You’re in your 20’s or 30’s and let’s say you have been working for all these years. You have a high-risk tolerance when it comes to investing. You‘ve finally decided to save money. However, saving money will not make it grow. Of course, we are preparing for the future and we want to be financially comfortable as possible, right? You’re confused how to start and where to entrust your hard-earned money to. This is the time to make the right decision about your money.
Meanwhile you’re probably wondering the hype on Dogecoin based on the memes and posts in Facebook news feeds or you’re curious who is this Elon Musk?
Elon Musk is the owner of Tesla. Dogecoin is a cryptocurrency just like Bitcoin. Cryptocurrency is called digital coins or currencies. Bitcoin, Dogecoin and among others are digital currencies. Investing in cryptocurrency particularly in Dogecoin went viral because Elon Musk tweeted about his support on it and many people went motivated to invest on it. Why? It’s because Elon Musk is a very wealthy man and successful to trust his words. But in reality Dogecoin has low value compare as to Bitcoin.
On the other hand, you’re probably watching the TV news at night about people getting sick of COVID-19, dying from any illnesses, getting into accident or how corrupt is our government. These negative events are disturbing. Every time you hear these sad stories of poverty and illnesses you are worried that it might happen to you or to your loved ones. And unfortunately, you still do not have the enough savings if that happens.
If you can save around 20-30% income each month from your income but you have never started anything. Don’t let it stay in your bank account because the inflation will totally eat the value of your money. Instead start investing if you have not started. So the multi-million dollar question is: Where to invest your money?
PROS AND CONS OF INVESTING IN CRYPTOCURRENCY LIKE BITCOIN AND DOGECOIN
1.) You can easily learn how to trade. You can watch Youtube tutorials.
2.) You can sell on your own and earn profit. Once you learn about it, you can just make transactions through trading or following an index trend.
3.) High returns. Technology is in high demand and a lot of people invest to cryptocurrencies.
4.) You can monitor it with your own hands. You can download a cryptocurrency app or platform in your phone. Getting a broker is optional.
1.) Not regulated by law. Not totally legal in most countries. If something happens to your investment, you cannot go after them because you are not protected by the government.
2.) Highly volatile investment meaning high risk in investing. Prices can drop quickly where you can lose money fast.
3.) Cryptocurrencies cannot be used as payment for online purchases and other goods.
4.) Not secured if ever your account or digital wallet get hacked by fraud and you will never be able to retrieve it
5.) Scammers nowadays are using cryptocurrency investment as easy to get rich scheme to collect money from hardworking Filipinos. A new form of networking scam.
PROS AND CONS OF INVESTING IN INSURANCE
1.) Death benefits are received by your beneficiary when you die. Even if you only paid the initial premium, you are already covered with insurance protection.
2.) If you have a huge debt or loan, you can put your creditors name as beneficiary.
3.) Life insurance are also mutual funds with potential returns in the long term. Funds are managed by experts. Account value can grow and can be withdrawn.
4.) Insurance is regulated by Philippine Law under Insurance Commission as well as the Financial Advisor or agent you are dealing with. They are licensed.
5.) You can get additional benefits for critical illness, hospitalization and accidents, educational planning for the child from insurance
6.) It’s a forced savings account you can use for emergencies
1.) Increasing premium price as your age also increases
2.) Not everyone can get insurance. In most cases, only those who are healthy are approved with no medical conditions.
3.) Insurance can cover you for a 100 years. Some can only cover you for limited years, up to 50, 60, 80 years depending on the plan you avail. 100 years is the maximum you can be protected.
4.) Mandatory premium payments to keep your policy active
After careful consideration, it is wiser to get insured and have emergency fund first before getting into investments. With VUL insurance (mutual funds), your money gets higher return as compare to the bank. And if you are a breadwinner or income provider of the family, having an insurance can give you a peace of mind. Remember that in investments, the higher the risk, the higher the returns. You just pick your preferred risk. When you, yourself is at risk if you do not get insured as early as now.
To know more about this, kindly contact trusted AIA Financial planner at +63 976 053 9802 for free consultation on health insurance, investing, retirement planning.
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