Showing posts with label Investment Tips. Show all posts
Showing posts with label Investment Tips. Show all posts

Start Investing as Early as You Can

About few weeks ago, I had a conversation with my friend as young as I am (read: turning 27 this year) and shared to her about investment ideas. I am glad that I encouraged her to invest now. But when we are about to end our meeting, she told me, “Jacqui, sana pala matagal na tayong nag-invest. Sana nalaman natin ito nung una tayong nagtrabaho.” Whoa. 

I already heard this many times including myself saying the exact words. I told her, “What matters most, you took the urgency to invest now. It’s not yet too late.” But for some, they chose to spend whatever they have now and will try to invest if they have excess money. 

Spending your money should be a wise decision, buy something that really gives you value. Something that appreciate in value. 



Let me tell you a story about two friends named Tim and Tammy. At age 22, Tim was earning P8,000 a month but after learning about the principle of saving 20% of his income, he decided to save P1,600 a month. A total of P20,000 a year. Being a financially wise man, he invested it in a place that gave him 12% interest per year. Tim saved P20,000 every year until he reached the age of 27. 

One day, he saw Tammy. The girl whom he has been dreaming about and they have the same birthday. Tim discovered that Tammy didn’t save, so he encouraged her to do what he was doing. So Tammy also started saving P20,000 a year at age 28, putting her money at the same place where Tim invested his—earning 12% interest a year. The two of them exactly saved the same amount for six years. Since Tim and Tammy worked as lay missionary in China and couldn’t saved anymore. 

At the age of 62, they came back to the Philippines for good. Tim and Tammy decided to get married and they thought they don’t have money. But they remembered they saved money years ago. So they marched to the office where they invested their money. Tammy was the first to inquire about her money, the guy in the computer said, “My records show that you have P4.8 million.” Tammy fainted. 

When she recovered, she told Tim, “You’ll probably have the same amount of money.” Tim asked the guy how much his money now. The guy said, “According to my records, you have P9.6 million.”  Tammy said, “That’s impossible. We put the same amount of money. Why is his money double that of mine?”

The answer came, “Because Tim saved six years before you did.”And so Tim and Tammy had a grand wedding and lived happily ever after.

Remember what Albert Einstein said about the greatest magic in the world? Daily compounded interest worked day and night for Tim and Tammy.

 Here’s the table of computations for Tim’s and Tammy’s investments:


             What’s the lesson of this story: 
             Here it is: Don’t get married at 62. I’m kidding.
             There are actually two very important lessons in this story:
             Lesson # 1: The earlier you save, the better.
             Lesson # 2: You need to know where to invest your savings. 

Banks are good places to put your emergency funds and business funds. But never put your retirement and long-term savings there. It won’t work.

I always believe that is not about how much money you make but how much you save and invest that matters most. I salute my sister, Jenny and her friend who started to invest at a very young age of 20. And also, some of my classmates, friends and loved ones, who are now in charge of their finances. Kudos to all of us! 

How about you, when will you be in charge of your finances?

Don’t wait when you have excess money. Invest now because your greatest ally is time.


*Some informations were taken from Bro. Bo Sanchez’s 8 Secrets of the Truly Rich. I just changed the names.

photo: source

1 Million In 23 Years? Start Investing 1k a Month Now!

Yes, you read the title right. You can become a self-made millionaire not only through your hard work and also how hard your money will work for you.

Life is all about choices. 

When you want to go somewhere else, like for instance in Mindoro (this is my Grandma’s favorite place here), you have the option of taking a bus and ship to go there that will take you approximately 12 hours. But if you are in a hurry, you can simply ride a plane that will bring you to Mindoro for only 45 minutes. Why I am saying this? How related is this in growing money?

If you have different choices in going to your favorite destination, same applies to growing your money. There are a lot of “investment vehicles” available and all you have to do is to choose which of them will make you achieve your financial goals.

One financial goal you may think of is “How to make a million?” For example, you have finally decided to start investing now. Every month, you consistently save 1k and put it in an investment vehicle that gives an average of 10% a year. It will only take 23 years for you to have a million pesos. 





You might asked, “Jacqui, where in the world can my savings become a million?” Simply because of the power of compounding. It was Albert Einstein who said, “the greatest magic in the world is daily compounded interest”. Your money’s interest earns interest still earns interest and so on. Just what I mentioned in my previous article—because money doesn’t sleep, take on leave and it grows over time. 

You can just imagine if you put your savings in the bank which gives you 1% on regular accounts and 4% on time deposit with taxes not yet deducted, your money will lose its value.

The table below shows the “comparative study” between the three types of investment vehicles with their corresponding annual interest rates. Imagining yourself consistently saving 1k a month for 25 years. Your money will grow like these (in pesos):


 But what if you can save 2k or even 5k a month? You will be amazed on how much your money can grow! 

Your next question may be like this, “How can I invest in mutual funds?” You can visit, http://www.pifa.com.ph for a complete listing of mutual funds in the country. Or contact:

Jacqui Noynay (Licensed Mutual Funds Representative)
Mobile: 0933-2014898
Email: jacquinoynay@gmail.com

photo: source



Don’t Put Your Retirement Fund in the Bank

Let me share with you one of my favorite topics in Bro. Bo Sanchez’s book, “8 Secrets of theTruly Rich”. It inspires me to learn more about Financial Education since I have worked with banks before but acquired no knowledge about how money works. According to my financial mentor Bro. Bo, when it comes to money, there are really only three kinds of people in this world: (1) Spender, (2) Saver, and (3) Investor. And sadly, only one of these three will win in the money game. 

Which one are you?

The Story of Three Salesmen
James, Jim and John were salesmen. After closing a huge deal, their company gave each of them a commission check worth P100,00. But they used their money in very different ways and plans. Because James was a Spender, Jim was a Saver, and John was an Investor.

James was the Spender. When he received his check and encashed it, he invited all his friends and went straight to a very high-end restaurant. He bought himself an Ipad, fashionable clothes and designer shoes. He even took a holiday trip to Boracay. After a few days, James had nothing left from the P100,000 commission but with lots of credit card debts.

Jim was the Saver. He went straight to the bank with his P100,000 commission check. He approached bank teller and asked, “How much interest will you give me?” The bank teller suggested putting it at a time deposit account with five percent interest a year. After thirty-six years, he was 65 years old. When he got his retirement package at age 60, he only spent it in five years and was now totally broke.


Banks are good for our emergency funds and for business purposes but not for our retirement funds

He visited the bank, approached the manager and asked, “How much my money now after investing it for 36 long years?” The manager said, “Sir, you now have P400,000.” Jim was shocked but the manager insisted that their records show no mistake.

John was the Investor and he goes straight to where the bank puts their money. In other words, he bypasses the bank. After researching about mutual funds, he visited the best mutual funds company in the Philippines. He said, “Miss, I’ve never done this before but I want to invest in mutual funds. How much interest will you give me?”

The lady said, “Unlike banks, we don’t guarantee our interest rates. They depend on the ups and downs of the market.”

“Isn’t that scary?” John asked.

“Sir, It is—if you plan to invest for only a short period of time. But if you plan to invest long term and ‘forget’ about it, it won’t be scary. Like for the past years, we’ve given our investors an average of nine percent to 12 percent growth.”

“Yes, I want to invest for long term but I don’t have millions.” The lady laughed. “Sir, the minimum is P5,000.” So John invested his P100,000.

After thirty-six years, at the age of 65, John planned to get his investment back. So he walked into the same mutual fund company and asked the same lady, “How did my investment go the past 36 years?”

She said, “To be honest, there were bad years and good years. There were years your money earned only seven percent but there were great years when your money earned 20 percent and more. In the past 36 years, you averaged 12 percent a year.”

“Is that good?” John asked.

“According to my records,” she smiled, “your original P100,000 has now grown to P6.4 million. Now you tell me if that is good.”

“That’s very good!” John was very happy about his investment.

I have learned that in the Philippines, less than one percent of Filipinos invest in mutual funds, while 99 percent invest in banks. But in America today, 70 percent already invest in mutual funds, while 30 percent invest in banks only.

Banks are good for our emergency funds and for business purposes but not for our retirement funds. They are using our money and making the most interest out of it.

Considering the fact that they are investing P100,000 in other investment vehicles like mutual funds which will give them P6.4 million after 36 years. But they only give us P400,000 and that makes them P6 million richer because of our own money.

Your next question may be like this, “How can I invest in mutual funds?” You can visit, http://www.pifa.com.ph/ for a complete listing of mutual funds in the country. Or contact me:

Jacqui Noynay (Licensed Mutual Funds Representative)
Mobile: 0933-2014898
Email: jacquinoynay@gmail.com

When is the right time to save and invest?



Last week, I met a man named Mang Ramon (not his real name) in his late sixties and maintenance personnel in a private school in Quezon City. I had a chance to interview him as I waited for the school directress to whom I have a presentation with. 

Jacqui: Hi Mang Ramon! At your age, why are you still working? Don’t you have plans of enjoying what you have saved and invested early in your life?


Mang Ramon: Jacqui, I wish I could but I made the biggest mistake of my life for not preparing for my own future. That’s why until now I am working and I don’t know when this going to end.

Jacqui: But I heard that you had a good paying job that you have worked for years, Mang Ramon. And how come you made what you called “biggest mistake” in your life?

Mang Ramon: Because I never invested. I only saved a little but it’s gone now. Yes, it’s true that I have worked for a good company with a good pay before. During my early working years, I always say to myself, “I can’t invest now. I’m just starting in my work and in life. I’m entitled to have fun while I’m young and there’s plenty of time. I don’t need to hurry.” But when I got married and got kids, this is the most expensive period of a man’s life—pay expenses and kids’ tuition fees. I can’t even save a peso. The retirement fund that I received from my company is not enough to pay for our daily expenses now. 

I’m thankful to my kids because they are kind to give me money but I don’t want to bother them that’s why I am still working. And I can’t buy my own medicines. Jacqui, I wish I had started investing 40 years ago when my savings are little but it’s too late now. I am hoping that my story will save other people from making the same biggest mistake of my life.

Jacqui: Thank you, Mang Ramon for sharing your story with me. I can still help you to invest now. It’s better late than never.

The right time to save and invest is now as you commit yourself to invest in your future before your present.