First, Truly Rich Club is in promo now until today only (Nov 29).
If you join the TrulyRichClub until today, you will get Bo Sanchez’ latest book (hard copy), “8 Habits of the Happy Millionaire“, for FREE! You will also get a chance to win a coffee date with him or the TrulyRichClub Abundance Kit. >>Click here now as Truly RIch Club Limited Promo Ends today
Second, As you probably know, the Philippine stock market has not been really this year (and last year actually).
We are actually in the negative area year-to-date.
Which means if you invested at the start of the year, you’ll be at a loss now. (Talo ka pa!)
Which leads me to two IMPORTANT lessons I wanna share with you now.
Number 1: Don’t invest all your savings in the stock market
You don’t wan to put all your savings in the stock market because it will make you financially vulnerable to market movements.
Some people make this big mistake and the next thing they know, their investment performed poorly or worse than expected.
Why is it important NOT to put your entire savings to the stock market?
By investing only a portion of your savings, you protect yourself from possible impact of an investment gone bad. A practical rule of thumb is to invest (100-age) percent of your savings. Note that this is percentage of your SAVINGS (not of your income).
That means for example, if you’re at your 30’s. you can invest 70% of your savings to stocks/mutual funds and place the remaining 30% somewhere else (say as a fund for your travel, or learning investment, or additional emergency fund savings, or for your downpayment to your big ticket items).
At age 60’s, the you can invest 40% to stocks. ( I’d actually advise lower).
This is only a rule of thumb, and obviously open to adjustments based on your personal situation.
As you will notice, as you get older and older, you should become more and more less invested in the stock market in accordance with your financial goals. You do this because you are aware that stock market can be one risky place to invest as your time horizon gets shorter.
And that leads me to my second point:
Number 2: Give your invested money a time to grow
For the stock market, I’d say invest only money you won’t need in the next five to seven years.
I got this from checking the historical performance of our PSE index in the last few decades.
Seven years looks safe, but of course giving it more time, say up to ten years, will give you more peace.
This also means, you should not invest in the stock market any money you’ll need less than 5-7 years from now. They are better off in time deposits or other places.
Of course you can minimize the risks by doing minor changes, say by investing in mutual fund.
For mutual fund, five years horizon minimum is a good rule of thumb.
If you make sure that you observe the two rules above, Im pretty sure you’ll always have a good night sleep while your money grows through time.
Hope this gives you good reminders.
Now…on to my next agenda..
Wanna make a kid happy this Christmas?
We’ll have gift-giving activity this morning of Dec 17 at QC Circle..
I invite you to share your blessing this year and sponsor and make a kid happy!
(You can also join a part of volunteers and meet other investors!)
For more details how to sponsor a kid (you can sponsor for as low as 500 only),
check details here >> Christmas 2016 Giving Back: Make a kid happy.
This has been really a great year for me, and even with lots of challenges that came, i choose to be grateful for everything that 2016 gave me. I hope you are thankful too.
From the bottom of my hears, I say Merry Christmas ând God bless your 2017!
PS: Get Bo Sanchez’ new book “8 Habits of the Happy Millionaire” if you join today.
>>Click here now as Truly RIch Club Limited Promo Ends today
PS2: Help us make a kid happy this Christmas!
Sponsor a kid just 500! Check more details here
>> Christmas 2016 Giving Back: Make a kid happy.
Author: Omeng Tawid
Have you always felt as if your money is never enough?
Are you one of those people who live from paycheck to paycheck?
Have you been working so hard, but earning so little?
Then join this exciting learning event from one of my mentors!
And the best thing is you can join this wherever you are.
Yep, this will be an online 4-hr seminar session full of practical lessons on improving your financial life.
Online access is only Php 100.00. Such a small price for a huge learning experience.
I don’t want to waste your time so you go straight here for sign-up.
Did you like this article?Don't miss out on my new posts. Subscribe to Smart Pinoy Investor by email and get my latest tips & updates! Click HERE! (it's FREE)
Avoid losing money and become a smarter investor!
Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!