Free Financial Planning for Individuals or Companies

As a financial advisor, it’s our responsibility to draft a financial road map for our clients that will lead them towards financial independence. It doesn’t end with simply buying insurance to protect one’s family from unforeseen circumstances. It also involves creating a budget, a savings and investment plan for future needs such as education, retirement, and even estate planning.

You save for short term needs but for your long term goals like retirement and educational expenses for your children, you have to put your money in assets that not only beat inflation but provide high returns (stocks, mutual funds, etc).

If you want your children to go to the top tier schools, you have to INVEST because tuition fees increase by an average of 10-12% per year.  Compound that with the number of years you have to wait before your child goes to college and you have six to seven digits figure that you need to save up for.  You can’t merely put your money in a time deposit because their 1-2% return will just lose to the annual rate increase for tuition fees.

If you want to retire comfortably, you also have to save up for that.  I say save up but I’m actually saying you have to invest long term.  What a comfortable retirement is varies per person.  For some that requires P30,000 pesos to live on every month for your living expenses, others probably would want to live on P50,000 – P100,000 thousands per month.  Multiply that with 12 months in a year and just to be conservative, by 20 more years if you’re female since we have a longer life expectancy, and you get a whopping seven or eight digit figure.  Retirement is expensive yet most of us fail to plan for it. That’s why when you start working, you have to build your financial freedom account very early.  I started mine when I was 24 years old. That was when I opened my first mutual fund accounts with Sun Life Asset Management Inc and First Metro Investments (a Metrobank subsidiary) and so far, I’m very happy with the returns.  I’ve now diversified into stock trading and have created a personalized investment plan for myself so that when my husband and I retire, we don’t need to depend on our children or anyone.

Admittedly, I don’t know much about estate planning, because for one, I don’t have an estate and I still have a few decades ahead of me.  I still can’t compute the taxes due but that’s easy to learn since the BIR has a matrix for that.  For those who don’t know, an estate is simply everything you own. These are the properties you divide and give to your children in your last will and testament.  Yes, the government taxes you for the properties you bequeath to your children.  All I know about estate planning is that you can use life insurance to pay off your estate taxes.  How? Your life insurance should be equal to the amount that you need to pay off for your estate taxes.   Normally when someone dies we get billed for medical and burial expenses. But if you have life insurance, the insurance company issues you a check to your family so that when you die, they have something to pay off outstanding debts, expenses, and even taxes.  Now isn’t that great?  If you don’t have any debts to pay, life insurance proceeds can be part of the money in your will which you can give to your children as well.

If you want to create your very own financial plan, or if you’re a company who wants to educate their employees on the importance of saving and investing or if you’re planning to create a retirement plan for your employees,  the financial planning seminar offers valuable and sound advice and it’s for FREE.

If you’re interested or have any questions, leave a comment. 🙂

Happy weekend to everyone!


Learnings from BPI Trade’s 2014 Year-End Conference Part 2

This is the second part of the article, Learnings from BPI Trade’s 2014 Year-end Conference, where I will be covering Tony Herbosa and Salve Duplito.  This is not meant to be a summary of everything that was discussed, but simply a reflection of the things I’ve learned from the distinguished speakers.

What I learned from Tony Herbosa


Tony is the founder of the 10,000 strong Traders Apprentice Pilipinas (TAP) and has been a trader for more than two decades already. He was previously the CEO of PNB Capital.

Of all the speakers, it was Tony’s presentation which I found hard to grasp because of my investor mentality since he was talking from a trader’s perspective.  Before, I never would have thought of setting aside “play” money for trading because it was our hard-earned savings I’m putting into the market, but I’m hoping even old dogs can learn new tricks.  I do see the wisdom in his words, it was just that my mind had its biases at that time so I apologize, because I know I haven’t done him justice in this article since stock market trading was a foreign concept to me and I wasn’t able to absorb everything that he said.

1. What is TAP?  As Tony put it, it is a mentoring program, because without a mentor, you’ll just listen to anybody.  Ever since the conference, my husband has started following Tony and it’s been quite educational for us.  Their lingo’s quite funny, with terms like SUBARU (for basura stocks), BOBO (buy on breakout), etc.  Still don’t know what the terms mean since we haven’t attended their seminars, but we’re planning to, within the next quarter.

2. Think non-linear.  Be like water.  While TAP is a mentoring program, at the end of the day, you must have a strategy.  In stock trading, don’t expect a one size fits all strategy to work for all stocks.  Look at the waves

3.  It’s not what you buy, it’s also how you buy because even good stocks have their bad days and bad stocks have their good days.  That’s why he doesn’t give a direct answer when you ask him what stocks to pick, because to him, it’s about riding the waves, be it from a good or bad stock.  It’s also not enough to say you had a 200% or 50% return, you have to consider the volume as well.  What if the 200% return was only for stocks worth P10,000 pesos versus the 50% return on a P100,000 pesos.  Which is the winner here?  It’s clearly the second one.  Because of volume, he doesn’t really advocate having a portfolio since your losses will negate your profit from the good stocks.  Yes, you can start with 4 or 5 stocks but watch them closely and  dispose those non-performing stocks so you can build on your good stocks.

While this was hard for me to digest, I knew he has a point here. I hate seeing a mix of red (loss) and greens (profit) in my trading account, wishing they were all green, because the reds just pull down my profits.

What I learned from Salve Duplito


Salve is the financial advisor in ANC’s On the Money Show.  As the last speaker,  there were topics which she discussed that were similar to the topics covered by Marvin, so I’ll just highlight those that were new to me:

1.If you want to speculate, just use 10% of your money for that and resist the urge to add.  Chances are, if we see our trading portfolio in green, we’d we tempted to allocate more to it.  Don’t, if you can’t bear the risk.  Maintain the balance you want to strike between being a trader and investor.

2. Mister Market vs the Intelligent Investor.  This is an allegory of Benjamin Graham (the father of value investing, author of The Intelligent Investor, and teacher of Warren Buffett), , which underlies the fact that mister market (referring to the stock market itself) will always quote you buy and sell pries, sometimes, they’re expensive while at times they can be low when the market is depressed.  The goal is not to be swayed by mister market because you are an intelligent investor.  Don’t be afraid by market volatility, instead use it to your advantage to find value stocks.

3. Invest with a margin of safety.  Again, this assumes that you are an intelligent investor, which is the same as buying a value stock, which is a stock that is priced below its true value or at a discount. What is the right price? Look at the company earnings and identify its intrinsic value.
This concludes my 2-part article.  Hope you learned something from it.

Learnings from BPI Trade’s 2014 Year-End Conference Part 1

Learnings from BPI Trade’s 2014 Year-End Conference Part 1


This article is about what I learned from BPI Trade’s Push Mo Yan Year-End Conference last November 2014.  It’s not a summary of everything that the speakers said, just those things which had an impression on me.  It was my first trade conference and I’m glad I signed up for it even if it meant shelling out Php 750 for a VIP seat.  It was still a bargain given that it included morning snacks, lunch, a free book (Stock Smarts by Marvin Germo),and a better seat compared to the Php500 seat at the back which didn’t come with a free book.  I allocated this expense to my education fund, since I  had a number of takeaways from it.  When it was over, my husband and I agreed that the Php750 charge was probably just to cover the expense, which is why I like BPI Trade.:)

To do each speaker justice, I’ll break this article in two parts.  The first part will include my learnings from  best-selling author Marvin Germo and BPI Securities’ very own Mike Oyson, while the second part will be from TAP (Traders Apprentice Pilipinas) Maestro Tony Herbosa and ANC’s On the Money host Salve Duplito.

With its lineup of speakers, the conference provided a wholistic and balanced perspective since each of them covered different topics.  Marvin provided a background of the stock market in general and gave advice on what do when deciding whether to buy or sell a stock.  Mike talked about stock market investing while Tony discussed stock market trading.  Lastly, Salve talked about the purpose of wealth and social responsibility.

Stock Market Trading vs Stock Market Investing

Before I begin, I’d like to differentiate a stock market trader and investor, as I have made this distinction above.  A trader is one who buys and sells, hoping to gain from price volatility.  He’s the one who’s constantly monitoring the market, looking at his computer all day, doing technical analysis.  To him, it’s about timing so he can buy low and sell high.  An investor buys and holds the stocks for a longer period of time, hoping to gain from price appreciation and dividends.  He’s in the market for the long haul and looks at the market and company fundamentals.  To him, it’s about time and compounding.

A few words of caution: please do your research (read, read, read if you don’t have a background on the stock market) if you want to get started.  Don’t be swayed by greed and what others say, because more often than not, newcomers who lose their money get burned, leave the money and never come back.  It would be foolhardy to think that stock prices will always go up.  Know your risk appetite.  Define your goals and time horizon. There are online trading platforms which allow you to simulate trading, if you just want to get the hang of it.  You buy and sell stocks at their current prices real time but don’t lose or gain if the prices fall/rise. It’s just simulation, which should give you experience on how to keep your emotions in place.

What I learned from Marvin Germo

Marvin’s a Registered Financial Planner and author of several stock market related books which have become best sellers in National Book Store.   He also trades, writes, and has appeared in national television promoting financial freedom.
1. The Philippine stock exchange market is dominated by foreign funds.  Our market goes down when they pull out their money by selling stocks and it goes up when there’s a high volume of foreign buying. This is because less than 1% of the population is investing in the stock market. At around 100million Filipinos , that equates to only 1 million Filipinos trading and investing in Philippine equities. That’s why financial literacy programs are a must in our country,  because while the stock market is quite volatile with its ups and downs, it provides better returns than the usual saving instruments in the bank.  On the average, since the late 1920’s, despite the volatility, the market has provided a 15% annual return.
2. Invest methodically. You must have an entry (price at which you buy) and exit (price at which you sell) strategies when you trade or invest. You have to leave the emotions out the door whenever you do prework (aka research) when  deciding to buy or sell.  Why?  Because we are irrational decision makers in the stock market. We buy when everybody’s buying but by that time, the stock has become too expensive. That might be because we dont really know what to do and that’s why we just join the bandwagon.  Remember law of supply and demand? The greater the drmand, the greater the price.
3. How do you select stocks?
First, follow where the government is going. Where is it spending money on? Check out those companies which are involved in PPPs (public private partnerships). These are the private corporations (Ayala, San Miguel, Metro Pacific, etc) with government contracts to build infrastructure ( e.g. roads, expressways) and provide services to the public.
Second, read so you’ll know what’s in the news today.  Any mergers and acquitions?  What company is aggressively expanding in the market?
4. Do ratio analysis on the company. Check the return on equity for its profitability, debt equity ratio for its leverage, price earnings ratio to identify it it’s cheap or not, and current ratio for its liquidity.  You also need to check if the company is in a growing industry and if the government puts money in it.

What I learned from Mike Oyson
Mike Oyson is the Chief Executive Officer of BPI Securities.
1. Push vs pull. This analogy is similar to the first point discussed by Marvin. Push relates to foreign funds, money from the outside going inside. Pull is the opposite, which is local money being put into the market.
2. Buy when people are scared and sell when people are confident. Really like this advice from Mike,especially since I still consider myself a newbie in the market even though I’ve had a BPI trade account since 2009, because it was only in 2014 when I started focusing and building my stock portfolio. I still don’t know how to do fundamental and technical analysis, so I read and choose my stocks based on BPI Trade’s reports and Bo Sanchez’s Truly Rich Club stock updates which is from COL’s research.

3. If you want to know how expensive a stock is, look at its price earnings ratio.  That’s the ratio of the price share to its earnings per share.  The higher the PE ratio is, the more expensive the stock is.  It is also your payback period in years, which is the time it will take for you to earn what you invested.  Jollibee with a PE ratio of +40 is one of the most expensive stocks in the market.
4. “The party is not yet over. It’s still 11pm”.   When I first heard that, I said huh?  I didn’t know he was talking about the bull run and how we can still ride the waves.  Til the clock strikes at 12am, we can still profit from the market.  When is 12am?  In our case, it’s the next presidential election.  So what are you waiting for?  There’s still more than 12 months left.

5. This is where it gets interesting.  His stock picks are backed by data gathered by BPI Trade’s analysts. For the bull run, the sectors which are said to outperform the market are consumer, power, and gaming, while banks, property, and telco are said to be bearish. Not saying that the other sectors are bad, just that not all stocks are created equal.  If you want to benefit from the current bull run, go for those sectors. Why?  Our economy’s growing and its mostly consumption-driven. Power companies have been increasing their capacity with the numerous power plants being built.  Gaming resorts (Solaire, City of Dreams, etc) will also benefit from integration and the new roadways being built to connect them with NAIA.  On the other hand,  the bearish outlook for banks is due to tighter BSP regulation, for telcos it’s the stiff competition (hurray for us consumers!), and for real estate, it’s the saturation of the condominium developments, albeit those which have horizonal projects (not high rise condominiums) are said to benefit from the bull run, especially MEG (Megaworld).

Apart from what has been said above, he also gave out stock recommendations, placing them in different categories.

a. Long term – these are blue chips which you can buy and hold, or better yet do peso cost averaging. These are the “pamana” stocks which you can leave for your family. Examples are TEL, ALI, GLO, AC, JFC, SM, URC, DMC.

b. Rising – these are stocks which have a huge potential due to their aggressive business strategies.  URC for one has been forging partnerships with international food companies. Megaworld has a huge landbank and is developing several townships to cater to the growing BPO industry. DNL is the oil supplier of Krispy Kreme, Max’s fried chicken etc (didn’t really know that at all). Examples are URC, MEG, RRHI, ICT, DNL, PGOLD, VLL.
c.Value – these are stocks which are priced lower than their historical levels or just lower than their peers in the same segment, but are fundamentally sound . Examples are VLL, MEG, TA, MERB.
d. Cameo – analogous to cameo appearances which are quick in nature, cameo stocks are companies which are seen to be profitable in the short run.  Good example is BLOOM & MCP. These can move to rising category depending on their performance.
e. Mainstay – these are your dividend or income stocks. Examples are GLO, TEL,AP, AEV, SCC,DMC, so if you’re the person who wants to constantly receive passive/ fixed income, these are your stocks.

Mike also briefly discussed the Minsky Model and Theory of Reflexivity, which are theories on the financial markets.  I googled them and found them quite technical so I won’t discuss them in detail here.

Presently, I’m more of an investor than a trader and that’s why I really liked Mike Oyson’s input.  I’d also like to have a mix of “play” money someday, when I already have a strong base to do technical analysis, but till then I’ll continue to buy stocks that are fundamentally sound, those which allow me to sleep well at night as Marvin Germo put it.

Sunlife’s Dynamic Fund in Maxilink One Update as of November 17

update From Php 400 million pesos last Friday November 14, the amount of settled applications for Sunlife’s Maxilink One which has a limited offer on the Dynamic Fund, has more than doubled today. What are you waiting for?  Don’t be left behind.  If you have idle money which you want to invest in a good financial instrument, this is the product for you.  Hurry! There’s no telling when this will continue to be available in the market.  Email me at  For more details, check out this post:

Sunlife’s Dynamic Fund in Maxilink One

And the market has spoken.  In just four days after it was launched on November 10, Php 400 million pesos have been subscribed.  Latest data as of November 15 showed that this amount increased to close to Php 800 million last Friday.  The fund closes once the P2 billion capital threshold is reached. Don’t miss out on this. If you want to get the best of both worlds, protection and investment, this is it.  For inquiries, PM me or email me at For more details, read on below.



dynamic fund

Mark your calendars everyone. Tomorrow is the launch of Sunlife’s Dynamic Fund as a fund option in Maxilink One, which is a single-pay investment-linked insurance.  The best feature of the Dynamic Fund: it’s a swing fund that switches between equities, bonds, and cash depending on the market conditions.  It’s aggressive when the market is up, allocating as much as 90% on equities.  When the market is down, it adopts a defensive stance opting for bonds and cash instead.  It is thus an adaptive, agile, and flexible fund that aims to maximize returns by taking advantage of market opportunities.

The Dynamic Fund was first launched as as MUTUAL FUND last July 2014 with an approved Php 2 billion peso capital tranche.  You know what happened? It was sold out in its first month and was even oversubscribed at Php 2.7 billion pesos!  To date, the Dynamic Fund has generated more than 5% return in just over 3 months, meaning if you placed Php 100,000 last July, its value would now be more than Php 105,000.  You wouldn’t get that in a time deposit account, with just a hundred thousand pesos and in just three months.  That MUTUAL FUND is closed now since it already reached its capital limit. But you can still take advantage of the Dynamic Fund as a fund option in the Maxilink One variable-unit linked insurance (VUL).

What is Maxilink One? It is a SINGLE PAY insurance.  You won’t be billed for any succeeding annual, semi-annual, or quarterly premiums.  The minimum one-time placement required is Php 250,000 and I suggest you maximize this since additional “deposits” or top-ups are not allowed.  The insurance coverage is 125% of the amount you invested, meaning if you placed P250,000, you will be insured for an amount of P312,500 pesos. What’s more, there are NO UPFRONT CHARGES, so 100% of your money will be invested for faster wealth accumulation.  There’s also a GUARANTEED INSURABILITY offer, which means that regardless of age (until 70 years old only) and medical history, you will be approved and won’t be required to take any medical examinations.  Just like a mutual fund or a bank deposit, you can withdraw from your fund value anytime. Exit rates apply if you take out your investment within five years: 5% on the 1st year, 4% on the 2nd year, 3% on the 3rd year, 2% on the 4th year, and 1% on the 5th year. After the fifth year, there are no charges.

Is this FUND for you?  This is a financial solution for individuals with moderate to high-risk tolerance, aiming to maximize the returns on their idle and liquid assets, which are just stuck in the bank and losing to inflation year after year.  This is for grandparents who want to endow their beloved apos with a “liitle” something when they come of age.  This is for employees who wish to build a retirement fund or for parents looking to finance their children’s college education.  This is for anybody who has a financial need in the long run, doesn’t need the money now and can afford to forget it in the next few years. To give you an illustrative example of the returns, assuming an 8% growth rate per year, see attached table.  These values are compounded at 8% using this formula: Principal x (1.08) raised to the number of years.  In ten years, if the fund grows constantly at 8% per year, your investment would have more than doubled. That’s passive income for you. That’s your money working hard for you.

Number of years
Amount 5 10 20 30
   250,000.00    367,332.02        539,731.25   1,165,239.29   2,515,664.22
   500,000.00    734,664.04    1,079,462.50    2,330,478.57   5,031,328.44

Of course, every seasoned investor knows nothing is guaranteed when you invest in stocks. Yes, you could lose in the short run but if you let time do its work, if you don’t panic and pull out when the market is down, the returns are rewarding.  If you let your money sleep in the bank, yes you are guaranteed your money is preserved but it’s also guaranteed that you will lose the real value of your money.  Do you think that your Php250,000 now will be able to buy Php250,000 worth of goods after 1 year? 2 years?

This is one of Sunlife’s products that I’m really excited and passionate about, that I’m even going as far as to subscribe and take advantage myself. Give yourself the gift of financial freedom this Christmas. Don’t let this opportunity slip away. Given the highly favorable market response on the Dynamic Fund as a mutual fund, I don’t think this will be open in the market for long. For inquiries, you can reach me at Happy investing!

What is your mindset?


The book The Millionaire Next Door categorizes people into three: under accumulators of wealth (UAW), average accumulators of wealth (AAW), and prodigious accumulators of wealth (PAW), based on an individual’s net worth in relation to his income and age.

The main difference between UAWs and PAWs: UAWs spend tomorrow’s cash today while PAWs save today’s cash for tomorrow.

Which one are you?

guiding you to financial freedom