Where Should I Invest My Money? | On Insurance Plans and Investments

Don’t worry. I’m not here to sell you products or services. I’m not even going to claim I’m a financial expert. I’m just here writing my views and personal experience on investments. To give you a point of view from a real person’s perspective, not from sales.

There’s a lot of things I regret doing, and not doing during my early 20’s. One of which is not saving as much as I should. To be honest during my early years of working I had:

• zero savings
• negative credit
• poor budget decisions

I shopped like there’s no tomorrow. Maxed out my credit cards. I purchased things I wanted but never really need. Clothes, shoes, bags, gadgets, cosmetics. 

I found myself drowning and debt. I almost didn’t have enough money to buy my son’s essentials. Only to be rescued by my aunt (my guardian angel). It was a wakeup call. This is also the reason why I’m writing this right now.  

Where Should You Invest Your Money?

Philippine Stock Market

The Philippine Stock Exchange (PSE) is the corporation that governs our local stock market. People buy or invest in stocks to benefit from a company’s tremendous value potential over time. Once you buy or invest in a stock you now become a part owner or a shareholder of that particular corporation.

History has proven that investing in quality stocks can provide greater returns than most investment instruments. This offers you the best chance in achieving your financial goals and gives you the ability to later enjoy the benefits of your money working for you.

Related Post: How to Invest in the Philippine Stock Market for Beginners

Mutual Funds

If you’re not comfortable in studying stocks you can opt for mutual funds which offer fewer risks but also fewer rewards.

When you buy a mutual fund, your money is combined with the money from other investors and allows you to buy part of a pool of investments. A mutual fund holds a variety of investments which can make it easier for investors to diversify than through ownership of individual stocks or bonds. _{(source: getsmarteraboutmoney.ca)}

Properties

You need a huge sum of money or capital to be able to invest in properties. A minimum of for down payment. There’s also an option to loan from Pag-ibig Funds or Banks. A long-term plan with big rewards. Properties increase value every year. You can have it leased to get passive income. 

You have the options of getting a lot, a house and lot, or a condominium unit. From rural province, or the city.

Are Jewelries Good Investment?

No, jewellery is not a good investment, in general.

The gold, silver or precious stones may be worth something and possibly go up in value in later years. The jewellery itself will lose value after it is bought and worn. It is used. 

Precious stones and metals do not pay dividends and are subject to price fluctuation. _{(source: Quora)}

VUL

VUL is also known as Variable Life Insurance. I don’t have much knowledge on this part so I consulted who else but my trusted VUL Adviser, Kira Ramirez. This is not sponsored but written from my own free will because I’ve been with AXA for almost 3 years now and I’m happy with their service.

1. Why should we get a VUL?

Variable Universal Life Insurance or VUL is an effective way for you to create wealth while protecting your investment. Aside from the good yield that AXA offers, VUL gives additional protection as in the event of an untimely death your family receives a return on your investment that is at least 5x your annual investment, premium, or savings.

2. What’s the advantage of getting a VUL in AXA vs other companies?

AXA is in partnership with Metrobank, the best and most awarded Fund Manager in the country. In terms of making your money grow, we immediately put in 65% of your premium in the first year. We also have a commitment to Responsible Investment and was the first global insurance firm to divest from coal and coal-based energy.

3. What’s the best age to start?

The best age is to start the moment you begin working. Time is the best friend of savings and investment, and so the earlier you start, the higher the yield. Also, starting early helps you build the habit of saving. At the onset, it may look like you are “suffering” by setting aside a portion of your salary (which you can either spend on new clothes, food, or travel), but as you get used to it it becomes automatic. Before you know it, you’ve been saving for 10-20 years and the amount has grown exponentially! You can use your saved money for retirement, to open up a business, study abroad, travel, etc.; all this because your younger self had the foresight to start saving at an early age.

To be honest I deeply regret starting late in savings and investments. But better late than never eh? How about you? How do you manage your finances lately?