MoneySense Live - Investing 101 - The Strategies

Transcript

2. • Director of My Wealth MD and Partners Inc. • Member of the Association of Registered Financial Planners in the Philippines • Certified Investment Solicitor • More than 10 years experience in the financial services industry
3. INVESTMENT PLANNING.
4. Understand your GOAL.
5. LEPANTO MINING stock price 2008 = PHP0.06 per share BUY LEPANTO MINING stock price 2011 = PHP1.31 per share SELL 2,083.33% GAIN in 3 yrs! P30,000 became P625,00 in 3 yrs!
6. LEPANTO MINING stock price 2011 = PHP1.16 per share BUY LEPANTO MINING stock price 2013 = PHP0.48 per share 68% LOSS in 2 yrs! P625,000 became P200,000 in 2 yrs!
7. GOAL: “To retire at age 65 and live comfortably with P30,000 monthly pension until age 80”.
8. How much to invest?
9. Measure your FINANCIAL HEALTH.
10. NON-DISCRETIONARY EXPENSES (NECESSITIES) Food P 9,000.00 Rent 5,000.00 Transportation 500.00 Phone Bills 500.00 Electricity 1,000.00 Water 500.00 Cable TV 500.00 Internet 1,000.00 Groceries 2,000.00 Mortgage payment 0.00 Car amortization 0.00 House help 0.00 Children's school expenses 0.00 Other expenses 1,000.00 TOTAL P 21,000.00 NET INCOME P 35,000.00 NECESSITY RATIO 60.00% SURPLUS P 14,000.00
11. 60% necessities 20% wants 20% investments/ savings
12. in order to meet your goal……. P5,400,000 by the age of 65. P7,000 x 12 mos. x 35 yrs. =P2,940,000 P14,000 x 12 mos. x 35 yrs. =P5,880,000 (P30,000 x 12 mos. x 15 yrs)
13. INFLATION…the silent killer!
15. Computing for FUTURE VALUE. FV = PV (1+rate)n FV = 1,985,765.53 360,000 (1+0.05)35 360,000 (1.05)35
16. TODAY’S COST = P360,000 YEAR 2049 = P1,985,765.53
17. Future Value of Retirement Age Amount 65 1,985,766 66 2,085,054 67 2,189,306 68 2,298,772 69 2,413,710 70 2,534,396 71 2,661,116 72 2,794,172 73 2,933,880 74 3,080,574 75 3,234,603 76 3,396,333 77 3,566,150 78 3,744,457 79 3,931,680 80 4,128,264 TOTAL 46,978,232
18. YR. MONTHLY SAVINGS YEARLY SAVINGS BALANCE BEG. YEARLY RETURN BALANCE END 1 13,132.00 157,584.00 157,584.00 15,758.40 173,342.40 5 13,132.00 157,584.00 962,066.08 96,206.61 1,058,272.69 10 13,132.00 157,584.00 2,511,483.12 251,148.31 2,762,631.43 15 13,132.00 157,584.00 5,006,834.76 500,683.48 5,507,518.23 25 13,132.00 157,584.00 15,497,923.01 1,549,792.30 17,047,715.32 35 13,132.00 157,584.00 42,709,104.08 4,270,910.41 46,980,014.49 INVESTMENT ACCUMULATION @ 10% RETURN PER YEAR
19. Calculating the BASICS.
20. ROI = 250 – 200 200 = 25% For example, if you buy 20 shares of Company A for P10 a share, your investment cost is P200. If you sell those shares for P250, then your ROI is 25%. Return on Investment = Gain – Cost Cost
21. TIME VALUE OF MONEY.
22. “1M Pesos TODAY” or “1M Pesos in 5 YEARS”
23. Computing for FUTURE VALUE. FV = PV (1+rate)n FV = 1,276,000.00 1,000,000 (1+0.05)5 1,000,000 (1.05)5
24. “1M Pesos TODAY” or “1.2M Pesos in 5 YEARS”
25. PRESENT VALUE OF FUTURE PAYMENT PV = Future Value (1 + rate)-n PV = 1,200,000 (1 + 0.05)-5 PV = 1,200,000 (1.05)-5 PV = 940,231.40
26. How fast can you reach your GOAL?
27. COST: P1,000,000 MO. SAVINGS: P10,000 YR. SAVINGS: P120,000 INT. RATE: 10%
28. In excel: type: =NPER(rate,pmt,pv,fv,1) =NPER(10%,10,000,120,000,1,000,000,1) # of years to reach GOAL: 6.35 years
30. STOCK INVESTING Particulars Fee Broker's Commission 0.25% of the gross trade amount Value Added Tax 12% of broker's commission SCCP Fee 0.01% of the transaction value SEC Fee 0.005% of the transaction value PSE Transaction Fee 0.005% of the transaction value Stock Transaction Tax 0.5% of the transaction value
31. If you buy 1,000 shares of Company A for P10 a share, your total investment cost is: STOCK INVESTING Particulars Fee Market Price 10,000.00 Broker's Commission 25.00 Value Added Tax 3.00 SCCP Fee 1.00 SEC Fee 0.50 PSE Transaction Fee 0.50 TOTAL INVESTMENT 10,030.00
32. If you sell 1,000 shares of Company A for P10 a share, your total cash inflow is: STOCK INVESTING Particulars Fee Market Price 10,000.00 Broker's Commission -25.00 Value Added Tax -3.00 SCCP Fee -1.00 SEC Fee -0.50 PSE Transaction Fee -0.50 Stock Transaction Tax -50.00 TOTAL NET INFLOW 9,920.00
33. SALES LOAD Sales Load Fees Entry Fee/Upfront Fee 0.5% to 5% Exit Fee/Back End Fee/Redemption Fee 0.5% to 5% Others Fees Value Added Tax (VAT) 12% Capital gains tax NONE
34. WHEN to invest?
35. Investment STRATEGIES
36. PASSIVE vs. ACTIVE INVESTING
37. PESO COST AVERAGING
38. How does it work? “Peso Cost Averaging (PCA) is an investment strategy wherein you buy securities such as stocks at regular intervals with the same amount of money over a long period of time.”
39. # of shares bought = 986 shares Total investment = P60,000 % Return = 21% (986 x P73.40) = P72,372 P72.372 less P60,000 = P12,372 P12,372 divide by P60,000 = 21% PERIOD DATE INVESTMENT STOCK PRICE # OF SHARES PURCHASED 1 Jan-12 5,000.00 53.67 93 2 Feb-12 5,000.00 55.43 90 3 Mar-12 5,000.00 60.35 83 4 Apr-12 5,000.00 54.35 92 5 May-12 5,000.00 60.08 83 6 Jun-12 5,000.00 60.35 83 7 Jul-12 5,000.00 64.00 78 8 Aug-12 5,000.00 62.90 79 9 Sep-12 5,000.00 60.65 82 10 Oct-12 5,000.00 66.05 76 11 Nov-12 5,000.00 64.35 78 12 Dec-12 5,000.00 73.40 68 60,000.00 986
40. Balancing your PORTFOLIO.
41. Diversify. # 1
42. Understand Risk. # 2
43. Establish Safety Nets. # 3
44. # 4 before Investing. INVESTIGATE
45. Review Portfolio. # 5
46. Investment Tips for BEGINNERS •Be Patient •Educate •Diversify •Start small •Start NOW
47. Email: jbondoc@mywealthmd.com