MAKINGTHE FILIPINO ‘FIT’
(Financially Independent Tomorrow)
There leaves much to be desired in the country’s financial literacy landscape. Between saving and investing, most Filipinos would rather set aside their money in a savings account or a time deposit. Clearly, the lack of knowledge is the problem.
The inclination to invest is small. It is simply not a priority. Other than not knowing how to, the average Filipino is mostly concerned with spending – whether these are related to real or “perceived” needs. This behavior thus translates to the mindset that “there is no extra money left for investment.”
It’s a good thing that there is an abundance of help available in the promotion of financial literacy. The Trust Officers Association of the Philippines or TOAP is very active in such advocacy – conducting pro- grams and seminars, that are not only aimed at educating young professionals, but also students and families, as a whole. Being specialists in the field of investments and wealth management, we are in the best position of providing not just information but actual experiences coming from the practice of our trade.
As Trust practitioners, we pride ourselves with understanding the investor’s psyche – finding out his goals, his risk tolerance and his experiences. It is that careful and thorough assessment which allows us to craft for him not just a portfolio strategy bespoke to his needs but also recommend appropriate structures which can address allied concerns normally attached to those having or building wealth.
Saving is good, it gets one started on the discipline of setting aside for the future, but investing is better because it puts your money to work for you. If time is your problem, you may enlist the services of a fund manager or better yet, invest via a Unit Investment Trust Fund (UITF). The former offers a customized investment plan on a per client basis while a UITF offers a standardized investment plan for those who do not necessarily have millions to spare. The client’s time horizon and risk tolerance are important considerations in the design or choice of investment plan.
There are many options for investing, even schemes that allow for regular subscription. Regular subscription plans were created to provide clients with a convenient and systematic way to build-up their investments.
The Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP) also offer training for retail investors. Together, they help in educating and enforcing regulations to protect the investing public.
One can also turn to the Internet for information. Through the web, you can find applications and statistical tools useful for investing. And they all come for free!
The power of choice is in your hands – financial illiteracy has become an option. You can choose ignorance and remain in that “payday-to-payday treadmill.” Or you can begin to take control of your finances now and build a better future for you and your loved ones. Now is the time to decide!