Comments on: Top 10 tips to successful investing http://www.save-and-learn.com/2009/03/09/top-10-tips-to-successful-investing/ Friendly, professional advice about saving and investing Fri, 18 Mar 2011 00:37:17 +0200 http://wordpress.org/?v=2.8.6 hourly 1 By: Millionaire Acts http://www.save-and-learn.com/2009/03/09/top-10-tips-to-successful-investing/comment-page-1/#comment-35 Millionaire Acts Wed, 01 Apr 2009 23:39:29 +0000 http://www.save-and-learn.com/?p=9#comment-35 Before any investment action, we should know first three terms. Risk, Liquidity and Return. Ultimately, all of us want a higher return for our investments. Risk comes how willing we are in losing our money. And of course, the higher the return, the higher the risk involve. Liquidity comes in how urgent we need the money. This is where the idea of setting up an emergency fund comes in. Of course, investments require time and we need to be stayed invested for a certain period of time before we can realize good returns. Finally, starting early is the ultimate way of investing. The power of compound interest will definitely be an ally to us. And time is essence here. The earlier you started saving and investing, the greater the chance for you to achieve financial freedom in the future and reach your financial goals in life. Hope this helps! (I've been blogging about it.) :) Before any investment action, we should know first three terms. Risk, Liquidity and Return. Ultimately, all of us want a higher return for our investments.

Risk comes how willing we are in losing our money. And of course, the higher the return, the higher the risk involve.

Liquidity comes in how urgent we need the money. This is where the idea of setting up an emergency fund comes in. Of course, investments require time and we need to be stayed invested for a certain period of time before we can realize good returns.

Finally, starting early is the ultimate way of investing. The power of compound interest will definitely be an ally to us. And time is essence here. The earlier you started saving and investing, the greater the chance for you to achieve financial freedom in the future and reach your financial goals in life.

Hope this helps! (I’ve been blogging about it.) :)

]]> By: Hector http://www.save-and-learn.com/2009/03/09/top-10-tips-to-successful-investing/comment-page-1/#comment-24 Hector Fri, 13 Mar 2009 05:42:41 +0000 http://www.save-and-learn.com/?p=9#comment-24 Hi Roy, Emergency funds should be treated with the same importance as your long-term funds. In that sense, you should setup a portfolio of short term investments (money market placements) in building this fund. If you are starting from scratch then most of these funds are probably in a savings or checking account. That is the right place to start. You should maintaqin at least one-month worth in your SA/CA account for really easy access. From there start spreading out on the maturity dates. two-months worth can be in 30 to 60 day time deposits. The other three months worth can be in 90, 180, and 360 day placements. For these longer tenors you can look for RTBs, Time deposits, or promisory notes. Some banks even have structured products that might fit the bill. The secret is to ask your bank for these types of MONEY MARKET products. They probably wont offer them to you if you unless you ask for them. A simple and yet more diversified way to setup your emergency fund is to combine the savings and checking accounts with a money market mutual fund there are several of these types available locally. One way to improve your emergency funding is to buy non-life insurance products (auto, fire, accident and health etc.) and HMOs. The most costly emergencies normally pertain to health so an HMO with adequate coverage provides you with a lot of emergency funding without requiring too much capital. Of course HMOs cost money. A typical HMO can cost around P10,000 per person per year but it gives you a medical fund equivalent to 10 to 15 times of what you paid for. Accident insurances, on the other hand are much more affordable but the coverages are limited. Hi Roy,
Emergency funds should be treated with the same importance as your long-term funds. In that sense, you should setup a portfolio of short term investments (money market placements) in building this fund. If you are starting from scratch then most of these funds are probably in a savings or checking account. That is the right place to start. You should maintaqin at least one-month worth in your SA/CA account for really easy access. From there start spreading out on the maturity dates. two-months worth can be in 30 to 60 day time deposits. The other three months worth can be in 90, 180, and 360 day placements. For these longer tenors you can look for RTBs, Time deposits, or promisory notes. Some banks even have structured products that might fit the bill. The secret is to ask your bank for these types of MONEY MARKET products. They probably wont offer them to you if you unless you ask for them. A simple and yet more diversified way to setup your emergency fund is to combine the savings and checking accounts with a money market mutual fund there are several of these types available locally.

One way to improve your emergency funding is to buy non-life insurance products (auto, fire, accident and health etc.) and HMOs. The most costly emergencies normally pertain to health so an HMO with adequate coverage provides you with a lot of emergency funding without requiring too much capital. Of course HMOs cost money. A typical HMO can cost around P10,000 per person per year but it gives you a medical fund equivalent to 10 to 15 times of what you paid for. Accident insurances, on the other hand are much more affordable but the coverages are limited.

]]> By: Roy http://www.save-and-learn.com/2009/03/09/top-10-tips-to-successful-investing/comment-page-1/#comment-16 Roy Thu, 12 Mar 2009 05:50:55 +0000 http://www.save-and-learn.com/?p=9#comment-16 With concern to Tip #2, my wife & I are currently building our 6-month emergency fund. Where would you suggest to place our emergency fund in which it will make a reasonable yield and at the same time it could be retrieved easily in times of need? With concern to Tip #2, my wife & I are currently building our 6-month emergency fund. Where would you suggest to place our emergency fund in which it will make a reasonable yield and at the same time it could be retrieved easily in times of need?

]]> By: Hector http://www.save-and-learn.com/2009/03/09/top-10-tips-to-successful-investing/comment-page-1/#comment-12 Hector Wed, 11 Mar 2009 10:29:08 +0000 http://www.save-and-learn.com/?p=9#comment-12 The best option for small investors looking for reasonable returns on thier investments are mutual funds. You can also look for a company-sponsored investment program if your company has one. If you want more details regarding mutual funds call 891-2860 to 65. Just be sure you choose the right fund or fund combination that fits your risk appetite and financial objectives. The best option for small investors looking for reasonable returns on thier investments are mutual funds. You can also look for a company-sponsored investment program if your company has one. If you want more details regarding mutual funds call 891-2860 to 65. Just be sure you choose the right fund or fund combination that fits your risk appetite and financial objectives.

]]> By: Hector http://www.save-and-learn.com/2009/03/09/top-10-tips-to-successful-investing/comment-page-1/#comment-10 Hector Wed, 11 Mar 2009 10:22:59 +0000 http://www.save-and-learn.com/?p=9#comment-10 Hi Kitty, Cost averaging is an investment style where the investors puts in small regular amounts over regular time intervals (monthly, quarterly, etc.). This allows the investors to buy more shares (of a mutual fund perhaps) when prices are low and less when prices are high (hence, limiting his exposure in high price ranges). I'll be posting an article on this topic next week to give readers a clearer understanding of the cost averaging approach. The title of the article is "How to Take Advantage of the Global Economic Crisis through Cost Averaging". Hi Kitty,

Cost averaging is an investment style where the investors puts in small regular amounts over regular time intervals (monthly, quarterly, etc.). This allows the investors to buy more shares (of a mutual fund perhaps) when prices are low and less when prices are high (hence, limiting his exposure in high price ranges). I’ll be posting an article on this topic next week to give readers a clearer understanding of the cost averaging approach. The title of the article is “How to Take Advantage of the Global Economic Crisis through Cost Averaging”.

]]> By: Salome http://www.save-and-learn.com/2009/03/09/top-10-tips-to-successful-investing/comment-page-1/#comment-8 Salome Wed, 11 Mar 2009 07:40:17 +0000 http://www.save-and-learn.com/?p=9#comment-8 I like this. It's very helpful and I can share this with my friends. Pero, what are my investment choices, if I only have little funds to invest? I like this. It’s very helpful and I can share this with my friends. Pero, what are my investment choices, if I only have little funds to invest?

]]> By: kitty http://www.save-and-learn.com/2009/03/09/top-10-tips-to-successful-investing/comment-page-1/#comment-3 kitty Tue, 10 Mar 2009 14:37:26 +0000 http://www.save-and-learn.com/?p=9#comment-3 Hi! congratulations for starting off a blog like this. It's easy read and helpful. However, I'd like to post a clarification. What do you mean by cost averaging? Can you expound on this further, please? Thank you and more power to you! Hi! congratulations for starting off a blog like this. It’s easy read and helpful.

However, I’d like to post a clarification. What do you mean by cost averaging? Can you expound on this further, please?

Thank you and more power to you!

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