I Started Investing. I Started Money Gizmo.

Welcome to my new blog! I created this blog to keep track of everything I learn about money and finances. I want to be a millionaire just like most of us. Just like most of people around the globe, I came from a poor family and dreaming of having a better life someday. I want to have what they call "financial freedom". I want to be of help to my family and of course, to those in need.

Today, I will be starting two things that most people of my age thought less about - insurance and investment They say that only those who have dependents should get insurance particularly life insurance.

But for me, even if you don't have your own family yet, your dependent would be your immediate family, right? Your parents and siblings depends on you especially if you are a bread-winner.

But why get an insurance? For me, it would answer the following questions Who will pay the fees in the hospital when you encounter an accident? Who will pay for your burial? Who will provide income to your family when you're gone?

Money Triangle

Referring to the illustration above, the lower portion refers to 'your risks' and shows that to build wealth you must have a strong foundation to protect you from these 'risks'. Thus, one way to secure your wealth is through insurance.

Now, going to the second thing - investment. I know this is something that people of my age doesn't really have interest into. Some would say that they would invest at a later age - but this might be a wrong move. I am proud to say that I started early in preparing my retirement fund. A lot of us believes that putting money in the bank is the best thing to do.

Inflation

Why? Because of inflation. Your 1 million today won't have the same value five to ten years from now. Time deposit or special savings account may give you 4-5 percent annual interest.

But with inflation of 6-7 percent, your money is basically losing its value. There are many kinds of investment. I will be posting about some of them in this blog. For me, I will start with Mutual Funds. Personally, I treat my investments as long-term savings for now that I still thinking of where to use it at the moment.

Sun Life Financial

Later today, I will be meeting my Financial Advisor from Sun Life Financial Philippines. I will be availing two of their products - Sun Life Maxilink Prime and Sun Life Philippine Equity Fund. I got the Sun Life Maxilink Prime as my life insurance. It is actually a Variable Life Insurance where a part of your premium is invested. I don't actually treat this as my primary investment. The face value is PhP 350,000 doubled plus your gains via investment. My annual premium is ~PhP 18,000 which is pretty cheap since I started at age 23 and in a good state of health.

Investing in Sun Life Mutual Funds

I also got myself invested in mutual funds through Sun Life Philippine Equity Fund. Since this is an equity mutual fund, it is primarily invested in stocks which has the highest returns over the long run but have the greatest risk too. Initial investment is PhP 5,000 and I plan to add part of my salary every month to do cost averaging.

Starting early is one of the best tips I got from reading forums and blog post from several websites. Most of my friends and colleagues are happy with their savings accounts while some are satisfied living from paycheck to paycheck. I believe in delayed gratification and I am proud to say that I STARTED INVESTING!

Mark Hugh Neri

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