keeping patience

"patience is a virtue."

one of the things i've learned from playing Cashflow 101 Boardgame invented by best selling author and businessman Robert Kiyosaki is to be patient. be patient to wait for the proper time and opportunity before grabbing the most awaited "big deals" of the game. one needs the proper timing, enough resources, and good risk assessment before jumping in to any given opportunity.

patience defined

according to Wikipedia, "patience is the ability to endure waiting, delay, or provocation without becoming annoyed or upset, or to persevere calmly when faced with difficulties."

practical application

to reach my goal, to become a Christian millionaire in the near future, i need this important ingredient to success to help me work hard and persevere more.

as a businessman - i will market and find more subdealers for the newly improved Goldskin Placenta Soap, enriched with Papaya extract, Squalene and now with Vitamin E. it is also available with a new packaging and endorsed by actress Snooky Serna.

as a realtor - i will look patiently for more foreclosed properties and other for sale announcements within my area in Taguig. i need to focus on a certain radius to avoid inconvenience and hassle.

as an investor - since the stock market is so confused and still waiting on what will happen to the US economy and its adverse effect to the world as a whole, i will treat temporarily all my transactions as long term investment rather than short term.

the right opportunity will come to me and i will reach my goal, soon... so help me God.

effects of the US recession

bad news for investors

the Philippine stock exchange index fell to 24.19 percent from its peak. stock watchers called this as "bear market" where the prices of securities decline by at least 20 percent from the peak.

the market capitalization of listed companies shrank in the past seven days by P528.35 billion or $14 billion at the current exchange rate according to the Philippine Stocks Exchange (PSE).

these losses were caused by heavy selling in global markets due to apprehensions over where the world's largest economy is headed given a slump in the housing market and a credit crisis that has led to billions of dollars of losses among major US financial institutions.

a ray of light at the end of the tunnel

analysts are hoping that a $145 billion economic stimulus plan announced by President George W. Bush that calls for tax relief to boost consumer spending and help thwart an economic recession.

they are also hoping the US Federal Reserve Board would cut key interest rates by more than 50 basis points when the policy setting body meets on January 30. this may address the recession but the US banks need to clean up and the Fed should help the financial system implement controls.

but Finance Secretary Margarito Teves said yesterday that "the Philippines will likely withstand the adverse effects of a recession in the US largely because of its improving economic fundamentals."

meanwhile, President Gloria Macapagal-Arroyo is pushing for the implementation of all the projects to sustain the economic growth in spite of the various threats to the international economy.

also, the Arroyo administration is seeking to improve relations with other countries so the Philippines does not become too dependent on one country and over-reliance on our relations with the United States.

hint: for now, i'll transfer my stocks funds to bonds funds just for awhile. but before everything is over, i'll make sure that i return my investments to stocks funds.

source: Inquirer.net and Philstar.com

mutual funds & online trading

up to now, i haven't invested yet to stock market or mutual fund. gee, its been a week since my first post this year and still i haven't done anything. i was struck by "analysis paralysis".

though i already made up my mind on what mutual fund company and agent should i put my hard-earned money into, i still yet to contact them.

mutual funds

there are several types of mutual funds in the Philippines. the common types are:

1. stock or equity funds - invest in shares of stock of Philippine corporations listed in the Philippine Stock Exchange (PSE). equity funds offer the highest possibility of growth among all mutual fund types, but they also have a corresponding high amount of risk.

2. bond funds - invest primarily in fixed-income securities such as bonds or treasury notes issued by the Philippine government and commercial papers issued by reputable Philippine companies. since these bonds are normally guaranteed, the possibility of loss is very low. investing in bond funds provide capital preservation while maintaining conservative asset growth.

3. balanced funds - is a mixture of equity and bond funds. the high potential growth of equity investments is tempered by the conservative growth of fixed-income securities. obviously, the return of a balanced fund is normally somewhere between the return of an equity fund and a bond fund.

4. money market funds - are similar to bond funds because they also invest in fixed-income securities and the growth of the fund is conservative. the main difference lies, however, in the term of money market fund investments, which is usually short-term such as one year or less.

i'm very optimistic this year so i will choose to invest in equity funds.

online trading

because of the technology and the internet people can now make orders online and put them in control on when to sell or buy stocks. you don't have to wait for your broker to take your orders over the phone. just trade stocks right at your fingertips. all you need to do is to check the facilities, terms and requirements. as of now i'm still weighing my options between two brokers.

five factors to consider in choosing an online stock broker

1. commissions. online brokers or even the conventional brokers charge a fee each time you buy and sell. but most online brokers charge lower commission rates than live brokers. obviously you want the lowest commission rate which is 0.25%. this is the lowest allowable commission rate set by the PSE.

2. minimum initial deposit. you should check the online broker's minimum initial deposit. as a newbie, you want to get your feet wet with as little money as you can afford to play with. there are online brokers that require P5,000 only. you should also check the minimum account balance as well as the penalty for going below this level.

3. features. DIY or do it yourself, is the main attraction of online stock trading and investing. of course, you want to have all the tools necessary to make the best decision to buy or sell. you need to take a look at the range of services they offer in terms of research, their online tools and functionalities and other products which can enhance your trading experience. look for streaming charts and data, real-time stock quotes, financial news, analytical tools, and research reports. other offers margin financing, allowing you to leverage returns through a flexible and convenient trading line at competitive rates.

4. ease of use. you can have the lowest commission and all the tools you want but if the user interface, site availability, and speed of page loading suck, then you're in for a terrible experience. ask for a demo account to see if you like how smoothly the entire process goes before you commit.

5. customer support. you would also feel much better if your online broker will pick up the phone immediately and quickly responding to your queries and complaints as needed. so get the best customer service possible.

now, i have to act as quickly as possible and invest my money before it disappears on thin air.

happy investing!

my to-do list this 2008

here's my to-do list this 2008. better write it down so that i will not forget anything.

a. finances. this is inspired by Bo Sanchez' 8 Secrets of the Truly Rich.

1. to invest. during the last month of 2007, God bless us enough that made us think to start investing. we will divide our investment into two.

1.1 stock market. i've been playing the Stock Trading Game of the Philippine Stocks Exchange since november 2006. it's more than one year so i think it's about time for me to test the waters. though stocks are very volatile it is where the return rate is very high. i will consider the online trading.

1.2 mutual funds. we're currently looking for a mutual fund company that we can entrust our initial investment. if i don't succeed in my bid in the stock market at least in mutual funds our money is in good hands with the investment experts. we will include here the aguinaldos received by our two kids last Christmas.

2. to save. though my combined earnings with my wife is not that much, i think we can still allot some for our savings. this will serve as our emergency fund and at the end of the year we will add this to our investment

2.1 budget. we should put in writings all our expenses and allot our income just to make sure that our expenses would not exceed our combined monthly income.

2.2 prioritize. to minimize our expenses we will prioritize our buying according to its importance and our need.

action plan: from our net income (gross income less tax) i will take automatically 10% for our tithes, 10% for our investment and 10% for our emergency fund for a total of 30%. we will live within the remaining 70%. we can do it! ika nga, "kapag maikli ang kumot, matutong mamaluktot".

3. to explore. i will still look for other business opportunities that we can ride into to further boost our stock.

3.1 franchise. last year i won a Kettle Korn Negosyo Package from attending the Go Negosyo, Go Gobyerno at the Philippine Trade and Training Center, Pasay City. this year, i will claim my prize and try it.

3.2 foreclosed properties. i've read Robert Kiyosaki's Rich Dad, Poor Dad and Larry Gamboa's Think Rich, Pinoy! and Grow Rich, Pinoy! i also attended Larry's Think Rich, Pinoy! Workshop and played Cashflow 101 Boardgame last year. i've met new friends and future partners in this real estate business. hopefully, i can come up with my first property soon.

3.3 benefits. we will study how we can avail the products and services of different government institutions like the GSIS and PAGIBIG and use it to our advantage.

4. to ensure our future. no one really knows what lies ahead. only God knows. so whatever happens either we live longer or we live a short life we are insured. we will be at peace knowing that our loved ones will be financially secured. hopefully we still have enough savings for this.

b. service

1. my advocacy. as part of my service, i will continue my financial literacy advocacy for the poor and the youth--diskarte, Pinoy! i'll start with the members of the SFC in our chapter, to the different ministries and organizations in the parish, then to the different puroks and so on... so help me God. hehe

2. plan. we will schedule our planning workshop to plot our activities this year for the Singles for Christ (SFC) members in bicutan.

3. refresher. i will try to attend Bukas Palad Online Community Choir in EDSA Shrine to further improve my knowledge in singing and to learn new songs. i will try to echo it to the Angking Tanglaw Choir (ATC).

4. atc facelift. we will change the ATC into a music ministry. we will include the instrumentalists to serve during mass. live band tayo! hehe

c. family

1. less tv. television shows are so dominating that we became addicted to it. we should limit our watching time to give more attention to our kids, especially to my first born, nico.

d. others

1. drivers license. i will have my drivers license this year no matter what it takes. hehe.

to be continued...