money Financial Planning

[neville]

I'm looking for advices from financial planners and rich folks who managed to retire early.

 

I'm 35 this month, no dependents and projecting I will be single forever.

 

Currently, I have savings and mutual funds. Im also paying off my card debt which will be paid off by november and personal loans which in my current plan, will be paid off next year.

 

I have work and plan to take my Master's next sem.

 

What investments do I need to buy for my long term gain? Should I tweak my budget and payment scheme to reach my goals quicker?

 

Thanks!

[floppydrive]

I'm looking for advices from financial planners and rich folks who managed to retire early.

 

I'm 35 this month, no dependents and projecting I will be single forever.

 

Currently, I have savings and mutual funds. Im also paying off my card debt which will be paid off by november and personal loans which in my current plan, will be paid off next year.

 

I have work and plan to take my Master's next sem.

 

What investments do I need to buy for my long term gain? Should I tweak my budget and payment scheme to reach my goals quicker?

 

Thanks!

Investments have to be long term, so you'll have to regularly set aside a specific amount for this, and budget for other expenses such as debt payment, living allowance, emergency funds (medical emergencies), a separate fund that you'll use to lend or help other people (so that if you've already lent it out, you wont feel guilty in saying no to the next person who borrows or asks for help), money to give to parents, tuition fees, and a little money for your wants (treats). After setting these aside, use your investment fund wisely.

 

There are plenty of investment models to choose from which you can search over the internet, but since you are young and working, I suggest you follow the rule of thirds. Invest 1/3 in low risk instruments, 1/3 in medium risk instruments and the last 1/3 in high risk instruments. This could translate to investing in bonds & government securities (low risk), blue chip stocks or UITF targeting blue chip stocks (medium risk), and high risk instruments could be aggressive UITF placements. One key is to buy or place investments regularly (say monthly) so by averaging, you spread the risk and will earn more in the long term. Know the companies you are investing in and don't go by what people say is "good" and blindly jump on the bandwagon. As much as possible, invest in companies with long term growth as this will be the basis of appreciating stock value. Avoid penny stocks.

 

Hope you can find more info over the internet and find the approach that is right for you.

[neville]

I read that I have to get rid of my debt first before I invest. That's what im doing now.

[Jig Gulo]

Interesting video :

Lucio Tan Exposed by WB whistle blower

[qrich_23]

I read that I have to get rid of my debt first before I invest. That's what im doing now.

 

Correct. Aside from paying off debts. Set percentage of your income to savings account that earn enough interests greater than the inflation rate of our country. For phils. Its 5-8% inflation rate per annum. It means the investment vehicle you should invest in must give of interest greater than the rate. Personally i save on an investment that earns 1% monthly tax free. Thats 12% per annum net.

 

Rule of thumb for savings :save a minimum 3x worth of your monthly income. So u can have buffer for rainy days.

[neville]

Correct. Aside from paying off debts. Set percentage of your income to savings account that earn enough interests greater than the inflation rate of our country. For phils. Its 5-8% inflation rate per annum. It means the investment vehicle you should invest in must give of interest greater than the rate. Personally i save on an investment that earns 1% monthly tax free. Thats 12% per annum net.

 

Rule of thumb for savings :save a minimum 3x worth of your monthly income. So u can have buffer for rainy days.

 

What investment earns 1% per month?

[qrich_23]

its a private investment plan we engage in. its not covered by PDIC. its high risk, but high returns. we personally screen the financial status of the investor to make sure they can invest in our private company.

[Mango Man]

Hi neville,

 

i'd recomm you pay off your personal loan and credit card debts muna before going into investments.

 

just bear in mind that any investment that promises fantastic returns is also high risk. If it sounds too good to be true, it usually is.

 

Also, you would want investments that are liquid and preferably conservative (i.e. will not flunctuate in value sharply). I'd say retail Treasury bonds, or UITFs offered by banks / SunLife (these are NOT insured by PDIC). I would steer clear of stocks right now, except for blue chips like Jolibee, Ayala, etc. Invest only in companies whose products / business you understand.

[spadon]

I would go into an investment with a return that would pay off your monthly amortization and leave you with some surplus cash as well, if possible. At the very least, have an investment that would contribute to the liquidation of your monthly debt amortization. An investment of P360K with a return of 5% net pa would yield P1.5K per month net of tax - Peso bond uitfs yields are currently in this range. Invest in stocks with consistent cash dividend pay outs - do some research and find out which companies are these. Constantly put in an monthly amount into your investment instruments and build up on your portfolio, the bigger your principal, the larger your cash base for investments.

[chaos122512]

Hi Neville...

 

makiki-alam lang... hehehe

 

I think the best investment that you have for now is it focus on your masters, and look for a business that you will love and that you can maintain til your old ripe age. Nothing against those that are advising you to invest in companies, stocks, etc, for that is what normal people do... The problem is that normal people don't usually get rich, i mean really rich, and they end up with just being comfortable getting by. Investing in yourself by believing in what you can do, what you can achieve and creating your own business empire at this age is really feasible, as long as you find that one thing that you always love to do. It'll be hard, at first, but it sure will be worth it in the end. The difference between starting your own company and investing in other companies is that you make yourself grow, and you can adjust your company, not the other way around, and you will not be enslaved by the general economics. Successful businessmen have one common thing they believed in and invested all their money and efforts on that particular aspect: THEMSELVES.

 

Anyway, who am I to advice you? I'm not a financially adequate person nor have I invested in anything worth more than friendship.

[ProfilerX]

<br />I read that I have to get rid of my debt first before I invest. That's what im doing now.<br />

<br /><br /><br />

 

Check anc or follow the blogs of joe ferreria very good financial advisor.

Take a cue from him. Your money will reach their full growth.

[neville]

Thanks po. Right now, im struggling a bit with overspending. Lol. So my goal is to get rid of one card and be firm with it.

 

Then i'd work on my personal loan. :-)

[bhebu]

guys practical ba kung mag cash loan ako para mabayaran ko ung remaining ng equity ng bahay na hinuhulugan ko? nabibigatan kasi ako kasi i also pay for the rent ng tinitirhan namen ngayon.iniisip ko kasi bka pag nabayaran ko na ung equity pwede na kami lumipat since tapos na construction ng bahay.

[xie]

Yes. Pay the equity para makalipat k n

[neville]

My money updates so far:

 

1. Got rid of one credit card. Finally.

2. About to pay off my tuition loan for this semester when I go to school this week.

3. Joined a paluwagan with a 6 month cycle to help me save funds and earn some interest from it.

4. Managed to use only cash for spending for the last month.

5. Slowly paying off the existing card debt that ballooned to uncontrollable proportions.

6. Scheduled the projected major expenses and budget for these expenses for the the entire year (yes, they are important expenses since they will pay off my bills).

 

 

***I have forgotten how good it feels to be kuripot, to not overspend, and to be debt-free. This kuripot lady is soooo back.

 

Optimistic and way better 2014 it is for me. ^_^