In Chinese superstition, this is the “Ghost Month” and it is believed to be
a bad time to invest. Or is it really?

We have to know that what affects investments like bonds, stocks, and the UITFs and mutual funds is not seasonality, but market developments. And the market reacts to different things: government regulation, international trade, industry trends, etc.

And beyond these external factors, don’t forget the internal factors too: your capacity to invest, your reason for investing, how long you plan to invest for, your risk profile, and your understanding of what you’re investing in.

Here we “pick the brains” of our experts when it comes to investing; sparing a couple of minutes will make you more knowledgeable than you were a couple
of minutes ago 😉 and maybe, will make you less afraid of ghosts.

Read the first part HERE.

This time we have Ms. Imelda Estrada, RFP®, CWM®, CIS, REP, MBA, is currently the VP and Visayas-Mindanao Branch Head for First Metro Asset.

Ghost Month, also known as the Hungry Ghost Festival, is a Taoist and Buddhist belief that “hungry ghosts” or restless spirits roam the Earth and cause mischief on the 7th month of the lunar calendar. This mischief can be anything from accidents and crime to unexpected deaths and business failure.

Often in life we talk about things without having a clear idea of what they really are and treat it with a feeling of certainty. But this belief should not sabotage ourselves around money—by, say saving towards a goal only to fritter because it’s a ghost month!

As an investor, we should always approach money tasks with energy and optimism. Have a clear financial goal. A goal that has to be achieved within a certain specific period of time and work for it! Getting to that goal needs strategies, regardless if it’s ghost month or not. So here are just a few tips:

1. Match certain goals with specific investment vehicles.

Short, medium, long term goals should be matched with short, medium and long term investment instruments. It’s very important to truly understand the various types of investments and what their potential risk and returns are.

2. Save as much as you can

If you are still earning a paycheck while working from home, so your expenses are likely lower, (no commute, no lunches out, no happy hours, no dry cleaning, the list goes on), you should try to save as much money as you possibly can during this time. While simply not spending this money is a great start, be proactive and move some of this money into your savings or investment accounts so it’s secured for the future.

3. Spend less than what you earn

Without a question this is not a very sexy principle, but it is the only way to secure wealth over long term. It’s not how much you earn but how much you keep that matters.

The thought of ghosts and spirits of the dead roaming around during this period to visit their living descendants may be scary indeed, but it is scarier if we don’t take a stand to do something about what we truly want in life. Amid the fear of bad luck, this month could be your lucky month, take action now.

No FAMI mutual fund account yet? Open an account for only Php 5000 minimum initial investment. Visit https://bit.ly/FAMIAccountOpening to get started.

 

 

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