Financial Guru and Investment Expert Francisco J. Colayco taught the Philippine Constructors Association (PCA) Inc. members tips on smart investing during the PCA General Membership Meeting held yesterday at Discovery Suites Ortigas.
With the theme "Personal and Corporate Investing", Colayco shared his practical ideas on how to succeed in investing:
1. Set-up your financial roadmap
The first wise move before you take off to your investment journey is to make a financial roadmap. This means being honest with what you have, your current financial status, liabilities, and assets. From there, you can establish what you want and why you want it.
"You have to determine the purpose. Is it for vacation? for education? for marriage?" said Colayco.
The roadmap should also include the pace that you want to follow. How fast or slow would you go?
"30 years from now, if I want a million, I only have to put up Php 710 per month. If I need it 10 years from now, I have to put up Php 5,550, if I need that it 20 years I have to put up Php1,760. So start doing it today because the longer time you have, the less money you need. "
2. Never invest in an amount that you can't afford to lose.
Investments particularly in stocks, bonds, or mutual funds include the risk of losing some or all your money. Thus, Colayco urged everyone to ask a simple question before they invest, "Can I afford this loss if it happens? If the answer is no, then don't invest. If you can only afford to lose 500,000 then calibrate your investment to that amount you can afford to lose."
3. Do not put all your money in one business.
Never invest more than 5 to 10 percent of your money to one business, instead, go for diversification. Buying a few shares of four different business would give you a higher possibility of success than risking everything you have in one.
4. Focus on the risk, not on the gain.
"If you manage the risks, gains will follow. If you focus on the returns, the risks will probably overcome the gains dahil nakalimutan mo na yung risks mo."
According to Colayco, investing is a common knowledge and it is easy to invest. However the hard work lies on disciplining oneself to follow the right rules.
Summing up, he encourage everyone to invest accordingly and maximize the present economic situation of the country.
"Wag kayong magpahuli, the train is moving. (Don’t get left behind, the train is moving.) The environment of which we can grow our wealth is excellent," advised Colayco.