Time flies so fast that the first quarter of 2019 is about to end. How are your #financialgoals so far?
Maybe some of you are already done building up their emergency funds and now contemplating what investment to take on. Whether you’re on your 20s or whatever age you’re currently in, investing your money is one of the most important things you should do during your working years. And the earlier you start doing it, the better as you can expect more funds in the future.
Below are some of the best investments you can get as early as possible to maximize your hard earned money. Find out what investment would suit your priorities and goals in life may it be for short term or long term.
Learning new things and skills should never stop after graduating from college. Investing your money to buy motivational books or attending seminars and workshops are some of the best investment you can do to yourself. In this way, you gain not only new skills and knowledge but also the confidence to get further out of your comfort zone. And as a result, you get high paying job promotions or offers which will serve as your return on investment. Isn’t that great? 🙂
2. Life and Health Insurance
You are your greatest asset that needs to be protected against uncertainties like sickness, accident or disability to avoid financial loss. Insurance is the best investment to acquire during the early 20s or 30s. You can have affordable premiums and comprehensive benefits at this age. Application for life and health insurance could also be hassle-free since this is the healthiest peak of our lives so fewer requirements are needed to be submitted.
As the world continues to evolve, so as in the insurance industry too. Today, Variable Universal Life (VUL) insurance plans are what most people get as it offers insurance and investment benefit. So how does it work?
VUL provides life insurance coverage in case of untimely death, and critical illness, accident, disability and hospitalization benefits which are in the options of the person applying for insurance to attach them to the plan. More importantly, a part of your premium is automatically used to buy different securities that can give you relatively high returns in the long term.
To get an in-depth discussion of this, you can reach out to a Financial Advisor which is licensed to offer this kind of plans.
Related Article: VUL FAQS: Other Things You Need To Know Before Getting a VUL Plan
If you’re a conservative investor that can tolerate minimal risk in investing, bonds might be the best investment for you. According to Investopedia, a bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). This type of investment is considered low risk and you earn here by interest.
Recently, the Bureau of Treasury issued Retail Treasury Bonds (RTBs) that offer a 6.25% return after 5 years. You can avail it thru banks that offer RTB or inquire directly from the treasury. What’s enticing here is that you can start investing in these bonds for only Php 5,000. Definitely a good deal!
If you want to know more about availing RTBs, click here.
4. Mutual Fund/UITF
Mutual Fund and Unit Investment Trust Fund (UITF) are both pooled investment vehicles that are managed by professional investment managers. The amount invested by various people is combined to put them in a diversified portfolio of securities.
In mutual funds, you buy shares of the company making you a shareholder and giving you the right to nominate and vote for their own Board of Directors. In UITF, you buy units of participation from a Trust Agreement that represent your proportionate share in the total value of the fund. Unlike in mutual funds, you do not own any particular asset from the company in UITF and voting rights are also not available.
These two might be the best investment for you if you do not have the time to study, trade, and manage your own portfolio in the stock market. You can start investing as low as Php 1,000 in mutual funds, and Php 10,000 in UITF. Note that you can only open an account for mutual funds to a licensed mutual fund representative and UITF to a bank’s Trust representative.
Stocks are securities issued by different corporations in the form of shares which represent ownership and rights of the investors. This particular investment requires a lot of knowledge and enough skills on how it works because you are your own portfolio manager here. If the stocks you bought made a good market performance giving you capital gains, then you own it all. Otherwise, you also bear your own portfolio losses.
In this information age, you can learn how to start investing in the stock market through tutorials, forums, workshops, and books. It’s already within your reach. The only thing that is missing is you taking action. 🙂
I once attended a Free Stock Market Seminar organized by COL Financial. I already have a little knowledge of how it works since I started investing in mutual funds first. But the seminar is still very useful and helpful to get in-depth information about stocks. So right then and there, I already opened an account after the seminar for only Php 1,000. That’s a good start, right? 😉
6. Government Investment Programs
Our Philippine government is also taking their necessary steps so every Filipino people can start investing. PAG-IBIG MP2 and SSS P.E.S.O. Fund are both voluntary savings programs of the government for their members which you might consider as your best investment to start with this 2019.
PAG-IBIG MP2 earns you higher dividends than the regular PAG-IBIG Savings Programs which are derived from no less than 70% of the PAG-IBIG Fund’s annual net income. Take note, it’s tax-free! For as low as Php 500, you can start saving in this program with no limit. You may also opt to do a one-time savings. See reference here: PAG-IBIG MP2
On the other hand, SSS Personal Equity and Savings Option (P.E.S.O.) Fund program also provides tax-free earnings and benefits. Your contribution here will be placed in sovereign guaranteed investments. Members are allowed to contribute a maximum amount of Php 100,000 per year and a minimum amount of Php 1,000 per contribution. See reference here: SSS P.E.S.O. Fund
Like in the stock market, Foreign Exchange (ForEx) also needs a deep understanding of how it works. In ForEx market, it allows you to buy and sell currencies and currency exchange is very important in trading and businesses worldwide. This is the reason why this market is the largest, most liquid financial market in the world.
You can earn from 0 to 100 in this particular investment but can also lose 100 to 0 in an instant. That’s how risky this investment is.
If you are interested and you think this is the best investment you can start with this 2019, you can start by opening a demo account. This will allow you to use fictional money to trade forex under real market conditions. As a result, you can also experience fictional gains or losses making you more confident when you already start trading your own money to do forex.
In order for a business to succeed, you have to solve a problem. Your business should be a solutions provider so this can earn you passive income in the long term. You can start for as low as Php 20 as your capital to as high as millions depending on what business you want to put up.
Some businesses are able to create a new market but not all can do this. The good news here is you can already start a business thru franchising where you can be a part of an established brand and market. The Global Filipino Investors had their online webinar about Franchising 101 which already started on March 09 and will have their second part on March 13. This could be helpful if you’re thinking of franchising a business this year.
9. Real Estate
The last investment vehicle I’ll share with you is investing in Real Estate. You buy properties and make a profit out of it either thru rental or reselling once its value has gone up. Some investors may find it more complicated compared to stock and forex investments. But I have known millennials like me who love investing in real estate and make a profit from them.
You can start by looking at foreclosed properties offered by PAG-IBIG or banks. Do your diligent research about the property’s location, places near your target property, its developers (if applicable), charges, and etc. before investing your money. Take note that this particular investment might require you to have at least Php 100,000 capital depending on the property itself. It might also require you to wait for few years before you realized your gain.
It’s good to know that these investment vehicles are being made and readily available for every Filipino members. They are already within our reach and would really depend on how badly we want to take action and make our futures be #Brighter. Have you chosen what investment to get this year? Share your thoughts below! I would love to hear them all. 😀
Christine Caranyagan is a Certified Investment Solicitor (CIS), Associate Wealth Planner (AWP), Estate Planner (AEPP), and Agency Leader of the Philippines (AALP). She’s a 2019-2020 Macaulay Club Awardee, and a 5x Medallion Qualifier as a Licensed Financial Advisor.
Her mission is to help fellow Filipino people achieve lifetime financial security & healthier lives.
If you want to learn more about financial planning, you can contact her thru her personal contact number 0935 7368 619, or send her a message here.