Investing in Stocks Made Easy... Investing in Mutual Funds

Investing in Stocks Equity is made easy nowadays through On-line transactions. Investments to the tune of 5000 Php or 25,000 Php as initial capital will now allow people to start up their investments. There are just a few more know how you need to develop. How to log in to the on-line brokers page and how key in to computer. You need to be at least computer literate. Secondly, you have to have the knowledge of what companies are good to buy. You do this by reading through the information the on-line broker provides. You can supplement your information by going through business sections of newspapers, or through internet or television news updates.

It is exciting and rewarding to do all the stocks investing and redeeming by yourself. However, this certainly requires a lot more time and effort. If you are newbie in investing, I strongly recommend you invest on something easier to manage. And this is by investing into mutual funds.

Investing into Mutual Funds requires very little effort and time to do. Once you set your investment goals and you have identified a Mutual Fund Provider, then all you need is to fund your investments regularly. You practically hire an expert fund manager to manage which stocks to buy and sell. (You will find on previous blogs the different Mutual Funds and how it works)

If you are making higher rate of return than the Mutual Funds, then do the investing directly on-line by yourself for this means you are beating the expert fund manager. If you want to make your investing easy, invest in Mutual Funds.

If you need any further assistance or help in either direct investing to stocks or into mutual funds, please feel free to contact me.

God bless!

Can You Really Time The Market?

Investment guru Warren Buffet says you cannot. If there is someone who say they can, better be careful. No trending machine, nor statistical software can predict the market movement. Why? Because market movement is not based on something technical. It is based on people's sentiments, and when you think about it, people are emotional people and , emotions are not that predictable. People reacts to a particular stimuli differently. And so it is the same on stocks market movements.

So, the best thing to do is to make sure you invest regardless of the trends. If you want to be more conservative in your investments, then get something that guarantees returns, like Corporate Bond Funds, Time Deposits, and what I call Level 1 Kaiser 3:1 . An investment fund for Long Term Health-care.

If you want to learn more about investing...just give me a call or drop me an email.

God bless!

Earn by Money Cost Averaging....

Earlier on, I have talked about two ways of making money on Mutual Fund Investments. One is Trading and the other is Money Cost Averaging. For beginners, we strongly recommend investing and earning from investments through money cost averaging...

Let me focus this blog on sharing how we can make money on Money Cost Averaging.

Money Cost Averaging means you need to have a regular frequency , and regular amount of money to be invested.

You earn by redeeming your investment when the total value of your share that you accumulated is higher than the total amount you have invested. Gain = Total Share Value- Total Investment. You lose when the Total Investments is higher than Total Share Value.

You can derive your Total Share Value by multiplying the Total Number of Shares you accumulated by the Share Value at the time you are redeeming or in formula format... Total Number Of Shares x Current Value per Share = Total Share Value.

Thus, you only redeem your shares when the value is higher than what you invested. Better yet, you just continue to invest based on the financial goal you have set...

It also means that you do not care whether the share value increase or decrease on the defined period you will put your money in. You just continually and consistently invest a regular amount of money on a regular period.

So, for example, your regular period of investing is Monthly, and your regular "Investible" Fund is 1000.00Php,

Say, the Mutual Fund you chose at the onset is 100Php/share, you can buy 10 shares. ( to simplify, I did not include the entry fee charges which is minimal). Say you started this month of January 2011. So you have 10 shares which has a share value ( or in Mutual Fund Terms - NAVPS: Net Asset Value Per Share) of 100Php/share

February, the share value dropped to 50Php/share, and so you can buy 1000Php/50Php/share = 20 shares. Now you have 10+20 = 30 shares in February. If you sell of the shares you have in January which you bought at 100, you certainly wont make money.

Come March, the share price dropped further to 25Php/share, you continue to invest in spite of the drop because you can buy 1000php/25php/share= 40 shares. Come March, while the share value continue to drop, the total number of shares you already have is 10+20+40= 70 shares. Net value is 70 shares x 25/share = 1750 php. Again, if you sell it at this time, you lose as your total investment is at 3000 Php but your share value is only 1750. DO NOT SELL at a LOSS.

Come April, you invest again 1000Php and the share price kick up to 50/share. You can buy again 20 share which will make your total investment at 4 months x 1000Php/month = 4000Php and your total number of shares in 4 months is 10+ 20+ 40+ 20 = 90 shares. Your total share value is 90 shares x 50Php/share = 4500Php. So at this point you can realize a gain of 4500Php- 4000Php = 500Php or about 12.5% gain in 4 months.

So, Money Cost Averaging only works if you have consistent investments. If you just put your money one time hoping that it will earn, say you just put 1000Php in January, by April, if you sell it at 50Php/share you still lose 50%, but if you follow the Money Cost Averaging technique, you would have earned 12.5% on the same market trend.

If you want to learn more about investing, just give us a call and we will be more than happy to assists you.

Happy Investing...

God bless us all...

Start Young..Start Easy...

Yesterday I met a 21 year old ( his name is Ryan Pesigan) whom I will call Genius. He works on a call center as a report analyst and soon to be ...an assistant supervisor after 3 years of working in said company. This means that he has started to work at age 18. He lives with his mom who is separated from his dad. This is not the reason I call him Genius.

He has been an avid fan of Bro Bo Sanchez and has read his books (8 Secrets of Truly Rich, Choose to Be Wealthy ) among other books written by Bro Bo., He is also a member of the Truly Rich Club. He has read also the RIch Dad Poor Dad book by Robert Kiyosaki. At his age, this is unusual, thus, I know now, you are nodding your head in agreement that this guy is a genius. Financially genius.

What he lacked was , the HOW TO DO IT.... He is full of concepts in his mind that he sought us up to be coached on how to apply the concepts he has learned from reading books about growing money and journeying towards financial independence.

Now, that makes him truly genius because he wants to apply what he learns, and he is lucky to have us as his coach. And more than that, he is very young at 21. If he takes action and execute a disciplined approach to saving and investing, it will guarantee him to be a millionaire before he turns 45. At 21, he is starting very young and it will be easy for him to achieve his financial goals. Imagine, with just 1000Php/month @12% average ROR for the next 25 years, he will be able to accumulate 1.8M Php. And you know what, he opted to save more than 4000Php/month. You can do the math yourself.

So be like him... Start Young...Start Easy...

God bless!

Last 2 Years Mutual Fund Picks ...WInner! More than 100% Returns...

We are proud to note that we have 100% batting average in investing on winner Mutual Funds. We picked in 2009 Philequity, Last year, we placed our money on FAMI (First Metro Save and Learn Equity Fund). ROR for 2009 of Philequity was about 64% and last year FAMI gained about 63%. More than 160% total gain as this is compounded growth.

How did we know what to pick, we have a champion coach! He is Rex Mendoza . On our own, we do not have the know-how and technology. But because we are part of International Marketing Group, we had been fortunate to be coached on what Funds to invest in.

What we invested in, we also shared with our family and friends. So those who acted on what they have learned from our sharing also were winners!

So have you invested on winners? Do you have a champion coach? Do you want to learn how to start earning from Mutual Funds? Just contact us and we will be more than happy to help you get started.

Happy investing!

God bless us all!

How To Make Money By Investing!

I had a friend, he invested a one time amount and expected to earn form it. I also invested some time ago on Petron's IPO that did not earn what I expected it will. So many clients and friends tell me the same story, that investing does not make them money. They are wary that what they invested had not earned anything for them and so does not want to repeat the same, so they shy away from any form of investment.

Another case is that of a company who invested 3M in Mutual Funds last 2008 and when the Net Asset Value Per Share (NAVPS) plunged by as much as -34%, they sell it off at a loss, and then concluded, it is not good to invest in Mutual Fund. We cannot make money on investing!...

What is the missing activity or process that leads many to have this experience and then concludes it is not good or even safe to invest? Obviously, it is lack of knowledge and correct practice in investing.

There are two ways of making money on investments... One is what we call Trading, and the other way is Money Cost Averaging.

Trading is buying and selling . So stocks trading is also buying and selling stocks. It is timing the market when it goes down so you can buy shares and selling it when the share price goes up. I will liken this to any kind of trading. You buy then you sell it again to interested buyer at the cost you buy it plus your profit. This kind of making money in stocks or shares in Mutual Funds requires timing, and trending. Some people earn from trading in stocks this way , but based on the information I have obtained from our mentors, only 20% win this way. 80% lose their money in trading.

The other way is to maximize money cost averaging. This is a more disciplined approach in investing and does not require you to time the market. Meaning, you just consistently and continuously invest regardless of whether the share prices are on upward or downward trend. This is what we recommend investors do. This is also what Warren Buffet recommends when he said "do not time the market".

Of course, profit or loss is only realized when you sell off your shares. Therefore, the rule is you only sell at a profit so you win.

If you want more specific and personalized coaching on Mutual Funds, please feel free to contact me.

God bless!

Investing in Different Levels of Risks and Rate of Returns..How?

Hi Dear Friends....

Hope you got to read my emails and blogs in relation to investing...
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If you are Age 40, this is still not too late. You still have about 20 Years to do it. We have started our own journey to financial freedom when we are already 50 so you have a 10 year head start. We are also coaching senior citizens and they do can still make it. Of course starting very young like age 22 or even younger like my 14 year old daughter who started age 10 is a major plus. Since we cannot turn back the hands of time, we can definitely start up our kids when they turn 10. An opportunity which our parents were not able to do , but we can for our kids. Let's teach them also the right way to save and invest.

I want you to access through FB Rampver Strategic Advisors so you can be updated on the latest trends of the top Mutual Funds.

Another web page I want you to also access is http://www.icap.com.ph which shows the different investment companies on Mutual Funds.

You will be able to see trends of the different mutual fund companies.

Now, on investing in different financial instruments like Stocks , Mutual Funds, TDs, CDs... these are different investment opportunities with different levels of Risks and Rate of Returns.

As you know, high risks means higher Rate of Return- ROR , No and low risk means no and low returns. So the higher the Level , the higher the Risk but the higher the ROR..

I would advise that you go Level 1 first, then Level 2, then Level 3. Do not go for Level 0.

What are Level 0. These are the no risk low return which is a sure loss. Anything that gives interest earnings of less than the prevailing Inflation Rate is a sure loss. Current inflation rate data for year ended is about 4% (3.8%).

I consider the direct stocks investing we are doing with CitisecOnline as Level 3. We can coach you on this as well.

Level 0 is actually putting your money on the bank SD, TD with guaranteed but very low rate of return ranging from 0.5 to 2% net of withholding tax.

Level 1 is putting it on an Investment Fund with guaranteed returns such as KAISER, and Corporate Bonds.

Level 2 is putting your money on Mutual Funds where you allow a fund manager to handle it for you.

Level 3 is you managing your own funds by selecting and timing your investments and withdrawals.

We have to make sure we will be able to cover all these in time but start with Level 1 and 2 first.

Level 1 will develop the habit and discipline of investing , while level 2 will introduce you to trends and behavior of the market you need to learn to go for Level 3.

There are many mutual funds available in the market... More than 30 in fact. But we have to know which one are best to get into. This means we have to have some level of Financial Intelligence. That is why I call it Level 2. Compared to Level 1 which requires very little decision making .

Now you know this, our very first activity is actually to determine why we have to invest? What is our reason? What are our financial goals?And what is our current cash flow?

I can send through email the financial check up forms you can use to perform your own personal financial check up which you have to do together with your spouse if you are married, and I suggest together with your kid if you have anyone who is at 10 years and above. It would be a liberating activity for the family to do a financial check up and
planning. Scary at first but very rewarding.

So for now, read this over and over, then go the sites I have listed above.

Then, let's work on your financial check up.

God Bless You!