This week, Insular Life launched its First Million Fund wherein you help your child raise his/her first million. That's where I primarily got the idea.
Secondly, I have friends who want to start investing but do not know how. I often tell them how I invest, but it has become so broad (wide-ranged) that they probably do not know exactly where to begin. This is me building a separate fund, which I call My First Million Fund, from ZERO. For these friends, I am hoping that you journey with me in building our first million.
Lastly, I learn through doing things I have read. I wanted to know for myself if the content is true. One time, I have read about long term investing vs. trading in the stock market. So, I tried both. Another time, I read about buying term and investing the difference vs. getting a VUL. So, I did both.
Being the "high risk, high return" kind of person that I am, I must say that an investment in knowledge pays the best interest indeed.
And beginning today, backed up with what I have learned over these years in investing, I will try to build my first million fund.
So, here are the details:
Goal: Php1M in 8 Years (A goal is a dream with a deadline)
Day 1: October 19, 2016
Starting Amount: Php10,000
How: Through investing in Insular Life's VUL, an investment tool with insurance
The stock market is my favorite money machine.
Why?
Because with my small amount, I simply buy shares of giant companies. Through doing this, I partner with business tycoons. They do everything to continuously grow their companies, while I get to do nothing, and yet I get a share of their profits. This is called passive income, or money working for me even while I sleep.
I will monitor my progress through this blog. So..., GAME!
October 19, 2016
I got a new VUL with Insular Life with my Php10,000 invested in the Guardian Fund. This type of fund seeks to deliver growth and capital appreciation in the long-term by initially investing in ten listed companies deemed to be the next set of the most liquid and well-capitalized dividend-paying stocks un the Philippines stock market.
This policy also goes with Php100,000 insurance coverage PLUS current fund value.
Price per Unit: 0.799082
Amount invested: Php10,000
November 21, 2016
I made a top up to my Insular Life VUL with the money I earned from my second income stream. I put it in the Equity Fund, 44 actively managed companies in the stock market. I grabbed this opportunity to buy while the market is low.
Price per unit: 4.514057
Amount invested: Php14,000The stock market has been down for the past weeks. This is a great opportunity to buy and accumulate more shares. As Warren Buffett says, "Be greedy when others are fearful."
December 23, 2016
I made a top up to my VUL again with the income I earned from my second source, invested in the Equity Fund.
Price per unit: 4.298100
Amount invested: Php13,800HAPPY NEW YEAR!!!
As 2016 came to a close, I got this update shown below comparing the fund performance of the top insurance companies.
And I am very happy with my decision of growing my hard-earned money where it grows best.
Even during the time when the stock market was down, Insular Life's Equity Fund was still able to give positive returns, and it was the ONLY company that was able to do that. The way I see it, that is what 106 years of investment expertise can do.
January 10, 2017
I made a top up again, hoping to be able to do it monthly, with my income from my second source, and invested it in the Equity Fund. The Equity Fund has been the best performing type of fund based on history, with a 14% Compounded Annual Growth Rate (CAGR) since 2005.
Price per unit: 4.605420
Amount invested: Php14,800
Because my sum insured increases by 125% every time I make a top up, it has exceeded the Minimum Guaranteed Death Benefit (MGDB). With this latest transaction, my sum insured increased from Php100,000 to Php103,250.
P.S. Got Php10,000 that you want to begin investing with?
If you want to take on this challenge and journey with me, send me a PM on Facebook or email me at financialplanningforpinoys@gmail.com. We will monitor our progress together. Hope to hear from you soon.
