This gallery contains 11 photos.
Last year, around November and December, I decided to buy stocks from companies recommended by the Truly Rich Club. I was seeing bloody red in my portfolio but Bo Sanchez assured us that it was the best time to accumulate shares in the Stock Market. From PSEI 5800 to 6300, I can now see almost 18% gain in a single stock. Almost 3% gain in my entire portfolio and that is only for a period of less than 4 months. If only a lot of Filipinos know this secret, there should be a lot more Filipinos building their tower of wealth. I’ve been saving for many years now and keeping my money in a regular savings account in the bank. It took years for an interest to reach a hundred pesos for a 100,000 pesos. I’m so glad that I discovered how I could grow my money in the stock market. I found a money machine…You too can grow your money. Join the Truly Rich Club to accompany you in this amazing journey of building your tower of wealth. I am one satisfied member here 🙂
As Filipinos remember their departed loved ones, the taxman is watching.
The Bureau of Internal Revenue (BIR), under pressure to increase its collections, is aiming to collect more taxes from heirs of people who die, particularly the rich.
BIR Commissioner Kim Henares has told a congressional hearing that her agency is targeting families of the dead for more estate and donor’s taxes.
She said they are monitoring people who die through the National Statistics Office (NSO) and the obituary and society pages of newspapers.
She said the BIR has arranged for the NSO to report to it people who file death certificates. Watch out, as they are running after the HEIRS for 20% penalty for every 6 months of NON payment of ESTATE TAX.
An Estate tax is a tax levied on an heir’s inherited portion of an estate if the value of the estate exceeds an exclusion limit set by law. The estate tax is mostly imposed on assets left to heirs, but it does not apply to the transfer of assets to a surviving spouse. The right of spouses to leave any amount to one another is known as the “unlimited marital deduction.”
When the surviving spouse who inherited an estate dies, the beneficiaries may then owe estate taxes if the estate exceeds the exclusion limit. Because the estate tax can be quite high, careful estate planning is advisable.
People who are into serious stock investing throughout the years should consider getting an insurance to safeguard their wealth for their loved ones in case the inevitable happens.
I, for one, used to believe some of the myths in the Stock Market enumerated here as follows:
1. Investing in Stocks Is Just Like Gambling.
This reasoning causes many people to shy away from the stock market. To understand why investing in stocks is inherently different from gambling, we need to review what it means to buy stocks. A share of common stock is ownership in a company. It entitles the holder to a claim on assets as well as a fraction of the profits that the company generates. Too often, investors think of shares as simply a trading vehicle, and they forget that stock represents the ownership of a company.
Assessing the value of a company isn’t an easy practice. There are so many variables involved that the short-term price movements appear to be random; however, over the long term, a company is supposed to worth the present value of the profits it will make. In the short term, a company can survive without profits because of the expectations of future earnings, but no company can fool investors forever – eventually a company’s stock price can be expected to show the true value of the firm.
Gambling, on the contrary, is a zero-sum game. It merely takes money from a loser and gives it to a winner. No value is ever created. By investing, we increase the overall wealth of an economy. As companies compete, they increase productivity and develop products that can make our lives better. Don’t confuse investing and creating wealth with gambling’s zero-sum game.
2. The Stock Market Is an Exclusive Club For Brokers and Rich People.
The advent of the internet has made the market much more open to the public than ever before. All the data and research tools previously available only to brokerages are now there for individuals to use.
Most Filipinos are not aware that with a minimum of Php 5,000, they could start to open an account with an online broker and they could use this money to buy their first shares of stocks. I highly recommend that you open an account with COL Financial, it’s the number 1 online broker in the Philippines today!
3. Fallen Angels Will Go Back up, Eventually.
Whatever the reason for this myth’s appeal, nothing is more destructive to amateur investors than thinking that a stock trading near a 52-week low is a good buy. As the old adage goes, “Those who try to catch a falling knife only get hurt.”
Suppose you are looking at two stocks:
X made an all-time high last year around P180 but has since fallen to P80 per share.
Y is a smaller company but has recently gone from P55 to P80 per share.
Which stock would you buy? Believe it or not, all things being equal, a majority of investors choose the stock that has fallen from P180 because they believe that it will eventually make it back up to those levels again. Thinking this way is a cardinal sin in investing! Price is only one part of the investing equation (which is different from trading, which uses technical analysis). The goal is to buy good companies at a reasonable price. Buying companies solely because their market price has fallen will get you nowhere. Make sure you don’t confuse this practice with value investing, which is buying high-quality companies that are undervalued by the market.
4. Stocks That Go up Must Come Down.
The laws of physics do not apply in the stock market. There’s no gravitational force to pull stocks back to even. Over 14 years ago, PLDT’s stock price went from P840 to P1980 per share in a little more than five year. Had you thought that this stock was going to return to its lower initial position, you would have missed out on the subsequent rise to P2600/ish per share over the years.
We’re not trying to tell you that stocks never undergo a correction. The point is that the stock price is a reflection of the company. If you find a great firm run by excellent managers, there is no reason the stock won’t keep on going up.
5. A Little Knowledge Is Better Than None
Knowing something is generally better than nothing, but it is crucial in the stock market that individual investors have a clear understanding of what they are doing with their money. Investors who really do their homework are the ones that succeed.
Don’t fret, if you don’t have the time to fully understand what to do with your money, then having an advisor is not a bad thing. The cost of investing in something that you do not fully understand far outweighs the cost of using an investment advisor.
The Bottom Line
Forgive us for ending with more investing clichés, but there’s another old adage worth repeating: “What’s obvious is obviously wrong.” This means that knowing a little bit will only have you following the crowd like a lemming. Like anything worth anything, successful investing takes hard work and effort. Think of a partially informed investor as a partially informed surgeon; the mistakes could be severely injurious to your financial health.
Join the Truly Rich Club for an expert recommendation of what stocks to buy for the long term. Click Here to Join.
There are two ways of investing in the stock
First, there’s the direct way—which is what
you’re doing (or if you’re new here, what you’re about
to do) through COL Financial or another online broker.
You choose what stocks to buy and sell, based on our
Truly Rich Club recommendations.
Second, there’s the indirect way—through mutual
fund companies. Yes, it’s easier because you just give
your money to them, and they have a fund manager
that invests the money for you. You don’t have to know
what specific stock to buy. For this service they provide
you, they charge a service fee of two percent a year.
I’ve opened both ways to you.
Which of the two ways do I prefer? Obviously, I
prefer the first way—to do it directly. Why? One of the
major reasons is this: Those service fees of mutual fund
companies build up over time and make your profits
I think Financial Guru John Bogle explains it best
when he says, “What seems inconsequential over the
short term becomes profoundly important over the long
term. Let’s assume we have a market return of eight
percent, and you reinvest all of your earnings. At the
end of 50 years, the dollar you invested is worth $46.90.
Now, let’s assume we take 2.5 percent in fees out of the
eight percent return. Your return drops to 5.5 percent.
At the end of 50 years that dollar grows to $14.54.”
In other words, that two percent fees a year is
small today but huge tomorrow. The difference between
$46.90 vs. $14.54 is not small.
At the end of the day, it’s really a question on the
kind of person you are. If you’re the person who wants to
MAXIMIZE your returns and are willing to do a little bit
of work yourself, invest directly. Follow SAM (Strategic
But if you want to do ZERO work and just entrust
your money to a fund manager, in exchange for the lesser
profits, then invest indirectly through a mutual fund
Different strokes for different folks. I know of some
people who want to delegate everything to a fund manager.
That’s fine. (I started there too.)
Pick the journey that fits you.
And whatever journey you choose, I’m here for you.
I’m praying for you, encouraging you, and cheering
Have an outrageously prosperous 2014.
May your dreams come true,
To join the Truly Rich Club, click Here
First I can firmly say that the Lord works in our lives with a purpose not by mere accidents..
I grew up in a poor family. Money is hard to get by. When I was in college, my older sister, who was at that time working in P & G, financed my studies, I really studied hard just to get scholarships so as not to be a burden to her. I sure got scholarships but the miscellaneous fees (including expensive laboratory fees) really took a great toll on my sister’s shoulders. I viewed money as something very hard to get. Sub-conciously, I felt I don’t deserve to receive much money as I found it hard to give especially when you work hard for it. I was afraid of working very hard after finishing school only to hand most of my salary over to my mom. I thought my mom was not good in handling money and giving most of my salary to her was something I avoided. I just gave her a portion of what I received and I pampered myself with nice clothes, shoes, cellphone, eating food I’ve never eaten before, weekly visits to the theaters with my boyfriend, etc. I literally lived from paycheck to paycheck.
My mom died 10 months after I gave birth. We discovered that she saved more than enough of what she received from her SSS pension and money which came from my siblings. We didn’t spend any single centavo for her hospital bills, funeral and burial. It was a painful time and I felt I was not able to give my mom my best.
I fought my depression over her death by being workaholic and exploring new things. Since giving birth to my son, I resigned from my job and I assumed a home-based job. I would find myself working even in the wee hours in the morning..I got hooked to makeups. I explored different products purchasing from different brands. I found myself buying beauty products I could not use everyday as I am only working at home. Until, my fears and insecurities set in. I fear that my son would grow up poor as we were before and I felt insecure that I left my work and now just staying at home.
I wanted to grow our money to combat my fears and insecurities. I wanted to learn about mutual funds or treasury bills. I searched in Google to get more information. I ended up reading about the Truly Rich Club. I was not the type of person who could easily be swayed with investment marketing. But, I thought things coming from Bo Sanchez, whom I’ve known to be a respectable and honorable man, I might as well give it a try. I read his free ebook, My Maid Invests In the Stock Market and Why You Should too. (To get his free ebook, click Here) I discovered things about investing in the Stock Market by opening an online account through a broker (COL Financial). I wanted to learn more and so I continued my search. I chanced upon J3 Patino’s 5 video clips (To view his 5 training videos, Click here) and I learned how the stock market works, how to open an account with COL Financial and how the Truly Rich Club can help me with my first steps in investing in the Stock Market. I got so thrilled, I asked my husband to pay for my membership fee through BDO. When I got the payment slip, I took a picture of it and sent it to the Truly Rich Club. After a few days, I received my username and password and I got a full access on their website. I also asked my husband to open a joint account with COL Financial (To learn how to open an account with COL Financial, click Here). I was so excited to buy my first shares from companies recommended by the Truly Rich Club. I tried to read all the past stocks updates and wealth strategies from the Truly Rich Club’s website just to catch up. I also listened to all the power talks. I felt a new vast of knowledge came rushing to me. I even felt should have I discovered these things earlier in my life, I should have saved myself from being broke, from being a lax spender but not so much of a giver. I’ve realized that no matter how big a person gets to earn, he wouldn’t be able to accumulate more if his psychological wallet is not clear to him. There would always be a tendency to be overly-thrifty — not willing to share to others or sabotaging our financial success by spending all the money we have and giving it all away.
Through the Truly Rich Club, I’ve learned to discover my psychological wallet. In order to be successful with investing into anything, it should be clear why you’re investing in the first place. I wanted to achieve financial independence so that time will come, I don’t have to work for money, money will work hard for me. I can do things I truly want to do and that I may be able to help other people in need.
I’ve learned how to assume a job I really love so I will not feel like working. If I’m happy with what I’m doing, money will surely follow.
I’ve learned how to invest on myself — on my skills to attract more money. Making money is all about being a solution to other people’s problems/needs. If your set of skills is what other people needs, they are willing to pay for your services.
I’ve learned how to simplify my life to have more money to invest. I no longer buy things I don’t need like more makeup that would just end up in my drawer collecting dusts. I would rather allot the extra money buying shares of stocks which are like golden eggs ready to hatch for more chickens capable of laying more eggs. I want to share with you how my husband and I have learned how to be wise spenders. My husband now makes “baon” at work. We only go to malls twice a month or every payday. We eat at restaurants that offer delicious food but not so expensive. I buy healthy foods that are less expensive but would also make us more healthy.
I’ve learned that growing your money is not all about saving. One should learn how to enjoy too just not to make the process tedious and boring. We allocate some money for leisure. We would go to a hotel every once in a while to pamper ourselves. We don’t want to die saving all our lives and haven’t enjoyed anything 🙂 We are still eating delicious food every weekend. It’s funny how I can now buy expensive things that I can’t afford when I have my full-time job. I’ve learned it’s all about learning how to make proper apportioning. In our case, all my husband’s salary goes to pay for all our needs, electricity, water, cable, internet connection, food, our baby’s milk and diaper, eating out and his allowance. My salary from my home-based job all goes to saving/investment and my allowance.
I feel very happy that I’ve learned all these things through the Truly Rich Club. I am also confident that their recommended list of companies are wise choices. I don’t feel alarmed when my portfolio turns red, I have faith that I get to receive sound advice from the Truly Rich Club. I do not lean on to them 100% though. I also do my homework. I’ve learned how to read more ebooks about financial literacy. I am now learning how to read charts — learning about technical analysis. But I am confident that while I am learning, my stock choices are superb and will bring me money for our financial freedom someday.
Taking the plunge in investing in the stock market can be so exciting especially if you have heard a number of stories and tales how people received gains from investing in the stock market in just a couple of months. But, before you rev up all those adrenaline in you and invest in the Stock Market, read on for a few tips:
1. First, you should have the proper mindset.
Investing in the Stock market is not an everyday bed-of-roses thing. What if you just had opened an account with an online broker and purchased your first stocks and you see your portfolio bleeding? Will you curse the person who got you into this mess? Having the right mindset while managing your expectations of the market can help you go through the lows of the market. You should be aware that there would be times when the market is bleeding and you’re losing money but don’t worry for as long as you’re not selling your stocks, you only have what we call paper losses. You can try to buy more stocks during the dip so that you could average down for a potential bigger gains. Another golden rule is to leave your investment alone for the medium term – at least three and preferably five or more years. A stock market investment needs time to develop, and huge gains in short periods are unlikely. Time, not timing, is the friend of the investor. If you join any related forum in any social media websites, don’t get swayed easily with other people bragging how huge their gains are in a matter of days/months. Stick to your plan, accumulate more and more shares of the company you’re invested in until such time that you can sell your shares for an even bigger gains, yes even bigger than with the gains of swing traders.
2. Don’t put all your eggs in one basket or in other words, diversify your portfoilio.
If you happen to have P100,000 right now, don’t make the mistake of buying shares from only 1 company. Spread the risk so that if, for some reasons, one company did not deliver, you have other companies in your portfolio who could make up for your losses in one company. You can buy as many shares from many companies but limit it to 5-6 companies only. If you could only allot P8,000 per month to your investment, then buy shares from 2-3 companies only. This will allow you to buy more shares in a single company every month maximizing transaction fees you have to pay for buying stocks. Transaction fees may seem to be minimal but if you will buy shares from the same company more than twice a month, this seemingly small transaction fees add up raising your average price for a stock. Remember, your goal is to beat the market price. Your average price should be lower than the market price for bigger gains when you sell the stock.
3. It is advisable to buy shares from the companies you’ve chosen every month. If you can monitor the market, buy especially during the dips. You can review the stock historical prices for you to have an idea if you are purchasing shares at a price lower than its price the previous days. You can check the historical prices of a stock at The Wall Street Journal website. You just have to enter the stock code at the upper right portion of the website and wait for the drop down menu to appear. Select the correct stock from the choices that will appear. Then look for Historical Prices at the middle of the page. You can choose the date range, depending on your preference. You can quickly scan the lows of the stock so that you have an idea how the current stock price fares.
The principal advantages of regular investments is that you can do so even if you don’t have a lump sum, and putting money into the market over time means you don’t buy when the price per unit may be high.
Regular savings are also flexible in that you can stop and start them when you like and increase and decrease the amounts you save
3. Ask an expert.
As you are a novice in investing, you can subscribe from a number of groups providing an assistance for a fee. As much as possible, don’t settle for free stock updates. This will be your million investment in the future, you want to make sure you get a sound advice. Don’t settle for less. You need proper guidance especially now that you are just starting out. You can learn a lot later. I personally advise joining the Truly Rich Club. Click here to join now!
That’s it! I hope you have fruitful years ahead 🙂