We are two weeks out from the presidential election, and as the world begins to adjust to Donald Trump's shocking upset win stock market investors seem to be feeling comfortable that his presidency will be good for business. All four major indexes reached all-time highs this week, and while rising rates have hurt bond prices in the short term in short order higher interest rates will mean more cash flow for investors in bonds and CDs as well. So it looks like the outlook for our investments is good for the next four years, right?
Not exactly. The chart below was published on Forbes.com this summer, and it shows that supposedly pro-business Republican administrations have seen S&P 500 returns significantly lower than their supposedly anti-business Democrat counterparts.
Or course this particular time frame includes horrible returns entering the Great Depression for the GOP and corresponding tremendous returns for the Dems coming out of that era. But even dropping off those two outliers, Democratic presidents still have had a historical annualized advantage of about 9% to about 6% in market returns during their time in office.
Is this proof that Democrats are better for the economy than Republicans...or did the pro-business policies of the Republican presidents come to fruition in the ensuing years of Democratic presidents?
Was George W. Bush a terrible president whose governance caused an eight-year drop in stocks...or was it that after four terms of returns in the mid-teens markets we were bound to have a pullback and Bush simply had the bad luck of being in office at that time?
Did President Obama rescue us from destruction...or was he fortunate to be president after an eight-year correction and simply presided over the inevitable comeback?
The answer for me is - and should be for your financial decision-making - that it doesn't matter. Whether you love or hate the current administration, the gains in the market during the Obama presidency are indisputable. And whether you are excited or fearful of the next administration, we should expect lower stock returns over the next four years...because that's what always happens.
We know that history tends to repeat itself.
And we know that predicting the future is impossible to do other than by luck.
If we can remember (and follow!) these two simple truths, a successful investment experience is bound to follow
The key to financial success is having a plan and sticking to that plan. That's easy to say but hard to do, especially when it's your own financial future on the line. If you think fiduciary advice with no product sales could help you achieve financial success, we would be happy to help.
Out of this amount, Rs 70,000 is owed by the Adani Group itself.
According to this article Rs 3 lakh crore has been deposited and Rs 50,000 crore has been withdrawn since demonetization came into effect.
This means a net figure of Rs 2,50,000 crore has been deposited in the banking system.
Compare these numbers side by side:
Debt owed by RICH FAT CATS: Rs 5 lakh Crore.
Amount deposited by crores of common Indians: Rs 2.5 lakh Crore.
It forces me to twist Winston Churchill's words and say: Never was so much owed by so few to so many.
Thankfully Churchill doesn't give a Fuck. Or rather he does:
Consider the elephant in the room - Political funding.
It is estimated that the BJP themselves won the elections by spending anywhere between 700 crores (a laughably small amount) to 5000 crores (only in media spend as cited by a veteran media planner) to Rs 10,000 crores (as claimed by erstwhile Union Minister for commerce - Anand Sharma). Both BJP and Congress have refused to share sources for close to 70% of funds collected by them. What if a substantial part of these cash donations are being derived from blood money? They say that charity begins at home. Why can't they begin by taxing the amount of money which is not being declared?
The perceived losses being incurred due to so called black money can be taken care by a considerable extent by acting on these issues.
Rather our government's actions have resulted the following incidents:
However our country's population is so gargantuan that 55 deaths don't really pinch our conscience. A Congress leader based out of Jharkand wants the ones who died in his state to be termed as martyrs. It makes me wonder whether he doesn't feel empathy for rest of the Indians who, I dare say, were killed.
To those who are passionately advocating the government's decision, I have the following questions:
a) We all are aware that rich businessmen and politicians deal with most of the black money. How many of them have been arrested or discovered?
b) Counterfeiting has been occurring for several years. Don't you think it is just a matter of time before new notes are also counterfeited? If yes, did the government have to embark on this exercise in such a haphazard manner?
One also wonders whether Raghuram Rajan real reason behind leaving the governorship was this upcoming financial emergency.
And oh yes, we all know who will benefit the most in the UP(coming) elections:
In an important effect to check black money, the Prime Minister has announced demonetization of Rs 500 and 1000 rupee notes with effect from midnight of November 9 which makes these notes invalid on black money, corruption and fake currency.The decision of PM Narendra Modi to eliminate Rs. 500 and Rs. 1000 rupee notes with a view to control the flow of black money has been mentioned by almost all in Bollywood.
The decision had been effective abolishing Rs 500 and Rs 1000 rupee value notes as legitimate tender. To get to know on the implications on this financial decision, an interaction had been conducted with leading film exhibitor Akshaye Rathi who mentioned that the impact could be of two levels namely micro and macro.
With regards to film that would be coming in the future, it was essential to comprehend the pattern of audience which could be beyond the metros.In areas like Bengaluru, Delhi, Kolkata, Mumbai and Pune, individuals seem to be comfortable in utilising plastic money as well as online transactions.
However there is a massive population which is beyond the metros who do not approve of utilising plastic money. Then there is a still bigger crowd which goes to the bank and withdraw money, making their payment through cash.
Impact on Industry – Positive
People in places such as Kanpur and Satara tend to go to the bank on the first day of the month for withdrawal of cash for their monthly expenditure where the payment is done by cash. Hence, individuals would find it difficult in being unable to use the denominations of 500 and 1000 rupees when they go for a movie or intend to dine out with their family or friends.
Carrying a few five or hundred rupee notes tends to be much easier than carrying a good amount of hundred rupee notes in your wallet which could cause a bit of inconvenience to the individuals. With regards to Bollywood, Akshaye envisions the decision affecting the industry crowd in a positive manner and is of the belief that it would go a long way in eliminating bribes as well as corruption. He stated that the impact on the industry would be a very positive one.
A producer shooting is troubled by several entities such as organisations, political outfits and associations who tend to come and upset the shoot, by asking for bribe. The producer then provides them with the option of card or cheque payments. With this decision, all these bribes and loopholes have been stopped since one cannot pay a bribe with hundred rupee notes.
New Notes of Rs 2000 & Rs 500
Modi has mentioned that people having Rs 500 and Rs 1000 could deposit them in their bank and post office account from November 10 to December 30. He also mentioned that the notes would not be legal tender from midnight of November 9 and that they would be just useless piece of paper.
But he also added that all notes in the lower demolition of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 together with the coins would continue being valid.
He informed that new notes of Rs 2000 together with Rs 500 would be introduced and that there would be no modification of any kind of currency exchange be it DD. Cheque, payment through credit/debit card etc.
I have been pondering about this for months. A decision that will affect my family well being.
Background
Currently, my wife and I both are working full time. We should be achieving financial independence by end year 2019 (age 35) but with 1 of us working till year end 2022 (age 38) for buffer. With the arrival of my 2nd child, someone has to take care of him, (baby boy) from next year Aug 17. My wife love her job and her work environment is good. However, my income is higher (I don't hate my job either) but my wife will also enjoy working mother relief n subsidy. Hence, it make more sense for my wife to continue working. So, there is no perfect equation on who should carry on to run the "rat race".
Now, the question is, should I similarly place my 2nd child in the infant care or I taking up the caregiver role?
Here are the 2 scenarios:
1) I leave workforce at 33 years old, Aug 2017, to take care of my children:
Pros
Child will not fall sick every other week in infant care centre
My wife income is sufficient to cover household expenses
More manpower to cope with family matters
More family time for the children upbringing
No more urgent leave and awkward working arrangements to deal with family matters
Cons
Leaving workforce without achieving Financial Independence
2 more years to achieve our financial goal (End year 2024 at 41)
I may not be able to get back similar salary and I know I wouldn't be keen to return to full time workforce
I will have lesser CPF balance
2) Both of us working together to achieve Financial Independence
Pros
Leaving the workforce with more financial certainty
Potentially avoiding awkward family financial situations with one depending on another
Achieving financial goal 2 years earlier (End year 2022 at 39)
More CPF balance for retirement
Cons
Children falling sick often
Less family time
More taxing to deal with more housechores with more children, especially when they are sick
Plenty of urgent leave and awkward working arrangements to deal with family matters
Our inclination is for us to continue working since it is only 3 more years from now. If we can't cope, I will then leave the workforce permanently to be caregiver.
He is one of the most successful and very interesting multi-Billionaire this century has to offer. Decorated with triumph one after the other, he defied the expectations of how a rich man does and live the opposite instead. He keep himself humble, friendly, and simple. I read an article that I eventually reposted in facebook from greenyatra/facebook about the life of this greatest money-maker.
There was a one hour interview on CNBC with Warren Buffet, the second richest man who donated $31 billion to charity. Following are some interesting aspects of his life that will surely surprise you.
1. He bought his first share at age 11 and he now regrets that he started too late!
Things were very cheap that time, so encourage your children to invest and lead them the way to start young. When Buffett was a teen, he was already raking in about $175 a month — more than his teachers (and most adults).
2. He bought a small farm at age 14 with savings from delivering newspapers
One could have bought many things with little savings. Encourage your children to start some kind of business. Best things are prepared for those who started early in life. Paper delivery was just one of many small businesses teenage Buffett orchestrated: He sold used golf balls and stamps, buffed cars, set up a pinball machine business, and turned a horse track into a lucrative playground.
3. He still lives in the same small 3-bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.
credit to the owner
Don't buy more than what you "really need" and encourage your children to do and think the same. You have to distinguished what are assets and liabilities and from there, you can make a wise decision habit. Warren is maintaining to live away from luxurious life. His attitude does not change over the years.
4. He drives his own car everywhere and does not have a driver or security people around him.
You are what you are. Keep a frugal and simple lifestyle. Super billionaires have something in common and they are living a very prudent life it does not mean that they are hoarding their money but that's how they are wire in. Frugality has already been a part of their lives.
5. He never travels by private jet, although he owns the world's largest private jet company.
Always think how you can accomplish things economically.
6. His company Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meeting or calls them on a regular basis.
yahoo new
Assign the right people to the right jobs. Warren is surrounded with best team in the world and understands well his vision for his company. Set goals and make sure people focus on them.
7. He has given his CEO's only two rules:
Rule #1: Do not lose any of your shareholder's money
Rule #2: Do not forget rule #1.
8. He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch television.
Don't try to show off, just be yourself and do what you enjoy doing.
9. Warren Buffet does not carry a cellphone, nor has a computer on his desk.
credit to the owner
Bill Gates the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.
His Advise to Young People:
"Stay Away from credit cards (bank loans) and invest in yourself and Remember;
A. Money does not create a man but it is the man who created money.
B. Live your life as simple as you are.
C. Don't do what others say, just listen them, but do what you feel good
D. Don't go on brand name; just wear those things in which you feel comfortable
E. Don't waste your money on unnecessary things; just spend them who really in need rather
F. After all it's your life then why give chance to others to rule your life
Ever wondered why Rahul Dravid was adored by millions of fans and also spoken highly about by the sharpest critics of the game?
How did he manage to play defensively when the ball was new in Test cricket? And later shaped up into a formidable finisher for India’s ODI team during the mid 2000s.
How did he do wicket keeping in ODIs inspite of not being a regular wicket keeper? Yet managed to retire as one of the world’s best batsmen?
How did he manage to perform consistently across all countries and in all situations for Team India?
Well, that is because he knew the importance of maintaining a balance.
If Rahul Dravid was a portfolio, he would resemble this:
Look at this interesting statistic: Number of SIP Accounts opened from 1986 - 2015: 75 lakhs Number of SIP Accounts opened in 2015-16: 27.1 lakhs
Which means close to 30% of SIP accounts as of today were opened in just last one year.
This would also mean that the penetration of mutual funds in India is increasing.
Earlier only the financially savy would be investing in mutual funds. But now several first time investors are also getting in through SIPs.
But what about individuals who have a lumpsum to invest? It may be an amount received as bonus for a working individual or a retirement corpus received by a government servant who just retired.
Apart from Bank FDs do they have any other choice which can help them beat the threat of inflation and the spectre of tax?
Check this out:
Most first time investors invest during the Euphoria phase, lose money at the denial phase and decide never to invest again at the panic phase.
Even during the 2008 recession, it was observed that fund inflows from domestic retail investors had increased at the peak of the stock market.
Indian mutual fund industry has several options for the financially savy investor.
However would it make sense to expect a retired college principal from Pondicherry who is investing for the first time to sit tight through the ups and downs of the stock market?
Today quite a few of us are aware about SIPs. But what do we do when it comes to investing a lumpsum amount? Mostly invest it in a Fixed Deposit. Why not try out the 'Rahul Dravid' of mutual funds - The ICICI Prudential Balanced Advantage Fund
How does it work:
It is an all-weather fund and does well in all sorts of market conditions – The fund invests in both equity and debt. It allocates fund according to market conditions. Interestingly it follows the Price/Book value model. It essentially means that when the Nifty’s price becomes expensive as compared to its book value the funds are allocated to debt and when the Nifty’s P/BV ratio decreases the funds are allocated to equity. This combines growth and relative freedom from risk.
Whom is it for:
Anyone who wishes to invest a lumpsum and doesn’t want to invest the amount in either stocks or Fixed Deposits.
The advantages of this fund are:
Offers a mix of growth higher than benchmarked index and protection from risk
Volatility is low over a longer period of time
It offers better returns than a Fixed Deposit – Interest rates offered on Fixed deposits across banks doesn’t exceed 9%. If you take TDS into account, the number drops. In comparison, the returns offered by ICICI Balanced Advantage Fund has been 16.4% over 5 years.
There are tax benefits – This fund is treated as an equity fund when it comes to taxation. Hence there is no tax on long term capital gains (gains accrued if you stay invested beyond an year)
Automatic Withdrawal Plan feature – For the first time in the mutual fund industry, the Automatic Withdrawal Plan was introduced by this fund. Under this feature, one can receive regular monthly cash flows to meet monthly expenses.
So did you earn your bonus? Or received your PF amount? Or secured gratuity? Or just inherited a windfall?
We, the employees are already excited this time of the year, not just because it's almost December but because we are counting days of the release of our bonuses (yahoo!). Some of you may have already prepared what to buy; gadgets to shop and gifts to give for theinaanaks.
There's always an exciting feeling we anticipate while waiting for it. Hopefully, the long wait is over- a time to rejoice and enjoy our hard-earned money. "I'll surely buy iphone 6", said by one commuter.
" I'll buy flat screen, no way, I'll treat myself at Vikings" said the other... There's nothing wrong with their statements, I've also been hearing it in our office while 2016 is coming to a close. It goes without saying, bonuses are freely-given by the company for us to utilize it wisely. However, we need to learn good stewardship or else be gone with the wind. I've learned a life-long practice and I'm confident that this would work for you too. Up to this time, those bonuses are still on hand because I put it on asset classes that are appreciating over the years and I'm happy with the returns.
Before going any further, lets define first these two things for us to identify the significant differences;
Liabilities- something that depreciates in value over time, ( not unless you have stuffs in your position which could be a collector's item many years from now , however this has ''one in a million" chance) I can still remember when I was in college and one of my classmates who have a gadget's shop, sold his Nokia phone which was before a status symbol telling me that owning it is a very good investment. So I took his words for it and used my scholarship's fund to have that phone without even knowing the real purpose. At first, I got my friends admired my new gadget like owning a chihuahua and I was bathed with appreciation. After few years, that phone became obsolete and it ended up kept in the drawer.
example: Smartphones, appliances, designer bags and other luxuries
Assets- something that appreciates in value overtime, mostly through compounding interest This is my most favorite part that many people hate. There has been many misconceptions about investments and others even identify it as scam. While others are interested, they don't like the idea that they need to wait for many years to take advantage of the benefits. Younger Millennials are not use to waiting and many of us want to have it in an instant. Walang ganun! The only way to maximize and keep your money is to park it in a good asset class. If you want to have lasting assets, you need to work it out diligently.
example: investments, business, income streams
Paying your debts
I made it first on the list because I know that this is very important in your financial life. I'm a strong advocate of a debt-free living and I'm teaching it consistently on my blogs, in the office, to my friends and family. Having said that, it is a great opportunity to clear what you owed once you already have your bonus.
One of my readers sent me a message that once she will receive the 13th month pay this year, she will commit it to pay for her credit card debt other than thinking of gadgets or luxuries. What a wise decision!
Building your Emergency Fund
This is a perfect example of paying yourself first. What I can advise is to build your emergency fund this year. It is very convenient for me to set aside an amount from time to time but many people find it hard and boring especially if you are not use to it. Since you have already a big chunk of money, you can do it all at once. The concept of emergency fund is to save it for future use such as emergencies and unexpected occurrences. The fund should be good for 3-6 months and should remain liquid. That means you can use it anytime you need it.
I would prefer to look for time deposit account or a savings account. If the fund is already intact, you can put half of it to less risky investment such as bonds. You can inquire in your banks or check it online, in BSP website, Bureau of Treasury, or in investment forums.
Adding income streams
Buying gadgets are not bad if you will use it to produce another income. You can buy good quality computer and start offering English tutorials in your free time. Online jobs are on trends nowadays, so you can apply on rarejob.com and teach English language to Japanese learners while you are at home and in your convenient time. You might as well a "camera-fanatic", then you can start taking photo for a living or an I.T. by profession to start an online part-time job. I just realized nowadays how important it is to have best gadgets when I'm already engaged into trading and blogging and doing vlogging project for next year. Having best equipment is always a very good advantage. Since everything is almost online nowadays, best specs should be considered and taken seriously. If you have good gadgets, you can maximize doing online jobs and do digital marketing.
Increasing your Skills
Seminars and webinars are very popular nowadays. Although there are advocates who are offering free seminars, I would advise you to attend paid seminars, not only that you can listen directly from best speakers but you can also learn something great in a shorter time (you will also enjoy good food and accommodation). If you really want to learn new skills or bring your skill to the next level, I would advise to attend from these best speakers/organizers. I knew some of them who are conducting regular seminars that you can signed up. Just a disclaimer, I'm not affiliated to any of them. - TGFI (The Global Filipino Investors) Spearheaded by Personal Finance Advocate Floi Wycoco, their excellent team is moving from places to spread financial literacy and business ideas. They are also conducting webinars for start up businesses, investments, and often inviting speakers who are leaders in their different fields. - Randell Tiongson's Icon Conference This is a yearly conference and I attended last year and it was a blast. You will get to meet and hear from best mentors and Registered Financial Planners in the country today such as Efren Reyes, Marvin Germo, Randell Tiongson himself, Francis Kong,a and many others. Things that you will bring home are bytes of learning in finance and investing. If you don't have any idea in investing, after you attend this you will surely be on fire! - Marvin Germo's Stock Smart He is the sought after speaker for both investing and trading around the world. He has also written best-selling books. Do not miss his seminars around the country and learn investing the easy way. - Nikki Yu's Bookaka Seminars For those experienced investors and traders, you can also attend their seminars for free for premium subscribers. What I like about this group is that they are sharing their passion and knowledge about trading and often invite speakers that are successful traders. - Caylum Trading Institute
You can maximize your profit in the Stock Market by trading but it takes a lot of effort and dedication or else you will be eaten alive by the market or you will be strayed by hypes. You can enroll in their course as you hone your skill in trading stocks.
On my bucketlist this year and on 2017, I'm setting aside funds to enroll seminars/conference on stocks trading, foreign exchange, foreign stocks investing, SEO, Digital/Online Marketing and book writing. You cant be wrong in learning new skills and you can get the benefits in the long run.
Building a start-up Business
I always believe that I'm entrepreneur by heart. Everytime I have funds, I usually use it to fund a business venture. It has also been a long practice that everytime I received my bonus, I utilized it for projects. I like building small businesses (both online and home business), it always works for me since I have an office job and I can micromanage it.
This year, I was able to start a fruit business and garment business. These are just small businesses but it really help a lot in terms of profit-making. From these businesses, I was able to saved some and invested it in the Stock Market. You can also read my blog How I Made My First Million in the Stock Market.
I encourage you to buy good books and reading materials. You can start with buying monthly edition of Entrepreneur Magazine or if you want to get ideas online for free you can also visit and read some business/money tips in Entrepinoy,Atbp.. I really like this website it's because the businesses they introduced are Pinoy-friendly and small-medium business ideas that only require minimal capital.
Acquiring good Investments
Stocks I've been in the Stock Market for a while now and all I can see are good things which are happening in my investments even the market is volatile. Stocks has always been my first love. When I started to invest in the Stock Market, that was also the same time that I began to realize the importance of financial education.
If you are going to start investing this time around, this is very timely for you since we are expecting factors that can cause the market to go down further. It would be a great opportunity for you to buy stocks in bargain more than you experienced in the shopping mall.
You can start shopping good stocks like Ayala Land (ALI), Banco De Oro (BDO),First Gen Corp. (FGEN), and many more...You can also read my blog Investing in the Stock Market the Lazy Way to spot and pick best stocks to keep and hold for long-term.
Mutual Funds
I'm too busy at work! This is the common excuse that I've heard by friends and colleagues which I've shared investment opportunities. I tell you, I was able to manage it even if I'm too busy at work. For the purpose of making things easier, Mutual Fund is dedicated and tailor-fit for busy people.
Usually, you just need to start 5,000 pesos and you can top-up in your convenience. You will also have a license fund manager (which is also an advantage), that will take care of your money and will invest it in stocks, real estate and bonds. Philequity Fund, Inc. is a big player, top Mutual Fund in the country that has been performing well with 12.86% 10-year annual return. You can sleep while your money is working for you.
Just a quick sigway, I'm inviting you to join our men's small group mentoring every Thursday at The Coffee Bean/Cafe Aquatica, Promenade, San Juan, Metro Manila. This is the best avenue to meet new people who are in the field of finance, CEO's, and professionals. This is for free! See you there. For those who are interested, please contact me: 09369280089 or shoot me an email: palengkekid@gmail.com...
VUL While stocks and mutual funds has been popular investments that Filipinos are engaged in, this is another option that you can choose. Variable life insurance (or VUL) is a product you can consider if you need both insurance and investment. VUL will give you insurance benefits but it will also have a fund that is being invested according to your objectives, risk profile and other preferences. If there are already people depending on your income, you should get a life insurance policy.
But if your sole objective is purely investing, then this may not be the right instrument for you at this time, because in the first couple of years of your policy, most of your money will actually go toward premium payments.
UITF
The main difference between Mutual Fund and UITF is that it is offered by banks, while mutual funds are their own companies. By buying into a UITF, you own units of this fund. By buying into a mutual fund, you own shares and become a shareholder in the mutual fund company. All your earnings are net of tax and fees as represented by the NAVpu (net asset value per unit) for UITFs and NAVps (net asset value per share) for mutual funds.
Bonds
What are bonds? Bonds are considered IOUs (‘I owe you’). This is because bonds are debt instruments wherein an investor (you) lends money to a borrower (government or company). There are two general types of bonds – bonds issued by the government (treasury bonds) and those issued by corporations (corporate bonds).
Basically, investing in bonds is putting your money with minimal risks. With a volatile market that we have today, this is an option that can work well for you. Other advantages that you can have is that the return is higher than the usual saving account and you will be paid regularly and your money could become liquid as possible.
Getting Insurance Policy
This is the most underrated but one of the most important investments especially if there are already people depending on you. It is very important to ensure proper protection. You need an income replacement for example something will happen to you ,we don't know what is ahead of us and it is wise to be always prepared. All insurance is renewable in terms.
The type only differs on how you pay them, whole life, variable, universal, etc...So choose the most affordable that you gives more value to your money and you will not struggle paying for it. The most important is that you can pay it consistently.
I got a call from my friend who was very happy receiving almost a Million because he did not expect about it that the insurance he got years ago when he starts young has gone matured. It is always an advantage to start young because you will pay cheaper.
Although I prefer to talk to a Registered Financial Planner who doesn't have bias in providing with insurance policies, it is wise to shop around and talk to insurance agents on any policies that you can compare with and will fit your needs.
