Archive for the ‘life’ Category

Photo Courtesy: Google Images

Photo Courtesy: Google Images

Before you continue reading the whole post, I have a confession to make. I have become a victim of an investment scam (Aman Futures, 2012). It was year 2012 when a big fraction of my savings bid farewell in my pocket and down the drain to perish forever. Like most of the so called “investing people” that time, we all felt depressed and confused. But that nasty scar brought a gargantuan learning experience. I vowed to myself to not let it happen again. I subjected myself to self-imposed research, sought attendance in financial seminars and read and read to learn stuffs I never thought existed. I realized if people only knew what I know today, we all could have made wise investment decision. I hope this post will help provide guidance to you and the people you love.

Many people confuse investment with business or deliberately use them interchangeably. The truth is they are alike but are not the same. In Robert Kiyosaki’s Rich Dad, Poor Dad book series, it is a continuous theme and pronouncement that an investment is money you put into something that has the potential of getting a return. If you purchased something but has no potential gain/profit then it is not an investment. For example, you buy a new house and call it an investment. If you do not plan to have it rented or sell it in the future for a higher value; it must not be defined an investment.

Investment could mean a lot in many people. Some attach emotions to it which will make it wide of the mark. I know someone who buys a new car and say that it is an investment for himself. This isn’t an investment! You call it an ego bolster instead.

  1. Recruiters are in Haste – Scammers know that they do not offer you anything with value. And because you do not know it or doubt about it, they do not want to give you time to think about it. So to avoid that you’ll do in-depth research, they will be pushy. And to rid-off annoyance, you will sign up only to regret it in the end.
  1. Buy More to Earn More – This usually happen in “networking company” scams. They will sell you products that are hard to sell. When you realize that it is difficult to dispose your inventory, you have no resort but to recruit people to earn from their recruitment commissions. The problem with this thing is that, essentially no company will survive without a product being sold and bought. Earning money due to recruitment is a tell-tale sign of a company waiting to collapse. Here’s more, according to RA 5601 or otherwise known as Anti-Pyramiding Law, the SEC requires all MLM (Multi-Level Marketing Company) to not engage in Pyramiding Scheme. This means that total worth of products given back to members of the MLM must not go lower than 73% of the total capital shelled out by the member. Example, if your registration for a food supplement MLM company is P 10,000 the stocks you must receive should be worth not under P 7,300.00
  1. Recruiting Members to Earn – Now I really, really want you to get this so please read very carefully. If you were asked to recruit so you will be compensated, then you have all the right to doubt. Here’s why. According to the Securities and Exchange Commission (SEC) when a company registered to them as a corporation collects “membership fee” to compensate uplines and representatives and relies on the circulating membership (not on products sold), in effect that company are collecting securities or investment amount. Any company in the Philippines that sells securities or collects investment is defined as an “Investment Company” and because they will fall within that category, they are bound by law to secure a Secondary License (as per SRC RULE 68, AS AMENDED) from the SEC (Securities and Exchange Commission). If they fail to do so, then you are dealing with an unregistered company thereby making their offer null and illegal.
  1. Use the Rule of 72 – According to investopedia, “It is a rule stating that in order for you to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to grow”. How do you use this rule in your investment? If someone approaches you and says “ I will double your money in two years….” That simply means 72/2=36. Hence, using this formula, you know that your money will grow 36% per year. Although this is possible, this is also very ambitious. Remember risk-reward trade off, the higher the return the higher the risk. So if your heart is not prepared to take on high risk investments, this is not for you. The problem happens when representatives in these so called companies promised you that guaranteed return with NO RISK AT ALL. Quite frankly, a company without proven track record to provide that high return is a scam. Too good to be true as they say.
  1. Do your Homework and Research – We are in the information age so looking for information is easy. If you have any doubts about an investment opportunity or any networking company, you may check Securities and Exchanges Commission’s advisories. In their website you may be surprised to know that it houses a long list of companies who may have engaged into unfair investment practices. Always exercise due diligence so as not to be duped by shark-like scammers hungry to get hold of your hard-earned money.

P.S. I hope you learn something new. If you think this is helpful, please share.

P.S. 2. Please join our group in Facebook called Pagadian City Stocks Network

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Cost-vs-Value

I got a query on facebook recently from someone who is interested to learn about stock market investment but somehow apprehensive about it due to the cost of investment.

First I would like to apologize to most of my facebook friends. I have been advocating that you invest in the Philippine stock market and yet I failed to consider individual financial capabilities. It is a fact that for the many and uninformed, the word stock market is quite intimidating. People believe that you need to have millions and millions of pesos to invest, giving an erroneous idea that the stock market are only for the rich. In this post, I will clarify some of these myths and I will try my very best to make this as simple as possible.

I personally believe that the stock market in a great equalizer. This means that both the rich and the average income earners can do it. You can buy shares of companies and become partners of growth in big corporations in the Philippines. These include the likes of Jollibee, Ayala Land, BPI, BDO, SM, GMA or ABS-CBN. How awesome is that!

So how much does it really cost to invest in the stock market? My answer is it depends primarily in two things: a. company price per share and b. number of shares you are willing to buy. To avoid confusions, please remember that  by definition a “stock” is equivalent to “shares”. So If I mention about stock I also mean shares. For example, in the case of Jollibee Foods Corporation, their price per share is P201.00 (as of may 29, 2015). Is this something you can afford? It’s funny sometimes because every time I talk about this example, people will assume I meant 201,000. Just imagine, when JFC opens its door in your next visits you can say to yourself that you are part owner of it.

However, our stock market will not allow you to buy just 1 share. Every company sells their share at multiple called board lot. Investopedia defines board lot as a “standardized number of shares defined by a stock exchange as a trading unit. In most cases, this means 100 shares. The purpose of a board lot is to avoid “odd lots” and to facilitate easier trading.” In the case of Jollibee (JFC), the minimum share you can buy is 10. Hence, 201 x 10 = 2,100 as the amount of money you need in order to start investing in JFC. Now tell me, can you really not afford it?

Wait there’s more!

There are also good companies like SM Prime Holdings (SMPH) whose share is only P19.24 (as of May 29, 2015). This is not even close to a cellphone load you buy almost everyday. SMPH’s board lot is 100 so this means 19.24 x 100= 1,924. If you can spend 500 pesos in your facial treatment and splurge 1,000 in Mall’s midnight sales, why can’t you set aside the same amount of money for investment for you and your family’s future? If you truly believe that the company I mentioned here will still exist in the next 10 years, then they can be your best pick to start with.

Clear so far? Do you really need millions to invest? You can answer that question by now.

Now you have the money, what do you do next?

The next thing you need to do is to get a broker. A broker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients, through a stock exchange or over the counter, in return for a fee or commission. In this information age, we are so lucky that we can now transact almost anything online. And with this we have online brokers. There are many brokers in the Philippine Stock Exchange that allows you to open an account with them for as low as P 5,000. You can use that amount to start your very first buying of shares in the stock market. Of course if you have much extra cash then you can buy more. But if you are just starting, then P 5,000 is already a great start for you.

Brokers charge you by commissions. By buying and selling shares you also pay taxes that help our country. These are common charges you will encounter and that is normal. It really isn’t much, the most important thing is that you will learn and build a sturdy investment for your future.

I hope this post helps you at least get a better picture of the “cost of investment” in the stock market. Please do not be intimidated about numbers and terms, the more you study this, the more empowered you become.

I will leave you with these information and hopes that you will also do your own research. In my next post, I will explain how you can earn in the Stock Market.

P.S. If you need a financial plan for your investment and/ or coaching, please send me an email at fjaymoli@gmail.com. I will be more than willing to be your mentor and partner in your journey towards financial freedom.

P.S. 2. Please join our facebook group Pagadian City Stocks Network

 

 

Everyday, we engage into countless of correspondence with the people around us. The primary intention is to get our message across and be understood. As we continue to do this, we develop relationship with others and strengthening that relationship by repeating the process. However, as we seek to be understood we sometimes forget to first understand.

 

While it takes two people to build a relationship, it only requires one to change it – and maybe forever. How often do you get into trouble just by not saying what you really feel? Who really is to be blamed when you were misunderstood when you can just plainly open up and be honest? Quite sadly, because we fear to tarnish our existing relationship with others we sacrifice our ability to create a safer environment to air our feelings. Care enough to communicate how you feel.

 

When we don’t care enough how we feel we cut the authenticity of the communication process by not allowing our listener to participate in a healthy exchange process with greater awareness of the truth, understanding of what really took place and safety to tackle an issue. Hence, we fail to foster a chance for others to change their undesired behavior and explain their perspective. Remember, letting others know how we feel helps others how to carefully react with us.

 

The straight talk process always starts with you. You have to understand your truth and understand why you feel that way. Internal clarification happens when we know how to communicate these feelings positively by transferring that same clarity to our listener. When you feel a colleague unfairly criticizes your work that has offended you; care enough to tell him that his comment did not particularly help you professionally. In that way he will have a chance to avoid repeating it or apologize. Rather than slur the person, focus on the issue and work together to resolve it.

 

Put it simply, you get hurt sometimes because you did not tell others what you want and what you don’t like.

 

A caring straight talk is different from being frank or blunt. Working on resolving issues on “frankness” plain is selfish. What it seeks is to do is to solely air your feelings without considering that of others. It rampages the other end participant’s right towards a healthy communication process.

 

Eric Allenbaugh, Ph.D., in his book “Wake up Calls” suggests a 3-step strategy to get this:

 

1. This is what I experienced.
2. This is what I feel.
3. This is what I want.

 

Using the example about a colleague saying unkind words about your work and employing the strategy above, this is the appropriate way how to give feedback through a caring straight talk.

 

“When you criticized my work in front of my peers yesterday, I felt embarrassed. I want the value of your feedback, and I have learned much from your advice. I want you to continue giving me feedback, but I prefer that critical feedback be given to me privately. That works much better for me while making it easy for you.”

 

Karma is not just a mere philosophy, more importantly it is science. I simply define Karma as the resulting effect of the experience you cause. Our soul emanates from our Source which is God and we walk in the road of life by every experience that we encounter. The experience we go through is caused by us, and because it is caused by us, we are responsible for the event it effectuates.

In Einstein’s third law of motion it states that, for every action there is an equal and opposite reaction. It describes one important universal principle that states, if you cause something you will also see an effect. Personally, I view this not just an elaborate path towards Divine correction but also a healing process of the soul.

According to Gary Zukav, “Every action, thought and feeling is motivated by an intention, and that intention is the cause that exists as one with an effect.” If this is the case, then if we participate in the cause, it is not possible for us not to participate in the effect. We are so habituated to the belief that we are responsible for some of the effect of the actions that we do, but not all. My conviction is that, nothing that we cause is exempted from the Universal Law of Karma. Remember, we all partake in the fruit of the seed that we sow. It is therefore judicious for us to be aware of all the intentions that motivate our actions, sort out which of our intentions produce which effects, and to choose the intentions according to the effects that we desire to produce.

When you intend to harm others, you cause an imbalance of energy. Any imbalance in the universe will have to be corrected and because the universe will have to correct it, you will incur for yourself a debt against Karma that you will have to pay through experience. This universal principle is called Karmic Debt. The person who intends ill-wishes and hatreds for others experiences the intention of ill-wishes and hatreds from others. The person who intends love and forgiveness to others also experiences the intention of love and forgiveness from others. The Golden Rule of Karma as a behavioral guide clarifies that, you receive from the world what you give to the world.

If you think you have gotten away from the trespasses you have done to your friend and neighbor, then you have deceived yourself. Because even if the cause has not yet produced its effect, that means the event has not yet come into completion.

There is only one way of paying Karmic Debt. The only way is to go through the experience under the counsel of your impersonal and universal teacher called Karma. When you go through a difficult and daunting experience, you have to look down within yourself if you cause unto others that same morose experience you are going through. Having able to recognize this, you must receive the experience with the willingness to make amends but if you respond to it with nothing but rage and vindictive thoughts, you will only cause yourself another Karmic debt.

Karma acts as a universal teacher rather than a hostile executioner. Therefore, it is not bad at all. It is a way to balance an imbalance energy field; it is way to correct an erroneous past decision; it is a way to find courage to pardon an injury; it is God’s way to right what humans made wrong.

You incur Karmic debt when you become dishonest, when you respond hate to an injury, when you refuse to see and listen to the truth. But if you respond with love in every chance there is, despite of how unfair your situation may seem, you do not only pay your karmic debt but gain Karmic Profit as well. I did not say responding love to hate is easy; as a matter of fact it is a struggle amidst our individual religiosity. That is the reason why most people suffer from lack of peace more than the abundance of blessings.

It is necessary for you to experience that same injury you caused unto others so you will come into enlightenment the repercussions of your muddled actions because every enlightenment have healing moved for that experience. It produces subtle clarity of Divine love, authentic joy, purposeful goal and inner peace. Through this, you learn to understand the significance and meaning of every event in your life.

As you finally understand this truth, learn to pay your Karmic debt by finding an opportunity to love your enemies. Your positive response appoints you to qualify for Karmic Profit in the enlightenment of the process.

Now! Pay your karmic debt and never owe again.

 

 

One of the humors of life is when life drops you after you have learned to fly. As humorous as how I can describe it, the experience is definitely not amusing because you will only get to laugh about its hilarity right when you see the blinding light at the end of that dark tunnel of adversity.

I learned of this when I first got into what I thought to be the peak of my career. I was then celebrating a successful telemarketing business surrounded by a gregarious environment, enjoying a flourishing real estate career meeting new people everyday thereby widening my network, and inspiring young minds of 9th graders in the academe. It was stressful but utterly fulfilling.

But one day, that colorful and gleeful day I am so accustomed with slowly loses its color and every pigment of joy faded into a grey soulful journey of my soul. For two years under the debilitating grip of the monstrous hands of depression, I have learned to be still, to trust once more, to surrender and even to fly again.

My story is not unique. You too have your own share of defeat. Inside you are stories and pain nobody knew about. Some people will cry with you but still a number will blastoff a party in your demise. You will gain more friends in your success and your hardships will test how true they are.

Nelson Mandela said, “The greatest glory in living lies not in never falling, but rising everytime we fall.

One morning, overwhelmed with so many debts, I went into my room and whimper. My mom caught me sobbing into tears. I cried because I do not know what to do and how I could bravely face every wounding words heaved at me. But I guess, mothers always knew what to say. She said, “The harder you fall, the higher you bounce back.” And guess what, now that I am doing great, SHE IS RIGHT!

Sometimes you need a strong fall to really know where you stand. You need a big fall to shake-off your ego’s deceptive perception of your own invincibility. You need that humbling humiliation so you are not overcome with pride when your dreams come true. Because the harder you fall, the heavier your heart; the heavier your heart, the stronger you climb; the stronger you climb, the higher your pedestal.

It is in your fall that you learn to weed out excess baggage, prioritize what is really important, seek your true and divine purpose, evaluate your self and discover your untapped potential. And as you learn each of these, you become bolder, you become braver and no one can ever stop you to manifest about that one big dream of yours.

Falling is another way to fly. Get the right attitude because nobody can truly help you except God and yourself.

You can choose to see yourself falling and watch from below OR you can rid yourself off that self-pity and push yourself up.

Today is not your end, it is only the beginning. Rise again and FLY!