money Financial Planning

[neville]

Update:. ALL debts to be fully paid by 4th quarter of 2018.

 

Got myself insured with two providers. Differing values with differing coverages. I finally have something to leave my "heirs" behind when I hit the bucket.

 

Prepping to re-enter the mutual fund market and to finally dabble in the local stock market.

 

Currently working on building a second emergency fund account. Drafting a short, medium, and long-term financial plan.

 

All this to finally get out of the rat race in the soonest possible time.

[3 points king]

Patience and delayed gratification.

[MRROUGHSEX]

Update:. ALL debts to be fully paid by 4th quarter of 2018.

 

Got myself insured with two providers. Differing values with differing coverages. I finally have something to leave my "heirs" behind when I hit the bucket.

 

Prepping to re-enter the mutual fund market and to finally dabble in the local stock market.

 

Currently working on building a second emergency fund account. Drafting a short, medium, and long-term financial plan.

 

All this to finally get out of the rat race in the soonest possible time.

Your heirs are lucky!

 

I would guess one covers death (which would benefit heirs) and another covers health/medical (which will not disadvantage heirs)?

 

Congrats om being debt free! Does that include house debt?

 

To me, I always have to be in house debt but on one house at a time. "Have to be" because my parents built nothing and me and my siblings have to start from scratch. The 1st house mortgage has been completed in Makati. Bought a 2nd house in US then sold it after 9 years.

 

Now entering to buying a new 2nd house via mortgage starting in September. So I will be putting a HUGE downpayment based on the proceeds of the sale + additional savings that combined is equivalent to 70%. This would allow me to pay the remaining 30% in 5 years.

 

My plans for the future are: sell Makati condo in 10 years and buy a cheaper condo as vacation house.

[neville]

Your heirs are lucky!

 

I would guess one covers death (which would benefit heirs) and another covers health/medical (which will not disadvantage heirs)?

 

Congrats om being debt free! Does that include house debt?

 

To me, I always have to be in house debt but on one house at a time. "Have to be" because my parents built nothing and me and my siblings have to start from scratch. The 1st house mortgage has been completed in Makati. Bought a 2nd house in US then sold it after 9 years.

 

Now entering to buying a new 2nd house via mortgage starting in September. So I will be putting a HUGE downpayment based on the proceeds of the sale + additional savings that combined is equivalent to 70%. This would allow me to pay the remaining 30% in 5 years.

 

My plans for the future are: sell Makati condo in 10 years and buy a cheaper condo as vacation house.

 

Thanks!! I hope my heirs think so, too. It sucked knowing that everything I have now is mostly thanks to my efforts. The only thing I can thank my parents for is my education.

 

Yes, one is a whole life with mutual fund or VUL, though that's thanks to the underwriter. The other is life insurance with VUL and critical illness benefits--+which I hope I do not use because I am healthy

 

My debt is just card debt. I plan to save 10M for my house given the architecture and lot size I want-- mini bahay na bato and a minimum of 500 sq m. I have no plans to borrow money to finance my house.

 

Good luck with your plans as well

[neville]

I also spoke with one of my insurance agents who does financial planning. She checked my accounts and to my surprise, I'm worth almost 1M pesos, debts and all.

 

It's a pleasant surprise considering I mostly just have cash and the insurance policies as my current investment (if you treat them as such)

 

We're meeting next week to beef up my portfolio via the stock market and mutual funds. Safe, boring bonds will be bought when I reach, say 5M in assets.

 

I plan to be worth at least 2M in five years in case I need to stay abroad for a few years for further studies.

 

Ultimately, I told myself that I have to be worth at least 40M in the next 20 years.

 

From what we discussed, it's doable.

 

It's an exciting idea.

[MRROUGHSEX]

Go go go Neville!

 

Walang masama to aim high basta wag lang ma-depress or frustrate if it's not being achieved.

 

Me I like setting achievable goals that I can surpass realistically. That way laging happy haha.

 

Yan kasing mga sales agents, their purpose is commission so they give you the rosiest pictures, plucking out the highest projections from history and applying it to their sales pitches.

 

Can you imagine mga bumili ng stocks last year because of these "financial advisors" kuno and then bagsak ngayon. Instead of moving forward, e backward sila. It will take another 2 years or more probably just to get back to where they started.

 

You on the other hand is in a great position to start. Kasi discounts galore ngayon!

Edited August 4, 2018 by MRROUGHSEX

[neville]

Go go go Neville!

 

Walang masama to aim high basta wag lang ma-depress or frustrate if it's not being achieved.

 

Me I like setting achievable goals that I can surpass realistically. That way laging happy haha.

 

Yan kasing mga sales agents, their purpose is commission so they give you the rosiest pictures, plucking out the highest projections from history and applying it to their sales pitches.

 

Can you imagine mga bumili ng stocks last year because of these "financial advisors" kuno and then bagsak ngayon. Instead of moving forward, e backward sila. It will take another 2 years or more probably just to get back to where they started.

 

You on the other hand is in a great position to start. Kasi discounts galore ngayon!

 

Thanks, sir

 

Based on the stock market's performance, my income, and the way I save for investment, it is doable. Hey, I was the most surprised when my current standing is at roughly 750K...and that is mostly cash.

 

How much more when I finally trade?

 

My plan is buy and hold. My FA has investments in the PSE herself so she is very watchful of the market's performance. She is the one who has been pestering me to start trading in order to take advantage of the fall in prices.

 

With my current mindset, I really plan to achieve my financial, well, life, goals. No one is here to stop me. And from my past critics, no one is credible enough to make me believe them.

 

So I go my way. And show them.

 

It's time to use my cold-blooded persona in the market

[MRROUGHSEX]

Thanks, sir

 

Based on the stock market's performance, my income, and the way I save for investment, it is doable. Hey, I was the most surprised when my current standing is at roughly 750K...and that is mostly cash.

 

How much more when I finally trade?

 

My plan is buy and hold. My FA has investments in the PSE herself so she is very watchful of the market's performance. She is the one who has been pestering me to start trading in order to take advantage of the fall in prices.

 

With my current mindset, I really plan to achieve my financial, well, life, goals. No one is here to stop me. And from my past critics, no one is credible enough to make me believe them.

 

So I go my way. And show them.

 

It's time to use my cold-blooded persona in the market

Ingat ka sa term na "trading". Trading means go in and out. Speculative. It's really gambling if the person is not experienced. Only 1 out of 10 profits from trading.

 

I mentioned this because you also said "buy and hold" which is not trading. That is investing long-term. Make sure lang na you don't get pestered into trading if your plan is investing.

 

Best wishes!

Edited August 8, 2018 by MRROUGHSEX

[neville]

Ingat ka sa term na "trading". Trading means go in and out. Speculative. It's really gambling if the person is not experienced. Only 1 out of 10 profits from trading.

 

I mentioned this because you also said "buy and hold" which is not trading. That is investing long-term. Make sure lang na you don't get pestered into trading if your plan is investing.

 

Best wishes!

Right,oo nga. I'll be investing, not trading. Heaven knows I need nerves of steel to make quick decisions during trading. I don't have the guts, nor the speed to do so.

 

I like to sit and mull on a decision I will execute without remorse (hopefully).

 

Papers are in. I just have to deposit the money to begin investing.

 

My feet are almost through the door. Kaunting kembot na Lang, as most folks would say

[MRROUGHSEX]

Go go go Neville! Investing is the right way!

 

Ikembot mo na LOL.

[allanallan]

so using returns from investments for housing ganun is a big no no?

[neville]

Go go go Neville! Investing is the right way!

 

Ikembot mo na LOL.

 

Initial capital for both Mutual Fund number 1 and stock market investment are deposited.

 

Now waiting for the signatures saying I can legitimately begin buying the shares/NAVPS.

 

Mutual Fund number 2 to be taken care of mid-Sept-mid-Oct

 

Now mulling over next year's financial mapping.

 

Targeting to be worth 1.3M pesos or more by year end of 2019.

 

I feel like I'm my own little corporation now.

 

Wow.

[MRROUGHSEX]

Initial capital for both Mutual Fund number 1 and stock market investment are deposited.

 

Now waiting for the signatures saying I can legitimately begin buying the shares/NAVPS.

 

Mutual Fund number 2 to be taken care of mid-Sept-mid-Oct

 

Now mulling over next year's financial mapping.

 

Targeting to be worth 1.3M pesos or more by year end of 2019.

 

I feel like I'm my own little corporation now.

 

Wow.

Exactly. Congrats.

[MRROUGHSEX]

so using returns from investments for housing ganun is a big no no?

It's big Yes Yes for me.

 

Let me be clear. We invest to spend. How we spend it is up to the person ... hopefully wisely like for a house. But it must be spent by you otherwise somehow SOMEONE ELSE will spend it for you.

 

Now, back to your comment. You mentioned returns so that means you are profiting so that means your risk paid off. But there is a flipside and that is losses. It is not wise to invest money to "assume" it will profit which you shall then use for downpayment of a house. I would put 30% of money to mutual fund, then the other 70% to TD. That is because when the right house presents itself for you, you have your money more or less intact. If you put more than 30% risked in the market, what if the market dives down and then the house you want presents itself? Then you can't buy it because you don't have enough money for downpayment.

[Papa Popoy]

It's big Yes Yes for me.

 

Let me be clear. We invest to spend. How we spend it is up to the person ... hopefully wisely like for a house. But it must be spent by you otherwise somehow SOMEONE ELSE will spend it for you.

 

Now, back to your comment. You mentioned returns so that means you are profiting so that means your risk paid off. But there is a flipside and that is losses. It is not wise to invest money to "assume" it will profit which you shall then use for downpayment of a house. I would put 30% of money to mutual fund, then the other 70% to TD. That is because when the right house presents itself for you, you have your money more or less intact. If you put more than 30% risked in the market, what if the market dives down and then the house you want presents itself? Then you can't buy it because you don't have enough money for downpayment.

Ok na ok yung explanation mo. Ang comment ko lang is i consider mutual fund low risk low return..regarding naman sa 70% time deposit, masyadong mababa ang return. I prefer investing in real estate/properties...low risk, high return. Pero dapat meron pa ring emergency fund. 🍻