equities, investment, life insurance, Personal Finance, stockmarket

7 Things To Do Before You Invest in Stock Market

7things

Investing in Stock Market is beneficial because you can achieve your financial goals in the future. You can prepare for your retirement,funding for your children’s education,buying your dream house, business funding and many more. It will require discipline and commitment. It is not easy but it can be done. Many Filipinos do not see investing in Stock Market as a viable tool to attain our aspirations in life. But if you are willing to learn and be consistent on handling your finances well, you can start to invest in stock market and do these 7 things first before you jump into it.

1. Pay your debt. It is ideal that you have no loans before you invest particularly the ones that give big interest. Good interest and bad interest will pull each other,thus, your networth will not grow. Know if what you borrowed is an asset or a liability.
2. Create a habit of paying yourself. Learn to live at 80% of your income. Set aside the 20% for your savings and investment. Everytime you earn,prioritize saving first. Use this formula:Income Minus Savings=Expenses rather than Income minus Expenses=Savings
3. Create your emergency fund. Save 3 to 6 times of your monthly salary. If you will have to pay something that is unexpected,you can get it from your emergency fund. You have money to use if you lose your job,a member of the family gets sick, your daughter needs to pay something at school,the gate of your house was broken down,you need to buy a spare tire and many more.
4. Get yourself a health card and your family members. It is very important that you have health card so that if illness happens, you don’t have to shell out cash. If you will be hospitalized for a dengue, it will cost you like 30k-100k  for a week. But if you have a health card,you do not need to pay for it but the HMO company will take care of it.
5.Insure your non-life assets. Things will not go well unexpectedly. You are driving and suddenly you slam someone’s car or worst is you hit people while they are crossing the streets. This will cost you money if you do not have an auto insurance. Get your non-life insurance for your car,house,business,accident,travel and many more for you to be protected.
6. Get Dread Disease Insurance. We hope that we will not get sick like cancer,diabetes,stroke,terminal illness, etcetera because this will cost you a lot of money. It’s better to have this coverage so that if it happens, you have funds to use for your treatment.
7.Get Life insurance. The most important insurance that you should have. You are the money making machine and if death comes,your income will stop. Your dependents will surely be left for nothing. How they can continue the lifestyle that you are providing with them. If you pass today, would you know if your family will be financially secured without you? If not, you should insure yourself properly.

These are the things that you should do before you invest in Stock Market so that you can maximize the returns of your investments. It is not ideal to jump right away to invest without assessing if you are capable of doing it so. Your hard-earned money should be well allocated otherwise you will lose it all in one snap. The logic here is even if you are earning well to your stock market investment and unexpected things happen, you are prepared for it rather than you will suddenly stop your investment or withdraw it which you will be in a losing situation. If your money in stock market is not even earning yet,you just wasted your time and money. You simply follow these steps from saving money, you can insure then you can invest and you will be in a winning situation long term for you to achieve your financial goals in the future.

Thanks for reading my blog.

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
equities, investment, life insurance, Personal Finance

Poorman’s Grave:What You Can Learn From this Eraserheads Song on Financial Planning

I grew up listening to Eraserheads, I love their songs. I bought their albums as well and up to this days I still listen to their songs. This is also one of the reasons why I studied at UP Diliman because Eraserheads was formed in UP. Who would not know Ely Buendia,Raimund Marasigan,Buddy Zabala and Marcus Adoro? They are the most influential rock band in the Philippines. Most of their songs represent what we can observe in our culture that is why it is easy for most of us to like the Eraserheads.

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The Eraserheads(From Left to Right): Ely Buendia, Marcus Adoro, Buddy Zabala and Raimund Marasigan. (Photo courtesy of Rappler)

One of my favorite songs is Poorman’s grave from their album Cutterpillow.  When I first heard it, it was a surreal experience. It was a happy up-beat song but the lyrics were sad. It was a story of a poor man who wished not to be buried in a poorman’s grave when he died. It was a tragic song because the guy was hopeless.

If you have not heard the song, you may check this link from an Eheads fan who created a youtube video with lyrics.

In this regard, I would like to share some things that you can find useful on this song about Financial Planning.

He was a poor man all his life..  Becoming a poor is a choice. It may sound harsh but in everything that happens to our life,it is our choice, no one is  to blame but all of our actions from the past. But it is never too late to improve and change our life by learning how to handle our finances well even though we think that we only earn small income for us not to be poor for the rest of our life.

He said Good Lord, why have you forsaken me.When everything I did I thought was right.. Never blame others for the bad circumstances that happen to our life that is why it is important to learn and look for someone who can guide you to the things that you want to achieve in life. Keep on learning and invest in yourself. Talk to Financial Planners for you to learn to create a Financial Plan. In the lyrics he was thinking that the Good Lord forsaken him, if he was blaming the Good Lord, who else he cannot blame?

All my days I have never sinned,So I hope you wont ignore what I’m asking for… The poor man thought that he never made a mistake in his life, thus , he is not willing to change to be better in his life. If someone advised him to save, insure himself and invest his money, for sure, he will not listen because he will simply say that he is doing the right things on his finances.  Listening to constructive criticism is one good practice to be financially free.

Oh honey when I die Dress me up in a coat and tie Give my feet a pair of shoes/Oh honey when I die Give me a bed of roses Where I could lie… He does not think about what will happen to his family when he passes away. Instead of preparing for the future of his wife and his children like for education, food, etc., by getting a life insurance, he only focuses on the things for the present but not for the future of his family, imagine he will use up all of his savings just to have a grandiose burial.

He comes home drunk every night… The poor man should have saved his money instead of spending money on things that are not important. He never creates a budget plan where he can use his money well so that he will be out of poverty through saving money and eventually he can invest.

All my days I have lived in shame.. The poor man thinks that there is no hope in his life. He is a pessimist obviously that is why opportunities shy away from his life. It is very important that if you want to get out of poverty, you need to become an optimistic person.

Understanding the song Poorman’s grave represents the attitude of most of us Filipinos on handling our finances. We should not do what the poor man did to his life.  It shows that our Financial Literacy is really low that is why even though we earn money from our job or even small business, we will never get out of poverty because we never learn Personal Finance.

I always believe that if you are born poor, it is not your fault, but you if you die poor, it is your fault. It does not matter how small your income is, but what is important is you can discipline yourself to save first before you spend your money and you will reap the benefits in the future.

Let’s aspire to become Financially Free for our God, our country, and for our family.

 

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
equities, investment, Personal Finance, stockmarket

Investing in Stock Market Can Surpass Your Salary

Investing in stock market can surpass your salary

Creating a passive income can make you financially independent, you can afford not to work anymore which you can do what is more important to you. Investing in stock market is one tool that you can do to achieve passive income. While we are earning through active income, it is good that you start to invest also for you to create passive income in the future.

Let me share with you how it is possible to surpass your salary through investing in stock market consistently.

Here is the illustration of an employee who earns a salary starting at age 23 until age 60:

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Let’s assume that an employee at age 23 has a salary of ph18,000  per month,so in a year he is earning Ph216,000 including the 13th month salary. Let’s assume that the annual increase of his salary is 5% per year but in our country,it is very rare to get a job that can give you an annual increase of 5% per year. If that employee will work in a job until age 60, his monthly salary will be Ph101,044.92 Ph or Ph1,313,583.90 per year if his employer will give him an annual increase of 5% per year. This only means that if your employer now is not giving you an annual increase of 5% per year,your salary will be lesser from this assumptions in the future. But these days, there is no job security. That is why it is advisable for us to invest for us to prepare for our future expenses.

On the other hand, if the employee decided to invest Ph3,000 per month for only 10 years,look how his money will grow over time for him.

salaryvsinvestment

We can see that he only invested Ph3,000 per month or Ph36,000 per year for only 10 years. He let his money grow for long term and let’s assume that his investment will give him 12% annual returns in long term. You can see that on the 6th year his investment has surpassed his annual income, Annual Salary is only Ph275,676.82 and the value of his investment is Ph292,146.81 and on the 12th year his investment doubled his salary already. His annual salary is Ph369,433.30 and the value of his investment is Ph792,472.80. You will notice that his investment funds compound over time which can give more income than his salary. If he decides to still continue his job, he can use this money to create another investments for him to grow his money by diversifying to real estate or business. If the employee stops working at age 60 he will already have Ph15,088,739.23 which he can use for his retirement. With this strategy, it is possible to surpass your salary through investing consistently in stock market which it can help you to achieve your financial goals in life. Can you imagine if how much money he will have if he invested more than 10 years?

To summarize, this is the chart of the growth of investing in Stock Market compared to salary increase.

growth of stock market

In conclusion,  it is important that we need to save and invest while we are young and earning from our job so that we can create another source of income through investing in Phil.Stock Market rather than we only depend income from our job which is too risky in the future. We see that the increase of our salary will never surpass the returns that you can get if you invest in Philippine Stock Market long term. Which will you choose? Will you just stick to your salary? or you start to save and invest so that your money can work for you while you are earning from your job.  It is wiser to create another source of income for us to secure our future financial needs.

Thank you for reading my blog. I hope you learn about the importance of investing. Start to create your financial plan now to reap the benefits in the future.

 

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com

 

equities, investment, Personal Finance, stockmarket

How to Beat Inflation?

How to beat inflation

A lot of us don’t realize inflation. We thought that if we have money in the bank will guarantee us safety in the long run. It may be safe for now but you are actually losing money if you park your money in the bank long term. Shockingly, bank deposits in our  banking system reached Ph10.4B as of December 2016. It shows that most of the financial portfolios of the Filipinos are not well diversified. Nothing wrong putting money in the bank but you have to know your purpose why do you put all your money in the bank.

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Let’s define inflation. According to Investopedia: Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. It is inevitable that you will surely lose the real value of your money if you do not invest it.

Let me illustrate:
What can you buy  with Ph500 from these different years?

inflation

The illustration shows that your Ph500 in 1998 cannot buy the same value of goods as time goes by because prices will surely go up. The value of your money gets smaller long term because of inflation. Inflation Rate ranges from 1%-5% depending on the economy’s situation. Now, how you can beat inflation? You have to look for a Financial Instrument that can give you an interest rate more than the inflation rate. There are many ways how to beat inflation but for this blog post, I recommend investing in Equities or Stock Market.

Here in this illustration, if you put your Ph1,000,000 in the bank and you leave it for 20 years, this will what happen to your money.

1M in a bank for twenty years

It clearly shows that the real value of your money loses over time with an assumption of 1% interest rate per year. Inflation beats your money,the real value of your Ph1,000,000 is not the same after 20 years and even though you see that there is an increase in nominal value because it is Ph1,208, 108.95, the amount increased will not make up with the loses due to inflation. You cannot buy the same items after 20 years if your money did not beat inflation.

Now, if you put your money in an Equity Fund that can give on the average returns of 12% per year after 20 years.

1M in equity after years

In investing in Equity, the real value of your money will grow long term. You can buy more for your future financial needs because in the illustration, your money from Ph1,000,000 grows to Ph8,612,761.69.

Given these illustrations, it means that you have to look for a Financial Instrument that can beat inflation rate of 1%-5% per year. If you put your money in Equity or Stock Market, it can give you an average of 8%-12% per year. This way, you can beat inflation so that you can prepare for your future financial needs. Now, the questions is if you have a plan to achieve a financial goal for more than 10 years in the future like for your Children’s education, Retirement, Business Funds or buying your dream House? Where will you put it? You can now decide where to put it, will you just save it or invest in Stock Market?

Inflation is real, that is why while we are earning now, we need to learn how to diversify so that our money can work for us as well. You will see the benefits of investing in the future because it will give you income in the future if you cannot work anymore. Let’s beat inflation by investing our money now.

 

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com

 

equities, investment, Personal Finance, stockmarket

Peso Cost Averaging Strategy

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I learned about investing in stock market around 2013 when I first read about Warren Buffet that he made his wealth through owning shares of companies through Stock Market. It made me think that it is good that aside from earning from my salary(active income), it is also good to earn money from other sources of income through passive income. It is wiser to create a passive income because it makes your money work for you. Your money will never get sick, file a vacation leave, or complain about anything, that is why it is good that you should make them work for you.It is possible that you will surpass your active income through passive income thus you can now choose not to work anymore and enjoy the fruit of your labor through Stock Market.

The question is how can you win in investing in stock market knowing that it is risky. PSEi index goes up and down, what if i lose the big portion of my money? Should I get out already? Or  should I add more funds because the market is down?

For me, I recommend that you do peso cost averaging strategy in pooled funds.  First of all,it should be clear to you why do want to invest. You have to know your goals, time line, expected returns, and the risks you can bear. Investing in stock market requires patience and discipline for you to win.  With a proper mindset, you can complement it also with the strategy of Peso Cost Averaging.

Let’s define Peso Cost Averaging. Peso cost averaging is regularly investing a fixed amount of money done either weekly, monthly, bi-monthly, or quarterly. You will buy even the prices are low and high. Peso Cost Averaging is suitable for investors who cannot invest a big amount of money right away in Stock Market. If you have Ph1,000,000, what you can do is wait for the time that the market is bearish and wait for it to be bullish and you can earn more money.  I suggest that you don’t put your Ph1,000,000 right away in single transaction, you can wait and put money on the lowest possible average price by studying the historical charts for your reference and maximise the returns of your money.

Now, going back to Peso Cost Averaging, I would like to share a past performance that happened to a pooled fund that I know.

Here it is:

pesocost1

pesocost2

The investor invested Ph25,000 per quarter starting January 2007 until October 2012. You will notice that the Net Asset Value per Unit (NAVPU) changes over time because volatility in Stock Market is normal. It goes up and down but the investor bought units consistently. You can see that from January 2007 until October 2012 he invested a total of Ph600,000 and the total units he owned was 327,586 units.

Let’s see how the investor earned from doing Peso Cost Averaging Strategy:

pesocost5

We can see that the investor earned Ph557, 289 for six years which he had a fund value of Ph1,157,289 or 92.88% returns out of his Ph600,000 investment on the 6th year. Isn’t that good? If you just save your money in the bank with same amount, your money will not grow like that. While investing consistently, earning from Peso Cost Averaging Strategy can help you to achieve your Financial goals in the future. Your money just compounded over time.These returns are not guaranteed but this already happened, you can always have opportunities to earn in stock market if you start soon and hold it for long time.

The stock market index is very volatile and it is not easy to time the market, thus, if you want to start to invest in Stock Market with an amount that you are comfortable to start with, you can choose to use Peso Cost Averaging Strategy in pooled funds. Using this strategy is not a perfect investment, there are investors who like to trade or they want to timing the market for them to maximise the returns of their money but if you are busy with your job or business that you don’t have time to study what companies you should put your money and monitor it, I recommend that you use Peso Cost Averaging strategy in pooled funds. The key in this strategy is: It’s not a matter of timing but the consistency in investing regardless of the market conditions. You will win in peso cost averaging.

Thank you very much for reading my blog. If you want to learn more about how peso cost averaging can help you to achieve your financial goals in life, you may reach me.

Archie M. Yuki
Financial Planner,Investment Consultant and Insurance Specialist
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
equities, investment, Personal Finance, stockmarket

How to invest in Stock Market

How to invest in stock market

Investing in Philippine Stock Market is not that familiar to most of us. We never understand how to take advantage of it to reach our financial goals in the future that is why only few Filipinos invest in Stock Market. Investing in stock market can make you a shareholder of different companies that are publicly listed in our country,thus, if these companies earn,you will also earn but there are risks that you can encounter as well if these companies will not earn, you will also not earn,worst is, you will lose all your money invested.  That is why it is important that you do your part as well to study before you invest. Learning how to participate in stock market is not that difficult as you think specially these days that you can get so many information that will be helpful for you to be knowledgeable in investing in stocks.

Let me share with you the 2 ways how to invest in Stock Market:

1. Do it by yourself-You can go to the stock broker to buy shares. You can go to a traditional broker by calling them or through online broker for you to participate in Phil. Stock Market. You have to do the Fundamental analysis and Technical Analysis for you to manage your funds to earn. It is advisable that you have to make time to analyze and know which company you should put your money. Risks are high if you will do it yourself but brokers also can guide you to which company you should put your money which you can have high potential returns.

2. Let the expert do it for you-You can go to pooled funds where there are fund managers who can invest your money. They will create funds that consist of  blue chip companies that they actively manage that you can be part of. You don’t need to study which company you should invest but the fund managers will study if what companies they should put your money to grow. You will have shares from different companies that are included in the pooled funds. Risks are lesser than doing direct  but the returns are not that high compared to direct to stock market investment.

Which one is better? It depends to the situation of the investors. You can do both or just do one. If you have time to study the stock market and you like to study the companies that you want to invest and analyze the trend of the market, you can do it by yourself and if you are busy to your job or business that you don’t have time to monitor and study the stock market, it is better you let the fund managers handle your money to grow it in pooled funds.

Either of the two, if you invest in stock market long term the potential to earn is possible than just saving in the banks. You just have to study first before you invest. Start to invest now in Philippine Stock Market for you to achieve your financial goals in the future either you do it by yourself or be part of pooled funds.

Thank you for reading my blog.

Archie M. Yuki, CC, CIS
Financial Planner,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
investment, life insurance, Personal Finance

How Mutual Funds Work?

I always believe in diversification, it is better to spread our hard-earned money to different financial vehicles that can help us to achieve our financial goals in the future. One financial vehicle that I recommend is Mutual Funds. Let’s define Mutual Fund: A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets The money collected will be managed by the investment company.

How mutual funds work:

1. Professional Fund Management-Managed by professional fund managers who are supported by experienced research teams, with real-time access to crucial market information.

2. Diversification-It will be invested to different asset classes like Equity,Balanced and Bonds which can allow you to diversify.

3.Convenience and Flexibility- You can easily invest and withdraw in any amount and choose to invest  affordable, calculated amounts systematically.

4. Transparent and Well regulated- Industry Rules  and regulations are reviewed and refined by Securities and Exchange Commission(SEC) to protect investors.

5. Minimal charges-Charges are small  that can make your money grow faster. Front load ranges from 1%-2% only while Annual management fees are from 1%-2% per annum.

6.You can choose what risks you can take when you invest. High Risks=High Returns, Mid Risks=Mid Returns, Low Risk=Low Returns. Average returns on high risks fund can give 8%-15% per year after 10 years.

7. Access to different asset classes- You can invest to wide range of portfolios that are cheaper than you buy individual companies or government bonds which sometimes that are not available for individual investors.

Let’s say, an investor would set a goal of P1,000,000 after 10 years if the annual returns will be 8% in Equity Funds. How much should he invest every year?

See the illustration:

The investor just needs to invest Ph69,000.30 per year or Ph5,750.05  per month consistently for him to reach the goal of Ph1,000,000 after 10 years but if you put the same amount in the savings account, you will only get Ph722,954.03 if the bank will give you 1% per year.  If you notice that if you just let it grow in Mutual Funds and you will not withdraw it, it will compound itself, it means it will grow more.  That’s how Mutual Funds work for you, passive income will work for you.

It is important to understand that you keep investing for your future even if you think that it is small because you will win on peso cost averaging. It does not matter if the  market goes up and down but it is how long you stay invested until you reach your financial goals in the future. I advise that do not get Mutual Funds yet if you don’t have enough life insurance coverage  first because if death comes or critical illness happens you are protected before you use your mutual fund. Always follow this formula from Saving Money to Insuring yourself to Growing your money to Preservation.

Thank you for reading my blog.

Archie M. Yuki
Financial Planner,Certified Investment Solicitor and Insurance Specialist
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
investment, life insurance, Personal Finance, Uncategorized

How to Prioritize Saving Money

How to prioritize saving money

Saving money is not easy but it can be done. You just have to have a purpose why do you have to save. Saving money can bring you to Financial Independence because you can create a Financial Plan for you to achieve your financial goals in life. Saving is your foundation to grow your money for your future needs because you will have an opportunity to invest.

Let me just share with you how I save money effectively. Don’t be bothered if how much money you can save at first  because it is more important to create a habit. I use the idea of allocating my money to different categories every time I earn money, it is known also as Envelope System but with me I don’t use envelope, I use clear book which I create categories where I put money on its plastic pages. I just use paper and write what is that category and take notes of the date every time I put money on  a particular category.

Here are some of the categories that I have in my clear book:

1.Giving
2. Savings
3. Life Insurance
4. Investment
5. Grocery
6. Daily Expenses(Transpo,food,etc)
7. Education
8. SSS Loan
9. Tax
10. License fees Savings
11. Load Expenses
12. Miscellaneous and others

Here is the clear book that I use and some of the categories that I have in my clear book. I take note of the money that I put to some of the categories so that if I reach a certain amount, I will transfer it to the bank, life insurance and to the mutual funds.

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You can create your own categories based on your priorities and financial stage situation every time you receive your income. But for me, my priorities  are Giving,Savings,Life Insurance,Investment and SSS Loan. Everytime I receive an income from the Lord’s blessing, these are the top 5 that I have to prioritize first. I stick to my budget plan,it is really different if you spend only within the budget. I find it addicting to challenge myself to be frugal most of the time. I live a simple life and I prefer not to buy branded items but at the same time I feel happy and enjoy life as well. My budget allocation can be adjusted if I have short term goals that I need to buy or if I have emergency expenses. Some of the categories will be lesser because it has to go to other categories but I never sacrifice my Top 5 priorities. The percentages of my top 5 priorities from my income ranges from 10%-12% each.

You can do this as well because you will know where your money must go before you spend. You will notice when you start a habit of prioritizing saving money first,you can now also allocate money for your life insurance, and investment. You have to understand that when you receive an income,it is wiser to focus on assets than liabilities.You have to grow your networth, it is not really how much we earn but it is how much we save and invest. You are your own corporation, where your money goes can make you bankrupt or prosper in the future, so if you have not started to create a habit of saving,it is the best time to start soon.

Thanks for reading my blog.

Archie M. Yuki
Financial Planner,Investment Consultant and Insurance Specialist.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
avoidscams, financialliteracy, investment, Personal Finance

How to tell if it is a Scam?

scam-alert-1024x7881

There are so many investment scams that you can see these days that offer their products and services. These can be in forms of selling memberships, shoes, soaps, deodorants,food supplements, juice,golds, investments and a lot more that are only to disguise in order to show that they are legitimate companies. I am pretty sure that one of your friends invited you also to join them, maybe you are currently doing that kind of business already or you are deciding to join soon. You should be seriously consider first to check if the company is a scam or legitimate.

A lot of the Filipinos fall into investment scams because of low financial literacy. We never learn about how money works thus we prefer to invest in quick rich schemes rather than investing in a legal way that needs patience,discipline and consistency.

Here are the red flags that you can notice if a company is offering investment scams:

1. They offer low risk investment and promises guaranteed high returns. If it’s too good to be true,it probably is.
2.  You will earn through recruiting and signing up members,products are just fronts.
3. Their products are garbage and expensive.
4. Company is relatively new like less than 5 years and they will hype how many members they already have. You will hear the catchphrase “Everyone is doing it so it must be legit”.
5. They give vague information and confusing explanations about where money is invested.
6. Members will hype how much they earn like showing their money or showing off fancy cars.
7. You will see pyramid payment schemes.
8.  There is no physical office of their company, they will just say that it is online business that is why there’s no need for a physical office. But be careful also, there are illegitimate companies who even have physical offices.
9. They promise quick rich schemes. Let’s say you just invested Ph3,000 and after 2 months, your money will be Ph300,000. The guaranteed returns are too high.
10. They will teach you to overload products for you to earn points while you can’t even sell it anymore.

These are only guidelines that you can look at if someone offers you opportunities that look like a scam because you don’t want your integrity be destroyed. Your family and your friends will no longer trust you when it comes to transacting business with you if you join these scam companies. Yes, you can earn money at first from those scams but you don’t want that money to feed your family because of swindling your family and friends.You don’t want to be called a scammer and the company that you represent will be featured in the news as a scam because a lot of people are now complaining about that company and eventually closes down.The system of scam companies is designed to fall down sooner or later. They come and go but your integrity is more important, don’t let it be destroyed because of greediness to earn fast. You can be also involved in syndicated estafa case if you are caught by the authorities which is not bailable.

I hope that you learn something from my blog about red flags of scam companies. Always remember this: Low Risk=Low Returns, Mid Risk=Mid Returns and High Risk=High Returns. If you really want to learn to invest in a legal way, it is advisable to talk to someone who is a licensed and authorized to sell investments. Be diligent when it comes to investing your money because there are so many people who really don’t care about you but they want is your hard-earned money.

To know more about investing in a legal way, you may reach me.

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com
health insurance, investment, life insurance, Personal Finance

HMO Card or Health Insurance?

One of my friends asks me if what she should get if she wants to insure her health, will she get HMO/Health Card or Health Insurance?

I said, it depends to your needs. Some people can get Health Insurance while they are insurable and others can get HMO/Health Card while they are young and it is cheap.

Getting ready for the medical expenses is very important because it expensive to get sick nowadays and if you did not prepare for the medical expenses all of your savings will be wiped out and worst is you will get yourself into debts for you to pay the medical bills.

According to Philippine National Health Accounts (PNHA), Filipinos spent P526.3 Billion for health care in 2013 and majority were paid in cash.  Of that amount, 56.3 percent or P296.5 billion came from out-of-pocket spending. These are expenses paid for by individuals for medicine, medical consultation and hospitalization. It means that Filipinos could have save more money if we consider preparing a form of medical insurance rather than paying it through out of your pocket. It will help Filipinos to spend less on medical expenses if there’s a medical insurance.

Reference: http://bilangpilipino.philstar.com/news/2016/03/31/1567890/philippiness-health-expenditure-climbs-p526-b

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Let’s define HMO:

What is a ‘Health Maintenance Organization – HMO’

A health maintenance organization (HMO) is an organization that provides health coverage with providers under contract. A Health Maintenance Organization (HMO) differs from traditional health insurance by the contracts it has with its providers. These contracts allow for premiums to be lower, because the health providers has the advantage of having patients directed to them; but these contracts also add additional restrictions to the HMO’s members.

Read more: Health Maintenance Organization – HMO Definition | Investopedia http://www.investopedia.com/terms/h/hmo.asp#ixzz4RY7v7ih8

Let’s define Health Insurance:

Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. It is often included in employer benefit packages as a means of enticing quality employees. The cost of health insurance premiums is deductible to the payer, and benefits received are tax-free.

Read more: Health Insurance Definition | Investopedia http://www.investopedia.com/terms/h/healthinsurance.asp#ixzz4RYA2MX9D

The questions is will you get an HMO or Health Insurance? Which option will you choose?

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For me, it is both important. It should complement to each other. Ideally, I position HMO for your short-term needs and Health Insurance will be for your long-term needs. If you will get sick now while you are young, it is good that you have an HMO/Health Card while if you will get sick when you get old, you have your Health Insurance, while if you get sick at a young age while you have your HMO, you can supplement it with your Health Insurance. It is a win-win position to a person who has both HMO/Health card and Health Insurance.

While most of the Filipinos are employed, most of the employers provide HMO/Health Card to their employees which is a good thing but you are not sure if how long will stay to that company and also you will get old and if you get your own HMO/Health Card you will have to pay higher premiums.

Mostly, HMO’s can give you a Maximum Benefit Limit of Ph60,000 to Ph150,000 when a person will be hospitalized and your Health Insurance can give you from Ph300,000 to Ph1,000,000 coverage plus an investment component that will grow that can supplement your medical fund needs in the future. It means in Health Insurance, after you are finished paying for it for 10 years, your money still grows that you can withdraw in the future while on HMO, you just pay every year and your money will not grow. It is wiser to complement these two. You don’t have to spend a lot of money if you will get HMO and Health Insurance rather than if you get sick, it will cost you more.

If you want to know how to choose options how to create a fit HMO and Health Insurance for yourself and for your family you may reach me for a consultation.

Thanks for reading my blog.

If you want to know more about getting a medical insurance, you may fill out the link below and I will contact you soon.

 

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com