money Financial Planning

[PenetrayShawn]

 

20190408 Updates:

* Reduce total debt to $58K by year end (currently at $69.0K)

* Grow retirement savings to $170K by year end (currently at $156K)

* Anticipate house value to appreciate to $280K by year end (currently at $269.5K)

* Increase college savings of children to $20K by year end (currently at $14.0K)

* Buttress business fund to $65K by year end (currently at $57.2K)

* Expect condo value to appreciate to $50K by year end (currently at $48.6K)

 

 

congrats. i'm curious, if your kids manage to get a college scholarship, where would you stash the sudden windfall?

 

 

 

I have an emergency fund. Money that I barely touch and left to rot in a savings account. I actually have two. Hehe

 

One is the 100k balance I barely touch and another one that I pegged at 60k as contingency fund for when I finally leave the regular nightly desk jock job in the second half of the year.

 

I won't really touch both funds. I'll still have my income coming in, but it won't be as predictable as a regular salary in terms of when it hits my bank account (consistent estimate vs frequency is the following month).

 

So, now I have 140k but I prefer to have 250k total to make me feel secure enough. Then I have roughly 240k in stocks and mutual funds.

 

As long as the money comes in, I will continue to pile up on the savings and investment. My investment approach is aggressive so the growth is faSter.

 

best wishes on leaving the desk job hamster wheel. consider reading the e myth by michael gerber if you're getting into business

Edited April 8, 2019 by PenetrayShawn

[Papa Popoy]

I have an emergency fund. Money that I barely touch and left to rot in a savings account. I actually have two. Hehe

One is the 100k balance I barely touch and another one that I pegged at 60k as contingency fund for when I finally leave the regular nightly desk jock job in the second half of the year.

I won't really touch both funds. I'll still have my income coming in, but it won't be as predictable as a regular salary in terms of when it hits my bank account (consistent estimate vs frequency is the following month).

So, now I have 140k but I prefer to have 250k total to make me feel secure enough. Then I have roughly 240k in stocks and mutual funds.

As long as the money comes in, I will continue to pile up on the savings and investment. My investment approach is aggressive so the growth is faSter.

Huwaw! Pakape ka naman sa starbucks 😜😂✌

For me, aggressive approach sa MF still considered low risk kaya suggestion ko ituloy mo lang yan.

Ayokong magsabi ng figures kung magkano emergency fund ko, basta laging may laman bank accounts ko..I dont consider MF as emergency fund kasi hindi sya liquid..kelangan pa ng few days or a week bago makuha ang pera..

Are you considering to invest in properties? Ambilis kasi tumaas ng value...eg.house & lot value becomes more than 3x after ~10yrs, lot value becomes twice after 3yrs, condo naman increased by 25% after 1.5yrs khit n hndi p natatayo, etc

Pero ang suggestion ko kung mag-iinvest tayo, make sure na diversified dapat...dont put all your eggs in 1 basket...kaya ngayon yung isang itlog ko nsa MF, yung isang itlog naman nsa properties....😂😂😂

[MRROUGHSEX]

Anglaki ng sweldo..estimated budget per month from the above targets approximately USD5.5K na...hndi pa ksma ang expenses..pautang nman sir ✌️

Ke JB tayo manghingi ng pera hehe. Mas malaki sweldo nya saka bachelor living pa yata.

[MRROUGHSEX]

 

congrats. i'm curious, if your kids manage to get a college scholarship, where would you stash the sudden windfall?

 

 

 

 

 

Hi PentrayShawn. Btw, I like the nick. Haha.

 

I am really not saving much for college tuition. I am mentoring my kid (which is why I needed a work from home job) on his studies. He needs to get scholarships for his tuition. That is my only plan.

 

So sadly pre no windfall for me LOL. I am using this college savings plan account called 529. Deposits into 529 can only be used for "education" expenses such as tuition, books, computers and softwares. As such I can not put too much money on it in the event kid/s get scholarships/financial aid on tuition. But I like to put some on it, money I will surely spend even with 100% scholarships/financial aid. This is because of the capital gain on 529 savings account is not taxed.

 

I am targetting $44K on 529 when my eldest starts college. Then starting 2nd year of college, I will shoulder an additional $12K for the next 3 years for a total of $80K.

 

Where I am really putting my savings is on Retirement and "Business" fund which could really turn to be used for parents' medical bills since they have not saved for retirement. Syempre, ako dito sa US, ako aasahan huhuhu.

 

My kid getting into Hume-Fogg is something I've hoped for all along. It is ranked number 23 best public school in the entire nation and 90 overall. Very happy as it is a great staging point for jumping into premier college or even Ivy Leagues later on.

 

[neville]

 

congrats. i'm curious, if your kids manage to get a college scholarship, where would you stash the sudden windfall?

 

 

 

best wishes on leaving the desk job hamster wheel. consider reading the e myth by michael gerber if you're getting into business

 

Thanks, sir. Hopefully I have time to read in May or June hehehe

 

Buti na Lang may business partner ako na sanay sa operations side. Ako say creative. May tatlo pa kaming shareholders na pampakuwela Ang papel (seryoso).

 

😁😁😁

[MRROUGHSEX]

Thanks, sir. Hopefully I have time to read in May or June hehehe

 

Buti na Lang may business partner ako na sanay sa operations side. Ako say creative. May tatlo pa kaming shareholders na pampakuwela Ang papel (seryoso).

 

 

Paano set-up nyo if I may? Equal equity among the 5 of you?

[neville]

Huwaw! Pakape ka naman sa starbucks 😜😂✌

For me, aggressive approach sa MF still considered low risk kaya suggestion ko ituloy mo lang yan.

Ayokong magsabi ng figures kung magkano emergency fund ko, basta laging may laman bank accounts ko..I dont consider MF as emergency fund kasi hindi sya liquid..kelangan pa ng few days or a week bago makuha ang pera..

Are you considering to invest in properties? Ambilis kasi tumaas ng value...eg.house & lot value becomes more than 3x after ~10yrs, lot value becomes twice after 3yrs, condo naman increased by 25% after 1.5yrs khit n hndi p natatayo, etc

Pero ang suggestion ko kung mag-iinvest tayo, make sure na diversified dapat...dont put all your eggs in 1 basket...kaya ngayon yung isang itlog ko nsa MF, yung isang itlog naman nsa properties....😂😂😂

 

Ah, investment ang mutual fund. Cash talaga Ang emergency fund ko.

 

Haha, sige libre Kita said Starbucks pag 1M na loose cash sa bank account ko. 😁

 

Tuloy-tuloy Lang invest ko sa mutual funds at apat na klase ng stocks. Palalakihin ko pa value nila. MATAAS Ang goal ko Kaya hindi pa puwedeng huminga. Yung insurance ko Naman Kasi ay long-term savings Lang Turing ko, di investment.

 

Property is the last on my list. Isang ektaryang lupa target ko Kasi. Retirement home cum farm siya. Wala akong pasensyang maging landlord kaya di ko pa feel maging property owner.

[neville]

Paano set-up nyo if I may? Equal equity among the 5 of you?

50-50 kami NG ate ko. Walang share Yung tatlo Kasi mga pamangkin ko yon.

 

Besides, Ang talagang kakayod sa company ay ako. Sa paperwork area bahala ate ko.

 

Pag lumaki na kami at may ibang employees na revenue generating Rin,adjust na namin siguro uli NG ate ko Ang division of income.

 

Sa akin Rin Kasi galing Ang kliyente 😁

 

Pag settled na Ang company, mag-uusap uli kami. Nasa SEC pa Ang application kasi.

[JohannBeckham]

Ke JB tayo manghingi ng pera hehe. Mas malaki sweldo nya saka bachelor living pa yata.

Not bachelor, but happily-married with a 3 year old. Life is good.

[JohannBeckham]

50-50 kami NG ate ko. Walang share Yung tatlo Kasi mga pamangkin ko yon.

 

Besides, Ang talagang kakayod sa company ay ako. Sa paperwork area bahala ate ko.

 

Pag lumaki na kami at may ibang employees na revenue generating Rin,adjust na namin siguro uli NG ate ko Ang division of income.

 

Sa akin Rin Kasi galing Ang kliyente 😁

 

Pag settled na Ang company, mag-uusap uli kami. Nasa SEC pa Ang application kasi.

It will be interesting to know your "Emergency Fund" strategy for your business. Will that be separate from your personal emergency fund? Since you have business partners, are they aware that they're such fund and will they help fund it initially?

 

Because life happens to businesses as well e.g. Market down turn, your client is delayed in their payment or goes bankrupt, etc. I bet this community will learn from your business emergency fund strategy.

Edited April 9, 2019 by JohannBeckham

[PenetrayShawn]

 

Hi PentrayShawn. Btw, I like the nick. Haha.

 

I am really not saving much for college tuition. I am mentoring my kid (which is why I needed a work from home job) on his studies. He needs to get scholarships for his tuition. That is my only plan.

 

So sadly pre no windfall for me LOL. I am using this college savings plan account called 529. Deposits into 529 can only be used for "education" expenses such as tuition, books, computers and softwares. As such I can not put too much money on it in the event kid/s get scholarships/financial aid on tuition. But I like to put some on it, money I will surely spend even with 100% scholarships/financial aid. This is because of the capital gain on 529 savings account is not taxed.

 

I am targetting $44K on 529 when my eldest starts college. Then starting 2nd year of college, I will shoulder an additional $12K for the next 3 years for a total of $80K.

 

Where I am really putting my savings is on Retirement and "Business" fund which could really turn to be used for parents' medical bills since they have not saved for retirement. Syempre, ako dito sa US, ako aasahan huhuhu.

 

My kid getting into Hume-Fogg is something I've hoped for all along. It is ranked number 23 best public school in the entire nation and 90 overall. Very happy as it is a great staging point for jumping into premier college or even Ivy Leagues later on.

 

 

Thanks, I saw his name in a porno once and the rest is history haha

 

I checked out a primer on 529 plans. They sound like a good deal, especially when one of your options is taking out a student loan in the US. And I'm sure your kids are developing good financial sense too so win-win kayo

[neville]

It will be interesting to know your "Emergency Fund" strategy for your business. Will that be separate from your personal emergency fund? Since you have business partners, are they aware that they're such fund and will they help fund it initially?

 

Because life happens to businesses as well e.g. Market down turn, your client is delayed in their payment or goes bankrupt, etc. I bet this community will learn from your business emergency fund strategy.

 

Corporation ang itinayo namin para hiwalay talaga ang personal SA business assets. Kasama diyan and emergency fund.

 

We will have almost no capital outlay. Services ang sector namin Kaya kahit existing equipment namin, magagamit SA negosyo.

 

Crossing the bridge as we get there. 😁

[MRROUGHSEX]

50-50 kami NG ate ko. Walang share Yung tatlo Kasi mga pamangkin ko yon.

 

Besides, Ang talagang kakayod sa company ay ako. Sa paperwork area bahala ate ko.

 

Pag lumaki na kami at may ibang employees na revenue generating Rin,adjust na namin siguro uli NG ate ko Ang division of income.

 

Sa akin Rin Kasi galing Ang kliyente

 

Pag settled na Ang company, mag-uusap uli kami. Nasa SEC pa Ang application kasi.

Ah, so hati muna kaso divided by 2 on all expenses. That is the easiest simplest and perhaps most effective way to start a business.

 

Then perhaps, on your income statement, you can have a commission fee % of client revenues. This means who is bringing in clients will get a commission. This commission fee is an expense so it will subtract from the gross revenue, along with other operating expenses (OPEX). Then you will arrive at profit, which as you said, will be split 50-50. If one chooses to pull out the profit while the other one re-invests the profit, then the equity share will need to be recalculated as one will have more than the other.

[MRROUGHSEX]

Corporation ang itinayo namin para hiwalay talaga ang personal SA business assets. Kasama diyan and emergency fund.

 

We will have almost no capital outlay. Services ang sector namin Kaya kahit existing equipment namin, magagamit SA negosyo.

 

Crossing the bridge as we get there.

LOL, I had a feeling it is a Corp when you mentioned you have 3 others joning in, be it name use only or as employees (industrial incorporators).

[MRROUGHSEX]

Not bachelor, but happily-married with a 3 year old. Life is good.

Da MAN!

 

Happy for you pre JB. Sabihin na natin 39 y/o ka now, that means 10 years from now, when you kid turns teenager or 13, you will be 49. That is still young to bond like play basketball, go fishing or hike the beautiful Australian mountains.

 

Did you meet your wife there? Ako kasi wala network sa US kaya only when I go for vacations in Pinas ako naghuhunting hehe.

[MRROUGHSEX]

 

Thanks, I saw his name in a porno once and the rest is history haha

 

I checked out a primer on 529 plans. They sound like a good deal, especially when one of your options is taking out a student loan in the US. And I'm sure your kids are developing good financial sense too so win-win kayo

Sinong Shawn yan hehe. Baka di ko na naabutan. Egoy ba yun. Parang meron yata Shawn Michaels o baka nag-imbent lang ako pangalan haha.

 

Hanngang kina Traci Lords, Ginger Lynn at Debi Diamond lang inabot ko. Nawalan ako gana nung puro wala ng istorya yung nagsilabasan. Puro gonzo. I prefer teasing from story lines haha kasi yan nakalakihan ko.

 

Eniweys, yes I like teaching my kid early on financials. I grew up on opposite. My parents hated discussing financials, yun pala kasi wala sila savings haha. Puro gastos so me and siblings were heavily influenced. I am breaking it and creating a new generation starting with me. The Rough Sex Genesis. LOL.

[PenetrayShawn]

Sinong Shawn yan hehe. Baka di ko na naabutan. Egoy ba yun. Parang meron yata Shawn Michaels o baka nag-imbent lang ako pangalan haha.

 

Hanngang kina Traci Lords, Ginger Lynn at Debi Diamond lang inabot ko. Nawalan ako gana nung puro wala ng istorya yung nagsilabasan. Puro gonzo. I prefer teasing from story lines haha kasi yan nakalakihan ko.

 

Eniweys, yes I like teaching my kid early on financials. I grew up on opposite. My parents hated discussing financials, yun pala kasi wala sila savings haha. Puro gastos so me and siblings were heavily influenced. I am breaking it and creating a new generation starting with me. The Rough Sex Genesis. LOL.

 

Hindi yata hahaha mga early 2000s yung porno na yun

 

After sex, finances na siguro yung hesitant idiscuss ng mga magulang sa anak before. Hindi din siya tinuturo sa school dati so sariling sikap talaga to learn more about it, masakit lang because experience can be a tough teacher

[neville]

Ah, so hati muna kaso divided by 2 on all expenses. That is the easiest simplest and perhaps most effective way to start a business.

 

Then perhaps, on your income statement, you can have a commission fee % of client revenues. This means who is bringing in clients will get a commission. This commission fee is an expense so it will subtract from the gross revenue, along with other operating expenses (OPEX). Then you will arrive at profit, which as you said, will be split 50-50. If one chooses to pull out the profit while the other one re-invests the profit, then the equity share will need to be recalculated as one will have more than the other.

 

 

 

Whoa!!!! Nuances of business math na iyan. Titirik na utak ko. Lol.

 

Pag settled na ang registration namin (na sana huwag matagalan dahil SA paparating na semana santa), pihadong kakausapin ko ang partner ko tungkol sa profit at suweldo SA mga freelancer (guinea pig ako).

 

 

 

LOL, I had a feeling it is a Corp when you mentioned you have 3 others joning in, be it name use only or as employees (industrial incorporators).

Hehe, initially, sole proprietorship Lang gagawin ko. Pero naisip ko na baka corp ang gusto NG HQ Kasi SA Europe mga kumpanya talaga ang counterpart namin Doon.

[MRROUGHSEX]

 

 

 

Whoa!!!! Nuances of business math na iyan. Titirik na utak ko. Lol.

 

Pag settled na ang registration namin (na sana huwag matagalan dahil SA paparating na semana santa), pihadong kakausapin ko ang partner ko tungkol sa profit at suweldo SA mga freelancer (guinea pig ako).

 

 

 

 

Hehe, initially, sole proprietorship Lang gagawin ko. Pero naisip ko na baka corp ang gusto NG HQ Kasi SA Europe mga kumpanya talaga ang counterpart namin Doon.

We'll help here to suggest business model Neville.

 

Whoa bigatin ha. European partners. If I may, anong business yan? No need for specifics, industry will do. Parang namention mo na before, hindi ko lang matandaan at medyo tinatamad ako mag-back read haha.

[MRROUGHSEX]

 

Hindi yata hahaha mga early 2000s yung porno na yun

 

After sex, finances na siguro yung hesitant idiscuss ng mga magulang sa anak before. Hindi din siya tinuturo sa school dati so sariling sikap talaga to learn more about it, masakit lang because experience can be a tough teacher

Snabi mo pa preng PS.

 

I spent 12 years working in Pinas just putting my money in alkansya and later on saving account/TD. Little did I know mas mainam pala sa MF/ Blue chip stocks. So Hard Lesson 1 para sa akin is not putting money on the market early.

 

Pero at least, para sa akin, common sense lang na kelangan mag-ipon - for emergencies, then for downpayment sa bahay/condo.

 

Wala pa sa isip ko nun retirement savings. Typical Filipino thinking that Social Security checks will take care of retirement pero hindi naman pala kala kalakihan. Sa PInas kasi walang 401K or Superannuation BUT what we have there is 13 month pay. So Hard Lesson 2 sa aking experience is not saving the 13th month pay. Sana maging popular sa Pinas yung thinking of using 13th month pay as retirement program instead na "bonus" to be spend during Christmas.

[JohannBeckham]

Snabi mo pa preng PS.

 

I spent 12 years working in Pinas just putting my money in alkansya and later on saving account/TD. Little did I know mas mainam pala sa MF/ Blue chip stocks. So Hard Lesson 1 para sa akin is not putting money on the market early.

 

Pero at least, para sa akin, common sense lang na kelangan mag-ipon - for emergencies, then for downpayment sa bahay/condo.

 

Wala pa sa isip ko nun retirement savings. Typical Filipino thinking that Social Security checks will take care of retirement pero hindi naman pala kala kalakihan. Sa PInas kasi walang 401K or Superannuation BUT what we have there is 13 month pay. So Hard Lesson 2 sa aking experience is not saving the 13th month pay. Sana maging popular sa Pinas yung thinking of using 13th month pay as retirement program instead na "bonus" to be spend during Christmas.

Dati ang tingin ko sa 13th pay is an extra bonus, a good idea na inimbento ng Pinoy for the benefit of employees. Pero after working abroad especially dito sa Australia, it's actually not the best outcome for the employee. Mas maige pa kung ang sweldo is paid by week (e.g. fortnightly) or calculated by the hours of paid work in a given week for the following reasons:

1. Tataas ang base salary mo which will be use in the calculation of your entitlement e.g. leave encashment, performance bonus, Overtime work, etc

2. Mai invest mo agad ot malalagay sa high earning investment vehicle yung pera mo, therefore magko compound rather than waiting for dec to access the money.

 

Time value of money is one of the crucial thing i learn especially when i used to develop and implement commodity trading and risk management software to trade swaps, derivatives, options, futures, etc. Sa Singapore

[Mad Damian]

Snabi mo pa preng PS.

 

I spent 12 years working in Pinas just putting my money in alkansya and later on saving account/TD. Little did I know mas mainam pala sa MF/ Blue chip stocks. So Hard Lesson 1 para sa akin is not putting money on the market early.

 

Pero at least, para sa akin, common sense lang na kelangan mag-ipon - for emergencies, then for downpayment sa bahay/condo.

 

Wala pa sa isip ko nun retirement savings. Typical Filipino thinking that Social Security checks will take care of retirement pero hindi naman pala kala kalakihan. Sa PInas kasi walang 401K or Superannuation BUT what we have there is 13 month pay. So Hard Lesson 2 sa aking experience is not saving the 13th month pay. Sana maging popular sa Pinas yung thinking of using 13th month pay as retirement program instead na "bonus" to be spend during Christmas.

Usually, yung 13th month pay here is ysed to buy gifts for the isang katutak na kamag anak at mga inaanak at mga expecting staff (office and at home).

[Mad Damian]

Dati ang tingin ko sa 13th pay is an extra bonus, a good idea na inimbento ng Pinoy for the benefit of employees. Pero after working abroad especially dito sa Australia, it's actually not the best outcome for the employee. Mas maige pa kung ang sweldo is paid by week (e.g. fortnightly) or calculated by the hours of paid work in a given week for the following reasons:

1. Tataas ang base salary mo which will be use in the calculation of your entitlement e.g. leave encashment, performance bonus, Overtime work, etc

2. Mai invest mo agad ot malalagay sa high earning investment vehicle yung pera mo, therefore magko compound rather than waiting for dec to access the money.

 

Time value of money is one of the crucial thing i learn especially when i used to develop and implement commodity trading and risk management software to trade swaps, derivatives, options, futures, etc. Sa Singapore

Bro, would love to get some pointers from you in opening a trading acct sa SG.

Mostly for derivatives trading.

Used to dabble in stocks, options and leaps.

[JohannBeckham]

Bro, would love to get some pointers from you in opening a trading acct sa SG.

Mostly for derivatives trading.

Used to dabble in stocks, options and leaps.

Are you based in SG?

[Mad Damian]

Are you based in SG?

No!

Manila.