Tuesday, June 5, 2012

Wealth Creation Is Possible

 
      How does this sound to you, forced savings, 5-year plan future savings, high-yield investment or money-returns?   It may sound new to you or technically business-savvy, highfaluting words.  But these are important terms you need to consider to have a comfortable and future-secured life.  I will discuss the word mentioned as I go along with my story.   
      Meanwhile, I have pondered upon this words since I met this prissy woman at a lunch meeting.   She is a mom to two lovely girls, a TV host and  a businesswoman who used to own Ritratto, a fashion line which she eventually sold when she  changed a career path.   Now she is in to advocating  wealth and money management, being a  registered financial planner and a certified wealth manager.   She is none the less, Rowena Suarez-Cuyco of  Investment Academy of the Business Portal of Destiny Cable's GNN.

 While having the lunch, she discussed about her "Six Pillars of Wealth Creation."   These are daily expenses which she categorized then provided an advise planning ahead to respond to them in the form of investments.    These categories then become the basis for one’s creation of wealth.                                                         “Savings and investments are independent of each other,” says Ro, that's what she is most known with. “These two create wealth that covers the things that you will need. From the day you were born to the time after you join your creator; you will need money. It’s not being morbid or materialistic. It's just being practical.”

 The Six Pillars of Wealth Creation
1.  Income replacement
      This is the insurance to cover the family’s welfare should the main breadwinner pass away.  Ro  gives an example of one form of financial planning. “If the family spends Php 500,000 a year, to survive the loss of their breadwinner, they’d have to multiply this annual income by, say, 10 years. Their protection amount”- or the monies that would serve them in good stead at the death of a parent-“would be Php 5 million.”
2.    Health protection or available income for the inevitable sickness or hospitalization
      Ro  says that current research shows 48 percent of Filipino families contending with the illness of a loved one will take the out-of-pocket expenses from their daily budget. Neither do they have a substitute for the lost (or temporarily disabled) generator of revenue. She advises, “If you have protection for health, you will get the money you need for hospitalization and medical expenses from a fund that you have set aside for that. The money for your monthly expenses will not get touched at all.”
3.   Setting aside funds for the kind of education that will help children develop a bright future
       This majorly struck me.  I have four kids, all of them are studying, eldest is in college, one in high-school, two kids are in elementary, all of them goes to private schools.   Well, whose parents doesn't want the best for their kids, specially when their future is at stake.   For now we can manage to send them to school, but we still don't know until when we can sustain it, no one knows the future.   By the time, my third child will be in college, I'll be 43, she wants to be a doctor, and I'm thinking, how much would that possibly cost on that time.  To be honest, we don't have that much savings to now to sustain their future educational needs, and Ro has the best plan that could help me do that.
4.   Retirement, which marks its time after the last child has graduated from college
      Not all senior citizens enjoy their life, because they weren't able to save for it.  Also, if they might be receiving some funds from their employment it is merely enough for their healthcare needs.
5.   Post-retirement life of their senior citizen 
      My parents, now nearing their 60's however were able to do some travels in America and around Europe, but it all were in very tight budget.   Good thing they live in Italy, they don't have to spend anything for their medical needs.   So what my father is earning is just enough to spend for their lifestyle.
Not all can experience a very comfortable and lucrid old age.  So this is something we all need to consider as well, while we are capable to work and save.
6.   Investments 
      It would also be better to be able to invest in something that you think you will gain much without putting so much effort on earning from it.   

     “In every investment, you have to have a goal,” Suarez says. “We ask about goals, dreams, and aspirations. We also update ourselves in what’s happening to our client’s life. Like if he’s sending a new kid to college or got a new job, how will that development affect his finances?” She also debunks the myth that only millionaires can invest. It all starts by setting aside 20 percent of one’s income, which could mean a modest amount like the above mentioned Php 4,000 monthly seed money that blossomed into Php 5,000,000 retirement fund.

      The rewards can come much sooner. In one case, one middle_class professional who only set aside Php 56, 000 for the past two-and-a-half years was able to collect more than half a million pesos as her health insurance when she was diagnosed with cancer. Another lady in her 60s used merely the interest in her savings to shop along with her grandchildren in the U.S., leaving her savings principal still intact.
      Start with a small amount, but make the effort to start at all, Suarez urges. The key to cultivating the pillars of life are “discipline and commitment. Forget the jackpot mentality of enjoying all the money you have right now. What happens when all of it is gone?”
Protect yourself and have a more secure future by following Rowena Cuyco-Suarez's "Six Pillars of Wealth Creation". For more information, visit www.RowenaSuarez.com and watch her at "Just Ask Ro" on Channel 8 of Destiny Cable every Wednesdays at 11 a.m.


6 comments:

  1. pag nakakabasa ako ng mga financial advice, na-inspire ako, kaso hindi ko ma-apply sa totoong buhay, hehe! mahirap magbudget lalo na pag breadwinner e! :)

    ReplyDelete
  2. It's true, even before when I am not working It was really hard to save up some of my husband's income. But you know what, it was through some savings that I was able to put up our business which we are right now earning from it. It would be hard but eventually when you need the money the most it would rally come in handy. If you want you can contact Ms. Ro at her numbers or check out her website, and she will be more than happy to help you out with that!

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