Posts

Showing posts from July, 2017

Insurance: Null & Void

#Worth Sharing https://web.facebook.com/groups/pinoyinsurancetalk/permalink/381648012031035/?_rdc=1&_rdr To every Filipino who signed their insurance applications and proposals abroad but the place of signing put in the form is Philippines, this is an actual story for you. A client asked for my help. He wants to know the status of his insurance policy. He learned from Pinoy Insurance Talk Facebook group that signing insurance applications and proposals abroad is prohibited and any insurance policy born out of such is void. Also, that when an insurance policy is void, his family may not be able to claim anything. He got anxious and thought:
 1. What will happen if I die during the contestability period? We can never be sure nothing will happen.
2. How about after the 2-year contestability period? Will my family be able to claim this time? He confronted his agent about it. His agent only offered excuses. He contemplated of inquiring about the matter himself, but his agent told him…

Crowdfunding: Is It Legit?

Image
Crowdfunding as defined by investopedia is the use of small amounts of capital from a large number of individuals to finance a business venture and it is becoming popular nowadays. However, we need to do our due diligence before investing in this type of investment.  Have you heard of fundamental analysis when investing in the stock market? If not, fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors. In crowdfunding, fundamental analysis is a must since we are investing after all our hard earned money in a business just like in the stock market. So what are the most important things to consider or understand? 1) Management

You have to know who are the people behind the business. Know what are their working experiences, education and/or background. You need to know whether they have the 'business acumen'.

2) Business Model

Understanding the…

When to Buy Stocks

Image
Source: http://www.investors.com/ibd-university/how-to-buy/when-to-buy/
When we start our journey in the stock market, the most common problem that we will encounter would be on what stock/s to buy. We usually see this question in trading groups or forums and the usual answers would be blue chips and mutual funds. However, once you've found the stock to buy, don't buy right away. Why? Because the market is a like a roller coaster, up and down, up and down. Remember: Buy Low, Sell High so when are we going to buy then. 
There are two indicators you need to review before buying a stock whether its a blue chip or a small-medium cap stock: Check Market Condition  You have to know whether the market is bull (up) or bear (down). Make new buys when the market is an uptrend (BOBO - buy on breakout but you need to have a good base. Check Pyramiding Strategy)If you don't have a base, wait for corrections or pullbacks before buying. How? Review the stock chart.Review the Stock ChartTr…

How To Protect Your Capital?

Palaging naririnig natin yung aral bago invest pero ginagawa ba natin? Yung iba kasi pumapasok sa pag-iinvest na hindi naiintindihan even the basics tapos pag nalulugi, magtatanong sa facebook kung ano ang gagawin. Ano nga ba dapat ang gagawin?
Una sa lahat, bago pasukin ang stock market, dapat alam mo anong purpose mo sa pag-sali. Kung pang-short term lang ba or long term. Sunod, dapat alam mo yung magkano ba ang kaya mong mawala sa pera mo. Eto yung tinatawag na risk/reward ratio. Pag alam mo na ang mga ito, planuhin mo na yung trade mo. Always always plan your trade especially if you bought or have penny "basura" stocks in your portfolio.
Suggestions:
1) Stick to one blue chip or undervalued stock if you have a budget below P10,000. Bakit? The more volume you have, the better if the price goes up. Pag down ang market, makapag-average down ka unlike if ang dami mong hawak na stocks. Hindi mo alam san ka magdadagdag. Huwag mainggit sa ibang stocks kung lumilipad. Just focu…

Dissecting VUL

Some people still ask the question whether VUL is a good investment and I had already written my view about it. Here's a detailed explanation why for me it's not an investment:

1) They say it's a 2-in-1 product (insurance + investment)

Let's review the product. 2-in-1 meaning death benefit plus riders (accidental benefit, critical illness etc.) + investment (mutual funds which can be withdrawn or borrowed so it's a living benefit).

However,the policy will lapse once the fund value (investment) is insufficient to pay for the charges. Yes, you read that right. That's why some people complain about those who have limited pay VULs (5, 10, 20 years to pay) why do they have to pay again for additional premiums.

With that, is it really a 2-in-1 product? Well, I think it depends on what you want to achieve.

2) Fees! Fees! Fees!

Agents/advisors usually don't discuss this matter. Didn't you know that there are 3-4 charges in a VUL.

a) Premium Charge - deducted …

Surviving a Sandwich Generation

Image
A 'sandwich' is a food where two or more pieces of bread serve as a wrapper for another food type (wikipedia).

So when you hear the word 'sandwich generation', it means that you are a middle-aged individual (30's-40's) who cares or supports not only your children but also your parents. So it looks like this:


There have been debates about this topic whether children are obliged to support their parents. It was even asked in the Bb. Pilipinas Q&A and the contestant herself seemed confused on what to answer. She first said No then changed her answer to Yes without explaining why.

I am in a sandwich generation. It was easy at first when I was single but now that I have a family to take care of, sometimes I do not know anymore what to do especially when the problems are continuous. It's draining me not only financially but also emotionally. However, I am surviving this generation by:

1) Paying Myself First

Since I know how to budget, I make sure that I set…

Book Depository