Just perfect for this topic.
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I would be honest. It's not everyday that I am worry-free. Admittedly, there have been a lot of things occupying my mind in the past days.
How will my life be in two months when I am no longer employed?
How to be a fulltime mom and part time everything else since this will be something new to me?
Out of the many things that I love doing now, how do I know which one is God's purpose for my life?
This is just to name a few.
And with all these things going through my head, I received investment opportunities.
Investment Opportunity #1
A friend sent me a message on Facebook asking if I may be interested in an investment opportunity that has been offered to her. I replied asking for a few details. The minimum capital requirement was 6-digits, and the return was double digits guaranteed in merely 6 months!!! Quite inviting, I must say.
But I had to say NO.
And this has nothing to do with the person. (To my friend, if you are reading this, I hope that I did not offend you in any way. And again, thank you for considering me.)
With years in investing in various fields, backed up with loss time, money that went down the drain and lessons learned, I do not say yes to all investment opportunities -- no matter how great the returns may be. Because personally, when I invest, I do not only look at the return, but more importantly, I look at the risk. And these two are always proportional.
When I asked where the money will be invested, she said a company name which I knew but I do not know exactly how or where will they be using the capital for, and how can they deliver such great returns in such a small amount of time. Rule of thumb: Never invest in something you do not understand.
Plus the capital being six-digits minimum and I am losing my job in two months, that is a huge amount for me to risk.
Investment Opportunity #2
A few hours later, I received an email from our agricultural partner asking me if I would prefer to discontinue or renew our one year contract as it ends next week.
I told him that YES, I am renewing our contract.
Why?
We are on our third year as partners, and for the past two years, I have been happy with this investment. The returns may have been lower this time, but the investment income is still enough to cover for the tuition fee of our two kids. Rule of thumb: Never settle for a return lower than inflation.
This investment does not only provide income for us, but more importantly, it provides income to our Filipino farmers.
And because we are on our third year, there was already a return of investment. So I am no longer worried about this.
Investment Opportunity #3
Since I have withdrawn my money directly invested in the stock market last year, I look at the market a lot less often than I used to.
And as I checked it yesterday, it was very low, closing the PSEi at 7,945.66, April 6, 2018. BEST TIME to BUY. I posted something related to this on my Facebook account and a friend commented asking what company to buy. I replied saying that we will never go wrong with a blue chip. She said that she's thinking of buying ALI, but still waiting for its price to go down further. I said, "But what if it goes up instead?"
Then I received an email from Insular Life reminding me of my premium payment.
For me, this is where worry-free investing comes in -- the reason why I thought of writing this post.
Why worry-free, you may ask? Let me cite the reasons from a policyholder's point of view.
Reason #1
Every time I pay for my premium, my money is invested in 45 blue chip companies. Insular Life's Equity Fund is that diversified! I do not have to think how much of my money should go to each blue chip, and I do not have to think when to buy and when to sell. Insular Life's investment experts does the hard work of fund management for me -- while I spend my time doing other things that matter.
Reason #2
My husband knows that I have investments here and there. One time, I was telling him about my direct stocks investment and teaching him how will the money be transferred to him just in case something happens to me, but he has no patience for it. Not everyone does. Honestly, it is quite complicated. This is also one of the main reasons why I withdrew, and still choose not to invest directly as tempting as it may be. If you have an account with COL, you may find this post I wrote in the past helpful: I Asked COL, "What If Account Holder Dies?"
But with my VUL from Insular Life, all that my husband has to know is where my insurance policies are kept. That simple.
Many are against VULs because of the charges. Let me share with you the details of one of my policies. I am paying Php11,700 every month for one of my VULs. This is me investing every month for an eight-digit retirement fund that will enable me to live comfortably when I reach 65. And in the event that something happens to me, my husband and my kids will receive Php5M at least from Insular Life. That is my insured amount. I compare the Php11,700 with the Php5M, and I am not complaining about the charges. With such a huge difference, what am I to fuss about in the first place, right? We just have to understand these things in order to appreciate them.
As a bonus (or policy rider), if I am diagnosed with a dreaded disease, I get Php1M which I can use for treatment. If I encounter an accident, loses a limb or eyesight, but lives, I get Php3M.
All these give me the peace of mind that money can buy, technically, but at a way lower price.
Reason #3
The stock market may go upward, downward or sideways in the years to come. No one really knows. Closing below 8,000 yesterday was like the index from two years ago!!! With these numbers, investing today is like investing in 2016, except for one thing -- you missed the profits!!!
The market may have dropped, but I already made my profits before it did. This is the reason why I love the stock market.
But what if the market drops when I reach retirement? Well, I do not have to worry about that either.
Because my VUL is a Wealth Assure Retirement, the fund is automatically switched as I age. Right now, it maximizes the earning potential with the high risk high return Equity Fund, and then gradually shifts to the low risk low return Fixed Income Fund as I near retirement.
With all these reasons stated above, I'm sure you would agree that it is worry-free indeed.
Make That Decision -- and Act Upon It TODAY!
As a wife and a mother of two young kids, an employee of a huge company, currently loving and learning new hobbies, and still in search for God's purpose for my life, I need more time for people and things that matter.
I choose investments that I do not need to worry about.
When I hear people say, "Bahala na si Lord sakin," (God will take care of me) what comes to my mind is that this is the reason why Insular Life's VULs were created. God has given us all the resources, but we need to do our part. God will provide, but we need to persevere.
I hope you find this post helpful. I would love to hear your thoughts.
Considering getting an Insular Life Wealth Assure Retirement for yourself and your loved ones? Send me an email at financialplanningforpinoys@gmail.com or PM me on Facebook anytime!
Be very blessed!
