PH Beats Global Stocks by 124% (Biggest Since 1987)

Feb. 19 (Bloomberg) -- The world’s biggest equity bull market is propelling Philippine valuations to all-time highs as international investors pile into the country’s stocks in an endorsement of President Benigno Aquino’s economic policies. Mia Saini reports on Bloomberg Television's "On The Move Asia." (Source: Bloomberg)

This is a great news to all of the Filipinos all around the globe. Pinoy is really making a history, because of his economic policy drive there were a lot of international investors wishes to do business (invest) in the country.

There is really an economic growth, according to Bloomberg; the Philippines Stock Exchange Index has climbed 13% this year. And according to them (Bloomberg), the world's biggest equity bull market is propelling Philippine valuations to all-time high as international investors pile into the country's stocks.

"The macro environment looks very positive and the Philippines probably has the cleanest government in its history," said Alistair Thompson at First State Investments.

Well done, President Aquino. It's really more fun in the Philippines!!!

How to become rich?

Learning how to become rich is different than learning how to become wealthy. Being wealthy is a state of mind whereas being financially independent has to do with how much money you have flowing into your bank account each month. Likewise being poor is a mindset, whereas being broke means you have no money. So, it is possible to start your journey to financial independence wealthy, and learn how to become financially independent. If you start your journey to financial independence poor, you will never arrive at financial independence. No matter how broke you may be you are not poor unless you choose to be. The goal in becoming rich is for you to have enough income to live without the need to work.

Develop a Wealthy Mindset
The road to becoming rich starts with you being wealthy and learning to become financially free. So, step one to becoming rich is to get your mind right. No matter how broke or tough of situation you are in, someone somewhere in the world is worse off than you are.

Always spend less than you earn
This may be the most important step in achieving financial freedom, but it is almost always overlooked as it seems too simple. No matter how much money you earn, you will never become rich if you spend more than you make. Always spend less than you earn. For example, maybe you look at someone who earns $20,000 per month as financially well off. However, if this person is spending $25,000 per month, then they will never be financially free. Be sure to always spend less than you earn.

Invest the difference
Put your money to work for you. Learn how you can safely invest your money and receive income from the moneyyou invest. Be mindful with this step and learn how to invest safely. Don't be too quick to jump into the next big thing or you will lose your money and never become financially free. Instead find safe, high yielding investments that can grow over time.

Reinvest
Resist the temptation to spend the money you earn from your investments. Reinvest the money that you earn on your investments. Einstein called compound interest the most powerful force in the universe. This can be a great thing if it is working for you, or a terrible thing if it is working against you. Allow your money to grow and compound. Do not be too quick to take your money out of your investments once it starts earning. Let it compound and build for you over time.

Invest as much as you can on a regular schedule
Continue to invest part of your income. You should always be looking to grow your investments. Create a schedule that you can stick to and invest a certain amount of money on a regular basis. Set aside a certain amount of money that you will invest every month no matter what.

Create Multiple Streams of Income
Earn more money through multiple streams of income. If you have a job and it is your only stream of income then it is possible that income stream can be shutoff at any moment. It is essential that you have multiple streams of income so that if you lose one or more of them you always have a backup. It has been said that you should have up to 7 streams of income. This way even if 3-4 of them stop, you will still have a few streams of income and will have the time to find new sources of income to replace what you have lost. Look for opportunities that will allow you to have another stream of income. The more passive the better, as it wont require your full-time attention to build. Then you can focus on your job while having the security of other streams of income just in case.

Eventually your money will be able to earn more income than you could by working for it. Remember to invest as much as you can throughout this process. Once your investments grow enough they will create a self sustaining income for you without having to work. Then you will have attained financial independence and riches

What are the keys to successful investing?

The equity funds has gone up by 24.60%, the balanced funds has gone up by 24.07%, and the fixed income fund has gone up by 7.48%. It's dollar and global bond funds did well as well at 9.89% and 11.57%respectively.

Is your money growing at the same rate?

The good thing about ULPs is that while your money is growing at such better rates, you get a life insurance coverage at the same time. It's hitting two birds with one stone since you get a protection (life insurance coverage) and a very fast growing investment at the same time with the same premium.

*Year-to-date return is the return from January 2, 2012 to Dec. 14, 2012
**One-Year return is the return from Dec. 15, 2011 to Dec. 14, 2012
***Cumulative return is the overall rate of return of the fund/s since its inception
****Annualized Return is the average rate of return of the funds every year

Just something to ponder on:

Interest rates on savings accounts is less than 1% per year (around 0.75% to be more accurate) and interest rates of time deposit accounts is around 3% per year. Average inflation rate is 3.2% for 2012. Inflation rate is the rate of increase of the prices of commodities per year. If your money is growing at 0.75% or 3% a year and prices are increasing at 3.2%, is your money really growing?

The key to successful investing and truly making your money grow is to put it into something that grows higher than the inflation rate.

How to make your money work for you?

We help you grow your money to help you achieve your dreams.

Many Filipinos believe that putting their money in bank deposits is the best way to grow their money and keep it safe. The reality is, savings and time deposits are earning 2.75% or less¹ annually. With inflation currently at 3.6%², the purchasing power of your money will diminish over time. Further, if you don’t invest in the right long-term financial products to match your long-term financial goals, then you may not maximize the growth potential of your money.

Grow your money’s value over the long term

• Go for investments that offer returns higher than inflation to grow your money over time. Bank deposits currently earn 2.75% or less⁴ annually, while inflation is at 3.6%⁵.

As your partner in financial management, Philam Life would like to offer you a better option to make your money grow. Anong plano mo? Usap tayo?

What is Abundance Plus?

We make your investment and insurance coverage work harder for you.

With Philam Life's Abundance Plus, an investment and life insurance plan-in-one, you can now enjoy the benefits of an income-earning insurance and investment plan while you’re still enjoying life!

Q: What is Abundance Plus?
A: Abundance plus is a peso-denominated, regular-pay variable life insurance that allows the policyholder to participate in the potential high returns of the financial markets.

Q: Where will my money be placed for this investment?
A: Abundance Plus allows you to invest in your choice of professionally-managed fund/s based on your risk appetite. Fund choices include the Philam Life Fixed Income Fund, Philam Life Balanced Fund and Philam Life Equity Fund.

Q: What is the composition of these funds?
A: For better perspective, here are the composition of these funds:

1. Philam Life Fixed Income Fund – This fund invests primarily in high-grade interest-bearing bonds that present low to moderate levels of risk. It aims to provide a stable return over the medium- to long-term, and preserve capital by investing primarily in fixed-income securities issued by the government and reputable corporate issuers.
2. Philam Life Balanced Fund – This fund contains a balanced investment in performing bonds and equities available in the market. This fund is for the policyholder with an investment objective of long-term capital appreciation by investing in equities, equity-related securities and debt securities
3. Philam Life Equity Fund – This fund is for the policyholder with an investment objective of capital appreciation over a long-term investment horizon, and the risk appetite for the stock market. Its objective is to achieve capital growth by investing in an efficient and diversified portfolio of predominantly growth companies, while including appropriate value stocks.

Q: Can I add to or withdraw my investments?
A: With Abundance Plus you have the flexibility to make additional investment or top-ups, or switch investments from one fund to another as you deem best. You have also convenient access to your money through partial or full withdrawals of your account

Affordable and Flexible Investment Plan

• You can start building your investment fund for as low as P20,000* a year.
• You can choose from any of our professionally-managed investment funds to suit your risk appetite and unique financial needs. You also have the ability to switch funds depending on your preferences.
• You can increase your investment and insurance coverage whenever you have extra cash through our top-up premium option.
• You can withdraw from your funds in case of emergency or other needs.

Guaranteed Life and Accident Insurance Protection

• You can get guaranteed life insurance protection that is at least 5x your annual investment.
• You will also get additional accident and health coverage amounting to at least 5x your annual investment.
• You are assured that your policy will remain in-force regardless of the performance of the funds.**

With Abundance Plus, you can now enjoy returns on your investment plus life insurance coverage.

* Also available in US Dollar currency.
** Policy will remain in-force until age 64 or 30th policy year, whichever comes first. Assuming no scheduled premiums are missed for the first 10 years of the policy and no withdrawals are taken.