Monthly Archives: October 2015

Financial Advisors Congress 2015 Part 2: Jonathan Ravelas and the economy of the Philippines

Jonathan Ravelas is the First Vice president and Chief Market Strategist of BDO Unibank of the Philippines
He educated everyone about the economy of the Philippines today and related it to the upcoming election next year. He also cited the relevance of it in terms of our economic growth. All statements came from the speaker.
I definitely agree to one of the professor when he said  “Whoever becomes the next president, our economy will still continuously grow”. – Bernie Villegas

“Develop markets like the US, Europe and Japan are struggling and having an under growth of 1-2%, while emerging markets like the Philippines is growing with 5-6%”.

“Before China is growing 10-14% but this won’t happen for such a long time and you are currently seeing them decelerating to 5-6%”.

“World growth is growing between 3-3.5% a year and we are expecting this within the next 2 years, but this is the new normal.  Before financial crisis our world growth is 4-5%”.
“Major economies (US, Europe and Japan) should grow 1-2% near the world growth”.
“Philippines have a stellar performance of growth since 2010”.

“There’s so much money right now in the economy today. The average yield for the investors should be higher than inflation rate, minimum return average 5yr inflation plus 1.5 % which represents real interest rates.   It is equal to 5.5%”.

“The Philippine peso performed very well against its peers in South East Asia, their currency depreciated 20% while Philippines lost 5% only”

“GDP is the speedometer of the country today and we are growing at least 5-6%”.

“Our growing population is only 2%. Thanks to the evolution of mobile phone because we don’t hold our partners anymore. 150x is the average times you hold your phone compare to your partner that’s only 10x average”.

“Inflation has gone down to 0.4% last September”.

“Election means there will be so much spending and that will increase inflation”.

“We noticed that weaker peso will lead you to Super Malls. Bigger peso will boost the economy”.

“Rising interest rates is just around the corner”.

“The Philippines is the sunniest economy in Asia since 2010”.

“BPO is creating a lot of activities in the economy”.

“The proliferation of call centers will create communities and will move the growth in Visayas and Mindanao. The real estate, malls and infrastructures are moving in the Visayas and Mindanao region. Luzon is contributing 60% growth”.

“There’s a lot of growing population and middle class that will create consumer spending”.

“Kapag malakas ang piso our malls have 1,510 people na naglalakad in SM. Pag mahina piso marami asa SM 1572 people”.

“The govt invested into the K12 program, the first graduate of K12 soon will be the ideal workforce. Over the next 2-3 years sila na ang magbibigay ng demand and will get job asap”.

“There are 8-10millions OFW’s that sends 23 billion a year, while 1.3 million full time employees the IT-BPO also known as call center industry delivers 16-17 billion in the economy”.

“The Social cost of the family lessens the risk of crime, staying here in the Philippines will create jobs and boost the economy because all your spending is here”.

“Food retail and constructions should be really good investments”.

“Majority of the stock market peaks after 36 months of the president”.

“The pillars of our growth are because of these: Growing population, growing middle class, Strong IT-BPO industry and OFW remittances”.

“The best time to enter the market is now. Correction is the best time”.

“As long as there is a smooth transition of power it doesn’t matter. Appreciate the fundamentals food retail and construction invest more and pray harder”.

“We were the Bahamas when General Luna was still alive. We are moving towards becoming a leader in the industry. Filipinos are long term investors, Philippines are like a bamboo coz it sways and flexible every time”.

“Think about the President that you will vote. He/she should be doing 3 things like a CEO. He needs to think about the overall health of the company and shareholders, the growth of the company and sustainability”.

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Filed under Economics, Financial Advisors Congress, Speakers

Financial Advisors congress 2015 Part 1. Financial vehicle to all Filipinos from Marvin Fausto



Financial Advisors congress was brought to us by the Registered financial planning institute of the Philippines, the biggest event gathering of financial advisors in the Philippines. This is the first part of the nine series of my key takeaways from different speakers.   
The road to being financially savvy never stops and the best is yet to come in the financial industry. While the mighty economies are falling, the emerging tiger like the  Philippine is continuously growing than ever before. What do you do while these things are happening and what do you advice to your prospective and existing clients? As a financial advisor and evangelist I’ve seen a lot of companies innovating their products to gain loyalties when it comes to their brand, but I believe that  this is going to help everyone in reaching financial freedom to all Filipinos. COL Financial made a strong move when they took the legendary Chief Investment Officer Marvin Fausto under their wings.  These are my take home nuggets from the men behind the new program.
Creation of Funds supermarket – The Mutual fund market today in the Philippines is consist of  233 billion pesos with 290 thousand investors as of 2014. The one stop shop concept  for best mutual fund companies in the Philippines will solve the issues of inconvenience to those Filipino investors especially for those people who have tons of funds and hate banks because of the low return. The good part  on your end is you don’t need  agents anymore to sell you this funds. You can easily open an account and pick funds that suits your needs and risk profile.  Disrupting the old process wherein you need to deal with agents before and replacing it with an automation will cut cost effort and time. It is also  the best way how to think ahead among the competition that’s why they are bringing this to help you simplify the complex system of investing. Clients will experience adapting to digital world with no front end fees. In conclusion, financial literacy with a really good vehicle will bring you to the advantage. 
Col financial made an outstanding system to all potential client with great partnerships from the biggest  investment houses in financial industry today. The middle class society is growing with the help of IT- BPO industry and remittances from our OFW’s but the target market of COL is to also include those belong from  the low income bracket. You got no excuses now to save and invest in equities, bonds, money market fund because  you get an efficient  tool as low as 5000php. You can practice peso cost averaging and compounding interest with one goal; financial freedom. It also means more money invested leads to more projects, more business running  end goal is economy rising. I recommend you to continuously plan and ride the wave, begin with the end of mind so you can win long term.
Non stop shop for everyone –  As we increases our financial I.Q.s and discipline in managing our finances, you want a guide or a compass in the country today. There’s a recent study conducted that by attending financial seminars only 6% of them improve their behavior towards finances. This was revealed to us by (Source: Fernandez lynch Neyemete) so whenever you received your salary make it to a point you buy money regularly However, with an efficient tool and strategic planning, risk mitigation will be highly effective towards a strong solid return. 
Effective dashboard – The COL program will have a very comprehensive table of data. It gives you insights on  where and how to invest in a specific funds. You can base your investment decisions base on the following:

  1.  Risk rating  – This range from 1 as highly conservative to 8 for highly aggressive investors. The risk/reward trade off will help you finding your investments that will suit your risk profile immediately.
  2.    Historical Returns since inception – You want to figure out the historical performance of the funds from YTD, 1yr, 3yrs and 5 yrs. This will also give you the highlights and low lights of the funds.
  3.  Standard deviation volatility  For example, a volatile stock (speculative companies( will have a high standard deviation while the deviation of a stable blue chip stock such as Jollibee and Ayala Corp  will be lower.
  4.  Sharpe ratio Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return. Investors should watch for this specially If you like to see a better return.
  5.  Expense ratio cost of operating fund – We are not only talking about the management fees but we also include the annual fees   recordkeeping, custodial services, taxes, legal expenses, and accounting and auditing fees and marketing. 
  6.  Expert opinion in a  fund fact sheets – This will be updated everyday since Marvin is the founder of the  Fund managers association of the Philippines he will see to it that he will give us insights how they strategize from Fund manager experience.

Our country is moving into a fast phase growth, now that an effective tool is being provided again to us I would recommend every savers, spenders, frugalistic people and  investors to maximize this technology. There’s always a better way how to invest your hard earned money but you need a system to drive growth.
For more information: Col financial

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Filed under Financial Advice, Financial Advisors Congress, Financial Products

13 Money management quotes about debt

debt

 
Debt is not a sin but stay away from it and you’ll be in a safer place . That is how my relatives shaped my thinking towards debt. You should hate yourself being in debt since you want to be free. Financial freedom should be your priority because you will be in a state of liberty to do anything that you want. When you can’t sleep because you owe someone that means you are  ahead from other people. Here are some of the quotes that can help you change your mindset towards debt.
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David Isaiah Angway Is a Financial Evangelist

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Filed under Bad Debt, Behavioral Finance, Debt management, Debt Perspective, Freedom From Debt

Rewire your retirement

Retirementis a phase of life regardless of one’s age. Finally, you will have the freedom and the time of your life to work and let your vocation be a vacation. You will have the perks and choices to relax or make yourself productive again. It could be something you really wanted to do without   pressure. The exciting part is you will have now the opportunity and time to make the next chapter of your life more worthwhile. One thing you should not forget to do so before you retire is to make sure that your financial and social well-being are well taken care of .The question is, how will you start?

1.       Reflect what you have done so far – In the Philippines as of 2015 our average lifespan for both men and women is 72.75 years old (Source: Life Expectancy).  Retirement means second life so every moment should never be wasted. Evaluate your past, your current status and be excited for tomorrow knowing your purpose. Psychological research says that these are critical components of positive changes in life.  Check your finances; ask yourself whether you have enoughto live for the next 20-30 years. When you don’t have enough funds be practical or seek help from a finance professional.  Look at your bucket lists. You have a new path to travel. Successful retirees are consistent dreamers and action takers. Pondering on everything can take you to the next level.
2.       Be more fruitful – Having so much time but no concrete plans is equivalent to fatal boredom. If you are 60 years old and below, you still got plenty of options to choose from. Kentucky Fried Chicken founder Colonel Sanders took a big leap of faith when he used his retirement income of $105 from Social Security to sell his secret chicken recipe. With an incredible work ethics he built an empire. A fast food chain that we patronize using the only resources he got. Start making your life exciting. Expand your horizon by going out from your comfort zone.
3.       Be a mentor – “The heights and golden years of your life’’. Your life’s experiences will be    the guiding light and a compass to those who are lostin the dark. Create a legacy that will leave an impression and an impact to the society. Philanthropy is an old way of giving back to the community but look at Tony Meloto, the founder of Gawad Kalinga taught us that business is not all about capitalism but you can make a better world through the modern form of giving which is social entrepreneurship.
4.       Travel and explore unfamiliar locations– A time to relax and unwind. If you had been stuck in a place for a long period of time travelling will increase your openness to new experiences.  This is ideal if you were able to save more money. Visit other places nearby will be more feasible if funds are not enough. The more you interact with other people and adapt to their practices will not only gives you fresh perspective but also makes you creative. Traveling can give you liberty to explore new heights. Treat yourself and have time for a little bit of luxury sometimes.
5.       Find a fitness group – Good health and enough energy to get things done daily is a reward. One of your core responsibilities while you are ageing is to sustain your body’s health and wellness. Zumba class at the gym or at home, kickboxing, swimming and high Intensive work outs will bring out the best of you. Choose an exercise or an activity that best suits you.   A famous evangelist once said, “When money is lost; nothing is lost, but when health is lost, something is lost”. Health is wealth as they say. You are not getting any younger. Try to join a club or a wellness and fitness program wherein professional coaches will train you.  It will help you get motivated and reach a goal that you are trying to achieve. Do it now before it is too late
 Start designing the second half of your life. Do not let your fears of retirement gobble you up. Give your life some dignity to retire. Build your wealth brick by brick and soon you will build a bridge that will sustain the life you dreamed of a long time ago. For those retirees, never let dull moments kill and destroy your precious time. Make the most of what you have and be prepared. “Aspire to inspire before you expire.” 


David Isaiah Angway Is a Financial Evangelist

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Filed under Behavioral Finance, Retirement