Yesterday, I decided to invest a portion of my separation pay from my previous company to Mutual Funds. I already have an insurance/retirement plan (Sun Exclusive Plus) from SunLife Philippines and a Unit Investment Treasury Fund (UITF) at Banco de Oro.
I took the Balanced Fund of SunLife because I feel that it is the safest compared to Equity and Government Securities; and also because my fren and financial adviser, Normandy, also has one.
Why did I decide to have some professionals manage my money instead of coming up with a business? I’m not that good at running a business unlike my mom. So, my dream of becoming an employer instead of an employee is quite far-fetched which I don’t really mind.
Also, one of the reasons I try to invest as much as I can no matter how small the amount is I want to have a worry-free retirement in the distant future. It’s a selfish act of not relying too much on my kid/s or on Vincent or my would-be husband or partner when I get old. I want to be as financially dependent as possible.
Why on Mutual Funds? Because it’s the “in” thing. Seriously, I surveyed my friends first if I should just Time Deposit it or invest it. I decided to invest it.
According to the Prospectus, Balanced Fund is safe because the company invests your money in both the Equity and Government Securities albeit not on equal terms. It is also necessary to choose the company to invest in. I learned that SunLife invests only on blue chip.
Incidentally, there is an article in the Business Monday section of the Philippine Daily Inquirer which discusses stock investment. It states that it is the best time to buy when the prices are low instead of when the market is bullish when the stocks are high. Common sense tells us that there is no other way to go but up so I hope I made the right move in buying now because I don’t have plans of withdrawing my investment in the next 20 years. This is a long-term investment.
Although the article suggests that investing “regularly” is still a best option, it is not quite practical these days because of the constant rise in prices making the cost of living unstable. Personally, I suggest that when you get a lump sum from whatever source, it is best to invest instead of just letting it hang in the bank for years. Although, make sure that you have a six months of expenses rolling savings in the bank in case of emergency.
I haven’t been good at savings but these days when I am jobless, I am slowly realizing the value of having a savings in the bank. I don’t really regret my quitting Inquirer that much because I am learning many things not only on career and personal life but also in other aspects like finances, frugality, and wise buying. Before, I save to buy something now I save because I see it as a “necessity” and not just something to do on the side.
I may not have millions now but I just want to secure a future free from financial worries. I want to work abroad but I have a teenage nephew to look after. Working overseas hasn’t been this enticing until I realized that in a few years’ time Vincent will be in college plus the fact that the once unlikely idea of having a child of my own can now be a possibility.
Right now, all I can do for that future is having investment no matter how small they are. I always ask and survey friends before I make a move. I read a lot and try to understand where I’m putting my hard-earned money.
For the middle-income workers, there is no harm in trying to invest your money. It’s good that banks and other companies offer such products for us. It is just a matter of how much of a risk-taker you are and how much money are you willing to lose or earn. (I am, btw, a moderate investment risk-taker according to the brief test I took.)
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