As a write this, it has been more than eight months since the lockdown due to the pandemic. Businesses have been badly hit, many lost their jobs and most of our investments are still on their way to recovery.
I can still remember it was March 19, 2020 when my money in stocks fell by 14% in one day as the market crashes. From its high in July 2019, my Philippine stocks portfolio had dropped by 45% in six months!
And this is what that day taught me.
1. Diversification is the best strategy to manage risk.
45% loss may seem a lot, but good thing is that only a small percentage of my portfolio is invested in local stocks at that time. Have money invested in other funds, and other asset classes, too. Continuously recognize opportunities and grow you assets with every paycheck. This way, we get to build our golden nest egg for our future financial goals like retirement, helping our kids start their first business, a new car, a bigger home, or those YOLO travel goals.
2. The stock market is not for everyone.
I know I've said this before in past posts, and I will say it again. If you are comfortable losing money as much as I did, then go ahead and take that risk. But remember that potential return and risk are always proportional. The higher the potential return, the greater the risk you need to take.
TAKE ADVANTAGE OF THE BENEFITS OF BASIC ASSURE 10:
 | Guaranteed Cash Payouts Be assured that you have funds for the future! Basic Assure 10 gives you 7.25% of the Sum Insured, paid at the end of the 5th policy year and every other year thereafter, until the end of the 19th policy year. |
 | Maturity Benefit On top of the cash payouts, you get lump sum cash equal to 100% of the Sum Insured at the end of the 20th policy year. |
 | Doubling Life Protection Life insurance coverage is equal to 100% of the Sum Insured from the 1st up to the 5th policy year and doubles to 200% starting on the 6th policy year onwards. |
Basic Assure 10 is for the SIGURISTA in You and Me!
I am such a "sigurista" that I have a policy that gives me enough insurance coverage that I need as I am part of the sandwich generation. I have a policy where I build my retirement fund. Both my kids are also insured, and with pure investment policies. And as for my husband, I also made sure that he is adequately covered, and with pure investment policies for his retirement.
And personally, I think a guaranteed plan such as Basic Assure 10 is a good complement to our VULs. Last month, I got a guaranteed plan for our two kids, and told them that when the policy matures after 20 years, they will be 32 and 28 by then, they have this six-digit lump sum from Daddy and Mommy, through Insular Life. I told them they can use that money to finance a dream at that time, or they can reinvest it to grow further.
And I am getting a Basic Assure 10 plan for myself.
Why? Let me share with you my reasons below:
1. For VULs, the beneficiaries get the sum insured. Always. But for Basic Assure 10, if I outlive the plan after 20 years, which I think I most likely will since I will only be 58 by then, I get the sum insured. I can use this money to add to my retirement fund.
2. The 7.25% of the sum insured payout benefit to be given at the end of the 5th year and every other year thereafter, until the end of the 19th year, will serve as a bonus which I can use for whatever my heart desires. I can use this for family travel. Hopefully, the pandemic will be over by then.
3. Because my total guaranteed receivables will be more than what my actual cash out, my life insurance for 20 years is technically FREE -- even doubling on the 6th year up to 20th year! And who says no to free, right?
And with all these perks, five years later and twenty years later will definitely be something to look forward to (and not the usual to be feared about due to uncertainty). With Basic Assure 10, everything is guaranteed and we can live out our plans at the exact time when we plan to enjoy them!
"The sincerest advice is to tell you what I am doing with my own money."
This way, my present and future clients know how I handle my own money. And this is just me applying what I learned (and unlearned) first hand from all the talks and seminars I've attended since 2012, when I finally decided to give myself a financial overhaul, tired of being broke paycheck after paycheck. Back then, I was spending all my money on what I thought were assets, but were actually liabilities. Indeed, financial literacy is the key.
Today, I know better. As I write this blog with my kids in front of me having their online class, I've realized that the best thing money can buy is time freedom and peace of mind.
If you are considering getting Basic Assure 10, or would want to know more, send me a message on my Facebook Joan Veronica Trojillo - Financial Planning for Pinoys or email me at financialplanningforpinoys@gmail.com.
Be very blessed!
P.S. If you find this post helpful, which I hope you do, kindly SHARE it by clicking the buttons below.
P.S.2. It has been six long months since I last wrote a blog. This pandemic got me quite preoccupied, too. But since writing is what I feel is the best way of how I can serve God through spreading financial literacy, I vow to write more often, regardless of how tight the schedule may be. I promise to make time for writing. THANK YOU for your continuous support! *sending virtual hugs*
