Savings

House and Money Investing

Do you want to build a home? The one that is of standard and does not require a lot of money-work? You better start to invest in a manufactured home. Because of the past financial crisis, many people suffered from their mortgages in their housing loans. So other investors thought of refurnishing those cheap manufactured homes (aged 5 to 25 years old) and later on sell them at a higher price with a mark-up price of 25%! Good idea in investing money, isn’t it?

You can guarantee that it is of quality as it is built with specifications and standard materials. Once it is done, one can simply move the house to the place or lot where they want it. It is good if they have invested on land already. It is possible that buyers can have a $4000 savings on it depending on their location. That’s a great savings!

There are things to consider in the location before you move the house. You need to check the most basic necessities like electricity, water, light, gas, sewer connections. All of these need to be incorporated or installed in the house. So make sure as before selling it, you have already fix these things.

Take this recommended budget of $110,000 to remodel a manufactured house and you can sell it at $185,500 after all those property and insurances taxes deducted from it. So you may try to partner some construction companies and check how you could work out with the budget.

Safest Way To Invest

The featured article below would help those confuse people who got the money to invest but don’t know or have any idea on where to put it or perhaps just reluctant in finding the safest way to invest.
Take the query below as well as the answer to Edwin’s question.

Q: What’s the best way to save these days? I am expecting a big amount of money to come from the sale of a lot we’ve had in the family for a long time. With the global economic crisis affecting our economy, I want to play it safe yet grow my money. – Edwin

A: It’s good that you are thinking of protecting your money (your capital) by investing the proceeds from the sale of your lot. Investing your money may make it grow over time.

Understand, though, that with investing comes risks and rewards. If you want your investment to grow and yield higher possible returns on your investment, be prepared to meet setbacks and losses if they happen. Investments that yield higher returns come with higher risks such as heavy losses, as what stock market investors have realized last year at the height of the global financial crisis. Investments that have low risks may more or less safeguard your capital but give you low rewards as well (low interest income or minimal capital gains).

Bank deposits and government securities may offer you relatively safe investment options.

Bank deposits take the form of savings accounts, interest-bearing checking accounts, and time deposits. You deposit your cash in the bank and you get interest back after a month or so. While this may seem to be safe and will preserve your investment, this may not actually be the case as inflation may eat into your investment.

The current rate for savings accounts, for instance, is about 0.75 percent per annum. The inflation rate is way higher than that, which means that the growth to be yielded by your investment in a savings account will be overtaken by the rise in prices of commodities.

Time deposits may give better rates, but still may not be enough to match the cost of inflation. You may need to keep your money on deposit for a longer term to achieve a higher rate of return.

As “The Citibank Guide to Building Personal Wealth” (a book published by Citibank) says, “Inflation is a major risk if you hold large sums of cash permanently, because it reduces the buying power of cash.” Put simply, inflation may erode the value of your investments over time.

We mentioned government securities above. These come in the form of treasury bills, treasury notes, and treasury bonds. Bills have the shorter term (less than a year), and bonds have the longest term. Government securities are generally low risk since the government guarantees to meet its obligations and pay the published interest rate.

But since you mentioned that you want to grow your money, it may be wise to look into other forms of investment as well to achieve your goals:

1. Stocks or equities may give you high possible returns over the long term, but these come with high risk, which you don’t seem to want to assume at this time.
2. Bonds may also give you good rates of return, but these also come with some form of risk, although lower than that of stocks.
3. Pooled funds come in the form of mutual funds or unit investment trust funds (UITFs) and depending on their nature may be invested in stocks alone, bonds alone, money market funds (government securities and commercial papers), or a combination of these.

To keep your money safe and make it grow at the same time, we advise that you do what wise investors have been doing all along: Diversify! Keep some funds in bank deposits, some in government securities, and some in pooled funds. Since you may have other financial goals and may have a timetable in needing your funds later on (example, for retirement), we advise that you consult a financial professional who will assess your risk profile and suggest the best possible allocation of your investments.

You may also invest your money in tangible assets such as real estate property. However, market values fluctuate over time, so be prepared for any eventuality. Investing in a business also comes with a high risk as not all businesses realize income. Jewelry and art are also forms of investment, but bear in mind that it may take a while for their value to increase. Converting them to cash may also take a longer time should you find the need to do so.

Whatever investments you go into, study all aspects thoroughly. Look into the pros and cons before deciding. We wish you the best.
Entry Credit: http://business.inquirer.net/

*Disclaimer: Those who happened to read the article above are solely responsible for their own investment decisions and should consult professional advice from financial experts or analysts.Thegetwealthy.com will not be liable for any loss or damage caused by a reader’s reliance on information obtained from our web site. Thegetwealthy.com receives no compensation of any kind from companies or industries or funds that are mentioned above.

Stock Picks: MEG, looking forward to it!

When I started to join the stock market last June 2009, I was advised by my mentor to buy Megaworld (MEG) and Manila Water Company (MWC) stocks. I initially acquired 5000 shares of MEG at P 1.12 and 100 shares of MWC at P 14. And on July 7, 2009, I stopped buying MEG shares as I don’t have funds anymore. Actually, just exhausted my salary payout with some stuff. As of August 3, 2009, I sold out all my shares of MEG and retained my MWC shares. In the span of 2 months, I got 30% profit/gain from what I initially invested for MEG. That’s why I got saving my money thru this scheme.

I acquired a total of 43000 shares of MEG at an average price of P1.092857 with a gross amount (excluding tax) of P 46,240. On August 3, 2009 at the peak of its high price when the local stock market seems bullish with its up trend in all major shares, I decided to sell all my MEG shares at P1.42 and it gives a gross total sale of P 59660. So that’s a 30% profit-taking!

Days after I sold all my shares at MEG, its NAV went down to 1.38 and below. Currently, I have invested the other proceeds in buying shares from Filinvest Land Inc (FLI), GMA Networks Inc (GMA7), Philex Mining Corporation (PX), Petroenergy Reserve Corp (PERC) and Meralco (MER).

As of the moment, still waiting for MEG to go down like P 1.20 and I will definitely buy lots of shares at one time!

Happy Trading!-Bullish Trader

Where To Invest Your Money

When I first engaged myself in the world of stock market, I have lots of questions and apprehensions. That’s when I tagged myself as a “newbie”. Certainly, I’ve been wanting to know how to trade and invest money thru stocks when I was in the university but never get the chance to have a hands-on training or sit with a stock market expert.

I learned much on financial education and how money works for me just early this year, 2009 when I joined the great people at International Marketing Group (IMG). This is the time I know that financial security is a priority for everyone. Hence, I came to value the worth of my money, investing it to where it could earn double or triple or more. That’s money working hard for me!

Confuse on where to invest your money where it could earn more at bigger interest rate still an issue? No worries, I will share my experiences in where I invested my money.

Point 1

First to consider is to secure yourself, which is, SAVING for your future. It is important that you have LONG-Term Healthcare, Life Insurance, and Investment. Just these three!

*Healthcare – the very basic and first to secure. Why? To get sick is really expensive. People who don’t have healthcare but have lots of money in the bank will just exhaust their savings just to pay for their medical expenses. You don’t want to touch your savings or income right? Then get a healthcare program that will pay your hospital bills and medicare if the need arises. Philhealth is not just enough (for Pinoys). Your savings are still intact if you get your own personal healthcare!

*Life Insurance- if you’re the breadwinner of the family and in the event that you lose your job or death cut your life short, the family you left behind could still continue their living as Life Insurance companies will give the coverage benefits to them. Or when you get disabled and you can’t function doing your normal job, life insurance will support you to start a new life! So get one!

*Investment- if you have extra money, then you could start to look for something new to start to grow your money. You may want to acquire solid assets like houses, cars, business, etc. Or you may participate in the Stock Market where you could earn high returns of your money but also with high risk! But risk is manageable if you know how to deal and play with it which is easy to learn. For first timers, investing in Mutual Fund is advisable.

Yes! I got those three on the second quarter of the year. How? When I joined IMG, they have a business partner that caters to the three above. It’s an all-in-one program! I’m positive in getting the Kaiser Premium Health Builder. This is my SECURED investment/long-term investment. It’s giving me back a fix 10% annual compounded interest for 10 years or more. SECURED? Money put in this program is placed in stock bonds and other securities and is managed by professionals.

Note: Returns that yield a rate of interest from 12% below is a SECURED investment. Anything beyond that is a Risky one!

Point 2

The next thing I took advantage of is putting my money in Mutual Funds. If interested in joining the stock market but with no experience at all, mutual fund is what I recommend that you engage in.

Mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically distributed to the investors annually-Wikipedia.

My mutual fund at the moment is PhilEquity. It is the Philippine’s best performing equity fund in a 10-year, 5-year, 3-year category. Now, make your winning investment today!

Point 3

Having quite an ample of knowledge on financial education. I started to actively participate in the stock market. I have 2 mentors, friends and online buddies (forums) who helped me in how to deal with the stock market! I say, it’s addictive!

Investing in the stock market involves risk. Why? It’s giving you high return of your money! 12% more, even 100% , 200% and even more than that! That’s why it’s risky! Your loss might be equivalent to that rate. But in any market condition, it’s guaranteed that you will be earning! It’s just how you play it.

To date, I already earned 45% return of my stock investment in the span of 2 months. I was able to play around with Megaworld’s (MEG) stocks and yeah, profit-taking is done! Will be divulging information on stock trading in my next post!

RULE in Stock Market Trading: Buy LOW, Sell HIGH!

Links:

International Marketing Group (IMG)

Kaiser Premium Health Builder

Mutual Fund

PhilEquity

Importance of Savings

If we want to achieve our financial goals, then we must start to save as early as possible. And that is NOW! The earlier we started our savings attitude, the more possible we can achieve our
financial goals.

We are used with this equation, INCOME – EXPENSE = SAVINGS. This is the scenario given above. As long as we received our paychecks, we spend it on a lot of ways. Whatever left from our expenses is our savings. I always believe in the concept of ‘delayed gratification’. That is, we delay our satisfaction in order to prepare for a future goal.

And this is where we need to save wisely. We need to arrange our equation. Instead of the equation written above, why not use INCOME -SAVINGS = EXPENSE. In this scenario, we pay ourselves first more than anything else. Each time we received our paychecks, we set aside a portion of it to our savings. We treat SAVINGS as an EXPENSE.

Savings is the most important of all expenses because it buys the most important thing - YOUR FUTURE.
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