Money and Opportunity

Doble-Doble sa Power Saver: Tax Free Time Deposit with High Interest (Philippines)

2009-10-14T02:42:00.000-07:00

Last night I was doing some research about time deposit products here in the Philippines that could offer me a good interest rate. I had a long list of banks here in the Philippines as a guide for me on my research.

The criteria I had in my research are the following:

* Interest Rate

* Credibility and Financial Standing of the bank

* Minimum Placement

* Duration of Time Deposit

I found a lot of banks which offered great interest rates but required a large minimum placement. Other banks which offered high interest rates and small minimum placements were also relatively new and had no large company as a major stockholder.

After hours of research I finally stumbled into a website which had a homepage with a huge ad saying save small earn big. I decided to read further on the site and found some details which made me interested on the bank. This morning I called up their branch here in Cebu and the branch manager confirmed that the product in their ads is in fact true and gave me the requirements.

After reading about their stockholders and researching about the background of the back I decided to invest a small amount in the bank. My confidence in the bank grew bigger after I saw most of their major stockholders were coming from big and trusted companies here in the Philippines.

here are the details of the Product.

Bank: Malayan Bank (not to be confused w/ maybank)

Product: Doble-Doble sa Power Saver

Take advantage of this unique high-yielding deposit! With a minimum monthly placement of Php 500, you can earn a guaranteed interest of 8.5%p.a.

The bank also offers other products asides from this. Just visit their website to know more about their other products.

Source: Malayan Bank

5 ways Small investments can provide Big returns

2009-10-11T22:27:00.000-07:00

We often consider “small” as insignificant, as though anything “big” is justifiably sought after and respected. Yet, the tide is changing somewhat as investors and business proprietors recognise that “small” is actually the new “big.”

What am I talking about?

Well, there is no doubt that popular products and services, investments, people, ideas etc draw “big” audiences and attention. They receive a great deal of focus because the media always try and tap fads and exploit them for their own purposes.

But, they are relatively inefficient at posting good returns on investments – particularly for those late to enter the market. Those who recognised the opportunity and milked it are the ones enjoying the cream. The ones who hear about it via the media, like you or I, have already missed the boat.

For this reason many investors are turning their eyes back to the small. The seemingly insignificant investments that large stock miners miss and the popular group have little time for. For small is found in the ‘niche’.

This is a handy tip – which I won’t charge you for, consider it a freebie – because if you can understand that niche’s are the new big, then small investments no longer require mortgage-risking levels of debt. Now, before you head off pioneering that niche goldmine, consider that sometimes opportunities can only be met with a full-hearted commitment. If you’re wanting to keep to your plan of investing small and growing your investments slowly then passing some of these ‘golden’ opportunities are inevitable. Get over it.

So, if you want to invest small here are a few tips;

1. DRP’s or DRiP’s are an easy way to drip-feed your investment into large companies by building your portfolio slowly. They usually only require a regular contribution and can offer some good leveraging of purchasing expenses. Here’s some more info…
2. Join an investment group often we can achieve far more as a group than by ourselves. The concept is called synergy (The effect of two or more agents working together to produce an effect that is greater than the sum of the parts.) More investment capital, more investment ideas. Makes a whole heap of sense.
3. Invest in smaller stocks there are a ton of cent priced shares available especially through speculative mining companies. After some in-depth research you may find their prospects of success are reasonable and therefore worth the risk (albeit small). It’s much easier for a cent share to double to 2 cents than it is for a blue chip stock to double from a $35 base. Not for the faint-hearted though!
4. Invest in mutual funds or listed property trusts these usually only require a small investment because they’re accessing funds from a larger audience and can therefore leverage their investment potential. They can usually return a good profit as well.
5. Diversify away from personally owned stocks and properties non-listed small business and property developers may also be an avenue to try for small investors. The risk is greater bu the returns are usually proportionate.

This is only a short list of small investment possibilities. A plethora of opportunities abound provided you are willing to accept the paradigm shift of thinking ’small’ is the new ‘big’.

By: Stuart
Source: http://yourmoney2keep.com

Philippine Mutual Funds Report – 3rd Quarter 2009

2009-10-09T03:02:00.000-07:00

Continuing the winning streak performance of the 2nd quarter, mutual funds in the Philippines have remained on the upswing by the end of the 3rd quarter of the year.

From January to September 2009, all equity (stock) funds have earned double-digit returns. On the average, the funds are up 37% from the start of the year.

The same is true for the rest of Balanced, Bond, and Money Market funds, with the exception of one Bond fund currently in the red.

The complete list of the performance of Philippine Mutual Funds from January to September 2009 below.

YEAR-TO-DATE PERFORMANCE OF MUTUAL FUNDS IN THE PHILIPPINES
As of the 3rd Quarter of 2009 (January to September 2009)

EQUITY FUNDS (primarily invested in Peso equity securities)

1. Philequity Fund – 54.39%
2. Philippine Stock Index Fund – 49.54%
3. Philequity PSE Index Fund – 46.91%
4. Philam Strategic Growth Fund – 40.40%
5. Sun Life Prosperity Phil. Equity Fund – 35.95%
6. First Metro Save and Learn Equity Fund – 34.85%
7. ATR KimEng Equity Opportunity Fund – 33.26%
8. DWS Deutsche Philippine Equity Fund – 22.33%
9. United Fund – 16.09%

BALANCED FUNDS (primarily invested in Peso debt and equity securities)

1. ALFM Growth Fund – 58.07%
2. First Metro Save and Learn Balanced Fund Inc. – 31.9%
3. Philam Fund, Inc. - 31.16%
4. GSIS Mutual Fund – 30.89%
5. MFCP Kabuhayan Fund – 21.6%
6. Sun Life Prosperity Balanced Fund – 17.14%
7. Optima Balanced Fund – 16.57%
8. First Galleon Family Fund – 0.35%

FOREIGN CURRENCY-DENOMINATED BALANCED FUNDS

* Sun Life Prosperity Dollar Advantage Fund – 8.32%

BOND FUNDS (primarily invested in Peso debt securities)

1. Cocolife Fixed Income Fund – 7.52%
2. Sun Life Prosperity GS Fund – 5.57%
3. Philequity Peso Bond Fund – 5.30%
4. Sun Life Prosperity Bond Fund – 4.96%
5. Philam Bond Fund – 4.76%
6. First Metro Save and Learn Fixed Income Fund – 3.73%
7. Ekklesia Mutual Fund – 3.70%
8. Prudentialife Fixed Income Fund – 3.67%
9. ALFM Peso Bond Fund – 3.58%
10. DWS Deutsche Philippine Fixed Income Fund - (4.07%)

FOREIGN CURRENCY-DENOMINATED BOND FUNDS

1. Grepalife Dollar Bond Fund – 18.93%
2. Philam Dollar Bond Fund – 16.02%
3. MAA Privilege Euro Fixed Income Fund – 15.93%
4. Sun Life Prosperity Dollar Abundance Fund – 14.90%
5. Grepalife Fixed Income Fund Corp. – 11.36%
6. Philequity Dollar Income Fund – 9.17%
7. MAA Privilege Dollar Fixed Income Fund – 7.48%
8. AIG Global Bond Fund Phils. – 5.87%
9. ALFM Euro Bond Fund – 5.32%
10. ALFM Dollar Bond Fund – 3.87%

MONEY MARKET FUNDS (primarily invested in short-term Peso securities)

1. ATR KimEng Money Market Fund – 1.22%
2. Sun Life Prosperity Money Market Fund – 1.16%
3. Philam Managed Income Fund – 1.01%
4. First Metro Save and Learn Money Market Fund, Inc. – 0.89%

* Figures in (xxx) denote a loss. All data taken from the website of the Investment Company Association of the Philippines (www.icap.com.ph).

Disclaimer: Although the rate of return is a good measure of performance, other things such as consistency of return and exposure to risks of an investment instrument must also be assessed. Note also that past performance of a fund is not and cannot be a guarantee of future returns.

Source: www.pinoymoneytalk.com

BPI Savings and Insurance package

2009-10-08T02:52:00.000-07:00

I found this great product from BPI that I want to share with others. A lot of savings account offer minimal interests for placing your money in the bank. BPI has actually made a product which offers a different incentive to depositors. They have a savings account which includes an insurance to the product.

Beloew are the mechanics from their website.

Introducing - - BPI Direct Save-Up
Automatic Savings and Insurance that help you achieve your life goals, payday after payday.

SAVINGS THAT'S EASY TO START AND BUILD.

Start your automatic savings with no initial deposit. Build it up payday after payday and earn higher interest as your balance increases. Do all these while enjoying a low monthly maintaining balance of only Php 1,000.

SAVE WHAT YOU CAN, WHEN YOU CAN.

Remain in control as you set aside a portion of your income automatically each payday. Simply decide how much and how often you want to save from your payroll account and it will be automatically transferred to your BPI Direct Save-Up account.

Start saving for sure for things that really matter for as low as Php250. Just choose from among the following frequencies:

• Once a week
• Every other week
• Once a month
• Twice a month

Got a bonus? You can also transfer funds anytime to your BPI Direct Save-Up.

Read More

Time Value Of Money: Determining Your Future Worth

2009-04-09T02:29:00.000-07:00

If you were offered $100 today or $100 a year from now, which would you choose? Would you rather have $100,000 today or $1,000 a month for the rest of your life?

Net present value (NPV) provides a simple way to answer these types of financial questions. This calculation compares the money received in the future to an amount of money received today, while accounting for time and interest. It's based on the principle of time value of money (TVM), which explains how time affects monetary value. (For background reading, see Understanding The Time Value Of Money.) The TVM calculation may look complicated, but with some understanding of NPV and how the calculation works, along with its basic variations: present value and future value, we can start putting this formula to use in common application.

Time Value of Money
If you were offered $100 today or $100 a year from now, which would be the better option and why?

This question is the classic method in which the TVM concept is taught in virtually every business school in America. The majority of people asked this question choose to take the money today. But why? What are the advantages and, more importantly, disadvantages of this decision?

There are three basic reasons to support the TVM theory. First, a dollar can be invested and earn interest over time, giving it potential earning power. Also, money is subject to inflation, eating away at the spending power of the currency over time, making it worth less in the future. Finally, there is always the risk of not actually receiving the dollar in the future - if you hold the dollar now, there is no risk of this happening. Getting an accurate estimate of this last risk isn't easy and, therefore, it's harder to use in a precise manner.

Illustrating the Net Present Value
Would you rather have $100,000 today or $1,000 a month for the rest of your life?

Most people have some vague idea of which they'd take, but a net present value calculation can tell you precisely which is better, from a financial standpoint, assuming you know how long you will live and what rate of interest you'd earn if you took the $100,000.

Specific variations of time value of money calculations are:

* Net Present Value (lets you value a stream of future payments into one lump sum today, as you see in many lottery payouts)
* Present Value (tells you the current worth of a future sum of money)
* Future Value (gives you the future value of cash that you have now)

Determining the Time Value of Your Money
Which would you prefer: $100,000 today or $120,000 a year from now?

The $100,000 is the "present value" and the $120,000 is the "future value" of your money. In this case, if the interest rate used in the calculation is 20%, there is no difference between the two.

Five Factors to a TVM Calculation.
1. Number of time periods involved (months, years)
2. Annual interest rate (or discount rate, depending on the calculation)
3. Present value (what do you have right now in your pocket)
4. Payments (if any exist. If not, payments equal zero)
5. Future value (the dollar amount you will receive in the future. A standard mortgage will have a zero future value, because it is paid off at the end of the term)

Many people use financial calculators to quickly solve these TVM questions. By knowing how to use one, you could easily calculate a present sum of money into a future one, or vice versa. The same goes for determining the payment on a mortgage, or how much interest is being charged on that short-term Christmas expenses loan. With four of the five components in-hand, the financial calculator can easily determine the missing factor. To calculate this by hand, the formula would look like this:

FV = PV (1+i)N

Or conversely

PV = FV
(1+i)N

Net present value calculations can also help you discover answers to other questions. Retirement planning needs can be determined on an overall, monthly or annual basis, as can the amount to contribute for college funds. By using a net present value calculation, you can find out how much you need to invest each month to achieve your goal. For example, in order to save $1 million dollars to retire in 20 years, assuming an annual return of 12.2%, you must save $984 per month. Try the calculation and test it for yourself. (To learn more about how compounding contributes to retirement savings, see Young Investors: What Are You Waiting For? and Why is retirement easier to afford if you start early?)

Below is a list of the most common areas in which people use net present value calculations to help them make decisions and solve their financial problems.

* Mortgage payments
* Student loans
* Savings
* Home, auto or other major purchases
* Credit cards
* Money management
* Retirement planning
* Investments
* Financial planning (both business and personal)

Conclusion
The net present value calculation and its variations are quick and easy ways to measure the effects of time and interest on a given sum of money, whether it is received now or in the future. The calculation is perfect for short- and- long-term planning, budgeting or reference. When plotting out your financial future, keep this formula in mind.

Source: http://www.investopedia.com/

By: Daniel Myers,CFA

How to Get a Job When No One's Hiring

2009-04-01T08:25:00.000-07:00

David Perry, a longtime headhunter, says you're wasting your time if you're looking for job postings online. And he should know: he's often the guy on the other side helping companies lure new talent. Perry, who's based in Ottawa, says that in the last 22 years he has accomplished 996 searches totaling $172 million in salary. And the bottom line in today's economy, he says, is you have to tap the "hidden job market."

Perry's also the co-author of "Guerrilla Marketing for Job Hunters" and he recently spoke with Fortune.

Just last month, Bank of America CEO Ken Lewis warned lawmakers at a high-profile Congressional hearing on the government's $700 billion rescue plan that he had no doubts 2009 would be an "awful year" for the credit card industry.

What's the "hidden job market"?

When companies say, 'We have a hiring freeze,' that doesn't mean they're not hiring. It just means they're not adding headcount. Every year there's 20-25% turn over. So in a 1,000-person company, 200 or 250 people are going to turn over, either through attrition, or someone moves. Those companies are still hiring but they don't want to tell you.

So how do you find these jobs?

What you have to do in a recession is map your skills to employers to where you know they have a problem you can solve. My advice to job hunters is pick 10 to 20 companies, no more, and pick companies you're interested in, and that you think you can add value to. That requires researching companies, and so that list may take you two weeks. If you're trying to crack the hidden job market and you know the job position you want reports to vice president, find that vice president on LinkedIn and look at his profile to see who else he's connected to and go ask them, 'What's this guy like to work for?' Do the research before you even pick up the phone.

How can you get someone's attention?

We can go into billboards, sandwiches - that stuff only works once. It's only for one person who figures it out once, once in a city. If you're looking for fun stuff, we have this thing called the coffee cup caper, 30% of the time it will result in an interview. You send an employer a coffee cup with a little $5 swipe card with a little note that says, I'd like to get together and talk with you over coffee. I'll be calling soon. And you send it by U.S. post two day delivery, and that gets registered. So when they've signed for it, you wait about 20 minutes and then you call them. And then you go, Hi, I know you just got my package.' You're proving you're imaginative and creative.

What something people should avoid during a job interview?

This drives me insane: I've seen people mentally deciding in the interview whether they want the job. That's the last place to decide. You go into an interview, and you sell like your life depends on it. You've got to get the job first. I've seen it thousands of times. There's this point in the interview, where people go 'Hmm, do I really want this? You can see their body change. The employer picks it up and it's gone. If the employer is telling you, 'I love you,' and you're not saying 'I love you too,' it's over with.

How about following up afterwards?

If you really like the opportunity, don't go home and write thank you very much. Go back and write a letter that says, upon further reflection of what we were talking about, here's what I bring to the table, here's how I see myself fitting into the organization, including a 30-60-90 day plan.

How can someone attract a recruiter's attention?

You have to go to ZoomInfo and LinkedIn and create a profile. All corporate recruiters and probably 20% of the headhunters in America have ZoomInfo accounts. When we start a search, companies aren't going to advertise. The headhunter goes to ZoomInfo, types in requirements that we need, like skillset, degree, city, functional title, and up will come anywhere from a hundred to several thousand people who fit that criteria. Then we go to LinkedIn and run the same search. If you're in ZoomInfo with a picture, we're going to call you first. Just reverse engineer what recruiters are doing so you get found.

How can you really impress a potential employer?

It hasn't worked in years just to bring in your resume, except only in the most junior positions. I concentrate on directors to CEOs, and the last interview for us regardless is always a Power Point presentation of what you've learned, pain points, and how you intend to fix that. Everyone talks about being a great leader and great communicator, so prove it. Don't go into an interview and treat it like it's just another business meeting. Your career is your biggest asset now - because it's certainly not your house.

Source: (by Jia Lynn Yang Fortune)

Career advice for recent graduates

2009-03-31T00:37:00.000-07:00

Recent college graduates new to the workforce frequently make mistakes that can harm their careers. While it is good to learn from your mistakes, it is even better if you can learn from the mistakes of others. Here are some tips that will help make the transition from school to work a little smoother:

Technology is no substitute for spending time with people. Technology plays a critical role in today's workplace, and recent graduates are generally comfortable using that technology. However, technology can never replace face-to-face interactions with others in the organization. Learn to be equally at ease speaking and contributing at meetings. Management makes judgments about your leadership potential based on how you present yourself when you are in their presence. Recent graduates tend to be very comfortable communicating via e-mail and instant messages but can be reticent in person. Career advancement requires personal contact and building relationships. Hiding behind your keyboard is a career-limiting strategy.

Take responsibility for your own career. Too often, young people find the first job they accepted isn't exactly the job they thought it would be, so they leave and look for another job.This cycle can repeat itself until it ultimately begins to negatively affect an individual's career. Rather than change jobs, a better response might be to seek out additional responsibilities in areas where you have an interest and can add value. In that way, you create the job you want.

Never stop learning. What you are doing today can quickly become obsolete. Employers are always looking for individuals who are adaptable, and they frequently hire and promote people not because they can do every aspect of a new job, but rather because they are convinced the individual can learn whatever he or she needs to learn in order to do the job. So, take advantage of any training opportunities your organization offers. Continuously seek out learning opportunities.

Develop interests and friends outside of work. In addition to building and nurturing a network within your organization, seek out and maintain a diverse set of friends outside of work. Too often, people trap themselves within their organization and their industry. This can cause you to miss out on career opportunities. You never know where the next great opportunity will present itself or what information will prove critical to your future success.

Many people seek out friendships strictly based on their perceived career utility. Because people recognize what you are doing, that is often counterproductive. Keep in touch with individuals because you are genuinely interested in them, not only when you need something. Help them even when there is nothing immediately in it for you. That way, they will be more likely to think of helping you anytime an appropriate opportunity arises without your even having to ask.

Volunteer for assignments where you will develop new skills. Take courses at local universities and online. Constantly seek to develop yourself. Keeping up with trends in your field and continuous learning not only will keep you marketable, but also will advance your career.

All advice is not equal. Be careful where you seek advice from. Everyone feels free to offer you career advice -- your aunts, your uncles, your parents' friends and even your friends who graduated just a few years ahead of you. Make sure the advice you take is not only from someone who is knowledgeable, but is applicable to your specific situation.

by Lee E. Miller (http://shine.yahoo.com/blog/)

MUTUAL FUND PERFORMANCE IN THE PHILIPPINES

2009-03-30T02:16:00.000-07:00

PERFORMANCE OF MUTUAL FUNDS IN THE PHILIPPINES
For the Years Ended 2008 and 2007

Peso Stock Funds	2008 Return	2008 Rank	2007 Return	2007 Rank
United Fund, Inc.	(14.28%)	1	8.45%	8
First Metro Save and Learn Equity Fund, Inc.	(30.7%)	2	12.63%	7
Sun Life Prosperity Phil. Equity Fund, Inc.	(37.59%)	3	20.58%	3
Philam Strategic Growth Fund, Inc.	(38.13%)	4	19.86%	4
Philequity Fund, Inc.	(40.67%)	5	18.32%	5
Philequity PSE Index Fund Inc.	(40.75%)	6	21.74%	1
ATR KimEng Equity Opportunity Fund, Inc.	(41.46%)	7	13.87%	6
Philippine Stock Index Fund Corp.	(48.28%)	8	21.42%	2

Peso Balanced Funds	2008 Return	2008 Rank	2007 Return	2007 Rank
First Galleon Family Fund, Inc.	0.6%	1	0.22%	5
First Metro Save and Learn Balanced Fund Inc.	(6.27%)	2	NA	NA
Sun Life Prosperity Balanced Fund, Inc.	(23.75%)	3	17.21%	2
Optima Balanced Fund, Inc.	(23.89%)	4	8.31%	4
MFCP Kabuhayan Fund, Inc.	(29.2%)	5	10.56%	3
GSIS Mutual Fund, Inc.	(31.5%)	6	21.92%	1
Philam Fund, Inc.	(32.52%)	7	NA	NA

Dollar Balanced Funds	2008 Return	2008 Rank	2007 Return	2007 Rank
Sun Life Prosperity Dollar Advantage Fund, Inc.	(8.68%)	1	3.54%	1

Peso Bond Funds	2008 Return	2008 Rank	2007 Return	2007 Rank
Cocolife Fixed Income Fund, Inc.	5.26%	1	5.76%	2
ALFM Peso Bond Fund, Inc.	4.26%	2	5.02%	3
First Metro Save and Learn Fixed Income Fund, Inc.	2.33%	3.5	4.35%	4
Philequity Peso Bond Fund, Inc.	2.33%	3.5	NA	NA
Ekklesia Mutual Fund Inc.	1.96%	5	2.26%	8
Philam Bond Fund, Inc.	1.91%	6	4.29%	5
Sun Life Prosperity Bond Fund, Inc.	1.53%	7	2.42%	7
Philam Managed Income Fund	1.52%	8	(0.05%)	9
Sun Life Prosperity GS Fund, Inc.	0.57%	9	3.83%	6
Prudentialife Fixed Income Fund Inc.	(5.0%)	10	7.58%	1

Foreign Currency Bond Funds	2008 Return	2008 Rank	2007 Return	2007 Rank
AIG Global Bond Fund Phils., Inc.	2.37%	1	NA	NA
ALFM Dollar Bond Fund, Inc.	1.97%	2	5.36%	2
ALFM Euro Bond Fund, Inc.	0.08%	3	1.69%	8
Philequity Dollar Income Fund Inc.	(0.71%)	4	4.88%	3
MAA Privilege Dollar Fixed Income Fund, Inc.	(3.21%)	5	4.35%	5
Grepalife Fixed Income Fund Corp.	(3.44%)	6	2.60%	7
Sun Life Prosperity Dollar Abundance Fund, Inc.	(7.08%)	7	2.61%	6
Grepalife Dollar Bond Fund Corp.	(7.18%)	8	4.65%	4
Philam Dollar Bond Fund, Inc.	(7.44%)	9	6.55%	1
MAA Privilege Euro Fixed Income Fund, Inc.	(13.87%)	10	(2.33%)	9

Peso Money Market Funds	2008 Return	2008 Rank	2007 Return	2007 Rank
Sun Life Prosperity Money Market Fund, Inc.	2.05%	1	2.03%	2
ATR KimEng Money Market Fund, Inc.	(5.12%)	2	(4.72%)	3
Philequity Money Market Fund, Inc.	NA	NA	5.65%	1

Source: Investment Company Association of the Philippines

Financial Planning FAQ

2009-03-28T02:13:00.000-07:00

BY MALAYA LARAYA
I recently conducted a half-day seminar on financial planning for some professionals and it was a rather enlightening experience on the mindsets of people when it comes to financial planning. As always there was an open forum at the end and quite a number of questions were asked – some were the usual and some were rather unusual. So for those of you who may have had some of these questions in mind but didn’t know who or what to ask; here is a small FAQ on financial planning.
What is the best investment? This is definitely the most common question that has been asked and the short answer is this : There is none. More specifically, there is simply no investment tool that is the best for all people all of the time. There are instead, instruments that are best suited to each individual’s particular needs, plans and current financial condition. Simply put, what is good for your friend, spouse, relative, lover, workmate, neighbour or child may not necessarily be good for you due to the undeniable fact that you and your friend, spouse, relative, lover, workmate, neighbor or child are two different individuals. Consequently, the two of you will have different sets of wants and needs at different times and will therefore need different solutions. Therefore, be very wary of anyone who tries to sell you a panacea for all of your investment needs as it simply does not yet exist.
Where can I get information about (x)? Despite the fact that we are very much in the online age, very many people still do not know where to get even the most basic information about financial products. From equities to managed funds to pre-need plans; people seem to be at a loss as to where to go. Here are some websites that you can visit as well as what you can expect to read.For Equities :1. www.pse.com.ph : This is the Philippine Stock Exchange’s official site. Lots of content from latest market news to an online trading simulation. Best site for IPO news as well as corporate changes such as cash and stock dividends. The bad side is that the site is sometimes abysmally slow and their market ticker has been known to display faulty data.
For UITF’s :1. www.uitf.com.ph : This is a site run by the Trust Officer’s Association of the Philippines or TOAP. Site contains basic information about UITF’s as well as links and info about the participating companies’ UITF’s. Not a very nice site as quite a number of links are broken and there doesn’t seem to be a way to compare fund performance between different banks. All in all, about 17 banks are participating so this is still quite a good source of preliminary info.
For Mutual Funds :1. www.icap.com.ph : Maintained by the Investment Company’s Association of the Philippines, this site lists a pretty large number of funds dividend by their primary investment type – (Equity, Balanced, Bond, etc.). Has a pretty good primer but the heart of the site is the page detailing the returns of each fund. This site allows you to directly compare and contrast different funds so it is easy to see which funds in each class have been performing the best over the short, medium and long-term.Are investment returns guaranteed or risk-free? The short answer here is no. In the interest of public safety though, here is a breakdown of common investment products and the answers for them.
EQUITIES: No broker, agent or salesman is legally allowed to guarantee the performance of any stock.MANAGED FUNDS: Regardless of whether the fund is a Mutual fund, a UITF or some other managed fund; managers are not legally allowed to make any guarantees about a fund’s performance.BANK PRODUCTS: Savings accounts, time deposits and other bank deposit products are allowed to make guarantees. To be certain, check the fine print.PRE-NEED PLANS: It depends. Certain pre-need plans promise a fixed return after a specified period and that is ok. Other plans promise a return based on the performance of a pre-determined standard and a guarantee for those products is not ok. As a rule of thumb, check to see if the words “Past performance is no guarantee of future returns” or something similar appear on the materials given to you by the salesperson or agent, then they are not allowed to guarantee any return.Where can I get (x)? Quite often, after you have decided to get a certain product, finding someone who actually sells that product is quite a chore. Here are some ideas on where to get certain products.
BANK PRODUCTS: Not surprisingly, you get bank products from banks. However, aside from savings, checking and time deposit products, many banks also offer other, more sophisticated stuff. To start, go to your bank’s branch and ask if they have any retail investment products available. Most often, they will offer you their UITF though the really big banks will probably offer you a lot more options.MANAGED FUNDS: UITF’s are sold by banks so if you are interested in them, go to the nearest universal bank. Mutual funds are sold by investment companies and they are slightly harder to get hold of. You can begin by asking within your social circle as it always helps if the agent is someone you see regularly. Failing that, you can go directly to the investment company’s head office and open an account there.PRE-NEED PLANS: If you live or work in the Philippines for a significant amount of time, it is almost 100 percent sure that you will know someone who sells a pre-need plan of one kind or another. Just send an email or text to everyone in your address book and there will be someone there who either deals in these products directly or knows someone who does.STOCKS: You can either sign-up at one of the online brokerages or you can troop over to one of the two trading floors (Ortigas or Ayala). Should you choose the latter, you can ask the guards at the ground floor to point you to one of the brokerage houses in the building. To open an account, you will basically just need your tax identification number and two government identification cards. Some brokerages will also require a minimum investment account though not all do so.
That’s about it for now, if anyone has any further questions, post it here and I’ll try to answer it in a future FAQ. Safe investing everyone.

Source: http://blogs.inquirer.net/moneysmarts/2008/02/28/guest-post-financial-planning-faq/

10 Must-Click Websites

2009-03-28T01:06:00.000-07:00

By Mark Henricks | Entrepreneur Magazine - April 2009

Surfing the web for top-notch research and advice to help your business grow? Save some time with these information-rich websites.

BizStats.com
Free statistics and financial ratios for businesses by industry; find out what the average firm in your industry spends and earns.
Business.gov
The central source for federal, state and local government information for businesses; learn about employment laws, where to apply for government grants and loans, and more.
BusinessFinance.com
This lender-matching service offers a range of useful information on various ways to finance a business.
Entrepreneurship.org
The Kauffman Foundation runs this site, which features hundreds of how-to articles for entrepreneurs, and data for policymakers.
Nielsen
Snapshots of consumer trends in different markets, from groceries to movies, by one of the oldest and biggest market-research firms
Ladies Who Launch
Blogs, success stories, how-tos and more, all targeting women entrepreneurs
Access eCommerce Guide
Even internet-illiterate entrepreneurs can learn almost everything they need to start an e-commerce business here.
Small Business Advancement National Center
The nation's entrepreneurship researchers contribute to this trove of scholarly articles on small-business issues.
Small Business School
View online videos and read transcripts of presentations on financing, hiring, exits and more.
Statistical Abstract of the U.S.
The U.S. Census Bureau's comprehensive and authoritative rundown of statistics on America's economy and society

Source: http://www.entrepreneur.com

What is Google Adsense’s “interest-based advertising”?

2009-03-26T01:01:00.000-07:00

By James | PinoyMoneyTalk.com on interest based ads

A week ago, Google Adsense sent publishers an email informing them of the upcoming launch of interest-based advertising and what changes must be implemented in the site’s Privacy Policy.

What is “interest-based advertising”?

It is basically a way for Google advertisers to reach more targeted users by showing ads based on the interests of a site visitor. If a user, for example, watches a lot of music videos on YouTube and visits primarily entertainment sites, Adsense will show more entertainment-related ads to that user, regardless of the site that user is in.

Huh? What does that mean?

Let’s say Joey is a regular visitor of our site, PinoyMoneyTalk.com, and he clicks on one of Adsense’s finance-related ads. Google will drop a cookie on Joey’s browser which monitors the sites he visits and even the videos he watches on YouTube. If Google discovers that Joey visits sports websites too and watches a lot of sports videos on YouTube, next time he visits PinoyMoneyTalk.com, Google Adsense will show sports ads to Joey even though “sports” is not contextual to the PinoyMoneyTalk.com site.

Is this the same as “behavioral targeting”?

Quite like it. Because Google’s cookie tracks the online behavior of site users to be able to show “interest-based” ads, it is basically serving ads based on the “online behavior” of a user.

Isn’t that invasion of privacy?

You could say that, but Google supposedly assures all users that any information collected will not be used to identify users personally and will not be used to show ads based on personal information. According to Google, “we will not show ads based on sensitive information or interest categories, such as those based on race, religion, sexual orientation, health, or sensitive financial categories, without a user’s opt-in consent.”

As a Google Adsense publisher, would I earn more from this?

According to Google, yes. Because more relevant ads will be shown to your visitors although the ads are not “in context” with the actual topic of your site, there will supposedly be more ad clicks from the user.

Do I need to update anything?

Yes. Google requires that Adsense publishers update their Privacy Policy statements by April 8, 2009. The Privacy Policy must contain at least three things:

that Goole uses cookies to serve ads on the site;
that the cookie serve ads to users based on their visit to sites on the internet; and
that the user may opt out of the use of Google’s cookie by visiting Google’s ad and content network privacy policy.

This is confusing. Is there a sample Privacy Policy I can use?

Google does not suggest any particular language for the Privacy Policy but you can check out our sample Privacy Policies which abide by Google’s new changes.

Is this going to be good or bad for us Adsense publishers?

No one knows. After Adsense launches this in April, we’ll know whether this would benefit or hurt publishers.

What do you think? Will “interest-based advertising” be good or bad for you?

Source: http://www.pinoymoneytalk.com

Other Methods to Earn Some Extra Income

2009-03-20T10:23:00.000-07:00

Everyday I look at the news I see the effect of the economic recession in the world and locally. People are losing their jobs by the thousands. Companies are doing drastic measures to cut down their operation cost and a lot of people are being laid off in the process. The growing number of unemployment around the world has alarmed me a lot. I could not help but wonder what my chances are of becoming another one of those who lost their job due to the recession.

Although the company I'm working for has a steady stream of projects coming in, I always believe that it is better to be prepared for the worst. If ever I were to encounter this scenario I've already planned a lot of things to be productive while searching for another source of income. Here are the following things I've planned so far:

Concentrate on marketing my Profession as an Architect. Although I have a couple of projects coming in right now. Its still too early too rely on my profession as the main source of my income. I've just recently started in practicing my profession and I'm optimistic that someday this would become on of my main source of income.
Do some freelance work as a 3D artist. Although I enjoy exploring new things in the 3D I never entertained the thought of venturing into other aspects on 3d asides from 3d architecture. I think its about time I go out of my comfort zone and start exploring on other potential services in 3d. One good site for freelancers is Odesk.
Monetize and market my blogs. I started blogging as a means to communicate my thoughts and relieve my self of the pressure of my work and problems. This has been a hobby of mine for the past few months and I always take pleasure in writing the things that have always caught my attention. Most of the things I write and read on the net are useful to me and would be probably useful to other people.
Start a small business. Their are a lot of franchise business available with minimal starting capitals. Although venturing into this type of business will really eat up your time in the start. The rewards later on will also be great.
Research on online businesses, I've always believe that the internet is a gold mine just waiting to be explored. The only dilemma live any other gold mine is locating the right spot to mine. Sorting through all the opportunities and scams on the net has already become a hobby of mine. The only major investment you'll make in this is time.

Although I have already began doing some of the things I've mentioned above. I still haven't got enough time to really harness the full potential of these other sources of income.

10 Sectors Poised for Growth

2009-03-17T09:51:00.000-07:00

As the overall economy loafs in the doldrums, a few sectors are actually growing--some at impressive paces. Here are 10, ranging from nationwide to niche, that offer more opportunity than most.

Services: This sector, which makes up more than half the total U.S. economy, is on the rise, as indicated by the increase in the ISM Nonmanufacturing Index from November's all-time low of 37.6 percent to December's 40.3 percent.
Discount stores: Low prices are leading to higher sales for the nation's discounters. Shares in the likes of Family Dollar and Wal-Mart have risen about as fast as the rest of the stock market has fallen over the past year, reflecting increased earnings and better-than-average prospects.
Fast food: Quick-service restaurants such as McDonald's--where monthly sales rose nearly 8 percent in November--are looking better and better to cash-strapped consumers choosing them over pricier casual eateries.
Secondhand goods: Pre-owned is fine to consumers looking for a deal, as shown by a 19 percent earnings increase for Winmark Corp. in last year's otherwise dreary third quarter for retailers.
Medical office buildings: A growing market in real estate? You bet, according to PricewaterhouseCoopers, which sees an aging population's health-care needs fueling demand for medical office buildings, especially out West.
Netbooks: Ten million of these tiny notebook computers, priced between $300 and $500, were sold last year, up from hundreds of thousands in 2007. New models that boot faster and run longer on batteries could boost sales further.
1,500 U.S. theater screens are equipped to show 3-D movies--a burgeoning market.
Education and health services: The U.S. Bureau of Labor Statistics has projected that employment in these sectors will grow more than any other, adding nearly 5.5 million jobs from 2006 to 2016.
Social networking: Just four months after enrolling its 100 millionth user, Facebook reached 150 million users in January. At that rate, it could top 200 million as you read this.
3-D: Once derided as a goofy gimmick, 3-D pictures are technologically much improved, and content is expanding rapidly. This year's BCS Championship football game was broadcast in 3-D--a first.
Savings: U.S. personal savings as a percent of disposable income rose from 0 percent in early 2008 to 2.8 percent by year-end. Sales of related goods, from home safes to piggy banks, are also up.

Source: http://www.entrepreneur.com/

UITF CLASSIFICATION

2009-03-11T21:53:00.000-07:00

UITF CLASSIFICATION – Easing the Challenge of Selection

As financial markets evolve, investment choices multiply. In the Philippines, nothing exemplifies this better than the number of unit investment trust funds (UITFs) available to the local investor. While certainly a sign of progress and, arguably, of increasing financial sophistication, the proliferation of choices could also be a challenge to someone who simply wants to earn some money on his investment. Recognizing this, the trust industry, through the UITF Council of the Trust Officers Association of the Philippines, set its eyes upon the task of helping the investor through this challenge by introducing the UITF Fund Classification.

The UITF Council’s basic concept was to categorize the UITFs according to the assets they are invested in. By doing so, the Council is enabling potential investors to differentiate the Funds by the respective risk-return characteristics of their underlying assets. UITFs invested principally in equity securities or stocks are called Equity Funds. UITFs invested in a mix of equity and fixed-income securities are called Balanced Funds. UITFs invested in fixed-income securities have four (4) variants distinguished by a parameter called the Macaulay Duration: Money Market Funds, Intermediate-, Medium-, and Long-Term Bond Funds. Funds that are benchmarked against specific indices are called Index Funds.

Equity Funds

The objective of Equity Funds is to maximize returns by investing in equities or stock investments that bear the potential of delivering higher returns from capital appreciation, as well as dividend earnings. However, this potential for earnings carries with it the potential for losses, not only of income, but of principal. Clients investing in this type of fund should be aware of this. They should be risk takers and should be willing to take the risk or volatility associated with investing in equities. A long investment time horizon is recommended when investing in equity funds.

Balanced Funds

The objective of Balanced Funds is to provide its investors with capital appreciation over the medium-term through a portfolio mix of equities and fixed-income securities. For uniformity of standards, the TOAP UITF Council has mandated that the fixed-income investments of Balanced Funds should comprise 40% to 60% of the total Fund. The equity component is aimed at spicing up potential returns through gains on stock investments. The allocation of investments between equity and fixed-income securities is a product of how the fund managers read market conditions, as long as they stay within the prescribed range set by the TOAP UITF Council. The Balanced Fund is for investors who are risk takers. These investors should be aware that the potential for high yields from a portfolio that includes stock market investments also carries with it a higher probability of capital losses that equity investments entail.

Fixed-Income Funds

The UITF Council of TOAP has classified fixed-income UITFs according to a parameter called Macaulay duration. Macaulay duration, expressed in time units, is a technical term in finance that measures the average time to receipt of all the cash flows of a security weighted by their present values. A portfolio’s Macaulay duration may be derived by getting the average of the Macaulay durations of all the securities that make up the portfolio, weighted by their market values.

In simple terms, Macaulay duration reflects a security’s or a portfolio’s sensitivity to changes in interest rates. For example, a bond with a Macaulay duration of three (3) years will roughly behave similarly to a bond with a maturity of three (3) years in terms of sensitivity to changes in interest rates. Since Macaulay duration is a measure of the average time to receipt of cash flows, it follows that bonds that have long maturities have high Macaulay durations, which in turn translates to higher interest rate sensitivity. By simple deduction then, longer-term bonds are more sensitive to interest rate changes than shorter-term bonds. Therefore, a class of funds with a high Macaulay duration will be highly sensitive to interest rate changes and will exhibit high volatility. Corollarily, a class of funds with a low Macaulay duration will be less sensitive to interest rate changes and will exhibit low volatility.

Using Macaulay Duration, the TOAP came up with the following classifications of fixed-income UITFs:

Type of UITF

Portfolio Macaulay Duration

Money Market Funds

Up to a maximum of one (1) year

Intermediate-term Bond Funds

Up to a maximum of three (3) years

Medium-term Bond Funds

Up to a maximum of five (5) years

Long-term Bond Funds

About five (5) years

MONEY MARKET FUNDS

The objectives of Money Market Funds are capital preservation and income generation from low risk investments. These funds are invested principally in fixed–income securities and have a portfolio duration of less than a year, These are suitable for risk averse investors who are looking for safe and liquid investments with yields that are relatively modest due to lower risk exposures. The returns on these funds, however, are usually higher than the returns on savings accounts or time deposits.

BOND FUNDS: INTERMEDIATE-, MEDIUM- and LONG-TERM BOND FUNDS

The objectives of Bond Funds are capital appreciation and higher yields over the intermediate, medium or long-term, as the case may be. These funds are invested in higher yielding bonds and are suitable for risk tolerant investors who have a longer investment time horizon and who are willing to take on the risk of a more volatile portfolio in exchange for higher yields due to the longer term nature of the fund’s investments.

By now, the practical importance of classifying fixed-income UITFs is evident. Notice in the above table that as we move from Money Market Funds to Long-term Bond Funds, the portfolio Macaulay duration, and therefore, interest rate sensitivity and portfolio volatility, increase. Thus, a client with a low tolerance for volatility, and therefore risk, should invest in a fund that has a low duration. Corollarily, a client who has a high tolerance for volatility, and therefore risk, should invest in a fund that has a high duration.

There is, however, a caveat to this classification. Although a number of UITFs may belong to the same UITF classification, it does not follow that all these funds will deliver the same returns over a given period. Fund management is a complex undertaking and there are a multitude of other factors that affect a fund’s performance other than duration, such as amount of management fee, other charges, etc. The investor is therefore advised to be cognizant of this fact. He is also advised to scrutinize, among other things, the quality of and the proportionate exposure to the securities that make up a specific UITF. It may serve an investor well to first study the monthly or quarterly reports of the UITF he is interested in. These are readily available in the websites of the particular trust entities. The NAVpUs of the UITFs are likewise available in www.uitf.com.ph.

Index Funds

A Fund category that will soon be launched is the Index Fund category. The funds that would fall under this classification could be equity funds or fixed-income funds. Essentially, these funds would aim to shadow the performance of existing equity or fixed-income indices. As such, their portfolios would attempt to mirror those that make up the chosen indices. For example, the Phisix is an index of the Philippine equity market. An investor whose objective is to have the same return as the Phisix may therefore invest in an Index Fund that is “indexed” to the Phisix. Proponents of Index Funds point out the following advantages: a) Index Funds generally have lower management expenses compared to other types of funds and b) Index Funds have better returns as majority of actively managed funds fail to beat broad indices in the long run.

Ultimately, what investors should bear in mind is that while the reward for taking risk is a high return, the cost of taking risk may be loss of principal. The correct investment is thus one that is suitable to an investor’s tolerance for principal loss primarily and desire for returns secondarily. In this light, the TOAP classification helps investors identify the fund that is best suited for them. (Article contributed by the Trust Officers Association of the Philippines)

Source: http://www.uitf.com.ph/

Freelancing option

2009-03-10T09:55:00.000-07:00

Advantages of working freelance
There are a lot of people working freelance locally, and you may see a number of them working in coffee shops on their laptops, having meetings in mall restaurants, and squeezing in some gym time in the middle of a working day. Among the advantages of working freelance is the freedom to schedule your own working hours and hold office anywhere. For a lot of people, this can be liberating as they do not need to brave the rush hour to get to work at 8 a.m. every day and beat the Bundy clock.

Working freelance will also allow you to pursue and choose projects that you want to work on. You will also be able to chart your own career path and be your own boss. Your salary will also not be limited to a set amount every month subject to increase annually if you do well on your boss’s evaluation. Instead, you will earn as much as you work—it all depends on you.

Disadvantages of working freelance
There are always two sides to a coin, though, and as there are advantages, there are also disadvantages when working freelance.

First of all, you won’t have the security of having a regular paycheck. You will be paid as soon as your clients pay you, which may or may not be as quick as you wish.

Second, you will have to assume the responsibility of paying your own taxes to the government and contributions to the Social Security System (SSS) and Philippine Health Insurance Corporation (PhilHealth). You will also have to say goodbye to employee benefits such as health insurance coverage, group life insurance, and even 13th month pay, bonuses and paid vacation leaves.

Third, you will be working alone most of the time so for a while you may miss the company of officemates converging at the water station or coffee machine or having lunch with them every day.

Fourth, you will have no routine. Now while this may be a welcome advantage to some, to others this may be a disadvantage especially if they like structure and need boundaries (and bosses leading them) in order to be productive.

Are you suited for a freelance career?
Before you decide on going freelance, determine if you are suited for a freelance career. If you like the idea of taking charge of your career, being your own boss, and working by yourself, then go for it. If you prefer to be part of an organization and work as a team member, then you may be better off seeking employment.

Once you have decided to strike on your own, do these steps to ensure your success:
1. Assess your skills. Make an inventory of all your marketable skills and identify which ones you can offer to your clients. For instance, as a marketing consultant, you may be good at crafting marketing campaigns, from advertising to public relations and below-the-line advertising. Or you may be good at market research or a specific component of brand management. Find out your core competencies.
2. Start scoping the market now while you are still working. Network with friends, family, and business associates to find out if they or their contacts may have need for a marketing consultant. Check what the market may be in need of.
3. Build a financial safety net. Because a freelancer’s salary is never guaranteed to come every 15th and 30th of the month, start building up your savings. Start with an emergency fund that may cover at least six months’ worth of your regular expenses. Park this money in a stable bank that offers Internet, mobile and phone banking so you will be able to bank anywhere, anytime.
4. Scout for insurance coverage. You will be your best asset as a freelancer, so insure yourself. Get adequate health insurance coverage on your own beginning June after you get laid off. If you have dependents, get life insurance too so they will not be burdened should something happen to you.
5. Psyche yourself up to be ready for the market. You are a product to be marketed. Brush up on your skills and make collaterals (calling cards, etc.). Spruce up a corner in your home to start a home office. Invest in basic office equipment such as a computer and printer, and office supplies.

As long as you persevere and make an effort to do a good job, you will be valued by your clients.

Source: http://business.inquirer.net/

Scouting for investment options

2009-03-09T01:50:00.000-07:00

TODAY’S volatile markets can make anyone uneasy about their finances.

Most would in fact prefer to weather the storm by holding on to cash or maintaining bank deposits, rather than putting them in bonds, corporate notes and other investment instruments.

With the right strategy, however, one can find opportunities to benefit even in this crisis.

There is no miracle cure for market turbulence, but there are ways to mitigate the risk associated with volatile financial markets, and eventually place one’s self in a position to earn stable if not higher returns in the long run.

Lower returns

Holding on to money may be perceived to be of less risk in the short term, but keeping it idle may eventually translate to lower returns and diminished purchasing power due to inflation.

An option worth considering rather than keeping money in cash is participating in an investment fund, where the money of many investors is pooled into one big fund. Placing money in an investment fund allows investors several benefits.

They get access to experienced fund managers who constantly monitor and balance investment risks with return objectives through diversification and other strategies.

They also get better pricing on the purchase and sale of securities as these are dealt in the professional market, which is not usually available to individual clients with smaller amounts of funds.

“One such investment fund is the money market fund. This is one viable option for people who want to minimize the risk on their capital while meeting their short term liquidity needs,” says Josefina E. Sulit, Metrobank executive vice president and head of trust banking group.

In the investment world, a money market fund is considered the most conservative investment fund because its portfolios are invested primarily in assets such as short term government bonds and bank time deposits that are easily converted to cash and also provide better yields than traditional deposit products.

According to Sulit, Metrobank money market fund portfolios are invested in these assets by as much as 80 percent for MetroDollar Money Market Fund and 100 percent for the peso-denominated Metrofund Starter.

Good alternatives

“When there are financial uncertainties, money market funds are considered a good investment alternative, for as long as one sticks to the recommended investment horizon,” shares Sulit, who has been in the business of trust banking and investments for the past 30 years.

A weekly industry comparison of money market funds’ year-on-year returns showed that MetroDollar Money Market Fund and Metrofund Starter have consistently figured among the top performers of products in the same category and have consistently provided very competitive returns.

For example, as of Dec. 24, 2008, the performance of Metrofund Starter is 4.55 percent year-on-year and MetroDollar Money Market Fund is 4.56 percent.

“Fund management is an area that Metrobank has proven to be an expert on. No matter what the prevailing economic conditions are, the welfare of all our clients and other stakeholders is top priority. This means balancing the interests of our clients and complying with our regulators such as the BSP who strictly monitors our industry,” says Sulit.

Professional managers

Although times are tough all around the world, and it may stay that way this year, investors will have the distinct advantage of having their funds managed by professionals.

Source: Philippine Daily Inquirer

How to Raise Your First Round of Financing

2009-03-04T20:36:00.000-08:00

Asheesh Advani offers three tips for raising cash with a second round in mind.
By Asheesh Advani

I received an education about money during the last recession. I was raising money for my startup by stringing together a series of small investments from angel investors, friends and relatives. It was a tough slog, but I eventually assembled a group of investors and a board of directors.

Not long after, an investor offered to make a sizable investment. But the share price he offered was lower than that paid by previous investors. I only had three months of cash in the bank and was desperate to accept, but the board turned down the offer. Despite my protests, I was back to the drawing board with 90 days to find an investor willing to pay a higher price. I eventually did find one, but only after two more years of stringing together small investments at incrementally higher share prices from angels, friends and relatives.

My story isn't unusual; entrepreneurs who have raised money through private investors know shareholders will fight to avoid dilution. The interests of founders, new investors and shareholders often diverge between the first and second round of financing, particularly during recessions. Here's how to raise your first round of financing with your second round in mind.

Use convertible debt, not stock. This allows you to raise money without setting a price per share. You can set a discount or a bonus for early investors by enabling them to convert the debt to stock at favorable terms when a larger investor comes along. This protects and rewards your early investors and allows you more flexibility and control. Setting a share price for selling stock to early investors is arbitrary and could paint you into a corner. I recall times when I was embarrassed to even mention offers from new investors to my older investors.
Set a fair price or an appropriate discount. The price you offer to early investors says a lot about your character. You want a high price because you're confident about your business; meanwhile, you want to keep the price low to avoid taking advantage of your relatives, friends and other private investors by setting them up for future dilution and acrimonious investor relations. Somewhere between these two extremes is the right answer. Similarly, when setting a price discount for convertible stock, you can set it too high to attract investor dollars. In that case, future investors will think you've been too generous.
Communicate regularly. When you're raising money, it becomes second nature to brag about your business. However, don't let this affect how you communicate with shareholders. Rather than sending them only good news, send them updates on a regular schedule--annually at least, although I recommend quarterly. Even if your startup isn't generating any revenue yet, tell them what you're doing to move it forward. Sharing news consistently builds trust. You'll need that trust when it's time to raise your next round.

Source: http://www.entrepreneur.com/

Rat Racer or Fast Tracker?

2008-10-29T07:29:00.000-07:00

Every morning, you get up and prepare yourself to go to work. You shower, eat
your breakfast, get dressed and travel by bus/MRT/LRT/cab or drive your car to your office. You reach your office, go to your cubicle, sit down and switch on your computer. And the first thing you do when your computer’s switched on is you check your email!

I know because I’ve seen countless people and they all tell me the same thing. After you go through “email hell”, you watch the clock and find out that lunch’s just around the corner. And so you zip down to favorite eatery that you’ve been dining at everyday for the last 5 years.
You finish your meal and then you head back up to your desk, sit down at your chair and wish that you could just fall asleep! Who else knows that after lunch feeling?

But you can’t.

You boss is yelling for you to get this report prepared and done, your inbox just flooded in with another gazillion emails chasing you for all this work that needs to be done.

Somehow you manage to pull yourself together, endure the pain and get back to doing your chores. You finish that report, you reply to those gazillion emails and in fact, you even manage to squeeze in some extra time to handle that nasty customer that’s been a constant thorn in your neck.

So you finish your work for the day, five o’clock comes and you take the bus/train or drive your car through peak hour traffic back home. You come home to your family, you have dinner and take the nice warm shower that just feels so good. Maybe you sit down to watch television or you read the papers and before you know it, it’s coming to midnight. So it’s off to bed and you wake and you repeat this all over again!

You get two to three weeks paid vacation/sick leave each year and occasional for overtime work.You get paid by your employer for your services every payday. If you don’t like your job anymore, you find another employer for better pay. Year in, year out, it’s the same routine.

You see, when you work for somebody else and not for yourself, you are focusing your efforts in making somebody else richer.

And that is called the “Rat Race”.

But it’s no fairy tale. This is happening everyday, everywhere for countless people just like YOU.

Let me ask you this: “Do you honestly like this feeling?” And I know the answer is that you don’t.

So why are you still doing it? And why have you been doing it for the last 5, 10, 20, even 30 years?

You have the choice, be a Rat Racer all your life. Or be a Fast Tracker. It’s never too late to start.

Versatility in the furniture business

2008-05-22T09:07:00.001-07:00

My dad started our furniture business more than 20 years ago. Our products have reached all over the world and we have been catering to a lot of clients on different countries. Ever since we started our export business the past years we have seen a drastic drop buyers due to economic depression and from cut throat competitions from other exporting countries.
Although the furniture export has slowed down mainly because of the economic depression on US, the local market for furniture has been slowly booming. Ever since tourist have been flocking here in cebu, there are many hotels and condominiums being built here to cater for them. Colleges and Universities are also growing and more dormitories are needed to house the students coming from the province.
We saw this opportunity and we have been catering for the local market for quiet some time. Although the local and foreign market have different need and specifications. Our experience in the industry has allowed us to adapt to the markets demand. Please visit our website for more information regarding our company at www.classicware.com.ph.

Trust Funds in the Philippines

2008-05-20T18:31:00.000-07:00

A couple of months have passed since I started my research on trust funds. What started as a research on time deposits opened my horizons to a better way of investing my savings. At first I was looking for ways to start my savings and to place it on an investment. My problem during that time was that, I just passed the board exam and was just starting my career. I didn't have any savings during that time but I was determined to start my own savings for my future.
I did my research on the internet and I read one article which was all about Trust funds. As soon as I finished that article I said to my self this is perfect for me. There was just one problem, I never realized that only a few people in my country realize the potential for this type of investment, even my dad had no idea what is a trust fund. After failing receive any advice from my parents I decided to broaden my understanding of trust fund by myself.
There are mainly three types of trust funds which are Equity Trust Fund, Bond Trust Funds and the Money Market Fund. Here in the Philippines they offer the peso and dollar trust funds.
Equity trust funds are invested mostly on stocks, this type of trust fund can offer the highest possible return for your investment. The disadvantage with this fund is the risk is proportional to the return. Bond funds are invested mostly with government bonds and treasury notes. This type of fund offer more security for you investment. The third which is the money market is probably the safest among the three. The funds are used for loans by the bank. There is also a balanced fund which is a mixture of the three and differ from every banking establishment.
If you are interested with the performance of the Trust funds here in the Philippines I suggest you visit this www.uitf.com.ph.

Income Tax Calculator

2008-05-13T19:37:00.000-07:00

Every time I receive my salary I always wonder how much of my income goes to taxes and other deductions for my SSS, Phil Health, and Pagibig. Luckily I stumbled into this site which does all those for you and what's really neat about this site is that its free. Check it out http://www.wraithstrider.com/witholding_Site/pages/salary_index.html

Trust Funds Versus Time deopsits

2008-05-11T02:55:00.000-07:00

Last night I asked my dad for his opinion about time deposit and trust fund. He is not comfortable with the thought of me investing my savings in a trust fund. He told me to think about it and try researching more on time deposits. Well i guess he is just concerned about my hard earned savings.

Actually I have been doing my research for almost a year now and I decided that I will invest my savings on a trust fund. There were many factors that i took into consideration for my decisions. I asked myself a lot of questions and weighed things before finally deciding. First of all I tried to assess my situation right now. I'm in a relationship right now but i don't have some obligations regarding any children. I'm currently working for a company which offered me a good salary. I have plans in finishing law school. I have not yet reached the peak of my career. Last but not the least I have no debts.

After my careful assessment, I asked myself how long am I willing to invest my savings, how much am I willing to risk, and how much am I willing to invest. If I am not willing to take any risk then the time deposit would fit perfectly for me. The draw back for the time deposit on the other hand is it is usually locked in a particular period and you can't get your money anytime. Most time deposits also involve a large sums of money. On the good side, all time deposits are insured and your investment is always secured. I also looked at the benefits and disadvantages of the trust fund. Most trust fund offer larger returns compared to the time deposit. There are some trust funds that double your money in just the span of two years, but the returns for this type of investment are not guaranteed. This is the disadvantage of trust funds. I read on an article regarding investment in trust fund as a rule of thumb "the higher the interest the greater the risk". You can't expect to receive large returns with small risk investments.

To sum all this up, I decided to go for the trust fund, particularly the equity fund. This is the trust fund that I mentioned earlier which doubled the return in two years. I am not really concerned about the fluctuating rates right now since I plan to invest this for quiet a long time. I'll try and give a short discuss about the different types of trust fund on another post. Till next time.