life insurance, Personal Finance

Why Single Should Get Life Insurance?

The typical market for Life Insurance is people with families to protect. When the breadwinner passed away his/her dependents either the husband/wife or children will be taken care of by receiving the death benefits of the life insurance policy. But if you are single and no children yet, is it advisable to get life insurance? The answer is a big YES! Let me share with you some reasons that single individuals should get life insurance as well.

  1. You may have dependents that rely to your income. I have friends and clients who are still single but they support their parents, brothers and sisters. If death comes to that person, who can now support their parents and how can their brothers and sisters continue the same lifestyle that you provide to them? Thus, it is advisable that on this situation, that person should insure himself as well.
  2. Leave a gift. You may leave a gift to someone who is dear to your heart like even if you don’t support them financially. It can be your church, foundation that you like,niece, nephew, aunt, uncle or partner in business. It is good that leave something of great value when you pass away.
  3. Life Insurance can be your clean up fund. If someone passes away, death benefit can be used to unpaid hospital bills, funeral expenses, and to buy you a piece of land where he/she can be buried. You will not burden your loved ones, relatives and friends to take care of all the expenses that will incur after your death. Can you imagine how costly these days if someone dies?
  4. Life Insurance Disability Rider can be used if you will be disabled and not able to work. You can get an income replacement if in case that you will get an accident and you are not able to work. If you stop working, your income will stop but the expenses will still continue thus you can get it from your Life Insurance Disability Rider.
  5. Life Insurance Dread Disease Rider can help you to treat your disease. If you will get sick, like cancer, heart disease, kidney failure, etc, you will have a fund that you can withdraw right away that can be used.
  6. You can get lower charges in premium if you start young and healthy. Mortality rate gets more expensive when we age because we are prone to get sick compared when we are young. So, it is good that you to get an insurance coverage while young and healthy.
  7. It can be used for your future expenses. There are life insurance plans that can give you funds that can be used for your future plans like buying your own house and lot, car,  retirement, business funding and even preparing for your dream wedding when you get married. These life insurance plans can make your money grow.
  8. You will be more attractive. It shows that you are responsible when it comes to handling your finances. If you are dating someone, wouldn’t be nice if you tell to that person that you have a Life Insurance Plan. It shows that you are the kind of person who really plans ahead and understood that risks of life can happen anytime,thus ,you are ready for it. So, if you will marry that person, you know that when you start a family, you know that he/she will take care of you even to the point that he/she will be gone in the future.

With these reasons, it is advisable that you protect yourself even if you are single so that if risks of life, you have peace of mind that you will be covered. I always believe that intelligent people insure themselves properly. We hope for the best but we have to be wise to prepare for the worst. Insure yourself now while you are still single.

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
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equities, investment, Personal Finance, stockmarket

Peso Cost Averaging Strategy

pesocost3

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
Uncategorized

Why not VUL?

VUL

I first encountered the idea of creating a Financial Plan in August 2010. I was really impressed by the idea of saving money, insuring and investing money for me to achieve my financial goals in the future. I did not know anything about it and when I understood it, I was hooked. The first plan that I had was a traditional life insurance, which had  a life insurance coverage of Ph300,000 which had cash value that I can loan.

Later on, as I studied more about Financial Planning, I learned Variable Unit Linked(VUL). It has Life Insurance and Investment. I was really amazed by the idea of insuring myself and at the same time my money can grow either in Stock Market,Money Market, or Bonds. It makes easier for me to participate on different investment vehicles which can help me to grow my money for my future needs while insuring myself at the same time.

As defined by ANC:

FB_IMG_1465253888145

I find it cheaper and convenient in the long run compared if I buy term insurance and invest the difference.  It pushes me to be disciplined that I always put money to my VUL. It helps me to focus on one financial product that has 2 benefits already. I think the problem with buy term insurance  and invest the difference will make you spend the difference than you invest it. Knowing that in our culture that we tend to spend than to save and invest and most of us do not have a discipline.

I have 2 policies of VUL now. One is regular premium payment which gives me  a life insurance coverage of Ph1M, a dread disease fund of Ph300,000 and it has an investment component that will make my money grow and the second one is a One-time pay VUL that is focused on investment which has minimal life insurance coverage.

For me, getting a VUL is a good stepping stone for me to create a habit that I regularly put money and it can grow long term while insuring myself. With this saving habit, I can also diversify to different financial vehicles that I can grow my money. Growing my money in stock market will help me to achieve my financial goals in life  but if I die soon, my family can be taken care of without me.

So, why not VUL?

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
Uncategorized

How To Start A Financial Plan

financial-planning

Starting my Financial Plan is one of the most important decisions that I made to achieve my financial goals in the future. Let me just share how to start a financial plan. It is so easy to go through the process. Here it is:

1. You have to meet in person with a Financial Planner,so that you can be assessed if what will fit your financial goals in the future.

2. Decide what amount you can start based on the recommendations of the Financial Planner.

3. Fill out the application form which the Financial Planner can assist you.

4. Submit 1 photocopy of a valid ID with your signature like TIN,SSS,Driver’s license, UMID,Passport Etc.

5. Submit the initial premium or payment for the application to be processed. You will be given a provisional receipt.

6. It will take 1 day to 5 days for the company to process your application depending on the Financial Plan you choose. The company will advise if you have to undergo a medical exam or your policy will be issued already. If you will have to go to medical exam, it will be free but if you have an exisiting condition of your health, the company will require you for further tests at your own cost.

7. If your policy is approved, it will be delivered to you by your Financial Planner or it can be sent to your preferred mailing address.

8. You can enroll an auto debit arrangement with the banks like BPI,BDO,Metrobank,Unionbank, and Landbank so that for the next payment of your regular premium financial plan will be convenient for you. You don’t have to go to their office or to a bank to settle your premium.

9. Your financial needs always change so make time to meet with your Financial Planner at least once a year for you to review and update your financial plan and they are more than willing to assist you.

That is it! These are the steps for you to start your financial plan. Once you started it, you have to be consistent on paying your Financial Plan for you to achieve your financial goals in the future. This is the product that you will not regret buying because you know sooner or later you will benefit from it.

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, Financial Literacy, Personal Finance, stock market

Invest with Goals

invest with goals

 

It is important that you have to know your goals when you invest. With goals in mind,you will work for it until you achieve  it. Achieving financial goals for your yourself and your family are something that we look forward to, that is why we work hard for it. Investing your money can help you to achieve your financial goals in the future because your money can work for you.

I’m a big fan of investing in Stock Market particularly investing long term which you will win. In stock market, you can position your financial goals for you to achieve it and it is possible. You just have to know what you would like to achieve when you invest in Stock Market be it your Retirement Fund,Travel Fund, Business Fund and etc. Your goal should be SMART(Specific,Measureable,Attainable,Realistic and Attainable) for you to work it out.

Let’s say you set a goal of achieving a college Fund for your child after 10 years and you want him to study in a good school. Let’s assume that you need Ph1,000,000 on the 10th year for your child to finish a 4-year course. Wow! Ph1M for a child to graduate? Yes it is, this is a conservative assumption only after 10 years because of inflation or the rise of the price. Assuming that every year the tuition fees will increase on the average of 10% per year. I have not included yet the transportation allowance,books, allowance, food , load allowance, load, laptops, etc.

If you save money in the bank for you to reach Ph1M after 10 years, you have to set aside ideally Ph100,000 per year but if you invest in Stock market for you to reach Ph1M on the 10th year on the assumption that it earns 8% per year on peso cost averaging, you will only save Ph70,000 per year or Ph17,500 per quarter you can have Ph,1,014,059.37.But if you save Ph70,000 per year in the bank, your money will be only Ph733,112.88.

See illustration:

savings in the stock market

Now, which one can help you to save more money and earn you more money for your future financial goals? Definitely,you will win in investing. Now, what if in investing in stock market gives you an average annual return of 14% which had happened in the last 10 years? You can achieve more than Ph1M which you can use for other expenses for your child’s education.

Your goal should be clear for you to work it out. You should understand the reason why you are investing in the first place that is why you are willing to sacrifice something now for you to gain more in the future. Even though the stock market goes up and down, you will still to invest consistently because you are after the long term benefit. You need also to to talk to a Financial Planner to guide you if which kind of investment fits you for you to achieve your financial goals in the future. As they say, a goal without a plan is just a wish.

Thank you for reading my blog, I hope that you learned something today. Let’s start to invest with goals.

 

 

Archie Yuki

Financial Planner, Certified Investment Solicitor
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
Uncategorized

Are you properly insured?

 

A lot of us are making fun about getting Life Insurance. We think that we need life insurance only when we are going to die and we think that it is an expense. Ironically, we need life insurance when we are young and healthy because we don’t know when we are going to die and if you get life insurance when you are old and sick most likely you will not be approved.

Having a life insurance is not enough but you have to know if you are properly insured. It should be part of your financial portfolio. How would you know if you are properly insured?

In my client’s case,she has extended family. She supports her Mother, Sister and a Special Brother as his father passed way already. Every month, she spends on the average of Ph10,000 for all the expenses for them. Now, she spends Ph120,000 per year. Now, how would you know if how much  life insurance she should have if death comes?

Ideally, she should have at least 10 times of her annual expenses for her dependents. She should have at least Ph1,200,000 life insurance coverage so that if death comes her family will still get a budget of Ph10,000 per month for the next 10 years. This death benefit can be used so that her dependents can adjust for the next 10 years and will not be left in poverty.

My client is saving only Ph100 per day for her to be protected and at the same time her money is earning because after the charges of cost of insurance and admin charges it will be invested in pooled funds. She is setting aside Ph36,000 per year on a Variable Unit Linked.

With Ph100 per day savings can make her insured of Ph1,200,000 with her age of 28 until age 99. The good thing about Variable Unit Linked, it has investment component that can grow from 8%-10% per year on long term. She can have a premium holiday of 10 years only, meaning she can stop putting money in 10 years only.

 

While working hard for her family,she has peace of mind that if death comes she knows that her family will be financially stable for the next 10 years but because her insurance policy has investment in it, her family can receive more than Ph1,200,000 but if she will live long, she can  achieve her financial goals for her family.

Let’s say if she dies at age 40 her family will receive the guaranteed death benefit plus the fund value if it earns 10% per year. On the assumptions of earning 10% per year ,life insurance would be Ph1,200,000 plus Ph620,398.13 with a total of Ph1,820,398.13. But if she will live long until retirement at age 60, her money would have grown to Ph4,831,067.45 which she can use for her retirement and she is still insured with Ph1,200,000. This is what the Variable Unit Linked can do for the policy holder who just save Ph100 per day.

Now, you can now assess yourself if you are properly insured or not. You can check your expenses that you provide to your dependents and imagine if you died yesterday,do you think they would  be financially stable when you would be gone. Get life insurance not because you are going to die but get life insurance so that your family will not be hungry when you are gone.

I hope the you learn about insuring yourself properly. If you want to know more about insuring yourself and at the same time growing your money, you may reach me.

Thank you very much.

Archie M. Yuki
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
Uncategorized

Diversify Your Money

diversification
Most of us heard the saying,”Don”t put all your eggs in one basket”  which I totally agree. You can do this in financial aspect by diversifying your money. It has benefits and let’s define its meaning, according to Investopedia:
Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio constructed of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.

But, most of us don’t really do it. Most of us put our money in the banks. The total deposits as of June 2016 was Ph 9,638,125,481,000 according to PDIC.

There is a need to diversify for us to minimize the risks that might happen and also for us to maximise the returns of our hard-earned money. Even the bible tells us about diversification, as it reads “Cast your bread upon the waters, for after many days you will find it again. Give portions to seven, yes to eight, for you do not know what disaster may come upon the land.” (Ecclesiastes 11:1, 2)

In diversification, you should know where to put your money and what will be your purpose. You have to know your financial goals so that you can choose the appropriate returns that fit your goals.

These are the three portfolios that you must have when diversifying.

1. Savings- Your purpose of saving is to accumulate money that you need for short term like from 1 year to 3 years. This can be your buffer fund that you can use if emergency expenses arise. Ideally, you have at least 3 months of your monthly expenses or your salary in the bank. Savings can be easily withdrawn  thus the interest is low,  it ranges from 0.5% to 1% per year.

2. Insurance- There are different kinds of insurance. There is Life Insurance,HMO and Non-life Insurance. Insurance can give you peace of mind if risks happen like accident,diseases and death. This can protect you of the expenses that you cannot control which can give you funds to answer to the risks that might happen. Without insurance, your savings will be used up easily if risks of life happen.

3.Investment- This can make your money grow. These are the investment vehicles you can choose: Money Market,Bonds,Stocks, Pooled Funds, Real Estate or start your own business. Investing should be carefully studied because it is possible to lose all your hard-earned money. You have to understand the risks that might happen and the opportunity to earn. Ideally, you have to think long term when you invest,it requires patience and discipline thus you can earn in the future for your future financial goals. In long term investing, your money can grow from 6%-20% per year on the average for at least 10 years.

It is wiser to learn to diversify as early as possible so that you can manage your money well and maximize the returns you can get. This can be done by creating a Financial Plan which you can ask an advice from a professional Financial Planner. You will have a hard time to do it alone unless if you have time also to professionalize yourself when it comes to Financial Planning.

I hope that you learn something about diversification. You may share this blog for us to spread Financial Literacy to fellow Filipinos.

Let’s all be FREE!
Archie M. Yuki
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
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