3. Investing Basics Old School Advice: Save a portion of your income every month and place it in a bank . Modern age Advice: Save a portion of your income every month and place it in on high yielding investments.
4. Old School Advice Contrary to the belief that cash in the bank is the safest, it’s not . With interest rates below 3% and inflation rate above 3%, your peso today is worth less than your peso tomorrow.
5. Modern Age Advice Although the modern day advice is best, the key issue here is asset allocation – putting your eggs under different baskets.
6. Where to deploy your cash? Our best advice is to have a 3-6 months worth of emergency fund placed in short term instruments (i.e., time deposits, treasury bills, SDA’s) . For excess cash that you have, do a 50:50, in terms of bonds and stocks .
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10. So, how it works? Owner’s Earnings Shares of stocks of listed companies