A question from a mortal investor investing in the Philippines Stock Market


Here is a question from a mortal investor:
What happens if an investor past away? To whom will the fund go?
Here is a short answer from our friend Sir Aya Laraya:
It is handled like other assets of the deceased under Phil law. Estate taxes have to be paid first before the heirs can get the shares.
Just a quick-reality check for you.
Live long!
Have fun (and be healthy) investing!

PS1: If you’re a beginner investing in the Philippine Stock Market,  download your investing book here – Investing in the Philippine Stock Market for Beginners! If not, share it to your beginner friends!
PS2: For constant real-time updates, like us in Facebook and follow us in Twitter!

Don’t let your stock investments define you! Relax in God’s Love

Don’t let your stock investments define you! Relax in God’s Love

This will be a quick sweet note.
It’s Monday time again!
For many, this day signals the start of another week–long work. (C’mon, please stop frowning :P )
For few, this signals another time for their businesses to work for them.  And I wish to be one of them soon. J
And for investors like us, it’s another week-long time for giant companies to work for us. Yay! I shout out “keep growing companies!”

I thank The Feast for recharging me every Sunday in facing every new week. It’s my weekly regular overdose of inspiration and hope in spending life to the fullest!
And I super-love the new brand series it tackles – LifeSavor. It has a very long but powerful subheading:
This course is dedicated to the Approval Addict, The Chronically Nice, The Spiritually Abused, And Everyone Else Under the Sun Who Need to Love Themselves More.

Which leads me to my message for you today:
Friend, relax in God’s love. Because in His eyes, you are His greatest investment!
Many times we forget to relax.
It’s very understandable given the very demanding life that we have now. With the tight schedule and endless deadlines imposed, it sometimes seems impossible to take a break from work and savor life once again.


Take your vacation!

I remember the recent vacation we had in Pagudpud, Ilocos Norte, the home-province of my brother-in-law.
I loved it very much.  It’s like a pre-city in mountains, surrounded by wide oceans and seas. Pre-city because it doesn’t really have the usual lights and sounds of developed cities. And I really dream to have one vacation house there, to embrace and welcome me every time I’ll choose to take a leave from work.

One night of that vacation was spent in a kubo of a relative.  It’s like a hidden corner of a mountain that there were only few people residing and houses are placed several feet away from each other. We came there late afternoon.  Few hours later, gosh, I experienced first-hand how people in the province really sleep very early. It was only past 7pm, but people were already in their own houses.

It’s very obvious why since there’s really no night-life present like what we have in the metro. Once, I got out of the tiny wooden door, and all I saw was total darkness. It was a very silent calm night, with all sorts of insects as the only makers of recurring noise.

And when morning came, I saw a very beautiful scene of my life. It’s a mountain range with trees and clear sky all around!
Good morning Ilocos Norte!
My heart jumped with joy! It’s a paradise for me. 
I silently told myself: This is the simple life I want. You wake-up early every day, and  fresh air and awesome nature greets you in the morning.

Are you like this donkey?
This was shared in the talk in the feast earlier! 
Are you like a donkey?

Donkeys can be the laziest animal in the planet. To make it move and run, owners instead place a carrot in its front tied in its body. But due to this kind of set-up, the donkey will never be able to reach the thing he’s yearning for.

He could try his best, but it will always be a failed attempt. What he forgot is that the carrot was all the time with him, and he just needed to relax to enjoy it.

We can work all the time we want, but it will not fully satisfy us. It can even fail us at times. At these trying moments, let's just remember that God has always been with us, our true source of value and worth.  Let's find time to enjoy with Him.

Add life to our years!

So the next time you add to your investments, make sure to also add life to your years. Your mighty creator also does the same. Each day you wake-up is a new life He adds to your days!

Take a rest! Better yet, go for a vacation!
Your life has been waiting for you!

Enjoy life!
Enjoy the rest of your week!

My Opis Kras is Leaving =( … plus how you can help build a better Philippines! ^^

My Opis Kras is Leaving =( … plus how you can help build a better Philippines! ^^

Yesterday night was saddest.
Because my opis kras is leaving. She’s bound to another side of the planet and yesterday was her last day in the office.

Sad but true.

To put it in context, let me first define to you what an "opis kras" is as used in this blog.
It’s the person in the office that when
  •        You see her, every stress vanishes.
  •         When she smiles, every energy is restored.
  •         And when she talks to you, everything else disappears! ^^


Now you see why you would never ever dream to be in my present situation now.
Good thing I’ve been trained to look at the brighter side of things. So I focus instead on its fourth criterion:
  •         With no serious intention of pursuing though :P
HAHA.
Well, at least I was able to bid final farewell to her. It was a short statement typical of me: “I am so sad you’re leaving, but I am happy for you”.  

It was actually such a huge move for a person like me. 

You know, I can force myself to be the most confident person at the middle of the crowd, cracking the norms and doing some bold (sometimes too awkward) moves, but put me beside my kras and I suddenly become like a newly manufactured white bond paper – BLANK.
Photo credit
To add, I’m a very logical and rational person.
That’s just another way of saying I’m not really that good in handling emotions. 
My strategy has been to be totally honest with myself. If I feel happy, I will rejoice. If I feel sad, I will mourn. 
And I believe that people should be like that - to celebrate life regardless of the type of your situation. Happiness in life after all, as I recently learned, has nothing to do with the absence of problems, but the way you embrace things that happen, with burning and renewed hope after every fall.

So allow this blog post to mourn with me  this time in the reality that in the coming days, there’s no more a person in the office who’ll be my instant fountain source of kilig, with whom I can try my best of best pick-up lines, and who can recharge everything in me with her slightest moves.HAHA

While we have not really become the best buddies, (because she’s in a different team), the thought that at least I met her is already comforting to end this story. 
Besides, I’m not really putting serious thought into being in a committed relationship right now. 
I’m very happy with where I am now, and really excited going where I want to be. I am thrilled meeting new people and going places. 
I just have to accept again this time that in life, people indeed do come and go.  Even the human Jesus did. I think it’s one of the painful facts of life.

HAHA.  Sorry for being too talkative about that.
But what is a story like that doing in a finance blog like this?

What’s the connection between that kras syndrome and your investments in the stock market?

Well, first, because of this unfolding of events, I wouldn’t be able to update this blog as often as before. I have to let myself heal first for some time. HAHA.

More seriously, this is only to remind you that you can help in building our own stock market, and ultimately our country.

As you know, only less than one percent of the entire population of the country are market participants in our stock market. A recent news even revealed that “in the National Capital Region, only less than one percent of Filipino households have investments in stocks, government securities, other securities or mutual funds. In areas outside NCR, the percentage of households that have investments in these instruments is near zero”.  

Compare that with two-digit percentages that exist in our neighboring countries like Singapore, Japan, etc and you’ll stop wondering why we’re left behind in terms of national financial economic development.

With the lots of good news coming out in the local and international channels and arena highlighting the good position Philippines currently has, Filipinos have now more reasons than ever to be investor of companies in the Philippine stock exchange.

The only missing link here, I think, is the unfortunate lack of information Filipinos have, plus the fact that horror stories about stock investing could have stopped some to even try it out. If they only knew that investing could be fun and profitable with just proper mindset and strategy, they’d surely go for it.

Agree???
You can actually help in propagating the same. 
You can write or share a blog like this, or change your office lunch discussion from complaints to investment discussion like this. 
You can start by sharing your own story of how in the world you did become an investor (and a millionaire in the future). Not only can you diminish the negative aura occupying your pantry, you’re also helping your bosses and friends to empower their finances. You can always have your own way. 
Big or small, it can ultimately help build a better Philippines.

Like what happened in our office.

Last year I shared lessons about investing in the Philippine Stock Market with my own officemates. It was like the typical team meeting in a room.  Even some managers joined it. 
I also shared to them my book specifically designed for beginners right after.  They loved the talk and the book but I loved more their eagerness to learn. While some definitely didn’t enter into stock market investments right after, some had enough bias for action and opened their trading account after few days. 
That second batch is the same set of people who should be wearing big smiles now given the spectacular performance Philippine stock market recently had since the start of 2012.

Moments and opportunities like that are actually more rewarding than any monetary profit I can get in stocks.

I am thankful to God for being a channel of His love and blessings to others. And I pray that it will always be, whether an opis kras is around or not :P.

Have fun and millions investing!


PS: You can also download the book i shared with my officemates here: – Investing in the Philippine Stock Market for Beginners!  Share it to your beginner friends as well!
PS2: For you to get constant real-time updates, like us in Facebook and follow us in Twitter! Enjoy!

Get your business registered in less than an hour! A great help in your investments!

Get your business registered in less than an hour! A great help in your investments!
Hi Millionaires,
Just sharing this good news for those planning to build a new business in Quezon City!
You can now register a business in less than an hour!
Knowing the culture of long lines in the Philippines, especially in government offices and institutions, (yeah, I still recall that when I got my NBI clearance, passport, and other government clearances) this is such a big leap that will really reflect a more business-friendly Philippines.

How did they do that? Very simple.
This is primarily due to the collaboration of local Quezon City government with  
Philippine Business Registry.  The idea is to integrate every legal and government processes and requirements issued by several agencies into one place. These agencies include Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC), Bureau of Internal Revenue (BIR),  Home Mutual Development Fund (Pag-Ibig), Philippine Health and Insurance Corp (PhilHealth), and Social Security System (SSS). 

So instead of going into several offices and be frustrated by very long queues every time, plus the not-so-friendly officers at times, you just now have to follow simple steps and submit all the requirements into one office and you’re on your way to your new business.

Spread the news!
Have fun and millions investing (in your new business)! J
Complete article here . You can also read below!

PS: For those who want to join Bo Sanchez' Truly Rich Club, you can check the details here -  a powerful guide for your financial wealth and spiritual abundance! Also a great help for building connections and enhancing business knowledge and experience with its constant wealth strategies articles! It also invites its members to its Wealth Circle Group - a group of people into business for a more profitable venture! You'll really enjoy it and learn a lot! Join now!

Can Cost Averaging Method Also Lose Money?

Can Cost Averaging Method Also Lose Money?

Here’s one question from one investor who’s curious on how cost averaging can possibly also lead to a decline in your investment.


I have a friend in Canada who invested in mutual funds in 1990s. He lost money even if it was cost-averaging strategy. How can this be possible?

Here is a short answer from our friend Aya Laraya:
Cost Averaging is a strategy to minimize potential losses PROVIDED that the instrument you are cost-averaging is NOT junk. If you cost-average junk, you will still lose money.A Mutual Fund is no guarantee that you will make money and if the Mutual Fund invests in bad securities, then the investors lose money. The biggest assumption in a Mutual Fund is that you ASSUME that the fund manager KNOWS what he is doing. Unfortunately, there are good fund managers and bad fund managers so if you end up with a bad fund manager who invests in bad securities, then you will lose money REGARDLESS of the investment strategy you employ.
The key then is to carefully choose the investment into which you’ll use the cost averaging method. 
Make sure that you use its power to  empower your investments!
You may have the best technique, but if you're going to take it the wrong way, then it's futile sticking to the strategy.
Just a sweet note reminder for you.
Have fun and millions investing!

PS: For those who want to join Bo Sanchez' Truly Rich Club, you can check the details here -  a powerful guide for your financial wealth and spiritual abundance!
Receive regular stocks update too for your investments in Philippines Stock Market.

Do not miss this investment!


No stock story or tips for today.
But this time, I would like to share with you this great guide that may help you to become a high-performance achiever, which is actually better than any investing tip or trick you’re looking for.

Yes, this is a way better type of investment than what you may currently have now in our Philippine Stock Market, as this is focused on your greatest asset, which is yourself.
I believe this can greatly help you nail that high performance you may be yearning for.
So stop investing in our big companies for a while, and take a short time to check yourself to prepare you for a much exciting journey waiting for you.
Thank you to Brendon Burchard for simplifying things like this.
Enjoy!
live your life to the fullest!
***
Brendon Burchard’s
6 Guiding Questions for High Performers
Ask yourself these questions several times a day.
Keep this page near your computer or work area at all times to remind yourself
of what to focus on as you seek to be more, achieve more, and serve more. 

Productivity

What is my mission today?
What must I accomplish
today to progress my life?
Persuasion

Am I demonstrating bold
enthusiasm when I seek to
influence others?
Psychology

Am I living my truth? What 3
words really define who I am
as a person? What 3 words
should define how I should
interact with others?

Physiology

Am I rested and fully
hydrated? Am I sleeping,
eating, exercising, and
hydrating enough to have
the energy I deserve?
Presence

What level am I in this moment in terms of my emotional
and physical vibrancy and presence?
Purpose
How can I serve greatly?

***
Personally though, I think I have to revamp myself in terms of all these P’s. HAHA
Well, probably more on the persuasion side.

You see I can be productive, know myself, and have enough energy to do all sorts of things, but influencing others is really a big challenge for me, and exciting at the same time.

But I also believe that persuasion, which I would rather call touching people's lives, is the key to a really more productive life performance. It’s like a multiplier that can vastly enlarge your territory.

If we think of the great people in our history, we can always trace a link of persuasion and influencing in their stories.

How about you? How do you think you can apply these principles so you can live this life to the fullest?
Share your thoughts below.

Have fun and millions investing (in yourself)!

PS1: If you’re a beginner investing in the Philippine Stock Market,  download your investing book here – Investing in the Philippine Stock Market for Beginners! If not, share it to your beginner friends!
PS2: For constant real-time updates, like us in Facebook and follow us in Twitter!



Common shareholder and special shareholder - What's the difference in a stock market?



What’s the difference between a common shareholder and a special shareholder?
Here’s a short answer given by our friend Aya Laraya:

A regular dividend is given if the profits are generated from the regular operations of the company. A special dividend is given when the profits are generated from an extra-ordinary event -- like the sale of an asset that does not occur regularly. Common shareholders are normally entitled to both types of dividends. Preferred shareholders "MAY" be excluded depending on the terms of the preferred shares.
Photo credit
Just a sweet note for you!
Have fun and millions investing!
PS1: If you’re a beginner investing in the Philippine Stock Market,  download your investing book here – Investing in the Philippine Stock Market for Beginners! If not, share it to your beginner friends!
PS2: For constant real-time updates, like us in Facebook and follow us in Twitter!

First Gen Corporation Series G Perpetual Preferred Shares

Conservative investors who want to earn a guaranteed fixed interest of 7.7808% per annum may subscribe the First Gen Corporation Series G Perpetual Preferred Shares via COLFinancial between 3-8 May. Minimum subscription starts at 500 shares @ P100/share.
Some useful notes for you on this offer:
  • Since this is an IPO, no commissions are charged should you want to subscribe. Normal commission rates apply upon selling though. (Just don't expect much in terms of capital appreciation)
  • These preferred shares can also be traded in Philippine Stock Exchange (PSE) through your broker.
  • Minimum lots for subscription is 500 but once the shares are listed, then board lot rules apply and you can sell your 500 shares in lots of 10.
image from etftrends.com
Below are more details in COL’s website:
***
PUBLIC OFFERING OF SERIES G PREFERRED SHARES OF FIRST GEN CORPORATION

Please be informed that the Board of Directors of the Exchange approved on April 25, 2012, the application of First Gen Corporation ("FGENG" or the "Company") to list up to 100,000,000 Series G Perpetual Preferred Shares with a par value of Php10.00 per share to cover the Company’s Follow-On Offering (FOO or the Offer), at an Offer Price of Php100.00 per offer share.

THE OFFER:

Offer Price
:
Php100.00 per share
Minimum Subscription
:
500 shares, and thereafter in multiples of 10 shares
Dividend Rate
:
7.7808% per annum
COL Offer Period
:
May 3 - May 8, 2012 3:30 P.M.
Tentative Listing Date
:
May 18, 2012
.

In case you’re wondering what preferred shares are, Investopedia explains it for you:
A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights. 
The precise details as to the structure of preferred stock is specific to each corporation. However, the best way to think of preferred stock is as a financial instrument that has characteristics of both debt (fixed dividends) and equity (potential appreciation). Also known as "preferred shares".A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights. 
The precise details as to the structure of preferred stock is specific to each corporation. However, the best way to think of preferred stock is as a financial instrument that has characteristics of both debt (fixed dividends) and equity (potential appreciation). Also known as "preferred shares".

Now, is this a good offer for you? 
Well, here’s an insight from our friend Sir Aya Laraya:
This is actually a decent return -- especially given the alternatives for 50k in the fixed-income market.
There you have it! Have fun and millions investing!

PS1: If you’re a beginner investing in the Philippine Stock Market,  download your investing book here – Investing in the Philippine Stock Market for Beginners! If not, share it to your beginner friends!
PS2: For constant real-time updates, like us in Facebook and follow us in Twitter!

Will you enjoy earning guaranteed fixed 6.875% interest?

Conservative Investors who want to earn guaranteed fixed 6.875% per annum may purchase the AYALA BONDS, deadline for subscription on 7-May.
In our last blog, we shared the major differences of different  investments  like equities, bonds, stock market and mutualfund.
image from colourbox.com
Now here’s real-world news from Inquirer Business about offering of bonds:
Conglomerate Ayala Corp. launched on Friday its public offering of 15-year bonds that were priced to yield 6.875 percent a year.It is the first corporate bond issue of this tenor in the domestic capital market.Ayala hopes to raise P10 billion from the bond offering, which will fall due in 2027,  as it seeks opportunities for expansion through both organic growth and value-enhancing acquisitions, including infrastructure concerns.“We always ensure that we maintain a highly flexible funding position at the holding company level that will allow us to invest in sizable projects without impeding other value-enhancing initiatives we are currently undertaking,” Ayala treasurer Ramon Opulencia said in a statement.“The low-interest rate environment and the robust liquidity in the system provide an ideal environment for us to be able to stretch our tenors and match the anticipated long gestation period of the investments that Ayala envisions,” he added.The bonds are being offered to the public through underwriters BPI Capital Corp., BDO Capital & Investment Corp., First Metro Investment Corp., HSBC, ING Bank Manila, RCBC Capital Corp., SB Capital Investment Corp., and Standard Chartered Bank.The bonds will be listed on local fixed income exchange Philippine Dealing and Exchange System on May 11.Ayala has been putting more chips into new growth areas like infrastructure and power generation. Late last year, the conglomerate won the bid for the Daang Hari connector toll road under the government’s public private partnership program.—Doris C. Dumlao
Below are the terms and conditions of the Bonds:
Issuer : Ayala Corporation (AC)
Offer : Fixed Rate Callable Bonds
Issue Size : PhP 10 billion
Tenor : 15 years
Call Option Exercise : Starting 10th year and every year thereafter up to the 14th year until exercised
Interest Rate : 6.875%
Coupon Payment : Quarterly
Taxation : Interest income is subject to 20% final withholding tax. All sums payable to tax-exempt institutions (TEIs) shall be paid in full.
Maturity Date : May 11, 2027
Minimum Investment : P50,000.00, and in multiples of P10,000.00 thereafter
Bond Rating : PRS Aaa
Form : Scripless. Investor will receive a Registry Confirmation as proof of investment.
Timetable : Public Offering - April 30 to May 7, 2012
Issue date - May 11, 2012

Also, below are additional insights from Sir Aya Laraya regarding this Ayala bond offer:
You don't "withdraw" bonds; you sell them if you want the principal earlier than maturity. If there is a willing buyer and the price is good for you, then you can sell your bonds. Medyo mahirap lang magbenta kasi mahirap mag-presyo at maghanap ng buyer. Usually, the only buyer is the bank or investment house who sold it to you so its hard to get true market rates.Also, since these are "Callable" bonds, this means that, beginning on the 10th year, if AC can re-finance at lower rates, they can "force" you to sell the bonds back to them -- normally at face value.
For more details, you may visit your nearest BPI branch.

Have fun and millions investing!

PS1: If you’re a beginner investing in the Philippine Stock Market,  download your investing book here – Investing in the Philippine Stock Market for Beginners! If not, share it to your beginner friends!
PS2: For constant real-time updates, like us in Facebook and follow us in Twitter!

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