two questions show us the two sides of the interest rate story that policymakers face. Seguir leyendo Falling interest rates sweeten real estate deals…
Publicado por sam - 20/10/07 a las 12:10:00 am
I was searching for a wedding ring (which I’ve lost somehow) over the internet and I’ve stumbled upon this nice tip from Christian Personal Finance website. I have always thought you could only get good deals from Amazon if you’re looking for books, but not wedding rings! Anyway, enjoy reading.
Source: Buying a wedding ring from Amazon.com
I bought my wife’s engagement ring from Amazon.com
and I learned a few things in the process…
Pros of buying a wedding ring from Amazon.com
When I began shopping for my wife’s engagement ring, I started browsing “traditional” jewelry stores to get a ballpark figure for what I could get with the amount I had saved up. Like most other purchases I make, I did my homework and learned about the four C’s (color, cut, clarity, carat) so that I could make an educated buying decision. Seguir leyendo Wedding Ring from Amazon costs very cheap!…
Publicado por sam - 19/10/07 a las 12:10:59 am
By Carlos Gonzales
MoneySense
Last updated 12:13pm (Mla time) 10/15/2007
You often hear the phrase “buy term, invest the difference” when it comes to the debate on term versus permanent life insurance. It does make a lot of sense, but you have to remember these important points:
Buy when you’re young
Jerry Miraflor, Cocolife first vice president, gives this warning about this strategy: “I’d say, ‘be very careful’. There are a lot of very big ‘ifs’ for that statement to work. You must be young enough and healthy enough to qualify for term insurance.” Once you hit middle age, premiums for term insurance can be expensive.
Have the discipline
Saying “invest the difference” is easy; actually doing it regularly is another matter altogether. Carl Gustini, president and CEO of Manulife says, “This advice may not be generally applicable to all. If a person knows how to save regularly, buying a term insurance policy can be a good strategy, yet it boils down to the fact whether or not he or she really needs term insurance. Furthermore, most people who have this mentality neglect to invest the difference and use it for additional living expenses. This advice can be applicable for as long as the person knows how to invest the difference into another investment vehicle.” Seguir leyendo Buy term, invest the difference?…
Publicado por sam - 17/08/07 a las 08:08:03 pm
During your lifetime, you are almost certain to encounter some large expenditures-for a new or vacation home, a college education for your children, a business of your own-that you won’t be able to meet from your current income. And during your retirement years, you will need additional money to suppliment your pension or Social Security in order to maintain your standard of living and enable you to do the things you’ve postponed during your working years. You can achieve these plans only if you dicipline yourself to set aside a fixed portion of your current income for investment in ways that ensure its steady growth, or, at the very least, protect it againts loss. Seguir leyendo Principles of Investing…
