We were inspired to make investments when we read this book "Rich dad, Poor dad" .
After that, we bought other books for us to understand where to invest and build our portfolio.
Back then our investment objective is for our retirement and educational fund for our daughters. Right now, we are slowly beginning to diversify our portfolio towards wealth management and putting our savings into different kids of investments like equity fund, balanced fund, time deposit, stocks, gold/jewelry. Our portfolio is still a work in progress since we have yet to invest in real estate, farm-fruit bearing trees, UITFs, etc.
I would like to share with you how we started building our investment portfolio, the supermom way : ) and I hope you will be inspired to invest also.
1. Finding a StockBroker
We researched on how to have a stockbroker who will assist us in buying and trading stocks at PSE. We chose Wealth Securities Inc. in February 2007 and the application procedure went smooth since we already have original stock certificates of EDC. If you dont have original stock certificates, you would need at least P100,000 of investments in order to apply to them. Through them, we were able to buy and sell many stocks (EDC, SMDC, VLL, AP, NRCP, LND). The earning we made through stock trading went to the downpayment of our car, AVANZA in November 2007. yipee!
At first I thought that having a stockbroker will be really expensive. But only minimal fees (commission rate, doc stamps, vat ) were charged to us for every buy/sell transaction. At present, my husband is the one who uses Wealth Securities Inc. when he wants to buy and sell stocks because I already have another account with an online stockbrocker, Citiseconline Stockbrokers, which I started in August 2008. I liked the idea of having an online stockbroker and having access to their investment guide, market researches, technical and fundamental analyses of stocks everyday. Also, its very easy to buy and sell online without having to call a stockbroker for the transaction. Also, minimal fees are deducted from each transaction. You only have to deposit your money to your account in Citiseconline so that you have enough cash position to buy stocks online. If you dont have enough cash in your account, you cannot proceed with any transaction. You can deposit your account to BPI Savings or BDO. And the money will be credited to your account within 24 hours.
Since then, I bought six stocks (Ayala Land, Jollibee, Manila Water, China Bank, Security Bank and EDC) which I am keeping for the long term, and I am proud to say that I have gained 29.32% as of this date from these stocks. Not bad given that the interest rate for savings is less than 1% and time deposit is around 3-4.5% only. Last year was a not so good year for my investments since most stocks were affected by the financial crisis. But I saw it us an opportunity to buy really good stocks with cheap rates.
Even though stocks are high risk investments, the return in investment is also high. If you are considering where to invest your money, you have to determine if you are a high risk investor or a low-risk investor, from there you will be able to choose what type of investments you will make for yourself.
Other investment instruments that we made since 2007 are the following:
2. Sun Life Flexilink Balanced Fund
Started in February 2007 with 90,000 shares priced at 1.75. Now, the share is priced 1.78.
3. Prulink Equity Fund
Started in August 2008 with 40,000 shares priced at 0.98. Now, share is priced at 0.82 which was affected by the financial crisis. : (
4. Time Deposit earning 3% only - so far this is the investment with minimal gain but the big part of our investment.
5. Gold Jewelry - sets of jewelry which I can pass down to my daughters and I can carry in times of emergency hehehe. I started buying them in 2008.
I will continue with Part 2 for details of #2-5 and future prospects for investments.
As a supermom, you have to be in control of your investments and finances. The only way to do that is to be proactive, save money, invest in different ways and manage efficiently. Good day!
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