To "Buffet or Not To Buffet" What is Best For Us?

In my latest blog on http://makemoneybyinvesting.blogspot.com I quoted a blog I had read about the validity of the "Buffet Method of Investing". I also talked about the latest strategy of Bro Bo which combines the proven methodology of Money Cost Averaging and the aggressive way of Day Trading.

We can take the best of these two worlds and combine them together. But one thing is certain, we must ensure that in any of these two or combination of both, we must ensure we get all pertinent information on the trends of what we are investing. If the stock pick you have is trading well within the boundaries of the max-max and min-min or what connect the most number of maximum share values for max-max and the minimum share values for min-min or in technical terms the thresholds, then this is a good candidate for Money Cost Averaging. Otherwise, it is good for Day Trading. When to get in and out, requires you to monitor status so that you can watch and see the trends which will be the basis for your decision to buy or sell.

Well, if you don't have the technical know-how, nor the time, go for the proven method. Better yet, just invest on Mutual Funds and let the Fund Managers do the monitoring , analysis and movements of your positions.

If you are into Mutual Funds, you just need to consistently invest. In other words do the "Buffet Method" of not timing the market, but just be disciplined in your investing.

Need more guidance? Just email me at richbenj.santiago@gmail.com

God bless!

Financial Security: What We Really Ought To Know!

Achieving Financial Security is what everyone would like to achieve. But what exactly does it mean? What do we really need to know and do?

So let me try to simplify this to be easily understood and executed. Financial Security is achieved when your passive income is more than what you need to support your basic needs which includes food, clothing, and shelter, plus your health care needs such as medications, regular check ups, dental care, and hospitalization. On top of this, your passive income must also be enough to pay up cost of education for yourself and or your children.

You must ensure you have enough funds to face up with any emergencies in life which includes home repair, car repair, and many other needs. Normally, we can allocate about 3-5 months of your monthly expenses.

To complete your preparations, you need to make sure you have insurance protection for yourself and for your properties. You must have yourself and your assets or investments such as your home , car, and the contents of your home including your jewelries, furniture, and valuable appliances insured against natural calamities, and burglary. It is highly recommended that we get insurance for acts of nature including earthquake, and flooding especially here in the Philippines where we get a lot of typhoon and earthquake visits every year. Get some insurance against burglary in case your area is high risk for unauthorized intrusion, or in simple terms, if there were any risk of break-in.

Passive Income is what we need to measure versus our needs and versus our active income. Passive Income are income you generate such as Royalty Income, Investment Returns, Rental Income, Management Overrides, and any other source which you are receiving without actually working for it.

You can only achieve Financial Security if your source of income is secured. And the only way you can secure your income is if it is passive income.

If you want to get coached how to achieve Financial Security, just send me an email.

God bless us!

What Investment Instrument Fights The Habit of Spending?

The habit of spending can only be countered by habit of saving and investing. Habits are formed by thoughts or beliefs and ways. Since childhood, we are already trained to be spenders. 

To be able to get out of this habit, we need to learn new habit of saving and investing. Final fix will be to be able to achieve the DISCIPLINE to Save and Invest. There are many instruments to use to use with their corresponding advantages and disadvantages.

Putting money in your savings account requires you to have discipline. You can be successful depending on how strong your emotional why or why you want to save and invest. But, money in the bank is easy to pull out and therefore is a weak instrument to use to create the habit and discipline. Furthermore, the interest rates are less than the inflation rate. Savings deposits earn less than 0.5% and are taxable while inflation rates are now at about 4% and higher.

Putting your money into stocks or mutual funds are your other options. These requires not just discipline but know-how on the technicalities and analysis of what stocks/equities or companies to buy shares from. The discipline factor here is also at great test as this instruments requires you to decide for yourself when and how much you will invest. The rate of returns are high as the risk of downtrends are also high. Moreover, the temptation to take out investments is always there too.

Another instrument you can get into are cooperative shares that are in salary deduction mode. This will ensure that you are forced to save and therefore eases out the requirement to discipline yourself. However, cooperatives normally do not have high yields or interest earnings . And just like investments that are placed on banks and stocks, normally, this is also easily "withdrawable" in the form of coop loans and coop withdrawals.

The best instrument you can get into is something that has due dates, something that you cannot withdraw until it matures, and something that is tax free and has rates of 8-10%. In our company there is an instrument that we have that you can have for as low as `3000 per month (depends on your age and needs) and you save and invest for just 7 years and you have fringe benefits of free annual PE, 2x/year dental care (cleaning and extraction), and has waiver of installments if disabled or worse case dies. It is really very easy to achieve the habit of saving this way as the discipline is built in. And the best thing about this instrument is that , no matter what happens, you can really complete your 7 year saving and investing time frame. This will ensure your 7 years of practice will develop the new habit of saving and investing and will ensure your success.

I pity those who really has all the intention to save and invest but do not make it consistently since they either use the wrong instrument, nor does not acquire the habit or discipline to save and invest. . Check this out to see what fits you http://6020hf.imgcorp.com/quote/kaiser

If you want to learn more about all these and be coached, just feel free to contact me.

Happy investing....

God bless !