So you’ve been reading a lot of blogs about investing lately especially investing in the Philippine stock market. You seemed to be more confident now that you have learned some of the basic knowledge of stock market investing.
You might have already applied for your account from your online broker. Or you might have even already started investing. But take a break muna and have a Kitkat because I’m going to bother you for a few minutes to talk about four things people tend to forget when investing, to make sure you have thought about them, too.
Everyone I know is investing so I should to. Really?
Do not invest just for the sake of investing. It is essential that you should identify your goal for a particular investment.
Why are you investing? What are you investing for?
Are you investing for your retirement? For your children’s education? For a house? For a business capital?
What is your goal?
You are in a hurry to be called an investor, and you are in a hurry to achieve your goals.
But in case of emergency, and you badly need money, do you have enough cash to cover your expenses?
Before embarking to any investments, it is advisable that you should have spare cash which is equivalent to your 3 to 6 months accumulated monthly salary. Otherwise you’ll be left with no choice but to withdraw your investment even at its loss.
Many Filipinos already have Philhealth cards and they are entitled to the benefits provided by the Philippine government. But the thing is Philhealth does not cover 100% of the patient’s hospital bills and medicines.
Even if you have millions in your investment, when you or your family are faced with serious health problems, (I’m not telling you will, but just in case) believe me, you’ll withdraw your millions and worst, you will still ask for loans.
Get health insurance, protect yourself and your family.
I’m not sure about my next statement, but from my personal experience, most Filipinos are allergic to Life insurance.
But as an investor, getting a life insurance will protect your income. How?
After you have spent your life saving and investing for you and your family, then one unexpected day, when the Lord asks you to go home – dun naman tayo lahat pupunta di ba? but of course in different time, in God’s plan, so, what will happen to your millions in your investments?
a. The government will freeze your money
b. They will only be able to release it to your beneficiaries once they pay the estate tax.
The problem is:
If you haven’t left them money to pay for the estate tax, how will they be able to withdraw your money and benefit from it?
But if you have life insurance, the money they get from the life insurance can be used to pay for estate tax for the release of your investment which they can use and reinvest.
So, while on your way home to the Lord, your love ones can survive and continue living the comfortable life you have prepared for them.
Just a note: Several Life insurance policies do not only involve death benefits. While living, you can also enjoy some of the other benefits they offer.
Consult your insurance company or agent of your choice about this.
So to sum it up,
There are 4 things we need to consider before or when investing
- emergency fund
- health protection
- income protection
If you want to learn and know the steps of starting an investment in the Philippine stock market, you can download your free e-book, How Did I Enter Into the Philippine Stock Market-my step by step guide, with video tutorials by filling in the subscription form on the upper right side of this page.