Monday, March 10, 2014

14 Things I've Learned from the Philam Life Wealth Management Forum

A few weeks ago, I had the chance to attend the Philam Life Wealth Management forum as invited by a PR agency. It was a privilege as I get to learn a lot of new insights, investment tips, and was motivated as well. The best part was, NO product selling was made. I was expecting the night to be full of sales pitches and product promotions. Well, the CEO himself reassured everyone in the audience that they can enjoy their meals as there will be no product pitches that night.

Same with that night, this post won't be about product or promotions. Let me share with you the valuable wealth of learning I have learned that night. Such learning have to be shared because I believe that the success of others will also tantamount to your success.

Chasing The Markets
Things I've Learned from the Philam Life Wealth Management Forum:

> No Recession. We had no recession for the last 5 years. This means that we outperformed a lot of market during those times

> Growing Investor Confidence. We've been upgraded several times last year and this year by investment grading firms. Also, the BPO sector is growing rapidly that soon enough, it will surpass the contribution to the economy from OFW remittances.

> Capital Asia also said that the 7% growth is sustainable for the next 10 years.

> 2015 is the sweet spot for the Philippines. This just means that the median age would be 22.2 years old and this is when the working force would peak. In other countries, sweet spot translates to 7-8% GDP growth.

> Salary issued by BPO industries in the Philippines: 13 Billion per month. With this data, it will create a new demand. As an example, malls have new opportunities to create a new set of operating hours to cater to the growing BPO market.

> China labor is getting more and more expensive. With that, manufacturing is growing at a rapid rate here in the Philippines. Not a lot of people know that a lot of branded clothing are now manufactured here.

> 3 stages in a person's financial life. 1, man at work. 2, man and money at work. 3, money at work. But sadly, most people in the Philippines spend on the wrong things making them 'man at work' their whole lives. An example of money at work is investing.

> Retirement is not an age. You are retiring because you are already capable of living and letting your money work for you. If you develop your financial knowledge, it will definitely improve your 'money at work' stage. Map out your life and set goals.

> Work because you love to and NOT because you have to. Why are a lot of employees being abused? Because they need their work more than anything else. They are very dependent on it. If you know how to let money work for you, you can opt to leave the company anytime you want to. This will stop employers from abusing you.

> Fear and greed will blur your vision. This is why having the right people handle your investments is recommended. You won't be too emotional. When other people handle your investments, they will be objective rather than be emotional.

> Why invest? Most people will say to earn money. Partly true but actually, you invest so you can beat inflation and achieve a financial goal.

> Time deposit is not an investment tool. Although time deposit gives you a guaranteed return, it will guarantee your loss as well because the pace of inflation erodes the value of your money. A good example, a VW beetle costs 38,000 before (way back). Now, 38,000 pesos will only get you a nice set of wheels for your bicycle.

> 80% of investments in the Philippines are under 60 days. Investments are commitments. Not short term deals.

> Ladies love bags and jewelries. A lot will get mad at this fact but your Birkin OR jewelry is a luxury and is not an investment. You cannot easily liquidate your jewelries nor sell your bags at a higher value from your the time of your purchase. Same with cars, it is never an investment. In fact, once it steps out of the showroom, the value drops. The value of these items can be perceived in different way though -- when you give your wife bags or jewelries, she will feel GOOD. This is priceless and the returns are positive infinity! (according to CEO Rex Mendoza).

Bottom line? Invest. Time deposit will guarantee your loss. Spend wisely. Have a goal and plan your life. The Philippines has a bright future and it is never too late to invest.

Quotable Quotes from that night:
"What is comfortable is rarely profitable"

"Be fearful when others are greedy, be greedy when others are fearful."

"Never manage the weather. Manage the ship."

"Control what's within you."

"Fear drives people to be conservative in bad times. Greed drives people to be aggressive in bad times."

"Emotion drives the price."

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