Best Financial Advice on What to Do with Your Ang Pao

Best Financial Advice on What to Do with Your Ang Pao

恭喜!  恭喜!  Whenever you hear these 2 words, what is the next thing that comes to your mind?

Ang pao! Isn’t it?

I was teaching my 4 and a half year old son the song… 恭喜恭喜恭喜你呀

恭喜恭喜恭喜你…  and suddenly he said… “Where’s my ang pao?”

I was shocked that he was able to connect 恭喜 to ang pao.

Funny, but this is our Chinoy tradition, right?

I am sure you have a big smile on your face and a grateful heart whenever you receive ang pao.

Money inside the ang pao goes a long way for us Chinoys.

We sometimes leave it in our wallets and whenever we need extra cash, we will use it for our needs.

Sometimes we save it and accumulate it and buy the things we want.

Or sometimes, if the amount is big enough, we will save it and put it in the bank.

Which one are you?

If you’re the type of person who sees ang pao as “minsan lang ito” and want to save and maximize it, make it work for you by growing the money so that you can enjoy more rewards in the future.

This tip is very ideal for parents with young kids because for sure, the ang pao that the kids receive usually won’t be needed for a long time.  This could be a great start for you in creating a legacy of love for your kids.  Your kids will surely thank you for it once they reached adulthood and see that their money are in the millions already.

If you’re consistently investing Php 5,000 every year for the next 20 years, the money at 8% growth can become Php 247,114.  Double it and it becomes Php 494,229. To target Php 1 million in 20 years, the goal is to save Php 20,000 every year.

Is this too good to be true? If you think so, you probably have invested in pooled funds like UITFs and experienced negative results.

The growth in UITF funds aren’t guaranteed and yes, it fluctuates all the time.  That’s why it’s best to do regular investing so that you buy at different prices.  No one knows if the market will go up or down. However, consistent investing will help you average fund prices.

Another tip: the best time to invest is while the market is down.  The prices right now are quite low because of the pandemic.  If you have extra cash, go ahead and invest that ang pao money.

There are lots of UITF funds to choose from. You may check this website to see a list of all UITFs available and check what are the top-performing funds.

How to Help your Family Create New Passive Income Streams

How to Help your Family Create New Passive Income Streams

Our third session about Family Business Succession planning talks about how to help your family create new passive income streams.

Check this video out.

Here are some Key Takeaways and Timestamp for you to easily find it.

  • 4 reasons why we need to help our family create passive income streams
  1. (04:04)  Our kids need to know the value of money. They have to learn how to handle it well so that our (parents) hardwork will not put to waste.
  2. (04:36) The breadwinner of the family might be gone too soon that our kids are not ready to stand up on their own.
  3. (05:08) The children might be too dependent of their parents as sometimes we are spoonfeeding them.
  4. (05:50) When our children get married, they don’t need to depend with their spouse and in-laws.
  • 3 tips on how to help your family create passive income streams
  1. (08:47) Tip 1 – Have a smart money wife/ spouse.
  2. (10:34) Tip 2 – Invest in good education.
  3. (12:11) Tip 3 – Teach your kids entreneurship while they are young.
  • Kidpreneurship defined (12:30)

Watch the replay here.

How to Have Continuous Cash Flow

How to Have Continuous Cash Flow

Pwede pala yun?  Money keep on coming without me working?

This is called passive income, you may check on my recording timestamp (07:46).

Having continuous cash flow is every individual’s goals, this is the reason why we are working so hard.  Do you agree with me?  We want to assure that we will have passive income so that if our business fails, we will always have something to fall back to.

Here are 3 possible reasons why we need to establish continuous cash flow:

  1. Our business might become irrelevant in the future. (4:12)
  2. We might encounter bad clients that would affect badly our business cash flow. (4:30)
  3. Our children might choose a different path for themselves, and they are no longer interested in carrying on the family business. (4:39)

Now, the next question is that how do we build this continuous cash flow?

Here are 3 tips:

Tip # 1 – Buy Assets (08:09)

What are assets?  These are things that increase in value over time.  You need to check yourself all the time, whenever you purchase something… ask yourself… are you buying assets or liabilities?

Tip # 2 – Angel Investing (10:49)

Angel investing is looking for startup founders and provide a seed capital to them.  Please take note that this kind of investing involves high risk, you need to do careful research before investing.

Tip # 3 – Investment with Payouts (12:14)

This is simply looking for placements that will give you payouts every year for the rest of your life.  It is like living on interest.

Learn more about this as I break it down here in this video.

Every Dad’s Worry: Family Business Succession Planning

Every Dad’s Worry: Family Business Succession Planning

“Nung nawala Dad niya, bata pa siya, lumipat sila sa mas maliit na bahay, tapos nagtitipid na… nakikita ko eh, hirap din sila, hindi rin niya masisi ang mom niya kasi housewife mom niya eh, walang training sa Seng Di… biglaan nawala… nagiba talaga ang buhay niya…” – Business Owner with 4 kids

This is the worry of every Dad.

Do you agree with me?

What will happen to his family if he suddenly pass away.

“Kaya ako… I make sure that, if ever meron mangyari sa akin, siyempre, hindi masabi sa panahon ngayun, at least may maiiwan ako sa kanila.  Lalo na ngyon bata pa sila, hindi naman sila pwede magwork dito sa office.  So may maiiwan lang sa kanila kung meron akong maiwan na pera pang future nila like for studies and expenses…” – client continues

My client’s friend witnessed his Xavier high school classmate downgrade their lifestyle, transferring from a mansion to a smaller house.  Kung dati, sige spend lang ng spend, ngayon, every penny counts.

Would you be interested to know how my client made sure that he will be ready when he meets our Creator?

Watch this video to learn:

(1) 4 steps to successful family business succession planning:

Step 1: How to have money now (06:38)

Step 2: How to create passive income without relying on yourself? (06:48)

Step 3: How to help your family create new passive income streams (07:04)

Step 4: How to create wealth that lasts generations (07:19)

(2) 2 Misconceptions business owners have about preparing for succession planning

  1. Preparing for death is not part of their business plans. (07:51)
  2. Clients get overwhelmed by the amount of funds they need. (10:31)

(3) 3 tips on how to have immediate cash

  1. Be liquid. You have to have cash flow certainty. (08:30)
  2. Getting life insurance. (10:44)
  3.  Building passive income. (14:29)
Recess Time to Class Time : How to Know the Right Investments for You

Recess Time to Class Time : How to Know the Right Investments for You

“Achi Sheila, I’m overwhelmed with so many funds available out there.  How to choose the right investment for me?” asked a fresh graduate student already working for a year.

Are you like the fresh graduate here who is overwhelmed with so many investment companies and so many fund options out there?  Puzzled with different investment terms and charts?

Let me break it down for you. Here’s how to know which investment is right for you:

1. Know your risk appetite. Risk appetite is the amount of risk you are willing to take on. How much are you willing to take risk?

2. Know how to read Fund Fact Sheet so that you will learn the ff: (a) know where is the fund invested, what are the top companies that the fund is invested in; (b) What is the historical performance ; and (c) Know the future potential growth of the fund by reading the insights inside the Fund Fact Sheet

3. Have the right investment attitude. – confidence, courage and braveness

“All genuine learning comes through experience” – John Dewey

To get full context and details about the tips above, you may watch the replay here How to know the right investments for you.

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