A Byte of my 2.2-lb Brain

Just sharing stuff…

Pie Charting my Budget

I read somewhere that until you have around β‚±5M in savings and stakes you should not go all-in in high-risk investing like, erm, stock trading. πŸ™‚ This is why in the past two weeks, I’ve been mulling over my own investment strategies. I hope to start and end the year right. The idea is to set detailed goals, to minimize errors. Last two years ago, all my savings and investments were placed in stocks alone. I was my own financial manager listening to some advice from friends every now and then. Although that has done me A LOT of good, I’m just realizing how precarious that was of me!

Although my portfolio as of 3:30pm today has already gained more than 10% since the beginning of the year, the performance of my holdings last week was way better than now. Talk about stochasticity! Believe it or not, I am only starting to see why it is still best to have some kind of bulwark, by placing the “eggs” NOT in just one basket. All I can say is that nothing beats having a peace of my mind.

My idea is to place my hard-earned money in both stocks and funds; moreover, I will also set aside something for health insurance. The budget allocation would look something like this

Budget proposal by self to self. πŸ™‚

Of course, the bulk would still be placed in stocks because in the last two years, I have outperformed the market and the different MF firms. It would be disadvantageous if I reduced my exposure to stocks significantly.

What do you think?

6 comments on “Pie Charting my Budget

  1. D
    February 16, 2012

    Apir!

    Like

  2. Che
    February 16, 2012

    Eka, hindi ba siya bad time now for pre-need companies? Yesterday i talked to a financial advisor from PruLife UK. I’m really interested (Life Insurance+ Investment) nila, but with Prudential closing and other Pre-need companies getting into trouble, I’m not so sure. With what company is your health/ life insurance? And is it in the Phils or there in Sg? Thanks!:)

    Like

    • E
      February 16, 2012

      Hi, Che. I agree with you on the possible risks. This is why I am being extra methodical in choosing a health/life insurance company. I think it’s really part of the risk. Right now, I’m limiting my choices to only three: Philamlife, Sunlife, and Manulife. Philamlife and Sunlife are the top two life insurance companies in the country as of Dec. 31, 2010. On the other hand, I am also considering Manulife because a friend of mine whom I trust is an agent; and Manulife is also in the Top 10 in terms of premium income. I already have a health insurance provider here in SG. However, I am also planning to get one in the Philippines as early as next month since I won’t be staying here for long. In fact, I am in constant communication with a financial planner from Philamlife.

      For your reference:

      Top 10 Life Insurance Companies according to Premium Income as of December 31, 2010
      1 . Philam Life & Gen. – Php 11,254,874,199
      2 . Sunlife – Php 10,633,280,619
      3 . Phil. Axa – Php 8,359,866,264
      4 . Pru Life – Php 7,356,704,771
      5 . Insular Life – Php 7,129,014,421
      6 . BPI Philam Life – Php 5,695,869,300
      7 . Manulife (Phils) – Php 3,974,603,127
      8 Grepalife Financial – Php 3,492,356,444
      9 . United Cocolife – Php 2,333,374,408
      10 . Generali Pilipinas – Php 1,419,746,109

      Like

      • Che
        February 24, 2012

        Thanks so much, Eka. Been really considering Pru Like UK lately (4th in the list). Also just checked BPI. Together with Philamlife, they’re offering Get Started savings account which offers life insurance, if I want a ‘small’ coverage while trying to be conservative.

        If you ever have the time, let me know what you think of Pru Life, here’s their website: http://www.prulifeuk.com.ph.

        Thanks!:)

        Like

  3. KennyV | The Filipino Investor
    February 15, 2013

    Nice one E! Bawasan mo konti yung cash – as an alternative buy a blue chip company so it’s got the liquidity feature you’re looking for. My 2 cents lang. This is advise is kinda biased though coz I’m not really a cash fan. πŸ™‚

    Like

    • E
      February 15, 2013

      Thanks! Hmmm…. this further fortifies my recent plan of putting more cash in the chips. Thanks, KV! One of the best comments here ever πŸ˜‰

      Like

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This entry was posted on February 16, 2012 by in Investing and tagged , .
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