money Financial Planning

[HouseBand]

And it is also in the interests of the real people in power to keep the masses poor and un/mis-educated.

 

They need the votes.

 

So I don't really indulge in local media any more.

 

Hemingways,

 

I'm about to start collecting on a financial endowment product that I took out for my kid's education.

 

Dunno if any here remember the disaster that was the CAP Educational plan around it's last years.

But I wasn't going to risk my money on something like that.

 

Good thing BDO had an endowment product that was suited enough for my particular need.

 

I'll review exactly what I'm getting and what I paid and will get back with the details in a later post

[MartinDomingo]

Nice samples

I dont understand SDQL though . im not that smart hehe

I just know how to cap games. wherein underdogs would win big over favourites and vice versa

you just really need control

 

I have a salary from the company I work with , its only 40K per month. that usually goes to my credit card bills already

my goal for this month to year

 

earn 5,000 per day in sports betting multiply it to 30 days thats 150,000 . multiply it to 12 months . thats 1.8 million

1%-3% I give to the very poor and needy

30% I put in my entertainment and leisure

66-67% I put on savings

 

 

Life is short, I think I have cancer or AIDS lol so I must enjoy life

[MRROUGHSEX]

Nice samples

I dont understand SDQL though . im not that smart hehe

I just know how to cap games. wherein underdogs would win big over favourites and vice versa

you just really need control

 

I have a salary from the company I work with , its only 40K per month. that usually goes to my credit card bills already

my goal for this month to year

 

earn 5,000 per day in sports betting multiply it to 30 days thats 150,000 . multiply it to 12 months . thats 1.8 million

1%-3% I give to the very poor and needy

30% I put in my entertainment and leisure

66-67% I put on savings

 

 

Life is short, I think I have cancer or AIDS lol so I must enjoy life

Admit it, you work for the bookie or is a bookie.

 

If things were easy in sports betting as you say, there should be no more poverty in Pinas.

 

Let's not promote gambling on this thread, perhaps sa Easy Money thread. Iba yung investing sa gambling. I touched on sports betting early just to give inputs but not promoting it.

Edited May 6, 2019 by MRROUGHSEX

[MRROUGHSEX]

I was chatting with a friend in the Philippines. She was talking about throwing a birthday party. Alam nyo na, yung tipong 30 extended families pakakainin mo.

 

This is very central to the poverty problem in Philippines. It starts with parents not smart enough to prioritize where hard earned money should go. Sabi ko bili na lang kayo ng cake para sa bata tapos kayo lang pamilya mag-celebrate sa bahay. Save the money instead. I doubt my advice would be heeded.

 

Dapat kasi mga Jews nag-colonize sa atin hind mgai fiesta party animals Spaniards.

[PenetrayShawn]

I was chatting with a friend in the Philippines. She was talking about throwing a birthday party. Alam nyo na, yung tipong 30 extended families pakakainin mo.

 

This is very central to the poverty problem in Philippines. It starts with parents not smart enough to prioritize where hard earned money should go. Sabi ko bili na lang kayo ng cake para sa bata tapos kayo lang pamilya mag-celebrate sa bahay. Save the money instead. I doubt my advice would be heeded.

 

Dapat kasi mga Jews nag-colonize sa atin hind mgai fiesta party animals Spaniards.

 

Sayang hindi tumagal ang British sa Philippines. Between Spaniards and British parang mas ok na colonizer yung British. Their former colonies on average seem better off than former Spanish colonies lalo na sa South America. Spanish economy hasn't been doing well too so that probably says something about their attitudes on financial matters

 

Nabasa ko din somewhere na iba yung attitude ng Catholic vs Protestant pag dating sa trabaho and pera so that would probably also apply to Spain

 

On another note I've been seeing a lot of credit products lately for Filipinos. I wonder if this will be our version of the subprime mortgage crisis. Easy access to credit, lalo na hindi naman para sa real estate so lalo akong nag aalala

[MRROUGHSEX]

20190523 Updates:

* Reduce total debt to $58K by year-end (currently at $67.0K)

* Grow retirement savings to $170K by year-end (currently at $159K) (Note: Conservative case at 92% of actual)

* Anticipate house value to appreciate to $280K by yea- end (currently at $271.0K)

* Increase college savings of children to $20K by year-end (currently at $15.4K)

* Buttress business fund to $65K by-year end (currently at $58.4K) (Note: Conservative case at 92% of actual)

* Expect condo value to appreciate to $50K by-year end (currently at $48.9K)

* Drum up social security savings to $170K by year-end (currently at $159K) (Note: PV at $360K for age 62)"

[kuworuru]

I'm curious as to what your thresholds are when it comes to limit on investments.

 

For context, I've been mulling over investing in a client's business. They've been consulting with me (I do consultancy for startups who need general direction and data on how to put up their businesses as a side-gig when time permits) for over 3 months. We ran the numbers and the business seems to be sound. The consultation fees that I charge are usually a per hour rate but when the business turns out to be good, I sometimes offer to invest in their company for a stake, or offer a loan to them and factor it into their numbers. Parang "okay, you owe me this much based on how many hours we've discussed, I'll give you an additional 300k for 15% of your company" something like that.

 

Right now, I'm looking to loan them money then maybe invest in their company later on, once they're established. They initially approached me to help them prepare the numbers that they can present to a bank to secure a loan, and am now mulling over lending them around half that amount then proceed to secure the other half from the bank as agreed. I'll be charging a higher interest compared to the bank loan, but we both know that it would help in securing better terms from the bank since the amount that they will be needing will be significantly less than what it originally was.

 

Part of me does this loan/investing, because I also believe in them and the hard work that they've put into preparing, part of it is definitely greed. As I get older, I feel that it may be wiser to temper it a bit and looking to know how others do it as well haha!

 

As mentioned, I'm curious to know everyone else's limit when it comes to investing - be it other people's businesses, stocks, crypto, other instruments.

 

Businesses kasi are inherently more risky but the returns that i've computed based on the numbers that I ran with the client are very promising.

[MRROUGHSEX]

Kuworuru, I invest in stocks about 25% of my gross salary. However it is either to a Mutual Fund or an Index ETF in order to diversify my portfolio (low risk) and not to an individual stock (high risk).

 

Every now and then though I would invest on individual stock I like but I cap it at 7% of my gross salary.

[JohannBeckham]

Kumoruru on my side nmn, i invest 50% of my NET salary on ETFs (outside my tax sheltered account) targetting the allocation of 40% Australian Stocks (ASX:A200), 30% U.S. stocks (ASX:VTS) and 30% International Excl. U.S. (ASX:VEU). This allocation would probably change as I grew closer into Financial Independence as I'm 100% invested in equities at the moment. It's high risk i know but i know myself and is in Jubilee everytime the market is down for that means i can buy shares cheaper.

I dont invest in anything else except in ETFs as listed above for simplicity and diversity of assets classes within those 3 ETFs kasi cover ko buong mundo in terms of stocks. If ever i will invest in individual business (highly unlikely), i probably wont put more than 10% of my portfolio in there. Remember risk is a like a coin with 2 opposing side, you can either win (opportunity) or loose (threat). Make sure that you calculated the risk. Always compare it risk adjusted to investing in passive investment like index funds/ETFS. if you think that risk adjusted you'll be more than compensated more investing in that one business versus investing in the index or ETF. Kasi kung ang opportunity nga is for you to earn 10% higher pero you're time and effort mo nmn would be more than will be sacrifice that could cost more than the 10% gain, baka di worthit. Again, run the numbers and include youre time and effort na magugugol mo sa equation.

[PenetrayShawn]

I'm curious as to what your thresholds are when it comes to limit on investments.

 

For context, I've been mulling over investing in a client's business. They've been consulting with me (I do consultancy for startups who need general direction and data on how to put up their businesses as a side-gig when time permits) for over 3 months. We ran the numbers and the business seems to be sound. The consultation fees that I charge are usually a per hour rate but when the business turns out to be good, I sometimes offer to invest in their company for a stake, or offer a loan to them and factor it into their numbers. Parang "okay, you owe me this much based on how many hours we've discussed, I'll give you an additional 300k for 15% of your company" something like that.

 

Right now, I'm looking to loan them money then maybe invest in their company later on, once they're established. They initially approached me to help them prepare the numbers that they can present to a bank to secure a loan, and am now mulling over lending them around half that amount then proceed to secure the other half from the bank as agreed. I'll be charging a higher interest compared to the bank loan, but we both know that it would help in securing better terms from the bank since the amount that they will be needing will be significantly less than what it originally was.

 

Part of me does this loan/investing, because I also believe in them and the hard work that they've put into preparing, part of it is definitely greed. As I get older, I feel that it may be wiser to temper it a bit and looking to know how others do it as well haha!

 

As mentioned, I'm curious to know everyone else's limit when it comes to investing - be it other people's businesses, stocks, crypto, other instruments.

 

Businesses kasi are inherently more risky but the returns that i've computed based on the numbers that I ran with the client are very promising.

 

i invest more in things that i feel i understand better. which is why i will probably allocate just up to 5% in bitcoin. i see the charts but i don't feel comfortable with it

[kuworuru]

Thanks for the input guys! Glad to hear everyone’s perspective.

 

Just to sum up, and verify if I got the information right:

 

@mrroughsex – 25% gross - low risk instruments (index etf); 7% gross - high (indiv. Stocks). I’m assuming all profits are re-rolled back into themselves? Also, I’m assuming monthly mo ito ginagawa and probably automated?

Would also like to know how you came up with the 25 - 7 figure haha!

 

@johannbeckham – 50% net – mixed etf. Same assumptions as above?

Also, agree with what you’re saying on risk. Thank you also for the reminder. I’m coming from a position kasi where risk is an everyday thing, so sometimes I downplay it haha! I was born in the darkness haha! Just as a backgrounder, i’m running a few businesses in the motherland, but focusing on one of them at the moment. As a side gig, I’m doing the consultation thing during my free time, which is where I got most of the businesses that I have – directly and indirectly. Risk – reward dynamic is very apparent sa day-to-day. Also appreciate your comment on time and effort. I agree with this 100%. I think this is probably the reason why I invest so much into these start-ups that I’m helping. Mas sulit yung effort for me, especially since time is really a limited resource for me.

 

@penetrayshawn – 5% gross - bitcoin. I’m assuming you put majority of your money into another instrument?

Agree with your mindset on investing in what you know. For most of my early years, what I did was buy and sell, which I felt was much controllable for me since I understood the items and the selling aspect. During that time though, I was getting into financial independence and had 20% net salary going into UITFs haha!

[JohannBeckham]

Guys what are you're thoughts on the U.S. - China Trade War? What's you're strategy? I just hope that the trade war stay like that, a trade war and not a full scale war. It's highly unlikely so I'm not really worried. Personally, one of my motto is "Don't trust the Communist" and I'm biased that way. So I think Trump is doing a good job leveling the playing field here. I don't invest in China (or if my broad based ETFs has some china companies in there it would be miniscule) so in terms of value, my investments won't be impacted that much. I invest big chunk (30%) of my ETFs in U.S. and I intend to increase that to 40% or even 45% sometime in the future for I do believe in U.S. growth capacity and ingenuity, unlike Australia who's still highly invested in old Industries like Banking and Mining.

 

How about you guys, what are you're investment "play" or strategies with regards to the trade war? Do you share my "Don't trust the Communist" motto and apply it in you're investment strategy? Let me know.

[MRROUGHSEX]

Thanks for the input guys! Glad to hear everyone’s perspective.

 

Just to sum up, and verify if I got the information right:

 

@mrroughsex – 25% gross - low risk instruments (index etf); 7% gross - high (indiv. Stocks). I’m assuming all profits are re-rolled back into themselves? Also, I’m assuming monthly mo ito ginagawa and probably automated?

Would also like to know how you came up with the 25 - 7 figure haha!

 

@johannbeckham – 50% net – mixed etf. Same assumptions as above?

Also, agree with what you’re saying on risk. Thank you also for the reminder. I’m coming from a position kasi where risk is an everyday thing, so sometimes I downplay it haha! I was born in the darkness haha! Just as a backgrounder, i’m running a few businesses in the motherland, but focusing on one of them at the moment. As a side gig, I’m doing the consultation thing during my free time, which is where I got most of the businesses that I have – directly and indirectly. Risk – reward dynamic is very apparent sa day-to-day. Also appreciate your comment on time and effort. I agree with this 100%. I think this is probably the reason why I invest so much into these start-ups that I’m helping. Mas sulit yung effort for me, especially since time is really a limited resource for me.

 

@penetrayshawn – 5% gross - bitcoin. I’m assuming you put majority of your money into another instrument?

Agree with your mindset on investing in what you know. For most of my early years, what I did was buy and sell, which I felt was much controllable for me since I understood the items and the selling aspect. During that time though, I was getting into financial independence and had 20% net salary going into UITFs haha!

 

Before mutual funds and ETFs came about, the strategy revolves around diversifying on individual investments. On my prior role as investment planning asscoiate, i observed that successful funds are those that have around 20 investments. So 100% / 20 = 5% per investment. But then if your really have strong conviction on certain investments, I would put more on it. Example Apple or Amazon stock, hence 7%. In the end, it will still average 5% but with a range of 3% to 7%.

 

Yung 25% naman, it's really what I can afford right now to save since I have 4 dependents (2 kids and 2 parents) but also based on my age. . As I said to myself., "Life Begins at 45". and I'm at that age I prefer doing more activities while able.

[JohannBeckham]

Im assuming all profits are re-rolled back into themselves? Also, Im assuming monthly mo ito ginagawa and probably automated?

 

@johannbeckham 50% net mixed etf. Same assumptions as above?

 

I buy every month. and all dividends are reinvested back when the dividend is greater than or equal to that ETFs share price. I dont sell to limit capital gains tax now especially nsa highest tax bracket ako.

[neville]

Ignore the rant of an over thinker if you prefer.

 

 

I have this feeling that my life is in chaos in the sense that the direction I'm taking is not commensurate to the financial goal I wish for myself.

 

Yes I do have some investments in the stock market totalling 300k, some money in the bank, and a job that gets me to pay for two insurance plans with a combined total of 1.2M and to travel in and out of the country.

 

Still, I feel it's not enough. Well,if it should last me until my 80s, yes, it's not.

 

My point? I feel I'm not doing the investing fast enough, correctly, or heavily enough.

 

Hopefully, my FA will point out whatever needs corrections when we meet next month.

 

I am not yet even worth a million pesos (in cash), I just can't wait to reach that level.

 

 

Someone slap me.

 

 

😐😐😐😐