18 years for OFW to save P3 Million!

I read an article stating that it will take 18 years for an OFW to save P3 Million so that he could return home for good? Assuming that he save part of his monthly salary alone or with the spouse is worth P13,800.00. Do you think it is only worth P 3 Million? Let us compute to prove this argument.

So Let us Multiply P13,800.00 by 12 months to get a yearly saving.

Yearly saving is P165,600.00

For 18 years, we will multiply P165,600.00 by 18 years.

In 18 years we have P2,980,800.00

Wow, it will take 18 years to earn that money and you lost that 18 years away from home. Would you wait that long to earn P3,000,00.00?

For me, I don't think so!

There are many ways to grow your money like building a small store, doing part time jobs and investing. Yes, you heard me, investing.

With regards to small business, don't be discouraged because although it is a small business but I think it will add more income to you and you can save more money. After all, millions started from cents or perhaps P1.00.

The problem of being an OFW is that it is hard to start a business without our presence. Most of the time it will go bankrupt due to mismanagement and etc. Real Estate is also a good investment depending on location. Real Estate is all about location, location, and location.

The best option for me is to invest in stock market. Although almost all gurus will say that there is no guarantee that you will earn income from it since the stock market is fluctuating. Many will tell you to stay away from stock market. Leave it to the expert. But base in history and it is really proven that in the long run, this investment will earn more interest than real estate. If you read the American stock graph and even in the Philippines, long term stock investment will beat inflation and other forms of investment. But of course, you have to diversify your investment too. As the saying goes, don't put your eggs in one basket.

I would suggest that you have to invest in stock market but if you are not that savvy on the stock, it is better to invest in the mutual fund just like me. Balance Fund which is has bond fund and equity fund will increase 15% average yearly but if you invest in equity which is stock market using the mutual fund, it will have a yearly average of 20%.

I myself invest in a mutual fund but purely equity. Of course, I experience up and down. But I am  okay because I understand that it is normal for the stock market to move up and down for awhile but really, the direction is going up in the long run.

Why I invest in Mutual Fund instead of Stock Market? It is because I feel safe in it. Mutual Fund is composed of many companies that represent stocks. So if one company or stock is down or bankrupt, there are still other company to counter-balance it so the losses are minimized. If you invest in companies and it will close, all your money is gone. So that is the difference.

Back to the main topic why would I spend 18 years in abroad when I can grow my money faster by investing? Don't put your money in the bank, they will just laugh at your back. The bank will invest your money and they will get the high interest and you get the 1.5% interest yearly minus the 20% withholding tax on the interest so in reality, you will receive a 1.2% lol.

Here is the formula to compute your money if you up to work for 18 years abroad while investing the P13,800.00 monthly assuming a 15% since you invest it in mutual funds.

 

FV= Future Value of your Money
C= yearly money value invested or the money you save and invest yearly
I= Interest yearly
N= Number of years

So assuming C=P165,600.00 yearly invested
I= 15% interest yearly
N=18 years

We have

FV=165,600.00 X (1+.15)Exp 18-1)/ .15 X 1.15
FV=165,600.00 X 11.375453/ .15 X1.15
FV= 165,600.00 X 87.211
FV= P14,442, 275.00

You see your money will grow up to P14,442,275, not P3 Million Only!

The secret is investing and by doing so your money is compounded every year with 15% interest. This is just conservative computation.

Hope you find this article informative and good luck.

Read More

Sponsor Links:

5 REASONS WHY TEACHERS NEED TO SAVE AND INVEST IN THE STOCK MARKET

My father was a teacher. He died in 2002 at the ripe age of 78 not to be exact as he was born in the 1920' and his birth certificate was burned during world war 2. As a child, I witnessed how hard to be a teacher. He made his lesson plans at dawn and prepare very early so that he could reach his school in the mountain at 7:00 AM. Actually, he worked in Bureau of Lands but decided to resign because he could not stomach the corruptions of his colleagues. Yes, corruption is as old as Philippines History.

When he retired as a teacher he struggled a lot because his monthly pension is very small. He could not even buy his own medicine for his rheumatism in his legs. This is the main reason why none of his children were interested in teaching profession. GSIS and SSS Agency are full of crap. Their employees and managers  have a higher salary than ordinary employees in other companies but the people who contributed big money for pension get a meager money when they retire.

My advice to teachers out there please don't trust your GSIS or SSS because they can't give you your lifestyle that you want when you stop working. Invest in stocks and mutual funds. These two investments can give you 20% interest per year if you will choose the right one.

I believe the stock market is for everyone who dreams of forging a bigger and brighter future for their family. However, one of the biggest hindrances of many is that they think that their profession and educational background is a big barrier for them to start to invest in the market. I’m here to tell you that the stock market is not as hard as what people think it is but rather it is something that you could use from where you are to fulfill your dreams of financial freedom.

 This blog post goes to all the teachers out there who would love to start but are intimidated to do so. What you will see below is a short story written by Renato Nepomuceno, an OFW teacher from Thailand. He too thought that the stock market was too complicated and too hard to start but that all changed when he started to study. Now he is an investor who aims to save and invest enough so that he could come home and be with his family.

Here are my 5 reasons why teachers need to save and invest in the stock market correctly: 

 1. To help change the mindset started with the young children when it comes to money matters.

 2. To liberate them from a bad-debt cycle. As soon as they start working in the public school nowadays, lending institution is lining up to offer something at the lowest interest rates possible. Bad debt can surely trap us financially.

3. The current retirement fund from the government is not enough when you retire and stop working.
4. They have dreams for their family’s financial situation. Learning on how to save and invest correctly in the stock market can help you achieve that dream.

 5. You want to leave a legacy to your family. Money might not be the most important thing in life, but it affects all areas of your life.

Read More

Sponsor Links:

Most OFW in United States of America are overqualified—Transfast survey

Many Filipinos are working in United States in Medical sectors. In fact most of them applied for American Citizenship because as they say America is the land of opportunity. But beyond that what we call greener pasture is hard work and less relaxation and leisure time. Most of the expatriates are paid less compared to American themselves. What they experience is work and work to accumulate money for their future and when they are unable to work, its the government time to serve them with retirement benefits.

If I will ask you about this, "Is it worth to spend all your time working and just enjoy your hard earn money when you will be old?"

There are surveys that most of these professionals are over-qualified but they work there because these expatriates have less opportunities in their home land.

A majority of Filipinos in the U.S. are overqualified for their jobs and find their U.S. workplace to be more stressful than workplaces in the Philippines, according to a recent survey. Yet, they overwhelmingly agree that the U.S. is still the land of opportunity.

The finding is based on a survey of 400 Filipino who send money home from the U.S. conducted by international money transfer firm Transfast.

 More than 80 percent of respondents say they have more skills than required by their jobs in the U.S. and 72 percent describe their U.S. workplace as more stressful than the ones they’d experienced in the Philippines.

Filipino Workers

  Earn more than expected

 Most earn what they expected in the U.S. (61 percent), with 21 percent earning less and 18 percent earning more than expected.

 About 72 percent say they work longer hours than expected to earn that income, with 54 percent saying they work more than 40 hours a week. Only 28 percent say they work less than expected.

Still, the vast majority — 93 percent — agrees there are more opportunities offered by their job in the U.S. compared with jobs in the Philippines.

  Money senders

 All survey respondents send money to the Philippines using a computer and/or mobile phone app, with the majority sending money to family. Some participants also reported sending money to “themselves” (7.5 percent), likely for investment opportunities such as real estate or to save for retirement.

“People who come here for work are playing vital economic roles by contributing to the U.S. economy and also adding to the GDP of their home country when they send money back to family and friends,” says Samish Kumar, Transfast’s CEO.

 Kumar adds: “To Transfast, the survey results show that our mission of always providing great value for your money plays a role in helping our customers succeed, because when you’re working longer hours in a more stressful environment, every dollar saved matters. The World Bank’s Remittance Prices Worldwide database currently ranks Transfast #1 for lowest-cost service for sending $200 remittances from the U.S. to the Philippines.”

Land of opportunity

 Survey respondent Joanna Loresto, 47, of San Rafael, California, says, “What I have achieved here in the U.S., is a lot. I just left my job and I’m so fortunate I could go wherever I want to, and employers will hire me. Owning a home, buying any car I want — I’m proud of it. I can give my son the best education. I have three siblings in Philippines and a lot of cousins, and I’m thankful that I can be the one helping out.” “Yes, the U.S. is the land of opportunity,” says respondent Ruben Espiritu, 56, of Garner, North Carolina. “There are a lot of jobs here. The economy in the Philippines is getting better, though.” When Transfast conducted the same survey in the U.S. among immigrants from all nationalities, there were many similarities with Filipino immigrants.

  Work till they drop

 However, when it came to how much was earned, striking differences emerged: Of the immigrants from all nations, only 37 percent were earning what they expected (as opposed to Filipino immigrants, 61 percent of whom were earning what they expected).

 When asked where they intended to retire, Filipinos again stood out against the general population of U.S. immigrants.

Many more Filipinos in the U.S. still intend to return home, with 53 percent saying they plan to retire in their home country, as opposed to only 18 percent of immigrants of all nationalities. Of the remainder, 31 percent of Filipinos plan to retire in the U.S., and eight percent answered, “I plan to work until I drop.”

Read More

Sponsor Links:

5 Tips on how to Save and Invest for OFWs

Many Filipinos left their love ones to earn money abroad even if they don't want to leave. They do this because they have no choice. There is no job opportunities in the Philippines. Right now millions of Filipinos are in Middle East, United States of America and other countries to work. They are not there as tourist.

 I felt sad for some of these Filipinos who became victims of abuses and some of them even died without a fight. Maltreatment from their bosses and loneliness make them pathetic. I think it is just right that they should know where to put their money for savings and investments. Most of the OFWs went home without money and even poorer after many years working abroad because they don't know how to invest and start a business.

 For OFWs, the need to invest smartly is particularly urgent since your opportunity to raise funds is linked to the length of your contract. Once your contract of work is over, it is possible that you would find yourself without having a source of income, until you find a contract again. For this reason, you need to come up with the right investment choices that match your circumstances and make your money work harder for you. Essentially, OFWs should be guided by the same investment principles as Filipinos who are working and based at home, save for a few considerations to reflect your circumstances, in particular not being in the country.

 Here’s a simple five-step guide to help you in making your investment decisions: 

 1. Consider liquid and professionally managed investments. Shop for investment products that are easy to purchase and dispose off even if you are not in the Philippines. The nice thing with today’s technology is you can scan online, start by looking at the individual websites of financial institutions.

Your choices include the following:

Mutual funds – These are pooled funds invested in different types of assets to match your desired time frame and level of risk. Some may have the potential for high gains but will also come with higher risk. These are available to retail investors for a beginning account of as low as P5,000. ·

Unitary investment trust funds – These are also pooled funds invested in various assets to match your risk profile and investment horizon. These are available to retail investors for a beginning account of as low as P5,000.

Insurance-linked investments – This is an insurance product combined with an investment fund, fulfilling your need for protection and capital gains. Your monthly payment would depend on the amount of coverage you purchased, as well as the type of asset you chose to invest in.

Equities – These shares represent shareholdings in a company. You profit from the trading of these shares in the stock market. Online brokerages can facilitate your trades, with some of them requiring an opening balance beginning at P10,000.

Bonds – These represent debt taken by either the Philippine government or companies. They usually have a fixed return and are therefore safer. They may be purchased through most banks for as low as P5,000.

 2. Keep your papers in order. Ensure that you have proper documentation to open and maintain these accounts, either while you are visiting the Philippines, or from abroad. Download their online forms, then mail a clear copy of your required IDs. Before sending these documents over, it may be helpful to personally contact the financial institution through their emails so that they can review your signed forms and requirements before you send these. This will save you a lot of time and effort.

 3. Use safe and direct channels for sending money. Find a secure and cost-effective way to put money into your investment from where you are. Online banking services, which are now available to those with accounts in local banks, are among the safest channels you can use. You can also use bank-to-bank transfers. If you wish to go through remittance channels, consider companies with long track records and recommended for customer service if something should go wrong. Unsafe ways of sending money are physically through people, no matter how much you trust them; through other people’s bank accounts; or by sending the money in the mail.

 4. Make your payments or remittances regularly. If you send money to the Philippines, it would be good to do so following a schedule, so that you and your loved ones back home can plan your cash flows better. Have the discipline to send money on schedule so that your loved ones can make payments on time, letting you avoid penalties in the process. Luckily, major financial institutions all allow you to make payments or transfers online.

 5. Ensure the legality and integrity of your planned investment. OFWs are often the target of investment scams. Check out the site of the Commission of Filipinoshttp://www.cfo.gov.ph/to read the latest news and updates on legitimate and illegitimate business deals. You may also have relatives luring you into get-rich-schemes that offer nothing but false promises. While you may trust your loved ones, it is but prudent to check out everything about the proposed investment deal before you turn over your hard-earned money.

Read More

Sponsor Links:

Pros and Cons of Mutual Fund Investment

Mutual funds have often seemed like a golden investment because what can be a relatively small amount of money ends up being greatly diversified. The core idea of this kind of investment goes back to the basic rule of, don’t put all your eggs in one basket.

 In recent years it has become more apparent that there is no such thing as a guaranteed investment. Companies that appear to be solid from all angles can quickly fall apart no matter how big they are. Because of this you would never want to invest all of your money in one or two companies because no matter how good the investment may seem, anything can happen tomorrow; however, when you invest in hundreds of companies that each look like they will have positive returns then even if a high amount of them fail the others should inevitably make up the difference.

Mutual Funds

 Since so many of us can not afford to build such a diverse portfolio on our own, a mutual fund is a great idea. That alone is perhaps the best pro a mutual fund has over things like stock by stock investments. Of course it is important to know that, even over a long period of time, there is never a guarantee your initial investment will pay off. Mutual funds are by no means immune to mistakes and their chosen stocks are by no means immune to failure.

Put simply, a mutual fund is a pool of money provided by individual investors, companies, and other organizations. A fund manager is hired to invest the cash the investors have contributed. The goal of the manager depends upon the type of fund; a fixed-income fund manager, for example, would strive to provide the highest yield at the lowest risk.

 Advantages 

 1. Mutual Funds Offer Diversification 
The beauty of a mutual fund is that you can buy a mutual fund and obtain instant access to a hundreds of individual stocks or bonds. Otherwise, in order to diversify your portfolio, you might have to buy individual securities, which exposes you to more potential volatility.

 2. Mutual Funds are Professionally Managed 
Many investors don’t have the resources or the time to buy individual stocks. Investing in individual securities, such as stocks, not only takes resources, but a considerable amount of time. By contrast, mutual fund managers and analysts wake up each morning dedicating their professional lives to researching and analyzing current and potential holdings for their mutual fund.

 3. Mutual Funds Come in Many Varieties 
A mutual fund comes in many types and styles. There are stock funds, bond funds, sector funds, target-date mutual funds, money market mutual funds and balanced funds. Mutual funds allow you to invest in the market whether you believe in active portfolio management (actively managed funds) or you prefer to buy a segment of the market with no interference from a manager (passive funds and index mutual funds). The availability of different types of mutual funds allows you to build a diversified portfolio at low cost and without much difficulty.

 4. Mutual Funds Have Low Minimums 
Many mutual fund companies allow investors to get started in a mutual fund with as little as P10,000.

5. Systematic Investing and Withdrawals with Mutual Funds 
It is simple to invest regularly in a mutual fund. Many mutual fund companies allow investors to invest an affordable amount per month directly into a mutual fund. Money can be pulled directly from a bank account and invested directly in the mutual fund. On the other hand, money can be regularly withdrawn from a mutual fund and be deposited into a bank account. There are generally no fees for this service.

 6. Mutual Funds Offer Automatic Reinvestment
An investor can easily and automatically have capital gains and dividends reinvested into their mutual fund without a sales load or extra fees.

 7. Mutual Funds Offer Transparency
Mutual fund holdings are publicly available (with some delays in reporting), which ensures that investors are getting what they pay for.

 8. Mutual Funds Are Liquid
Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time. If you want to sell your mutual fund, the proceeds from the sale are available the day after you sell the mutual fund.

 9. Mutual Funds Have Audited Track Records
A mutual fund company must maintain performance track records for each mutual fund and have them audited for accuracy, which ensures that investors can trust the mutual fund’s stated returns.

 10. Safety of Investing in Mutual Funds
If a mutual fund company goes out of business, mutual fund shareholders receive an amount of cash that equals their portion of ownership in the mutual fund. Alternatively, the mutual fund’s Board of Directors might elect a new investment advisor to manage the mutual fund.

 Disadvantages
 1. Mutual Funds Have Hidden Fees
If fees were hidden, those hidden fees would certainly be on the list of disadvantages of mutual funds. The fee is disclosed in the mutual fund prospectus and can be found on the mutual funds’ web sites. 

2. No Guarantees. 
The value of your mutual fund investment, unlike a bank deposit, could fall and be worth less than the principle initially invested. And, while a money market fund seeks a stable share price, its yield fluctuates, unlike a certificate of deposit. In addition, mutual funds are not insured or guaranteed by an agency of the U.S. government. Bond funds, unlike purchasing a bond directly, will not re-pay the principle at a set point in time.

 3. No Control
Mutual funds also offer very little control. In fact, once you have chosen a mutual fund to invest in your control of your money has pretty much come to an end. With most, of, if not all of, these funds the investor not only has no say in what companies get invested in but they can not even find out what the mutual fund’s portfolio looks like. Aside from the funds being unwilling to divulge all of this information they are also often unable to seeing as the day to day trading is so vast.

 4. Lack of Liquidity
Yes, there are a lot of different mutual funds in the investment world, but that doesn’t necessarily mean they are very liquid. With mutual funds, the final transactions aren’t complete until the end of a trading day. It’s not until the final bell when you actual know the price of trades for the fund as a whole. That creates difficulties on days when the market is a volatile time-bomb. You need instant information in order to adjust your trading strategy. Mutual funds do not offer that option.

 5. Fluctuating Returns
Mutual funds are like many other investments without a guaranteed return: there is always the possibility that the value of your mutual fund will depreciate. Unlike fixed-income products, such as bonds and Treasury bills, mutual funds experience price fluctuations along with the stocks that make up the fund. When deciding on a particular fund to buy, you need to research the risks involved – just because a professional manager is looking after the fund, that doesn’t mean the performance will be stellar.

 6. Costs
Mutual funds provide investors with professional management, but it comes at a cost. Funds will typically have a range of different fees that reduce the overall payout. In mutual funds, the fees are classified into two categories: shareholder fees and annual operating fees.

 7. Over Diversification
Although diversification is one of the keys to successful investing, many mutual fund investors tend to overdiversify. The idea of diversification is to reduce the risks associated with holding a single security; overdiversification occurs when investors acquire many funds that are highly related and so don’t get the risk reducing benefits of diversification.

 8. Misleading Advertisements
The misleading advertisements of different funds can guide investors down the wrong path. Some funds may be incorrectly labeled as growth funds, while others are classified as small-cap or income. 

9. Investment style fluctuations
An investor who wants to maintain a certain asset allocation has to rely on the manager of the fund that he or she selects not to deviate from their stated investment styles. Any changes in priorities or investment styles could override and defeat the investor’s asset allocation.

 10. Panic selling 
 During sharp market downturns, investors often have a tendency to panic. When this happens, they look to sell their fund shares. Since the fund managers must redeem the shares, they have no choice but to sell the underlying securities at a time when there are few, if any, buyers. If not for the flood of redemptions, the fund manager would likely not sell the underlying securities. Thus, the professional manager’s expertise, judgment, and objectives are upset and overridden by the actions of the fund’s investors.

 11. No Insurance 
 Mutual funds, although regulated by the government, are not insured against losses.

Conclussion

 When you buy any investment, it’s important to understand both the good and bad points. If the advantages that the investment offers outweigh its disadvantages, it’s quite possible that mutual funds are something to consider. Whether you decide in favor or against mutual funds, the probability of a successful portfolio increases dramatically when you do your homework.

 All of this being said, mutual funds are a diverse investment that allows you to buy in with limited money. Perhaps their best perk is that your money ends up being professionally managed by people who are often amongst the best in the business.

 List of Leading Mutual Fund Companies in the Philippines

 ATR- Kim Eng Equity Opportunity Fund – www.mutualfund.com.ph
 DWS Deutsche Philippine Equity Fund, Inc.
 First Metro Save and Learn Equity Fund – www.fami.com.ph
 Philam Strategic Growth Fund, Inc. – www.philamfunds.com
 Philequity Fund, Inc. – www.philequity.net
 Philequity PSE Index Fund Inc.
 Sun Life Prosperity Phil. Equity Fund, Inc. – www.sunlifefunds.com
 United Fund, Inc.

sources: mutualfunds.about.com, open-ira.com, nasdaq.com, etf.about.com, finweb.com, pinoymoneytalk.com

Read More

Sponsor Links:

Recession Proof Businesses for Expatriates to Start

Many Expatriates are still working abroad away from their family sacrificing because they are afraid to loss their jobs and end up nothing. Many of them spend more than ten years while some still working abroad for more than 20 years because they do not have business to support their expenses if they resign. Like me who has a buy and sell business experience before when I was working in my country, I have second thought of resigning because I don't have concrete business plan about what business to start. Majority of us are afraid to fail.

Well while searching in the Internet I found out that these kind of businesses are good whether the economy is good or bad. These businesses are not easily affected by recession so you have a big chance of success.

Here they are and not in particular order:

Candy, Cosmetics and Contraceptives 

Candy

 If anyone likes a quick pick-me-up, it's the stressed out American worker. If you're lucky enough to keep your job during a recession, then you're probably bracing for the next round of layoffs. While heavy drinking at the office is frowned upon, nearly everyone can get behind a big bowl of jellybeans. Candy consumption in the United States went through the roof during the Great Recession. The New York Times reported that Cadbury's profits were up 30 percent in 2008, and Nestle saw a 10.9 percent growth. Inexpensive, sweet treats provide a necessary break from all of the bad news. Indeed, during the Great Depression, treats like Snickers, Tootsie Pops and Mars Bars were all invented, and are still enjoyed today. Cosmetics and nail-care businesses also do well during recessions as women look for inexpensive ways to pamper themselves. In fact, some economists point to rising lipstick sales as a reliable indicator of a sagging economy. The bedroom is also an excellent (and free, in most cases) treat during the recession. But budget-conscious couples make sure to avoid any unplanned expenses. During the first two months of 2009, contraceptive sales were up 10 percent.

 Luxury Retail

Luxury Retail

Recessions don't affect everybody equally. According to Newsweek, the total number of worldwide billionaires jumped 20 percent in 2008. Forbes counted a record number of billionaires in 2013 — 1,426 — while several parts of the economy were still recovering from the recession. Many of these über-rich live in Russia, the Middle East and Asia and have no problem splurging for a jumbo private jet or their very own sun-soaked island in the Mediterranean. The number of millionaires in India grew 22 percent over 2007-2008 and China witnessed a 15 percent bump in millionaires in 2011. In the U.S., sales of ultra-luxury goods like $1,500 pairs of shoes or diamond-encrusted handbags slumped sharply in early 2009, but companies like Hermès and LVMH more than made up with Chinese sales. As early as 2011, luxury retailers were some of the first to bounce back in the U.S., with brands like Gucci and Yves Saint Laurent boasting a 23 percent increase in sales while more modest retailers were starving for customers. One luxury car dealership in Manhattan specializing in Lamborghini, Bentley and Rolls-Royce models — each retailing in the low six figures — said 2011 was one of its best sales year ever.

 Repossessions and Removals 

Repossessions and Removals

 Some industries act like financial scavengers during a recession, feasting on the rotten remains of the rest of the economy. For the man -- whose job is to repossess vehicles and other property when the owner fails to make payments -- bad news is big business. During the 2002 recession, car repossessions jumped 60 percent over 2001. In 2008, during the worst of the Great Recession, a total of 1.67 million vehicles were repossessed, a 12 percent increase from the year before. Junk removal is another service industry that profits from the misfortune of others. When a bank forecloses on a home, some indebted homeowners skip town and leave all of their possessions behind. For businesses like Miss Junk in Los Angeles, this means monthly revenues of $150,000 during the recession of 2007-2009, 10 times what it earned in its first month in 2007. Bankruptcy lawyers also keep busy during a recession. More than a million individuals filed for bankruptcy in the United States in 2008, prompting 30 percent more bankruptcy lawyers to enter the profession. Even with the economy in slow recovery, 1.2 million individuals filed for bankruptcy protection in 2012, which means there is still plenty of bankruptcy business to go around.

 The Federal Government 

Federal Government

 A report by USA Today found that workers in many federal agencies are more likely to die than lose their job. The federal government job security rate was 99.43 percent in 2010, meaning only about half of 1 percent of the federal workforce was fired or laid off. In the private sector, an average of 3 percent of workers are fired for poor performance each year, and that doesn't include layoffs. And despite the recession and spending cuts, the federal government is actively hiring new employees. In 2012, the government hired about 90,000 people, and there were still nearly 8,000 open job listings on USAjobs.gov, the federal government job board, as of October 2013. A major reason for the hiring boom is a rapidly aging federal workforce; more than 260,000 federal workers are older than 60. State and local government job security is an entirely different story. During the Great Recession consumers cut spending which affected state and local tax revenue. Faced with budget crises, many states enacted steep budget cuts. Even as the economy slowly recovered in the first half of 2010, state and local governments cut 95,000 jobs while the private sector added nearly 600,000. By late 2013, however, local and state jobs appeared to be bouncing back, especially in the education sector. 

Education 

Education

 Public school teachers in the United States -- who are essentially state employees -- have traditionally enjoyed solid job security. The Bureau of Labor Statistics (BLS) projected a 17 percent growth in demand for kindergarten and elementary school teachers from 2010 to 2020, even in the face of state budget cuts to public education. In the post-recession job market, there is still incredible demand for teachers, but aspiring educators need to go where the jobs are. For example, in 2013 there was a huge shortage of certified math, science and special education teachers nationwide, but a surplus of general elementary school teachers. College students considering a career in education will greatly improve their job prospects, starting salary and job security by focusing on these high-need subject areas. Also, teacher demand is higher in areas experiencing strong population growth like the West and South. Statistics show that college enrollment remained steady before, during and immediately after the Great Recession, making higher education one of the more recession-resistant businesses around. There was a sharp rise in community college admissions during the Great Recession as laid-off workers returned to school to upgrade their skills. However, college enrollment actually fell slightly in 2012-2013 for the first time in two decades, a combination of fewer college-age kids and more adults opting out of school to enter the improving job market.

 Vices 

Vices

 The traditional logic is that sin wins when the economy loses. Like candy, cigarette sales skyrocketed during the Great Depression, and tobacco stocks are still a smart buy in any recession. But in contrast to popular wisdom, people tend to spend less on so-called sin industries like alcohol and cigarettes during recessions. The reason, some experts say, is not that people stop indulging during lousy times, but that they cut back some or downgrade the quality of their favorite vice.For example, the National Restaurant Association reported that wine sales "by the glass" rose sharply as whole bottle sales slumped in 2008. And the Beer Institute said that beer sales in restaurants dropped in 2008, while wholesale beer sales from cheaper stores went up. Tattoo parlors, on the other hand, boom through both recession and recovery. According to a Harris poll, one in five Americans (21 percent) had a tattoo in 2012, up from 14 percent in 2008. People get tattoos during recessions because they are a relatively cheap way to express yourself creatively and boost self-confidence. On the flip side, tattoo removal services also boom during a recession as laid-off workers erase conspicuous ink to appear more professional in interviews.

 Discount Retail 

Discount Retail

 Wal-Mart has more than its fair share of critics. The superstore has spread across the world quickly, knocking off smaller competitors in its path. But no matter what you think of its business tactics, low prices trump politics during a recession. While nearly every other large American retailer suffered significant losses in the first months of 2009, Wal-Mart reported a 5.1 percent increase in profits, more than doubling Wall Street's expectations of 2.4 percent. Not surprisingly, dollar stores and thrift stores also thrive during recessions. The three biggest American discount chains — Dollar General, Family Dollar and Dollar Tree — became Wall Street darlings during the recession as they each added thousands of stores from 2008 to 2012. Thrift stores and trendier "resale" shops also drew in new customers. According to the America's Research Group, 20 percent of people in 2012 said they shopped at thrift stores "regularly," up from 14 percent in 2008.

 Information Technology 

Information Technology

 Despite the bursting of the information technology(IT) bubble that played a key role in the recession of the early 2000s, information technology was the fastest-growing sector in the United States economy during and after the Great Recession of 2007 to 2009. That's because the information technology sector isn't confined to traditional tech companies like software makers and server manufacturers. Among the top growth businesses of 2011 were Voice Over IP providers, wind and solar power manufacturers, video game designers and Internet publishers. The biggest growth areas for IT jobs are in software design and development, networking and systems administration, software implementation analysis, testing and QA, and database administration.Systems analysts and administrators appear to have some of the greatest job prospects, since the nature of the work is more collaborative and more difficult to outsource overseas. One of the reasons information technology continues to be an in-demand job sector is because there's an overall lack of qualified IT workers. As older IT workers retire, there simply aren't enough younger workers to take their place. The percentage of U.S. college students graduating with a computer science degree has declined since 2005 to its lowest level since 1986. That trend has led some analysts to predict a 15 percent decrease in the supply of IT workers between 2008 and 2038, while the demand for experienced workers increases 25 percent.

 Health Care 

Health Care

 For years health care has topped every list of recession-proof businesses. The logic is that people continue to get sick, even in bad economic times. But does that automatically translate into profits for the entire health care sector? Let's take a closer look. From 2008 to 2012, a span that covers the Great Recession and early recovery, health care spending in the U.S. grew at a sluggish 4.2 percent annually. Compare that to the 8.8 percent annual growth experienced from 2001 to 2003 after the early 2000s recession. Analysts believe there is a direct connection between the stagnant overall economy and lower spending on medical services. But the industry still managed to grow during a time when many other sectors saw revenues plummet. Total health care spending in the U.S. — by both individuals and government programs like Medicare and Medicaid — represented 16.2 percent of gross domestic product (GDP) in 2007 and increased to 17.6 percent in 2012. And this percentage is expected to grow under the Affordable Care Act. According to Bureau of Labor Statistics, the health care and social assistance sector will add more than 5.7 million jobs from 2010 to 2020, far and away the largest projected job growth of any industry. The fastest-growing profession is registered nurses, but other areas of nursing are also strong. The BLS predicts a 70 percent growth in demand for both home health aides and personal health aides to serve an aging baby boomer population during 2010-2020.

 Noncyclical Businesses 

 If you're looking for a truly recession-proof business, then there are a few old standards that might not be sexy, but they sure are reliable. These noncyclical businesses survive through good times and bad because they provide basic, necessary services. Funeral services are a good example. Funeral homes see a steady stream of business no matter how the stock market is performing, although funeral directors in every state reported a significant rise in cremation requests — a far less expensive procedure than burial — during the Great Recession. And since we're on the subject of death, we might as well mention the other of life's guarantees: taxes. As long as the IRS keeps things confusing, there will be plenty of work for accountants. One group that struggled during the Great Recession, however, were small, one-man accounting firms that mostly served small businesses. The big national chains were fine. Public utilities like electricity, gas and waste disposal are necessary for the clean and comfortable functioning of society. If a city government tried to save money by only collecting garbage once a month, it would cause a stink, to say the least. Other industries that fall under the noncyclical banner are religious organizations, the military,pharmaceuticals,veterinary services and repair technicians. So if you lose your job as a hedge fund manager, you might consider a career as a vacuum-repairing priest.

I hope you enjoy and find some ideas to what business you will start. 

Read More

Sponsor Links:

Why most OFW still poor despite working abroad for a long time

Why most OFW still poor despite working abroad for a long time? This is a question many people are asking me many times. I asked them the same question why is it so? I asked the same question because I have been working abroad for more than 15 years already and yet I don't have lots of savings. Yes I paid my monthly SSS and bought a house plus some thousands of money in the bank but it is worth enough if I retire? These are some few questions that I want to be clear.

Here is a News from abs-cbn why many ofw still poor after spending many years working abroad. I am fortunate that I am not included in this bracket.

While most Overseas Filipino Workers (OFWs) earn better in other countries, some of them still experience financial problems despite years of hard work due to inefficient money management. 

 The Commission on Filipinos Overseas (CFO) has identified over-dependency of families and relatives of OFWs as one of the common causes why workers abroad struggle with their finances, despite their higher pay. “People tend to think that once you go abroad, it seems that you get a higher income and that will solve all your problems,” said Andrea Anolin, CFO executive assistant for joint migration and development initiative.

 Anolin added that an OFW may already have financial problems even before leaving the Philippines, such as the accumulation of debts due to over-borrowing in the belief that the money can be returned once hired overseas. “The families who are left behind and also the migrants themselves have very unrealistic expectations. 

They equate going overseas with an automatic improvement in the quality of their lives,” she said. In addition, some OFWs are said to easily give in to the requests of their families and relatives for remittances and gifts from abroad, thus the failure to save sufficient money for the future. “We don’t really save for the rainy days. We don’t really think long term. Our plans, our objectives are vague and we don’t really know how to get from one place to the next. So it’s easy to be lured by commercial spending,” Anolin said. 

According to Bangko Sentral ng Pilipinas (BSP), eight out of 10 Filipinos don't have bank accounts -- an indication that financial literacy among Filipinos is not high, as CFO pointed out. 

While it is not that bad for OFWs to spend for their families with imported commodities, CFO stressed that they should not let themselves end up without savings and should not forget to save more than they spend in order to achieve a common goal of creating a sustainable income in their homeland. “It’s not the lack of money to save eh. It’s the lack of the will to save,” said Warner Dawal, senior emigrant services officer for Peso Sense Program.

 “The most common misconception is the families here in the Philippines think that the remittance they receive is forever,” he added. I conclude that the reason why most of our expatriates including me are still poor is because we don't have the will to save money. We have this "come what may" attitude. Start saving today and invest it back home or open a business.

Read More

Sponsor Links:

Remittances inch up in July 2015

Metro Manila (CNN Philippines) —A strengthening U.S. dollar and a depreciation of several currencies around the world partly caused a slower growth in personal remittances from overseas Filipinos (OFs) last July, according to the Bangko Sentral ng Pilipinas (BSP). 

 The central bank revealed on Tuesday (September 15) that personal remittances grew by an annualized 0.5 percent to $2.3 billion last July, in contrast to the comparable 7.3 percent increase logged during the same month last year. 

 Such funds from land-based workers with contract of one year or more grew by 5.4 percent, while those from sea-based and land-based workers with contracts of less than a year rose by 2.9 percent. On a cumulative basis, personal remittance for the first seven months of the year reached $15.7 billion, equivalent to a year-on-year growth go 4.6 percent.

Cash remittances from OFs coursed through banks increased by an annualized 0.5 percent to $2.1 billion, bringing the January to July total to $14.2 billion. The January to July total is 4.8 percent higher than the $13.5 billion notched during the same period last year. 

 According to the BSP, the bulk of such funds came from the U.S., the U.A.E., the U.K., Singapore, Japan, Hong Kong, and Canada. 

 Citing figures from the Philippine Overseas Employment Administration (POEA), the central bank noted that total job orders reached 526,345, and that 38.7 percent of which has been processed. Most jobs were intended mainly for service, production, and professional, technical and related workers in Saudi Arabia, Kuwait, Qatar, Taiwan, and the U.A.E.

Read More

Sponsor Links:

What is Mutual Fund?

A mutual fund is a type of professionally managed investment fund that pools money from many investors to purchase securities.[1] While there is no legal definition of the term "mutual fund", it is most commonly applied only to those collective investment vehicles that are regulated and sold to the general public. They are sometimes referred to as "investment companies" or "registered investment companies". Hedge funds are not mutual funds, primarily because they cannot be sold to the general public.

In the United States, mutual funds must be registered with the U.S. Securities and Exchange Commission, overseen by a board of directors or board of trustees, and managed by a Registered Investment Advisor. Mutual funds are also subject to an extensive and detailed regulatory regime set forth in the Investment Company Act of 1940. Mutual funds are not taxed on their income and profits if they comply with certain requirements under the U.S. Internal Revenue Code.

Mutual funds have both advantages and disadvantages compared to direct investing in individual securities. Today they play an important role in household finances, most notably in retirement planning.

There are three types of U.S. mutual funds—open-end funds, unit investment trusts, and closed-end funds. The most common type, open-end funds, must be willing to buy back shares from investors every business day. Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade on an exchange. Non-exchange traded open-end funds are most common, but ETFs have been gaining in popularity.

Mutual funds are generally classified by their principal investments. The four main categories of funds are money market funds, bond or fixed income funds, stock or equity funds, and hybrid funds. Funds may also be categorized as index (or passively managed) or actively managed.

Advantages and disadvantages

Mutual funds have advantages over investing directly in individual securities:

Increased diversification: A fund normally holds many securities; diversification decreases risk.

Daily liquidity: Shareholders of open-end funds and unit investment trusts may sell their holdings back to the fund at the close of every trading day at a price equal to the closing net asset value of the fund's holdings.

Professional investment management: Open-and closed-end funds hire portfolio managers to supervise the fund's investments.

Ability to participate in investments that may be available only to larger investors. For example, individual investors often find it difficult to invest directly in foreign markets.

Service and convenience: Funds often provide services such as check writing.

Government oversight: Mutual funds are regulated by the SEC

Ease of comparison: All mutual funds are required to report the same information to investors, which makes them easy to compare.

Low Investment Threshold: Since the portfolio is diversified with a no-load fund, investors may have to pay little or no sales charges to own mutual funds[4]

Mutual funds have disadvantages as well, which include:

Fees

Less control over timing of recognition of gains

Less predictable income

No opportunity to customize

Read More

Sponsor Links:

Investment for Expatriates

I decided to write about investment because this is where most of us expatriates are lacking. I have many friends and acquaintances who went home for good but still poor. The purpose of going abroad and be away for a long time from our family has failed! Those sacrifices and homesickness that we endured for long time should not be wasted by ignoring investment.

I think we just need to study investment and invest money so that we have enough money when we retire. 

There are many ways to invest our hard earn money while we are still away from our family, with the time where we can do business online by using internet, we can invest too while working abroad. 

Here are some investments aside from real estate:

Mutual Funds- This investment are good for people who are too busy monitoring and studying stock market. This investment is not too risky compared to stock since it is composed of many stocks. When one of the stocks of the mutual fund is down, still the others are not so the average is not affected well. I have tried this kind of investment and I observed that my money is doubled every four to five years. If you want to learn more about mutual fund, you can make a research in the internet. There are many articles about it and where to invest. By the way this investment has three types of investment: bond investment, bond and equity or balanced- fund and the aggressive which is purely equity investment but with higher returns.

Stock Market - This investment is where you buy a share of a company. This means that you become a co-owner of the company. First of all you have to study the company, its assets, plan and who owns it. Familiarize yourself about the totality of the company because you are buying part of the company. Why would you buy or co-own a company which are not familiar? As the share price of the company goes up, your money increase too but remember there are times that the economy is not good or there is a recession your share will also be affected and it may go down. Stock is riskier but with good return compared to mutual fund so it is up to you to decide but historically stock is still a good investment, it is a long term investment.

Read More

Sponsor Links:

Money Tips for Expatriates or OFW

Many expatriates or OFW in particular forget to save money when they are already working abroad. In the Philippines there is a seminar from PDOS before leaving to work abroad. The main topic of the seminar is about how to save money while working away from the Philippines away from their family. But most of the expatriates return home only to realize that they are still poor and even poorer before they went abroad. One of the reasons of this is that the OFW forgot to save while away working hard in foreign land. Some were tempted to spent too much money more than what they were earning by buying unimportant things like electronics gadget, gambling, going to nightclubs and even forget their family in the Philippines and even make their own new family abroad.

If you are working abroad you will encounter many trials and hardship, loneliness that will ruin your plan and dream. My advice is to have a constant communication to your family in the Philippines. Make concrete plan and save money for your future in the Philippines.

Here are some money tips for Expatriates or OFW:

1.0 Know what your monthly income and assess if you could invest on something in your country of origin. Maybe you could buy a house or condo unit. Real Estate is a good investment because it appreciates its value faster than other form of investment. It is also a pride to have a house which is the product of your hard work.

2.0 As an ofw you will see many appliances that you could not afford before to buy. Tighten your belt and go for longer gratification by saving and investing your money. You can invest in government securities and mutual fund too. Another thing to avoid buying cars, watches that are very expensive. Just say no to these temptation.

3.0 Spend your money wisely. Always remember that you have a goal to fulfill. Do not change your lifestyle like when you are earning small amount of money when you are in the Philippines.

4.0 If you think that your wife is not a good saver then do not send all your money but just send money for their monthly budget. Do not let your dependent in the waste your hard earn money.

5.0 Tell your wife about your plan or you should update them about your present money status and your future plan so that they will understand to avoid problem.

For more money tips read Earn and Invest Money in my other blog.

Read More

Sponsor Links:

OFW Should Save and Invest

Many OFWs including myself are working hard in a far away land in order to earn more money and hope that someday we can start a new life in the Philippines with business or savings but I think only few people will realize their dream. Why is it that it is hard to do it?

When I was young it seems to me that saving money is very easy but now I have a hard time doing it. Mulling myself I realized that many things has changed since I was a toddler living in our province with simple life and simple things around. Now the world is full of many unnecessary things that are widely promoted by media. Ads are there to persuade people to buy. In short you could not save and invest because life today is about receiving salary if you are employed and buying things which are not important. If only everyone could go back to simple life, I think they can save money and start a business of their own.

As an OFW or Oversea Filipino Worker, it is hard for us to save money because there are lots of temptation like buying jewelries, electronic gadget and the pride of being an OFW that when spending a vacation, many relatives and friends are expecting us to shower a party and lend money without paying in return. But I think it is not too late not to save money today. You just need to stand and be reasonable. The hard part is when you start saving money. Many people don't save money because of many unreasonable reasons like I have a small monthly salary, I will save later, my wife is working too and she has a retirement plan and so on. My question is when are you going to start saving money?

My answer is now and stop buying those unnecessary things that you don't really need. You have to identify the asset from liabilities. What are these two things? Assets are things that when you buy they can give you more money like real estate, business and retirement plan. You need to study these things too before you buy. Liabilities are things that do not generate money for you like luxury car, expensive cellphone, laptop, very big house. These things that I mentioned in fact will need more money for maintenance.

Start saving by paying yourself first. What is this means? You have to set aside 10% of your gross monthly income. If you could not do it with 10%, start with 5% and readjust it later to higher percent value when you feel comfortable. By the way don't wait for that comfortable moment to come! It is not bad to enjoy your money because you earned it but let us not forget that you are not only living for today so you have to save and invest because as you go older you will have a hard time to cope up. Employment is shaky, it is not a secured source of income. What if you get fire? There are many younger people who can do with your job but are willing to accept low salary.

There are so many things to cover with this topic but I discussed here the basic of financial freedom. Start saving now and invest your money. Do not rely others for your future. Start today and as OFW we should save and invest.

Read More

Sponsor Links:

Earn and Invest Money: Top Ten Money Saving Tips

To all expatriates out there here is another article that I want you to read. It is about saving money tips, I am sure all of you will want to save money so that you can leave where you are now and go home for good earlier than what you expect. Saving your money by following this Earn and Invest Money: Top Ten Money Saving Tips will help you a lot. Start saving money today and invest it in your country.

There are many ways to save money and you can make a comments here and add what other way to save money. My friend retired at the age of 40 for good because he has lots of money already and able to start a lucrative in the Philippines, I myself want to follow what he is doing and I start investing in real estate.

Read More

Sponsor Links: