UITF: How do one get started?

When the going gets tough, it’s best if you’ve got yourself covered.

When you’re on your early teens towards your twenties, these investments aren’t much of a youngster’s concern back in the day but for someone who has always been wondering, wandering and curious on how my parents were able to send me to school, hand me allowance everyday and get to pay for all these miscellaneous fees, I was taught how to save at an early age and was able to experience that as much as how money may provide happiness — all these materialistic things are nothing but temporary however if you get to invest your money in right avenues, money can work for you.

For starters, here are few necessities one should invest on:

  1. Health Care
  2. Security & Savings Insurance
  3. Emergency Funds

Once you have already acquired those of which listed above; save few bucks for Unit Investment Funds and have your mid to long-term seeds of investment work for you in the long run.

What are UITFs?

Unit Investment Trust Funds (UITFs) are ready-made investments that allow the pooling of funds from different investors with similar investment objectives.  These funds are managed by professional fund managers and are invested in various financial instruments such as money market securities, bonds and equities, which are normally available to bigger investors only.

How do I get started?

First of all, I am not sponsored nor endorsing Banco de Oro as my funds are also diversified to other banks but for UITF’s, with the guide of my friends from OFW Usapang Piso group, I was able to smoothly open an investment with a minimum investment amount of Php 1,000

Here are the steps:

1. Have a BDO Savings or Checking Account. Make sure that it’s being funded for.

2. Ask for a UITF Sheet for assessment and check on the UITF Equity Fund.

3. Choose from the form on how many times in a month would you like to AUTODEBIT and remit to your UITF. You can choose either once a month on a specified indicated date (Php 1,000) or twice a month which equates to Php 2,000 on two different dates.

4.  Practice cost-averaging. It’s better to start slowly and small if you’re conservative. Once you have already completed the entire Php 10,000 investment, you will receive a certificate investment from BDO and you may review the Equity investment should you desire to pull-out or continue investing.

What is Php 1,000 a day compared to paying for a cup of starbucks and spending it on junk food?

It’s easy breezy. Just make sure you’ve got your account funded for every month, then you’re all set. It’s worry free!

Next stop: Stocks and get the debts over and done with.

7D’s That Ignite Passion

Last Friday, I was invited to attend a financial business seminar on how one can increase their success rate on achieving their goals at the same time, get to spread financial education as an advocacy.

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John C. Maxwell Trainer, Ruzette Pineda-Cadungo who was also Avon Philippines Sales Director then amongst other things was our speaker. She is presently a top achiever, seller and business manager of one of the many units of Sunlife Financial Philippines.

It was a whole day event filled with motivation, inspiration and passion. Let me share to you her success formula:

The 7 D’s that Ignite Passion

1. Dream
2. Desire
3. Decide
4. Develop
5. Discipline
6. Delegate
7. Dedicate

Dreams are goals with deadlines and these dreams usually are departmentalized according to the 10 areas of your life.

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Together with every dream, there’s a burning DESIRE to make ways, and get your dreams worked on. It is important that you get to DECIDE the direction of your focus,
stand firm and get to categorize your priorities.

Through constant education and associating yourself with like minded individuals, You get to DEVELOP the DISCIPLINE that would challenge your excuses not to out-win you.

Don’t be afraid to DELEGATE tasks.
Focus on DEDICATING time management for a balanced lifestyle.

We were reminded to stay humble and be obedient to our superiors regardless of age.

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Although there may be situations wherein you may disagree, it is important that you voice out respectfully.

Love what you do and it will love you back. Be sincere and always have your heart applied to every task or engagement.

Pursue. Just keep on going.

The formula may sound easy but it sure takes a lot of work and practice. The discipline may be tedious at first but if you want results, nobody reaches the finish line by just standing.

We asked our speaker how she schedule in engagements, balance her time management and what her priorities are.

1. God
2. Family
3. Business

She plotted out an empty calendar and filled out according to priorities.

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She blocked out her bible study and church day, dedicated her children and husband’s travel time (home/school), date night with her husband, and then her client engagements. Errands were scheduled in between.

What inspired me most was that she starts her day as early as 7am with her clients, ends the day at 5PM to make sure she will be with her family and yet still get to log a productive 6 hours each day, 10 faces met each week for her to produce results.

She reiterated that excuses should be challenged by how firm and goal-oriented you are. Never let procrastination and time killers take away your chances.

Nobody reaches the finish line by just standing but rather by taking one step at a time, one foot after another.

I hope somehow this post motivated and inspired you. Go ahead, revisit your goals and start making things happen.

Types of Assets & Funds 101

There are two (2) ways a person can reach his/her financial goals: Saving and Investing. However, a lot get hurt once they choose the latter due to misinformation or lack of knowledge.

I’m not claiming to be a genius but rather I am here to share the basic knowledge I learned as I undergo financial goal-setting training in order to equip me on how to save and invest for the betterment of my future.

There are six (6) types of investment assets that a person can explore on:

  1. Mutual Funds
  2. Fixed Income Securities
  3. Common Trust Fund
  4. Propeties
  5. Insurance
  6. Equity Securities

Let us run through a quick brief of each. For this post, let’s talk about the first.

Fixed Income Securities are investments with a fixed principal amount, a fixed period of time (called Term) and a specific rate of interest (or coupon). Essentially, this type of investment asset, the investor loans money to a company or the government organization and they, in turn, guarantees to pay a certain percentage of interest every year. Then at the end of the pay period (term), the original amount loaned is returned to the investor.

Invested: PHP 10,000

Term: 1 year

Interest: 5%

At te end of the term, you will get back the PHP 10,000 you initially invested plus PHP 500 as interest. Generally these types of assets offer a lower return on investment because they guarantee income. (Much better than leaving your money in a savings back, right?)

There are two (2) types of fixed Income Security Assets:

  1. Money Market Securities – ” cash and deposits” These are deposits instruments with maturity of one year or less and therefore very liquid and accessible. (i.e Time deposits, money-market savings)
  2. Bonds – debt loans that pay a specific interest over a fixed period of time. The indebted entity issues certificates or bonds to the investors tha state the interest rate that wil be paid and when the loaned funds are to be returned. (Safest to keep your money in this kind is 14 years)

Check on the next post for the second type of Assets.

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Psyche back to School

The brother dear accompanying me to familiarize myself for school

It’s school time again! Either you, as a parent feel excited your kids are about to attend school again, nervous for their first day or a little sad that the summer is over — don’t be too overwhelmed by the upcoming school year every day chaos.

How do busy parents get to discipline their kids for school? It starts from YOU. As early as now, set the mood for your kids to sleep as early as 9pm or 10pm and have breakfast prepared by the time they wake up at 6am. Why? a little dress rehearsal and habit training will help you and your kids adjust ahead without them knowing.

Although it’s not school day yet, let your kids make it a habit to eat breakfast, take a shower and have their things fixed (or it can also be the other way around). Shop for school supplies right after (make sure that you leave on time as if you’re driving them to school) but make sure you’ve sat done with them, explained why these things are important and what they need – this way, you get to practice sitting down with them as if they’re doing their assignments with you. Get home approximately the same time your kids should be home, have them wash up and clean up as you prepare dinner or arrange things that needs to be fixed. Have time to sit down with them to recap what happened during the day and what they thought about the place they went to or the experience, this way you get to introduce them the importance of telling stories and letting you know what happened in school. Pretty smart? of course, You’re a smart parent!

Because you’re a busy bee juggling all the other departments of life and work, you can cheat on time by preparing your kids snacks and lunch the night before and have it refrigerated. Prepare all their uniforms the night before ( better,teach them to prepare their clothes) and create a hamper in the laundry room for uniforms and other everyday clothing just incase you need uniforms laundered every other day.

To do lists are very effective tools. Once your kids see you making a to do list and having it visible for them, they get to copy your ways and do things the way you do it. Accomplishing tasks and marking each item on the to do lists make them feel productive and proud. Go over these lists with them and let them know the meaning of every each task and why it’s important to have them done. This way, you get to psych your kids to write down their notes, enlist their homework and have every each of it done.

Aside from psyching them on the early to sleep, early to rise and responsibilities. Turn that television off and set an example not to have yourself tuned in to the tube especially early in the morning and when its homework time nearing to bed time. Television and games will only distract them. If your kids loves playing the x-box, ipads and gadgets, gradually take these gadgets away from where they can see it or distract them by having them sit beside you or go with you on educational tours such as museums, libraries and even a sneak peak at their school to make them have a good feel of the place. You’ll be surprised they’ll forget about these electronics quite instantly.

Always keep a sense of humor when you’re with your kids. A good way to remind them that school is fun and learning indeed is something to look forward to everyday. Good luck!

Online Class

The world evolved and transformed in so many ways a person can imagine. The boom box  replaced by the ipod, typewriters to desktop computers, the computers to laptops, the grey to colored and lately, even education has injected its possibilities reaching global market than within proximity of residents.

Being a part-time teacher at a computer school, having to call myself sick didn’t stop me from teaching. Having an experience in online education, I requested the academe head to allow an experiential class  through online session which only requires available equipments such as headphones,  computer with available internet network and skype.

I was the first teacher and they were the first students who experienced technology at its height at the school. Feedback were indescribable they say. Learning the unconventional way– albeit online education is the new conventional — made them realize that there’s more to learning first hand rather than plain lectures and group discussions.

There are two different ways students may enroll themselves in online education. One way is for them to attend online schools for classmates physical interaction or have yourself hands on to an online education where you lead yourself within guidance of instructions given in file formats.

There are online courses wherein you may earn a degree, certifications or be educated in modules. One time attendance is also available meanwhile the rest of the course offers one-on-one your-pace, your-preferred study time and there are straight-up online courses exchanged in forms of education in scheduled terms.

Imagine hassle free education, no need to go to the guidance councelors or scheduling appointments to see your professors or the academe heads and the trouble of lining up on enrollment and carrying tons of paperbacks.

Online school are typical for the working professionals who wants to gain more educational credits in flexible time, within their own convenience; others prefer this to gain education from where they are without spending on flying off to another country just to achieve a degree or certification from their desired international university or colleges.

What is your take in online education?