Learning from the Experts

The new today talks about crisis. It had become an overused term. We can hear it in the news, when we are on a gathering, etc. The economic crises are an often effective topic to strike a conversation. The Conversation will start on running even when you just sit beside a complete Stanger. Because of these crises, we cannot blame people when they became cynical, glum, pessimistic on investing their money into managed funds, stock markets, life insurance and etc… Even in banks, others felt that it is no longer safe and secure. (Most cases of the rural banks here in the Philippines). Well, I disagree. It is still important to have savings. Make a way to create your own investment portfolio. If it has become your habit to set aide a portion of your income every month, by all means, continue to do so. Segregate your savings. As financial experts would say, segregate your eggs into different baskets. Don’t concentrate on 1 particular avenue. Put a portion to a bank and open multiple accounts and limit only within the coverage of the insurance could cover. Another venue is in money market. But if you don’t know your way around, there are financial managers who can help you manage your funds. Thirdly, Insurance Companies can be a good venue to invest your money too. Make some research first if the insurance company is duly regulated by the government (Here in the Philippines, The Insurance Commission). If these insurance company is stable, and the most important factor to consider is if they can pay in case there are claims. The added factor when you invest in insurance is the protection side. It protects not only the investment, but the investor as well. For example, if you have P100, 000 in your pocket, if you put it in the insurance company, your protection is most likely around P1, 000,000.00. In case of a fortuitous event, you walked away from the picture earlier than expected; your family will get not only the P100, 000.00 but the P1, 000,000.00 coverage. But be smart in investing your money. Do some research first if the company is stable, and is duly governed by the proper regulating body. Learn from what happen to our society today. Avoid company who gives false promises, like those who gives high interest rates or a short Return of Investment (ROI). Try to consider also the claims. How fast are their services? My point is, if you put your P100 under your pillow, the next morning, it is still P100 pesos. But if you put it in these institutions, your money will earn for you even in your sleep.