ALFSE Finlit 3 Recap

Recap by: Pauline Pocsedio

Mr. Neil Palteng

Investments

Financial

Literacy 3

Emotions associated with Finances

Sources of Capital

Advantages & Disadvantages

What is Capital

Savings and Debt

Business Capital

Investment Risk

Investments for Housing

Investments for Education

Investments for Retirement

How to Choose the Right Investments

Risk Analysis

Investments

Topics Discussed

SecureEncashable (Liquid)X-factor (Social / Environmental)Yield or returns

Investment Choice

• Identification
• Magnitude
• Likelihood

Risk Analysis

The act or purchasing a financial product,asset, or other item of value with anexpectation of favorable future returns

+ Info

Chance of losing some or all your moneywhen investing

Investment Risk

Investments

• (VUL)
• Stock market
• Equity and balanced fund of mutual funds and UITFs

Retirement Negative List

• SSS – Maximum contribution
• Pag-IBIG MP2

• Rural bank time deposit
• Government bonds
• Rental property

"Preparing for retirement financially is like planting a tree. The best time to start was years ago, but the second-best time is now." - Anonymous

Best Investments for Retirement

• Variable Universal Life (VUL)
• • Stock market
• • Equity and balanced fund of mutual
• funds and UITFs
• Share capital in cooperatives

• Rental property
• Pag-IBIG MP2
• Time deposit in cooperatives
• Government bonds
• Rural bank time deposits
• Money market fund
• Bond fund

Education Negative List

Best Investments for Education

• 3 years of income

• Save 20% down payment
• 20 years to pay max if loaned
• Max 20% of monthly income = amortization

• Should not be greater than 50% of total assets

Rules in Buying a House

Housing Negative List

• Pag-IBIG P1 and MP2
• Time deposit in cooperatives
• Government bonds
• Rural bank time deposits
• Money market fund
• Bond fund

• Variable Universal Life (VUL)
• Stock market
• Equity and balanced fund of mutual funds and UITFs

• Share capital in cooperatives

Best Investments for Housing

• Banks
• Financing Companies
• Crowdfunding
• Fintech

What are the sources of capital?

• Savings
• Family/Friends
• Microfinance
• Informal
• Cooperatives

What is business capital?refers to financial resources utilized by a company to earn profits and grow its operations

Capitalization for a Business

HONOR

CONTENTMENT

CLEAR CONSCIENCE

JOY

COURAGE

Saving the family name, pretensions

Shame

of other's accomplishments

Envy

"Emotions unchecked can be the greatest obstacle to financial success, for rational decisions pave the path to prosperity."

from leaving family behind, from being financially better off than family members

Guilt

ttowards family, money, and the world

Anger

Fear of not being loved, being left behind, of the unknown

Fear

Emotions Hindering Financial Success

Recap by: Pauline Pocsedio

"Financial success is not about the amount of money you accumulate, but the sense of security and freedom it provides to live life on your terms."

Thankyou!

Types of Investment Risk

Understanding and managing these risks is crucial to make informed decisions.

1. Market Risk2. Credit Risk3. Liquidity Risk4. Business/ Company Risk5. Currency Risk6. Regulatory Risk7. Interest Rate Risk8. Inflation Risk