Do we really need the Maharlika Wealth Fund? (Or thinking about pensions and retirement in 2022)

"What has life to offer me, when I grow old?" 

 

Lead vocalist Wency Cornejo asked this question around thirty years ago when the song "Next in Line" ruled the local radio airwaves. And now this question is top of mind because for the past month, the source of public uproar is the Maharlika Wealth Fund, which this Department of Budget and Management PR describes as "a sovereign wealth fund which will be used by the government to invest" in, among other things, "foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects."

 

First off, the name itself is sus (as young folks say). "Maharlika" is technically the feudal warrior class, but the ordinary Pinoy understands it as the nobility class -- or the alta and elite in our society. What's more shady though is its association with the elder Marcos: it's the title of the 1970 film which stars his mistress Dovie Beams and detailed the supposed (and fictional) exploits of Soldier Marcos' bravery during World War II -- a sham that's been proven several times over, but has been dusted and peddled anew to rebrand the Marcos years as the country's "Golden Age." (Interestingly, "Maharlika" has apparently been re-released in 1987, after the dictator has been ousted. The poster above is from the Video48 blog.) Who's behind this scheme?

Now we get the younger Marcos' cousin Ferdinand Romualdez, his wife Yedda and another same party list cohort, Bongbong's son Sandro, a representative from Zamboanga who is probably is also a close "family" associate, and a surprise stooge in "Teacher" Stella Quimbo of Marikina---sooooo disappointing, btw--pushing the HB6398 proposal in Congress and that they want to certify as "urgent." 

Then there are the government shills. In the DBM's PR piece, current Secretary Mangandaman, shares her "optimism" on "behalf of the Economic Team." Joey Salceda and Finance Secretary (and former BSP Governor) Benjamin Diokno want us to believe that this fund that wants to "invest" the GSIS and SSS pension funds of our citizens in a scheme that doesn't have enough checks and balances that could leave destitute our future senior citizens, hardworking ordinary folks who are counting on these pensions in their old age. 

How the fund proposes to earn is by putting our hard earned money in derivatives (a complicated financial instrument that played a role in the 2008 financial crisis), "alternative investments" like unlisted equities, which are "shares from a company that are not registered in the stock market." Later on, the proponents even said that they would use MWF to "take back control" of our National Grid because it was being run or controlled by the Chinese -- which are actually the Sy (of SM) and Coyiuto families. 

There are already many articles online that explain in more detail why the Maharlika Wealth Fund is dangerous. Vera Files has an amazing fact sheet. Ricardo Saludo of the Manila Times asks, "What's in it for the poor?" Something that was "hardly asked in the debates," he noted, as it mostly focused on investment risks and transparency issues. Saludo asserts that the MWF is not a "strategic" thing to do for a "less endowed country" such as ours. Sovereign wealth funds are usually "what prosperous, progressive nations do." Is the MWF the right thing to do when your country is battling inflation, doesn't have sustainable pensions for its senior citizens, and insists that P488 is enough for a bare minimum nochebuena of 5 people? There are many things the Philippines should be considering before establishing a sovereign wealth fund.

Heck, even the immortal Enrile remarked that we should "carefully review" the MWF. 
 

One of the more shocking (or maybe shouldn't be shocking) pieces of information I found out in the course of following the Maharlika debacle is that only 20% of senior citizens (defined as age 60 and over) in the Philippines benefit from a retirement fund system. This presentation by Christian Mina and Faith Cacnio, which I found through the PSA website, asks if Filipino senior citizens are financially protected, and they presented evidence based on a consumer finance survey. Their survey and data set is from 2014, but I think it's still relevant for the purposes of this post. 

Mina and Cacnio found out that social security in the Philippines was linked with the "formal employment," so basically people with regular jobs. Mina and Cacnio's main takeaway from this survey is that the vast majority senior Filipino citizens (or around 75%) who were their family's breadwinners (or "economically dominant persons" according to the document's preferred jargon) were not covered by retirement plans. 

Of the 20% who receive pensions, the split was 15-16% from SSS (or the private sector) and 4% from GSIS, or those with government jobs. But they also characterize SSS pensioners as belonging to the "poorest 40%" and were likely to be receiving monthly payouts of P4,000 or below. Meanwhile, only 4% (we're assuming these are the GSIS pensioners) are getting Php 30,000 or more, an amount that's more likely to cover their consumer expenses. 

There's a real divide between the economic situations of SSS and GSIS members in retirement, with those who worked in government jobs more likely to own a house with 3-4 bedrooms and built with sturdy materials, own a business, smaller number of dependents -- most of whom are old. The SSS pensioners are more urban, poorer, have smaller houses built with less durable materials, and are likely to be supporting younger dependents. 

It's also worth noting that those 60 years old and older in 2014 were born 1954 and earlier -- so definitely Boomers. They worked hard and are getting something but still not enough. 

And we're not even considering those who are NOT covered by either the SSS or GSIS. Mina and Cacnio characterized them as having had little education ("some elementary"), no real properties, and their homes have "0-1 bedrooms" made of light materials, have no deposit accounts, no emergency money at home, supporting more dependents, and most likely male. These are the manongs who worked "casual" or contractual jobs, but most likely they belonged to the "gray" or informal economy, who made the most diskarte. The DSWD does support indigent senior citizens, but that's a measly Php 500 a month. But guess what, even that is not enough when you go down the line. 

And what about us who are currently part of the labor or workforce? Can we still depend on the GSIS or the SSS in, say, 2040? Boo Chanco's Philstar column from December 12 ("Pension funds") stated that last October, the Philippines was declared to be the "second worst among 44 economies in Mercer-CFA Institute’s Global Pension Index." The main reason: retirees not getting sufficient pensions. Mercer's Global Pension Index evaluates funds according to three criteria: adequacy, sustainability, and integrity. The Philippines ranked last of 44 countries in the integrity criteria, which looks at how a retirement system is regulated, how members are protected, and how much it costs to operate the fund. In terms of sustainability, remember when the late PNoy vetoed adding Php1,000 to pensions, citing the danger that it would cut the fund's life shorter by 7-12 years? Then Duterte shrugged and said, "Give it." That meant the fund can only last until 2047. 

If life permits, I would be among those retiring (or retired earlier, yeah?) in 2048. But by then, THERE. WOULD. BE. NO. MORE. FUNDS. 

So paano tayong mga nagbabayad ngayon? Nganga na lang? Will you still want to contribute to your SSS (and even Philhealth!) if you know you will most likely end up broke even if nag-ipon ka naman? Yes, I understand that the point of these funds is that the current working population is supporting those who worked before and are retired now, and the future generation will support us. Pero paano nga kung di na sapat ang funds? Or if the House of Representatives, the Senate and the current admin's stooges all have their way and use the Maharlika money (our money!) to somehow fund their misguided vendetta against "the Chinese" running our National Grid? Or if they invest in the companies of cronies? Do we get a say then? 

What's remarkable is that the millions of SSS and GSIS current and future pensioners voiced out their anger and that allowed for a few backtracking bits. But if the Speaker of the House wants this bill certified as "urgent" so his cousin can sign it, what now? What then? 

It's no wonder that retirement and familial support is froth with tender wounds and difficult decisions. In online discussion boards and even social media, the current generation of workers and breadwinners is starting to push back against the widespread belief and practice that the "anak as retirement fund." It's so bad that there are "Panganay Support Groups," with a very specific "eldest daughter in an Asian household" slant. The ongoing narrative is that of greedy and abusive parents basically gaslighting their children into "giving back" more and more support, of asking the elder child to finance the education of younger siblings, of funding the family expenses, that it is the child's responsibility to lift the family out of poverty ("iahon sa kahirapan"). (If you want tea of this kind, just search for online gamer H2WO's problem with his mom. It's a long read, but typical of the parent asking excessive financial support from their kid narrative.) 

But really, when you really look at it, it's not entirely the fault of the previous generation. Filipinos are "indisposed" to saving -- maybe because we don't even have enough for the day to day to begin with. How can you think of the future if today's hunger has to be fed? This is where the government steps in. The State should take care of its people. Not just its own. But everyone. But if certain people get their way, all that is ours is theirs.

Most Pinoys need 2-3 jobs to avoid poverty

In a recent article published in Philippine Star, Juan Antoinio Perez III, the executive director of the Commission on Population and Development (PopCom), claimed that "most Filipinos need to have two to three jobs to steer clear of poverty." What the country has right now is minimum wage, which with the recent wage hike of 33 pesos that will take effect this June in the NCR, brought the daily minimum wage to 570 pesos. But that's still not enough what with all the price increases brought about by inflation and higher gas prices. What we need is a living wage that can catch up with the cost of living wherever you are in the country. Currently, the Philippine Statistics Office pegged 12,000 pesos per month as the poverty threshold. Even with the new minimum wage of 570/day, at 20 working days per month, you only get Php11,400--which is 600 pesos short of the poverty threshold. How can one live decently with that? If a Filipino needs to work 2-3 jobs to make sure one has enough to live, how else can he or she fit that second job if she's already working 40 hours per week--not counting the minimum of 2 hours each way that's eaten up by commuting? There's simply not hours. Even considering my own situation, where I work "part time" in the education sector, the hours we are paid for are only for the time we spend "actively" doing our job--i.e., time spent in contact with students. The time used to prepare for said session, and the huge amount of time an educator spends assessing student outputs, plus the committee work one is expected to do, are hours NOT PAID AT ALL. We work on a contractual basis, and are on a "No Work, No Pay" situation. Earlier in the year, when the Omicron surge took place, classes were suspended, the term lengthened to practically half a year, and yet we were only paid for the original 13-14 week term for which we were originally contracted. Is it fair? No. But that's the working situation in the Philippines now. To earn more, part timers work at 2 or 3 schools. But because of various elements--K-12, low enrollment due to the pandemic, etc--it's simply not possible to work more than 1 job at a time. And at this rate, my sector is still considered "privileged" as opposed to those doing hard physical labor. But really, we're living precariously. This is why we need a leader who will craft policies that can make life better for ALL CITIZENS. A better life for all. Not just for those close to them. With the results of the recent elections, it's really just hard to imagine that it would happen. Our task for the next six years is to make sure our head is above (poverty) water. (Image by Jilson Tiu)

Buying a Bike During Quarantine

Not my pic, but this is the Bickerton Pilot 1406 in Admiralty Blue. 

My biggest one time purchase this year is a bicycle. I bought it even if I didn’t know how to ride a bike. 

The country was in lockdown and there was no public transportation. We don’t own a car. I didn’t have a quarantine pass so even stepping out of the house was out of the question. 

Buying supplies was difficult because one had to walk a long way just to get to the nearest market or grocery and the amount one buys was limited by what one could carry. 

I was hoping that by the time the quarantine would be relaxed, having a bicycle would afford me greater mobility. Around June or July, I started looking at bikes for sale online. Initially, I had my eye on a three-wheeled one because—well, I had a trike when I was a kid, but as a firstborn, my parents weren’t too keen on having their precious daughter ride on two-wheels. It took a pandemic for me to learn this valuable life skill. 

But because of limited supply and very high demand, bikes suffered from astronomical markups. Even the Japanese surplus bikes were selling for up to 100% or more of its pre-COVID price. What used to be an affordable sub-2k, you now have to shell out around 4k. These are generic bikes. For those with “brands” like a Jeep or Hummer or if the frame is made of alloy and not steel, be prepared to spend nearly 10k or more. 

There was also a lot of bike theft going on, so I also knew I wanted a folding bike so I could keep the bike inside the house. My first plan was to get a Japanese bike first and learn to ride on that. That way, I wouldn’t be too afraid of scratching or damaging it when I inevitably crash it or if it gets stolen. (Always think of the worst case scenario, I suppose?) 

Then I would graduate to a more decently priced brand, like a Dahon or a Tern or a Crius. These brands were going for ~15 to 20k. I also thought of getting an alloy frame if I could afford it. In my mind, maybe we would be back to regular by end of the year, and I would rather bike to work than go by public transport or pay for very expensive Grab rides. So that bike should be: (a) Foldable, (b) light enough for me to carry it up 3 flights of stairs, and (c) probably have 16 or 20 inch wheels, preferably the former.

Because I didn’t really know anything about bike mechanics, I thought it would be safer to look for slightly or gently used bikes. That way, it shouldn’t need too much repairs before one could use it. “Sasakyan na lang,” sabi nga ng online sellers. There were people selling bikes they took for a ride only a few times, and then letting it go because it wasn’t getting used anymore. The online marketplace was tough though. No sooner would a bike be posted for sale and then it’s off the market by the time you message the seller. 

I chatted up a seller who put his 3 month old bike on the market because he wanted to exchange his classic  for a “cooler” ride. However, his bike had 20 inch wheels, and consequently heavier. (Think by ~2 laptops heavier. I'm a small girl.) 

Then I luckily spotted the 16 inch version of that bike posted the week before. The bike has only been used for 3 rides, and the longest was a spin around UP’s Acad Oval. Seller was helping his friend dispose it. I arranged to meet up at the Ayala Technohub, where one could indeed ride a bike, but also where most of the establishments were closed. I had a friend come and test ride the bike for me. I initially thought if I should still bargain a few hundred off the asking price, since I came to his side of the city. But my friend said given the bike was practically new—as in the wheels still had their “fur”— it was already a bargain. Without asking, the seller did give us a discount. Probably because he saw we were both girls and that he didn’t have enough money for change. 

So that’s how I got my secondhand Bickerton Pilot 1406 in the middle of a pandemic. 

(Soon: How I managed to fight “upgraditis,” or just getting the bare essentials for the bike.) 

Pandemic Accounting

 

It's been quite a long while since I last posted. I still list down my expenses but the pandemic and the resulting quarantine sure did change how our time is spent. 

When the lockdown was announced last March, there was still a month or so to go before the school term was over. So it was a lot of scrambling to suddenly shift to online learning. While blended learning was already a thing at the institutions I teach at, there was still so much to do and prepare at the time. It really was an emergency. 

Then there was the uncertainty of whether schools would remain open for the rest of the year. A month was spent at preparing online learning materials. We had to learn how to adapt our existing materials and make it fit the distance learning mode, but to produce our own videos. Frankly, just planning the materials was already a herculean task, but also light, shoot and edit videos?  While the school offered equipment and staff to help one shoot these things (on a limited scale, of course), practically no one wanted to venture out of the house then. 

Expenses were lowest in April, May and June. It was difficult to even go out and buy groceries. We relied a lot on the ayuda sent by the barangay and the city, and went out to the market when necessary. Only one family member was allowed outside, and for us, that was my brother. We live in a family compound that was comprised of 60% senior citizens, so it really was difficult to go out and purchase necessary goods. 

Then a bulk of the expenses during the summer months were gadgets: lights and microphones and other accessories. There were no webcams available, so it was either the stock cam on the laptop or figuring out how to use the phone for video. That time really wasn't enough, but we had to make do. 

It's only because of the Halloween break that I'm able to breathe a little. There's still so much to do and prepare, but I wanted to see how I was doing financially. Colleges and universities aren't exactly doing well--enrollment is down, the annual salary increases are being negotiated down to a manageable level, we're still not assured of employment in the coming years or months. At one school, voluntary retirement packages were offered to (and taken by)  full time faculty. 

Mostly, I'm thankful that I still have a job, especially during that time when it was reported that nearly 45% of adults in the Philippines were unemployed. 

In August, I bought a bicycle.  That's why I almost used up all my salary for that month. I had been hunting for a bike since July since public transport was virtually non-existent. There was Grab, but that would be too expensive if taken regularly. Also: I bought a bike even when I didn't know how to ride yet, but I knew I had to learn if I wanted to have some sort of mobility. It was a gift to myself for my birthday. But that's another story. 

In late August and all through September, one of the seniors in our care slipped and had an infected wound that led to the discovery of some heart and sugar level problems. Since there was limited mobility--no Grab at the time--we had to ask our barangay for help. There's an e-trike (like a pedicab) that could be borrowed, but there were so many people who also needed it so scheduling was tough. We found a clinic within town where we could take our elderly relative. Classes had already started then so my brother and I split medical clinic duties. Antibiotics and laboratory work were expensive. At some point, we asked some cousins to help chip in for the medical expenses. 

During the quarantine, I was able to go out once to meet with a friend. It was weird to be outside. We picked a place that wouldn't be too crowded. We were the only ones at the restaurant and we sat at different tables. You still couldn't really hang out and talk. We were out for like an hour or so for the meal and then went home. 

Last month, I myself had some sort of medical emergency. I slipped and managed to wound myself. I hit a wooden stick with a nail on it. Afraid that I would contract tetanus, I went to the emergency room of a hospital, where I was told that since I had tetanus shots (to go with anti-rabies shots) a year ago, that was still valid and I didn't need shots. I thought that was it and was getting ready to leave when they handed me the bill. I had to pay nearly 2 thousand pesos (!) for the consultation alone. A good thing it was covered by the health card. 

There's still a lot of things we go without. I ran out of chips and chichirya, but the nearest grocery in town doesn't allow bikes (even if folded) inside and wanted me to park my bike in a non-secure area. There are many reports of bikes being stolen, and I wasn't about to risk my one big expense this year to thieves. 

Mostly though, I am glad that our family is safe and healthy. We still have our jobs. I have an average savings rate of 30%+ and for that I am grateful.  

How about you? How is everyone doing? 

Five Years of Tracking My Net Worth

Andy Warhol's Dollar Sign (1981)

Just like that, and we're already halfway through 2019.  

I was listing down my expenses and realized that I've been tracking down my finances for five years now. 2015 was a milestone year for the following reasons: 

1.  I started working two jobs. That means double the salary, which had to go somewhere. 
2.  I finally opened a brokerage account after months of studying. 
3.  I slowly transferred the cash (that's been sitting around in savings--I know!) into equities. 

As you can see, I haven't exactly been the most consistent person. There were gaps in the data, like certain periods where for some reason I did not fill in all the variables for certain data points. 

Story of my (stocks) life. 

But because I wanted to have some sort of accomplishment for the first half of the year, I played around with making charts in Google Sheets. I'm still a newbie on that point so even if I wanted to see how cash migrated to equities plus all the other components of one's net worth, I have to be satisfied with what I came up with so far. 

The blue bars show how my net worth was inching up to seven digits. In 2015, I had most of my holdings in cash and opened my COL account around July. I had a bit of a windfall because I found out that where I worked at the time (CoRK) got my pay rate wrong, and so they owed me money that amounted to 6 digits. They gave it in one go, which meant there was also a huge tax cut. But still, I was determined to invest that money so that I had something to show for it. 

Another bit of a throwback: I remember that period in July-August when the prices of stocks suddenly fell because of fears that Greece would default. I saw that sharp drop down but didn't buy anything because, well, I was a newbie. Still a lot of things of learn. 

My net worth peaked in the First Quarter of 2018--which coincidentally was when my stocks holdings were also at their highest. I remember being so happy that I qualified for the next tier at the brokerage--until I didn't because stock prices dropped. (This was also when my medical expenses started to balloon--probably more connections there I should explore.) My biggest regret is not cashing in enough on those equities, which have since gone down to half its former value. But I'm not really that worried. I have accepted that the price of stocks go up and down. My time horizon is long. Almost 50% of my net worth is in equities. But for the most part, as long as I don't panic and sell everything, I'm hoping that those values will still go up. 

I still feel like I'm an Under Accumulator of Wealth. There are many things I can still do to improve my net worth. I'm going to be more diligent, I should go back to updating the sheets I made specifically for expenses. That way, I can see where my money is going (Grab rides, sadly) and make more cool handy charts. 

How is your 2019 so far? 

What We Can Learn About Workplace Safety from Eddie Garcia's Death

Image from Pep.ph 

Eddie Garcia passed away last June 20, two weeks after suffering a preventable workplace accident that injured his cervical spine. He then fell into a coma and never woke up. His family decided not to resuscitate him. He was 90 years old. 

Initial reports had him "collapsing" on set while shooting an action scene for a forthcoming GMA teleserye in Tondo. Later there was a statement allegedly from his family that said he suffered from a heart attack. 

Then video shot by bystanders revealed that he appeared to trip on cable wire, tried to rebalance himself and fell. His family and doctors corroborated this statement: there was no heart attack. He tripped on some cable wire and fell. 

The people on set seemed unprepared for something like this happening. There was no medical crew on standby. It took some time to bring him to the nearest hospital because they had to call a cab. (Where were the service vans?) The people who helped carry Eddie Garcia were most likely sincere in wanting to help, but being untrained in how to handle neck fracture victims, probably made his condition worse. 

GMA promised to review the video. They asked for prayers for Manoy Eddie. Then they've been eeriely quiet since. 

It's been two weeks and the actor with a 70 year career, who was in the pink of health and would have probably continued working for a few more years, is now gone. By all accounts, he's a very nice guy. Always professional, arrived early on set before anyone else, sharp memory. 

I suppose it's at this point that I should mention that I worked with him sometime back. He would have comments and suggestions for possible trajectories for the character he's playing, but never demanded anything. The last call was still with the creative pool. In his projects, he never forgot to thank everyone--even creatives, who are not usually on set. We did set visits, and I regret that I don't have a picture with him though. 

People are mourning. A common refrain heard over and over again is that no one is to blame for this "accident." Judy Ann Santos, who never got to work with Manoy Eddie, expressed regret at this preventable workplace accident. Here's what she posted in her Instagram account: 

"sana sa nangyaring to, maging bukas ang isip ng mga networks sa tamang pag aalaga, pagbigay ng sapat na kaalaman sa lahat ng taga production artista man o hindi, pagdating sa mga ganitong sitwasyon..maaring naiwasan sana .." 

The Inquirer asks why there was no medical crew on standby. GMA replied: “It has been the Network’s practice to have medical personnel and ambulance crew on standby whenever the production is executing big action scenes during taping." But there was none that day. Should we assume that it was *not* a big scene that therefore required an ambulance? 

This isn't just for veteran actors or big stars. On the project we worked on, there were several senior actors in the cast, including his Ang Probinsyano co-star Susan Roces. The usual protocol is for these senior actors to have an earlier cut off time. Midnight and even earlier, they're gone. You shoot their scenes first. On the other hand, I can't quite remember if it's required to have an ambulance on standby. But we got through that show with no untoward accidents. In hindsight, we were lucky. 

But the point is to be ready for emergencies. 

Another possible safety protocol would be to not let the senior actors do anything physically straining. People pointed out that Eddie Garcia was in Ang Probinsyano for quite some time, and most of his scenes had him acting his scenes while sitting down in a room. Safe. 

The Director's Guild of the Philippines issued a statement: Garcia’s death “is a sad and urgent reminder to the film and television industries that safety protocols at work and on set are of paramount importance.” 

At his wake, actor Rez Cortez called for better working conditions for film workers. Cortez mentioned that Garcia's advocacy was to have a safe place of work. Cortez further says: “Sana magkaroon na ng ng safety officers sa set, mayroong mga medical team, may ambulance, may insurance, at among others, sana maregulate na ang working conditions ng mga taga-pelikula at telebisyon.”

Yeah, imagine if we do. 

Cultural worker and activist Katrina Stuart-Santiago, on the news that EVA Air attendants hold a strike that halted thousands of flights in Taiwan, asks us to imagine what could happen if "EVERYONE who worked for television went on strike and demanded accountability for the death of #EddieGarcia, and pushed for better, safer workplaces for ALL TV workers? #Imagine!"

These are standard for other industries. But the entertainment and news media still has a long way to go. This is specially true for television workers, where production staff work for 24 hours straight. You pull out from the station at 4AM and if you're lucky, shoot is done before or by morning. If you're really unlucky, you will still be on set in the afternoon, shooting material that will be aired later that night. 

If this could happen to a stalwart of the Philippine entertainment industry, what more the little people: the lighting crew, the guys who make your coffee--or even the crew whose task it was to lay down the electrical wires needed on set? Surely, those who did those tasks on that Tondo set feel guilty. They could have been more careful, but they aren't to blame. It's a systemic malaise of an industry that asks so much from its workers but could not and would not do much to ensure their safety or even recognize their status as real employees. 

This is one of the reasons why I decided to shift careers. I wasn't that young anymore to be doing meetings that lasted over 12 hours and sometimes continued until 1AM, then have something deliverable the next day. It was becoming difficult to go on location and be on the set for more than 24 hours. That year, several people died. I thought it was a sign. It was time to go. 

As for Manong Eddie, one way of looking at this is that at age 90, he lived a full life and enjoyed a career and passed away doing something he clearly loved. It's not ideal, this passing. So long, sir, and thanks for all the memories. 

Financial Wellness 101

Take the red pill or the blue pill. I got handed the red pill. 

Last week I attended this Financial Wellness seminar at work. I heard about it through e-mail and signed up for it. There were a few questions like whether you invest and in what instruments; if you subscribe to a time deposit, UITF, stocks, mutual funds, etc. A few days before the appointed date I got a notification telling us which room to go to. 

On the day itself, it turns out that two banks were presenting their investment options. These were BPI and BDO. Then the room you were assigned to corresponded to the session with a particular bank. In short, they already chose for you. I got sent to the orientation hosted by BPI. 

The "101" in the title should have clued me in as to the sort of content it would have. It was mostly an introduction to how to handle your finances, like prioritising savings over expenses (aka "Pay yourself first") and knowing your risk profile in order to know which investment instruments fit your timeline and capability. 

What's surprising was that I didn't know the place I work in has an investment arm. But even more interesting were the results of the survey we were asked to fill out during the sign up. There were ~70+ respondents. About half already had investments, the other half did not invest. For the investors, the most popular form was insurance. Next was a tie between UITFs/mutual funds and land. Then time deposits, their own business and stocks. 

For the non-investors, the top concern given for not investing is the lack of understanding of what investments are all about. Next, there's a tie between investment being "too expensive" and "too risky." Twenty-five percent said they don't have time. And a good chunk also said they are "afraid of new things." 

Roughly 1% of the PH population invests in stock.
A nice improvement, but we've got a long ways to go. 

The seminar took care of the knowledge gap in investing. A cursory look at the participants and I noticed that (a) they were mostly the office bound employees, (b) a sizeable tito and tita aged contingent but also (c) there were young people, which was heartening. After all, there was this report that the rate of Filipinos putting their money in stocks has gone up with over a million accounts with brokerages, with the bulk of the rise made up of retail investors at 97% and 21% of those are in the 18-29 age bracket. 

Only one guy was willing to admit that he invests in stocks. When asked which stocks he held in his port, he quipped that he already sold his BPI. The investment advisor acknowledged it was the lowest in six years, so it might be a good bargain atm. The guy then said that he also has Jollibee. This then led to the vagaries of stock investing: that it might be affected by issues like Chicken Sad and Endo for Jollibee. But it's still all good if you hold on to your stocks in the long term. 

What he said. 

Which brings us to the key takeaways from the seminar: 

1. Know your HERO, or Horizon, Experience, Risk Tolerance and Objective. 
2. Timing does not work but with the current market condition, now is the right time to invest. 
3. Diversification is important. 

All in all, it's a good introduction to the investing life.  I would have wanted to know more about the various funds offered by the bank, although that's something that could be researched online. They were mostly offering their UITFs. Other options like SaveUp or PERA were off the table. In the end, I got some snacks and freebies by answering their pop quiz and spinning a roulette for some giveaways. All in an afternoon's unpaid non-work.