No Nonsense Personal Finance, an introduction

I am finally done with my book and in a few days, it will be out already. My book is titled “No Nonsense Personal Finance: A Step by Step Guide” and is published by YOUnique Publishing.

What’s the book all about? I am sharing with you the introduction of the book. I hope this book will change people’s lives!

Get a copy of this book.. out soon!

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NO NONSENSE PERSONAL FINANCE: A Step by Step Guide

Introduction

Randell book 2“My financial life is like a roller coaster.”

That statement pretty much sums up how my life was, and I assume that countless others feel the same way. Sometimes in our desperation, we try to find quick-fix solutions to our money problems. While it may offer temporary reprieve from our woes, our financial problems never seem to really go away.

You probably get a lot of advice on how to have a better financial situation, and you may have picked up a book or two or even attended a seminar about it. But despite this, you find yourself asking more questions than finding solutions.

The solutions to our financial problems are actually simple but they involve a process. Contrary to popular notion, there are no shortcuts to achieve a good financial life and future. Lasting solutions are those that are ingrained with a sound financial foundation that is rooted on the right behavior coupled with the proper knowledge. A sound financial life arises from a process and with the blessings of the Lord, not those nonsense things like lucky charms, superstition, wealth attraction, and all the other garbage so many foolishly believe in.

As you have noticed from the title, this book is all about a process — a step by step guide that is really no nonsense. It guides you through a simple and yet life changing process that is grounded with a lot of financial sense. I must admit that some of what I wrote about in this book may require us to make adjustments in our ways but if we really want to change, we must begin doing things differently from what we are already doing. This book will illuminate five basic steps to achieve financial peace in our lives. They will bring you to a sequential step that you can easily follow and has been written for the general Filipino in mind. Finance practitioners may find this book devoid of many of the usual finance jargons and complicated theories, but this is not written for them — this book is written for you!

No Nonsense Steps

This book is all about these five (5) steps:

The steps that you will read about in this book will be a good guide for you to achieve your financial goals. It is ideal that you start with Step One before going to Step Two and so forth. However, you may want to do Steps One to Three simultaneously provided it will not overwhelm you. Some steps will take longer than the others and is largely dependent on you. The faster you get through one step, the sooner you can move on to the next.

Once you get familiarized with the steps, put it into practice immediately. Knowledge and awareness are useless if you do not put it into practice, right? Do not be overwhelmed, you will grow in the process this book is talking about — you just need to want financial peace enough to make the necessary sacrifices today. You can pay now and play later, or you can play now and pay later.

Much thought has been placed in writing this book, and I have tried to make it as comprehensive as I can yet it should not be overwhelming. This book is a good start for you if you are tired of your money problems, but it is foolish of me to claim that everything you need to know is contained here. I encourage you to learn more once you’ve finished this book—pick up another book, attend another seminar, or read many blogs. Have an attitude of learning, and that attitude will really help you go a long,
long way.

What Other People Recommend

As I wrote this book, I asked people who follow me on social media (Facebook and Twitter) to give their own suggestions on the steps contained here. I originally intended to publish two or three suggestions per step, but I was overwhelmed with the response I got. Many of their suggestions were very good, so I included as much as I can in this book. You can find these at the end of every chapter under the heading, “What People Say.”

I always believe that many minds are better than one. Though I may not necessarily agree with all of them, I am thankful for the many recommendations I got for this book as most of the comments have much value in them. Like many things in life, there are different strokes for different folks, and I am sure you can pick up a great idea or two from them.

I pray you will enjoy reading this book as much as I have writing it. I also pray that the steps in this book will change your life for the better as it has mine.

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Free tickets to iCon 2013: The No Nonsense Investments Conference

Here’s your chance to attend iCon 2013 for FREE c/o our sponsors: Sun Life, Wealth Securities & Sbarro!!!

 

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The Top Life Insurance Companies of 2012

The Insurance Commission recently released the top Life Insurance Companies according to Total Premium Income as of December 31, 2012. There were a lot changes in the rankings from 2011, particularly in the top 5 rank.

Canadian insurer Sun Life Retains it’s number 1 position, a position it held since last year when they wrestled it from American insurance giant Philam Life. What is interesting to note is not only did they retain their ranking, the gap between the first and the second ranked company widened by a huge margin. In 2011, Sun Life surpassed Philam Life by a mere 300 Million by year end. By contrast, Sun Life’s difference from the runner-up in 2012 was a whopping 5 Billion Pesos with an astounding 44% growth from their 2011 numbers. It seems that Sun Life has been very productive and their various initiatives was bearing fruit, obviously — something her competitors are really seriously looking at for sure.

Coming in at 2nd place is the U.K. insurer Pru Life who had an astonishing growth and a jump of 2 notches from 4th in 2011 to 2nd in 2012. Last year was definitely a banner year for Pru Life who I noticed have been very active in its recruitment of more agents, among other initiatives. Moving 2 notches in the top 5 rank is no easy feat but Prulife of UK goes ahead of Philam Life who slips from number 2 in 2011 to number 3 in 2012. Prulife UK registered a huge growth of 57% from its previous year’s numbers which was enough to overtake Philam, albeit by a narrow margin of about 300 Million Pesos. Philam Life registered a growth of 13% from its 2011 premium base.

French insurer and one of the country’s pioneer in Bancassurance, Philippine AXA slips from it’s 2011 rank of number 3 to the 4th largest insurer by 2012 with a very respectable 23% growth in premiums from 2011 to 2012. Coming at the 5th place is BPI-Philam, the Bancassurance partnership between BPI and Philamlife who overtakes Insular Life who lands at the 6th spot. BPI Philam registered an incredible 78% growth from its 2011 numbers and was 800 Million Pesos away from Philippine AXA’s 4th rank. Insular Life delivered good numbers in 2012 with a growth of 23% from its previous year’s premium base.

Canadian insurer and the 2nd oldest life insurer in the Philippines Manulife and the Bancassarance organization Sun Life Grepa retains its 2011 rankings at 7th and 8th respectively. Both organizations also registered good growth in 2012.

Manulife Chinabank and PNB Life, both Bancassurance dominated organizations are in the top 10 ranks at number 9 and 10 respectively, also registering good growth numbers.

Cocolife and Generali Philippines slips out of the top 10 rankings by the end of 2012.

Some interesting facts:

1) 2 out of the top 5 insurers are predominantly Bancassurance organizations. Simply put, Bancassurance is an organization that can sell insurance products to the bank clients and are co-owned by an insurance company and a bank.

2) 5 out of the top 10 insurers are predominantly Bancassurance Organizations.

3) 3 companies in the top 10 are actually subsidiaries of 3 other companies in the roster.

4) Only 1 Filipino insurance companies makes it to the top 10, Insular Life making them the largest Filipino insurance company. 

5) Total Premiums generated by all Life Insurance companies totaled to P119,454,550,174

Congratulations to all the Life Insurance companies. My prayer is that more and more Filipinos understand the benefits of life insurance and be protected from life’s uncertainties.

 

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Students and the national economy

Sharing with you one of the winners of the essay writing contest for students for the iCon 2013 event.

This entry is about how students can have a positive impact to the economy and was written by Archie Jerome Maramag. Awesome piece!

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Students and the National Economy

I’ve always wanted to be a part of bigger pictures. It gives me great fulfillment, knowing that my efforts, big or small, contributes to the details of a beautiful bigger picture. That’s what I want, I want to join, to be a part of something, to belong.

Most young people desire the same. I think we all do, even those you are young at heart. To belong to something is the reason we join organizations, a circle of friends, or wanting to be in a relationship. We want to be a part of something. This is a value, that I believe, God has innately put into us.

The desire to belong, combined with our energy and passion, lets us do a lot in our youthful years. And exactly why we, student, can be of great contribution to the national economy. Some wait to be part of the work force to feel that sense of belongingness in nation building. But let me tell you that we don’t need to graduate and have a job to contribute to what God is doing in our nation.

In this blog, I will be listing simple ways we can do to belong to the growing economy of our beloved country.

1. Join an organization. What’s giving us that sense of belongingness but to join an org, right? Join different organizations! Believe in their cause. Be one of the people who push the cause in our society. As much as possible, learn from the organization. There’s a lot to learn from a group of people, so maximize what you can get. Learning from the people in the organization is great already, but don’t let the organization mold you. Instead, be one of the people who molds the organization. Don’t just be a member, be a leader. Through this, we can learn to take charge and practice the principle of ownership when we’re already in the workplace.

2. Renew your mindset. So you are already part of an org, right? And let’s say you’ve decided to mold the org and not just be molded by it. That is the start of our changing mindset. We can now think bigger, not just thinking about our organization but also that of the nation.

This two ways can then be summarised to two Ls: Learn and Lead. Let us learn from the nation we belong. Learn from our politics and systems… Then let us lead. Being young should not hinder us from leading this nation to progress and national revival.

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Save, invest and win with BDO EIP

BDO Trust Group is currently running an Easy Investment Plan (EIP) public promo from June 1 to November 30, 2013.

Through this exercise, they hope to enable more people to meet their financial goals by investing in BDO’s UITFs via the EIP. Accounts that will open and/or contribute to their EIP funds during this period will be entitled to monthly raffles wherein we will be giving out an iPad Mini by geographic location, namely: Metro Manila, Luzon, Visayas and Mindanao. Aside from the monthly draws, there will also be a grand draw onDecember 20, 2013 and winner per geographic location can choose from among a 2-night, 3-day trip to Hong Kong for two (2), an Apple iPhone 5 or Samsung 40-inch LED TV.

Save, invest and get a chance to win some cool prizes! But the biggest winer is you when you invest early, invest wisely and invest regularly. Check out your favorite BDO branch for more details.

Well, I hope I win too!

BDO EIP Promo

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15 Reasons why Philippine Stocks are Down, part 2

Stock Market DownStock Market blood bath… what happened? My colleague and friend Marvin Germo wrote 15 reasons why. He posted the first 5 reasons in his blog, click HERE.

Here are the next 5 reasons.

6. Technicals, our market broke 3 support levels including a very strong 100 day moving average. The breakdown portrays a strong level of selling strong enough to overwhelm all the buyers in the market at a certain time. The breakdown points that the next possible support level could be the 200 day moving average around the 6,000 – 6,100 area.

7. Massive Foreign Selling, as great there have been a sudden surge of Filipino investors as of late, a large amount of our market is still dominated by “hot money.” Foreign money that could easily be pulled out anytime, like what we are experiencing now as foreigners continue to sell down and take profit.

8. GDP Announcement, this is a classic “sell on news” move that investors pulled off! I personally believe that regardless of what the GDP announcement was, either good or bad people who have sold and would have used the GDP as a trigger for selling. Also our economy follows and trails the market by 9-12 months, meaning 7.8% gained by the market has already been factored in and is expected.

9. Panic Selling, most investors that bought at 7,300 ++ sold and cut losses after the market dropped below 7,000. As panic is a greater motivator than excited optimism, it’s easier for stocks to accelerate downward than for it to push upward.

10. Expensive Market, a lot of foreign fund managers regard our market as to be already expensive as compared to other markets. I may not agree with them as they don’t actually see the value of what our market has but you can’t blame them if they are there to buy cheap and sell when it gets expensive and to comeback again once things get cheap again.

Catch the next 5 reasons at www.marvingermo.com

Learn how to properly invest at iCon 2013: The No Nonsense Investments Conference

 

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Buy 1 Take 1 for iCon 2013

Great news!

Our sponsors Wealth Securities and Sbarro has made it possible for you to attend the iCon 2013: The No Nonsense Investments Conference under a ‘Buy 1 Take 1′ promo for our VIP Tickets.

For the price of 1 (P2,800), you will get 2 tickets! Join us and learn how to properly invest your hard-earned money from the country’s most respected finance experts and be part of the biggest investments conference of the year.

Hurry as this promo is EXTENDED to June 19, 2013!

Please send your inquiries to icon2013@ephesians.ph

 

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Making lots of money and still going broke

You’ve heard about how many celebrities have made tons of money. Celebrities makes millions in a single year and you can just imagine the fortune they have amassed after a few years in the limelight.

Huge contracts, endorsements, movie deals… and the list goes on! We don’t need to know how much money they make, we can see it in the way they live. What they can make for a few years of work is something normal people can’t make in their entire lifetime. A few years of works should make them rich for life right? Wrong!

A huge chunk of celebrities go broke after the work stops even if they have made so much money to last a couple of lifetimes. When you spend all your money and do not save some and forgot to invest them, you will go broke — despite how much money you have made in the past.

We can learn from many celebrities on what not to do. My deal is to go ahead and enjoy what you make but don’t be a fool and forget to save and invest some of the money. Even if you only save 20% of what you make, it will come in very handy when the work stops… and they will stop regardless of what you do.

Like what I say to normal people, I will say to the celebrities too — save and invest otherwise you go broke… celebrity or not.

Here’s a video from ESPN about how athletes end up broke. 60% of former NBA players go broke within 5 years after retirement. So sad.

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Students, attend iCon 2013 for FREE!

Great news to all students who want to have a good financial future… you can now have a chance to attend iCon 2013: The No Nonsense Investments Conference for FREE!

Sun Life Financial is pleased to announce that they will give free Sun-Life-Centrespots to selected students for a simple blog / essay writing contest.

Here are the mechanics:

1) Open to Students only – High School, College and Post-Graduate students. You must show proof that you are a student by showing your School I.D. upon claiming your ticket.

2) Entry is via a blog or an essay posted in Facebook with two (2) topics/theme to choose from: “How can a student contribute to the national economy?” or “Why do students need to learn investing?”. A brief mention about iCon 2013 will be appreciated but not necessary.

3) Blogs or essays should be a minimum of 300 words, no maximum.

4) Blogs or essays should be posted between May 24 to June 9, 2013. Announcement of selected winners will be done via e-mail by June 12, 2013.

5) Winners can pick up their tickets at Sun Life located at the 6th Floor, Sun Life Center, Bonifacio Global City, Taguig c/o Karen or Dave. 2 tickets per winning entry.

6) Participants should like the Twitter of Sunlife (@SunLifePH)

7) Please advise us if you have posted your blog or essay by sending a link to randellt@gmail.com and marvingermo@gmail.com

* Selected blogs / essays maybe featured in www.randelltiongson.com and www.marvingermo.com or used by Sun Life for posting.

A lot of tickets are ready for those who want to join. Sali na!

icon poster with sponsors

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Thoughts from a banker

Ever wondered what goes in the mind of a banker? What about a banker who is also a CEO? Here are the thoughts of East West Bank’s Tony Moncupa, Jr.

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‘A banker is someone who offers you an umbrella when the weather is fine and snaps it back at the first sign of rains.  They offer all sorts of loans to the moneyed and those who don’t really need it but snub those who need their assistance badly.  They are nothing but fair weather friends’.  We’ve heard this line many times.  What those who are saying this don’t realize is that banks are lending money entrusted by depositors.  If the loan is not paid, the banks will not be able to pay back its depositors.  When a bank fails, too many innocent depositors are dislocated. Their financial lives are ruined. That is why bankers have to exercise great care in lending. Bankers are pro-depositors, not anti-borrowers.  Its first duty is to protect those who put their trust in them.

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We got this query.  ‘I am starting a business. I need capital.  I went to several banks to borrow but the banks would not lend me?  How could our economy progress and create more jobs if banks will not support budding entrepreneurs like me?’  All those starting a business believe they will succeed.  Just like candidates in elections.  They all think they will win.  The data though do not bear this out.  In the US, only 3 in 10 succeed.  Most likely, our numbers will not be far from this.  Banks know this and most likely had sad experiences with start-ups. And being pro-depositors, they will scrutinize more thoroughly those with unproven track record.

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When we don’t feel well, we go see our doctor.  When our tooth aches, we go to the dentist.  If we want to learn more orderly, we go enroll in a university or take some special classes.  Sometimes, by ourselves, we simply burn the midnight oil in serious study. In other words, when we want something important enough, we consult experts or train ourselves.  But when we invest our money, we could be less careful and even get hoodwinked by sweet talking pyramiding scammers.

Consider going to investment professionals. The true professionals will help you understand investment alternatives, explain the balance of risks and rewards, and even gauge your readiness to withstand the euphoria of winning and the frustrations of losing.  They are trained to assess what investment is suitable for you.  If you still don’t understand and remain unconvinced, be patient and study a bit more.  Stay in simple time deposits in the meantime. Know your financial emotional quotient.  No additional returns are worth a possible heart attack.

Which expert should you go to?  You can follow the same principles you use when in choosing your dermatologist or lawyer.  Choose those with solid reputation and track record.

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Occasionally, we are asked where to invest.  Always, we qualify our response.  There is no ‘one size fits all’ answer to the question.  It really depends on a person’s risk appetite, sophistication and personal circumstances.  It will be helpful though to consider some basic concepts. For instance, generally, higher returns carry with it higher risks.  And if it is too good to be true, it must be false.  For example, we see a proliferation of ads of supposedly success stories of people who engaged in Foreign Exchange trading on margins.  We think this is very risky.  Our unsolicited advise – don’t even think of it.

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There are good fund managers around who are able to generate consistent high returns.  We know of an excellent mutual fund that invest in stocks that has made a P100,000.00 investment 10 years ago grow to more than P850,000.00 today.  That is a compounded annual growth of  around 24%.  But there are no guarantees and returns could fluctuate.  In 2008, the fund lost 40.7%, while lower than the PSE index decline of 48.3%, it is still a huge loss.  And if you are risk averse, it could cause you some sleepless nights.  Risk could be managed though by following the concept of not putting all your eggs in one basket.  In investing, it is called portfolio management.  Banks have trained investment advisers who can assist in designing the right portfolio for you.  Next week, will touch on the hottest financial fashion – the stock market.

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EastWest CEOTony Moncupa, Jr. is the President and CEO of EastWest Banking Corp.  Please e-mail your questions, comments, suggestions to easttowest.inquirer@gmail.com.

 
Feature originally posted in Inquirer

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