by: Arthur Noel B. Ladaga

Twenty four hours ago, the entire country was in grave shock regarding a huge financial scam. Aman Futures Trading Group, a fraudulent investment company that operated in Pagadian City, was reported to have gotten away with P12 billion and left the country. The proper authorities are continuously tracking down the culprits hoping to bring them to justice. Department of Justice Secretary Leila de Lima recently ordered the Bureau of Investigation to continue its search for the culprits, especially its leader Manuel Amalilo.

Ever since August of this year, the people of Pagadian City had been clamoring to have their money return to them. Blinded by a false promise that their money will double in a couple of days, most people “took the opportunity” immediately without properly assessing the investment as a whole. After just a few days, all of their money just vanished like thin smoke. Some are still hoping that it will be returned and the culprits be brought to justice. Others have locked themselves into deep hopelessness and despair.

Armand Q. Bengco, the Executive Director of the Colayco Foundation for Education, shares his thoughts behind the recent “financial tragedy.” According to him, the tragedy can be explained in two words: FINANCIAL IGNORANCE. One of the basics of investing is that an investment opportunity that is “too good to be true” should be avoided AT ALL COSTS. If it promises returns that are beyond the normal, it is often too good to be true.

He also highlighted the real definition of investing. “Investing is a commitment to use money to expect, hope, or pray to make more money based on a long term goal,” he said. Investing also involves knowing one’s purpose, target, and time even before starting. Knowing one’s financial objectives gives direction to any investing endeavor. Without it, any investing effort is likened to blind spending!

The most important thing to remember, according to Mr. Bengco, is becoming a risk-focused investor. What ultimately determines an investment’s success is not the return it gives but how it is managed. People nowadays are blinded with false promises of high returns that they do not concern themselves with the risks. If something unfortunate happens to their investment, they suffer greatly. Managing the risks helps achieve a higher average of returns in the long run. It also mitigates the possible risks that might occur.

Just a few hours ago, the Philippine Daily Inquirer reported that a retired teacher from Pagadian City committed suicide. Burdened with the realization that he lost so much money, he decided to end everything in an instant. Poverty has a strong grip in the hearts and minds of many people. They are willing to sacrifice almost anything just to get away from it. When a “promising opportunity” comes to them, they grab it immediately without proper assessment. And when they realized that it was a false promise, they end up worse than before.

Poverty may be the torturer to most people, but it is FINANCIAL IGNORANCE that ultimately kills. FINANCIAL LITERACY is the primary remedy to combat FINANCIAL IGNORANCE and prevent such a financial tragedy from happening again!

FIGHT FINANCIAL IGNORANCE NOW! Want to have a financial seminar to your community or work place? Call 637-3731 or 637-3741. Look for Mr. James Gonzales for more details.

Sources:
Alipala, J., & Umel, R. (2012). Teacher kills self after losing all his money in scam. Inquirer Global Nation. Retrieved from http://globalnation.inquirer.net/56146/teacher-kills-self-after-losing-all-his-money-in-scam?ModPagespeed=noscript

Carvajal, N. C. (2012). Thousands duped in P12-billion scam. Inquirer Global Nation. Retrieved from http://globalnation.inquirer.net/56132/thousands-gypped-in-p12-billion-scam?ModPagespeed=noscript

Arthur Noel B. Ladaga is the current Programs Officer of Colayco Foundation for Education Inc.

Galing kay EN, isang OFW.

Gusto po naming humingi ng payo tungkol sa Condotels. Mas maganda ba ang mutual funds kaysa sa condotel? Iniisip naming mag-invest sa isang Tagaytay condo-hotel concept. Nag-alala kami kung tama ba na mag-invest sa condotel o mas mabuti pang sa mutual funds na lang.

Ito ang sagot ko kay EN:

Sana’y alam ninyo na bago pa man magdesisyon tungkol sa kahit anong investment, kailangang repasuhin ang inyong Statement of Assets and Liabilities (SAL) at ang inyong personal na planong pinansiyal. Baka kasi halos lahat ng investment ninyo ay nasa real estate na, kaya naman baka hindi na condotel ang tamang investment para sa inyo. Paano na lamang kung lahat ng inyong pera ay nasa real estate, at biglang humina ang buong industriya ng real estate? Mas mainam kung balanse ang inyong portfolio, para balanse rin ang mga panganib.

Posibleng parehong magandang investments and Mutual funds at condotel, depende sa inyong layunin sa pag-iinvest. Kailangang pag-aralan pareho nang mabuti. Pinakamainam ang Mutual Funds para sa mga regular na nag-iipon at nag-iinvest sa loob ng mahabang panahon. Kumikita ang investor kapag binenta ang shares sa halagang mas taas kaysa noong binili niya ang shares. Kapag nag-invest naman sa Condotel, posibleng tumaas din ang halaga ng condo units, pero nakadepende talaga ang kita sa dami ng mangungupahan o gagamit sa mga unit. Sa kasong ito, nakadepende ang tagumpay ng Condotel sa ilang espesipikong bagay gaya ng kalidad ng pagkakagawa sa condotel, serbisyo, lokasyon at dami ng kliyente. Samantalang nakadepende naman ang tagumpay ng mutual fund sa capital market o sa ekonomiya ng buong bansa.

Tatalakayin uli sa mga susunod na artikulo ang maganda at hindi magandang katangian ng pag-iinvest sa condominium, mutual funds, at ang sarili naming condotel project upang bigyan kayo ng ideya sa mga pwedeng pagpilian.

Malaki ang pinagkaiba ng Mutual Fund sa Condominium dahil ang Condominium ay hindi agad pwedeng ibenta anumang oras at gawing cash. Samantalang pwedeng ibenta ang mutual fund kahit kailan. Nakatali ang iyong pera sa condominium sa loob ng mahabang panahon, magtagumpay man ito o hindi. Kahit na maging maganda ang kinalabasan, kailangan ng panahon para maibenta ito gaya ng karaniwang real estate. Sa kabilang banda, madaling gawing cash muli ang mutual fund shares, kahit kumita ka man o hindi. Kung nagmamadali kang matutunan ang mutual fund, may mga seminar kaming pwede mong salihan kung gusto ninyong matutunan iyon sa ganoong paraan.

Kapareho ng aming proyekto sa KskCoop ang nabanggit mong proyekto sa Tagaytay – isang kombinasyon ng Hotel at Condominium. Medyo mas kumplikado ang pag-invest sa condo-hotel kaysa sa karaniwang condominium. Pinapasan mo ang panganib ng pag-iinvest sa condo at sa hotel. Mas mainam na patakbuhin ang hotel ng mga taong may karanasan. Siyempre matuturing din na hotel ang mga maliit na “bed and breakfast inn”. Pwede itong patakbuhin ng kahit sino basta’t maayos ang pamamahala sa bahay. Pero ang binanggit mong hotel ay isang totoong hotel. Sa aking pagkakaintindi, ginagawang hotel ang buong condominium. Kung kaya, ipaparenta  ng hotel management ang mga unit na pag-aari ng mga indibidwal na investor. Hindi ako pamilyar sa espesipikong Tagaytay Condotel na nabanggit mo pero may sarili kaming kaparehong proyekto na kasalukuyang isinasagawa na ng KsK Coop.

Bumisita sa www.kskcoop.com, mag-email sa kskcoop@colaycofoundation.com o tumawag sa 631-4446 para sa karagdagang impormasyon

Kapatiran sa Kasaganaan Service & Multi-Purpose Cooperative (KsKCoop) and Colayco Foundation for Education, Inc. (CFE), in partnership with  First Metro Securities Brokerage Corporation (FirstMetroSec) and ProFora Media Solutions, Inc. present BASICS OF INVESTING WEBINAR on October 28, 2011, 6pm to 8pm (Philippine Time). This seminar on the web is for FREE.

Speaker:  Mr. Armand Q. Bengco
Executive Director, Colayco Foundation for Education, Inc. and
General Manager, Kapatiran sa Kasaganaan Service & Multi-Purpose Cooperative

Click here to register:  https://www3.gotomeeting.com/register/885834158

Description:

Investments with fixed and guaranteed returns?
Investments that are insured?
Investments that grew 20% the past 5 years?
Investment that grew over 60% last year, 2010?

In this webinar, we will answer the what, where, when, why and how of investing.  The most common consideration of an individual in investing is the “KITA” (return or yield).  But there are 3 things to consider when you are investing.  Of equal importance to “KITA” are RISK/SAFETY and LIQUIDITY.

We will try to make the concepts simple and easy to understand.  Join this webinar and ask your family and friends to join you in attending this webinar.

Outline of Basics of Investing

– Basic Rules in Investing
– Keys in Investing
– Types of Investments
– Investment Clock
– Different Investment Strategies

Please take note that after you register in this webinar thru https://www3.gotomeeting.com/register/885834158,  you will receive an email with a link.  At least a day before, you will also receive a reminder about the webinar.  To join the webinar, you don’t need a username or a password.  All you need is to click the link and an application will automatically be loaded.  Please make sure you have a fast Internet connection.  Just wait until the application is downloaded completely and it will lead you to a chatbox and another window where you can view the powerpoint presentation.  In case you encounter problems, please email webinar@colaycofoundation.com or you may communicate with us thru Francisco Colayco’s Facebook.  We highly suggest that you enter the room at least 20 minutes before the specified time.

For more information visit http://www.colaycofoundation1.com/free-basics-of-investing-webinar-on-oct-28/.  Or you may email webinar@colaycofoundation.com.

Francisco J. Colayco, best-selling author and personal finance guru, on behalf of the Colayco Foundation greets everyone a Merry Christmas and a Prosperous New Year!