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best place to put your money
Best Place To Put Your Money



Best Place To Put Your Money
















Where is the best place to put my money? This is the question I asked myself when I was still working as an OFW in Egypt.

I have a regular job and some savings monthly and I do not have the time nor the patience to study Finance and Investment on my own.

I just need a place or medium to put my hard-earned money.

I want to put my money in any place that earns income more than a bank's savings deposit interest of .250% per year.

I was able to attend an investment seminar one day and I was amazed at how easy it is to grow my money without paying the experts for help.

The Speaker in the Seminar Told us to Put our hard-earned money in the following:

1. Mutual Fund - you put your money one time or if you save 2000 pesos monthly like me, you may opt to contribute to the fund every month.

Illustration:

I opened a mutual fund account with the Philippine Stock Index Fund. This Fund is sold at BPI bank branches. Since I am from Baguio City, I went to a BPI branch in Harrison Road, and the person in charge there told me to give an initial 10,000 investment and to contribute P1000 monthly but I can contribute more if you want.

I am aware that mutual funds invest in the stock market and the entity in charge of the money, fund management, and the one who holds the stock certificate is different people and the fact that they are closely monitored by the Securities and Exchange Commission made me have a peace of mind that my money is secured.

I was told not to expect a big interest on my investment but I was assured that my money would earn more than the Philippine inflation rate, when I look at the Internet, the Philippines' inflation rate is more or less 6% yearly so my money will probably earn more than 6% per year which to me is great.
       

2. Insurance - the purpose of this is to protect our other investments. The Speaker in the seminar gave this example.

Illustration:
       
In your entire life, you have only 2 kinds of investment. A savings account in a bank worth and a house worth 1,000,000 pesos. If you do not have insurance and you die, The 2 mentioned assets will be frozen until your heirs pay the 20% Estate tax  (now 6%) levied by the government.

Imagine, your family needs to produce 200,000 pesos or 20% of 1,000,000. for the house to be transferred in their name.

Insurance comes in, let us say that you have an insurance policy worth 200,000 pesos payable upon your death, your family will receive this money free from estate tax.

Your family can use this money to pay the 200,000 estate tax on your house.

So your insurance policy worth 200,000 pesos was able to protect your 1,000,000 pesos worth of property, your house.


3. Banks - the basic form of investment, although the interest is low, you have the freedom to access your money at any time.

Putting your money in a bank means a time deposit account and not a savings deposit account.
 

4. Real Estate - If you have a large savings and can afford to buy a house, condominium, or farmland, this is one of the best places to put your money.

It is nice to have our own house or condo, or we may opt to just rent it out and earn some good passive income monthly.


The Speaker in the Seminar advised us to diversify or to put our money in the above-mentioned investment medium and we are on our way to becoming a financially literate individual.