Long term negotiable certificate of deposit or LTNCD is one of the lesser known products in the Philippines that Pinoy can invest. In fact, BPI, Metrobank and BDO recently announced that they’re offering LTNCD with 4%, 5.375% and 3.75% interest per year, respectively. Maybe because of its name, which is rather long and intimidating. But don’t…
Investing a managed fund is one way to earn passive income. As already discussed, there are different companies that offer them: mutual funds, unit investment trust fund (UITF), exchange traded fund, Personal Equity and Retirement Account, and variable universal life (VUL) policy by the insurance companies. And there are different categories that are differentiated by the type of assets that they own: index fund, equities fund, balanced fund, bond funds, and money market…
A managed fund, also called investment fund, is a pool of money from willing individual and institutional investors. It is for this reason that it is sometimes called pooled funds. It uses the money that it collected to buy and sell stocks, bonds, money market securities, and other investment assets on their behalf. Before I even talk further about managed funds, I think it is…
Studies show that millionaires do not depend on only one income. They have at least seven streams of income. How do they do that? Simple. They invest. This article is the beginner’s guide to investments that covers passive income, importance and benefits of investing, things you need to do before you put up capital, and the legitimate…
So I’ve talked about investing in index funds could be a better option when done long-term. Such claim is based on two things: expert recommendation and return over long term. Advice from experts like the highly successful stock investor Warren Buffett and the historical performance of foreign and local indices appear to provide more support to such…
A lot of people on social media and those who are beginning to invest have one question. When investing in the Philippines which is better, mutual fund or unit investment trust fund (UITF)? And it’s been asked so many times that I finally just want to answer the question. Mutual funds and UITFs are similar That’s the short answer….
If you have P10,000 right now that you’re ready to invest, where would you place it? Buy direct stocks or put it in UITF, mutual fund, PERA account, or exchange traded fund like the First Metro Philippine Equity Exchange Traded Fund? In this article, I’m going to discuss the difference between buying stocks directly from the market or joining in one of the managed investment…
One of my many mistakes when I was starting was to disregard some of the important things about investing, such as tying it with a personal goal, knowings its and returns. In this article, I am going to write about what makes your investment meaningful, what are the uncertainties that you face and the potential earnings that you…
In investing in investment funds like mutual funds, you would want the cost of investing as low as possible. This is done by selecting a fund with the least cost. The higher the mutual fund fees, the lesser your potential earnings becomes. And one of the fees that you can actually avoid is the sales load. Sales load is charged by the fund…
Insurance plays an essential role to personal finance. It protects you against life’s uncertainties, such as sickness, disability and untimely death. It’s a means of replacing loss of income brought about by these circumstances, minimizing their impact on you and your family. And that’s why insurance is also called wealth or income protection. Personal risk management Dying too young,…
Personal financial planning is about managing your money. Plain and simple. And I know you might ask, why am I making a blog about this one topic? I mean, I know all of us are dealing with money day in and day out for personal and work-related reasons. We learn to do it as we…
Debt is any money you owed. It can range from personal loan with a friend or a family member to loans with a bank through a credit card and home mortgage. Good debt versus bad debt Something is considered a good debt if its value increases over time and/or it can generate an income. Examples are rental…
Download the Living Expenses Statement worksheet for free! To use the worksheet, make sure to read our post on why estimating your expenditures is important in knowing your cash flow. Here are the instructions: Download Living Expenses Statement worksheet. Make sure you have Microsoft Excel installed in your computer. Indicate the expenses under each heading: Home, Bill, Health and Insurance, Transportation, Personal…
Download personal Income Statement Worksheet for free! To use the worksheet, I recommend that you read post on the purpose of an income statement, and why understanding your financial status is crucial to financial planning. Here are the instructions. Download Income Statement Worksheet. Make sure you have Microsoft Excel installed in your computer. Limit your timeline to monthly. In Income table, indicate…
The first step to smart financial planning is knowing where you are at right now. Having a clear picture of your present standing makes you aware of how much you are earning, how much you are spending, how much you end up saving, and how much you are setting aside for investing. The choices that you make…
Download by clicking Financial Goals Worksheet. Before using, it is best to read my post on financial goal-setting and the importance of writing down your life’s dreams. To use, here are the instructions. Download the Financial Goals Worksheet. Open the worksheet. In What you want to buy column, list down the things you want to acquire, costs and how long you are…
For the longest time, I’ve been thinking about writing this guide because mutual funds are a good passive income option but they’re not well understood. And when you’re lucky enough to attend free seminars that are provided by investment houses and financial institutions, you could learn so much about financial planning. In this article, I will discuss mutual funds in…
You’ve heard about unit investment trust fund or UITF in the Philippines for Pinoy, and you might’ve spent the last hour scouring the internet or this blog on how to invest in them. And you’ve probably heard that UITF is offered by banks and trust companies, but still you’re not sure where to start. Which bank or company…
Do you want to own stocks of the Philippines’ largest companies? Would you like to subscribe to initial public offering (IPO), which are shares that are trading on the exchange for the very first time? Heard some people receiving their dividend income from blue chip companies, and you’d like to join the party? In this article, we will talk about how…
How easy it is to open an account at any bank? As you may already be aware, there are many bank accounts that you can choose from and establish. You can start a time deposit, checking account, credit card, unit investment trust fund (UITF), personal equity and retirement account (PERA), long term negotiable certificate of deposit (LTNCD), insurance (bancassurance), loans, dollar and foreign currency…
In stage 4 of financial planning, I talked about basic ideas of insurance products. I am going to dig a little deeper about them. I am doing this because we, Pinoys, may have an idea or two about insurance in general but most of the time we really never completely understand what they are, their purpose and…
