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#1 longvestor

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Posted 01 December 2004 - 05:13 AM

7 Ways to Retire

By Bob Bobala (TMF Bobala)
November 30, 2004

Excerpts:

Some people get better with age. I'm going to come clean, right here, right now. … I have always been obsessed with retirement.

I have a pretty darn good job. Aside from writing the great American novel or being the GM of the Boston Red Sox, there aren't a whole lot of other vocations that I think could be better. I love being a part of the Fool's mission to help people do better with their money every day.

But if I could retire tomorrow, I would. That's right. I would chuck it all and be on the beach ASAP. Or maybe I'd tour some of my favorite national parks like Canyonlands, Bryce, and Zion in Utah. Then I'd hit the beach and just lay there for about two years before I figured out my next move.

Some people talk a lot about never retiring. They talk about living a full and happy life by working on into their 70s or 80s. When I encounter these people, I just want to shake them and scream, "What is wrong with you?!"

If I ever met Oracle's (Nasdaq: ORCL) Larry Ellison, or had a meeting with Bill Gates at Microsoft's (Nasdaq: MSFT) offices in Redmond, or even sat down at a Dairy Queen eating Dilly Bars with Berkshire Hathaway ( NYSE: BRK.A, BRK.B ) Chairman Warren Buffett, I'd have a few questions: Aren't you done yet? Aren't you done building your empire? Haven't you made enough money? Wouldn't you prefer to read a good book rather than a business report? Wouldn't you rather sit around sipping pina coladas instead of having power lunches with other billionaires?

I understand the need to be active. I'm not saying I want to lay down and die. But I have plenty of stuff I want to do beyond work. I still want to start a rock band. I want to visit every state in the Union. I want to swim in the Aegean. I want to coach third base for a Little League team that has a shot at the championship. I want to publish a short story in The New Yorker just so I can feel uppity and literary for a week. I want to build the biggest sand castle the Outer Banks of North Carolina have ever seen.

Working forever is just not on my agenda.

"That's all well and good, you slacker," you say. "Most of us aren't wired like Buffett. We want to call it quits and coast into our golden years. But how do you get there?"

Well, there's the rub. It's easier said than done.

1. Don't get ripped off

First off, don't get ripped off. Don't fall for get-rich-quick schemes, whether they be selling real estate with no money down, placing mysterious ads on the Internet that guarantee you thousands in sales, or hot tips from a broker who cold calls you. There's no better wisdom than this: If it sounds too good to be true, it probably is.

2. Don't turn down free money
If your employer offers you matching funds in your 401(k) and you don't take advantage of it, you are throwing money away. If you are eligible for an IRA and don't contribute as much as you can every year, you are throwing money away in the form of the tax breaks available to you.

3. Don't fear stocks
It's a fact: Inflation will erode your long-term savings if you leave it in low-interest-paying bonds or money market funds. You want to retire before you're 90, don't you? Stocks are still the best-performing investment vehicle for the long haul.

4. Take advantage of volatility
The best way to take advantage of the volatility of the stock market -- yes, take advantage of it -- is to dollar-cost average into your 401(k), IRA, or other investment accounts every month. That way you'll buy fewer shares of stock when prices are wildly high and more when stocks are at better prices.

5. Take the easy route to investing success
Nobody says investing in the stock market has to be rocket science. You can beat 75% of the mutual funds out there just by putting your money in a total market index fund. If you want to pick your own stocks, we can help you do that. But if you just want to put it on automatic pilot, you could do far worse than choosing an index fund.

6. Don't chase hot stocks
We've all been there. We bought Yahoo! (Nasdaq: YHOO) at $130 a share. Or Cisco (Nasdaq: CSCO) at $80. Or maybe we're even taking a flyer on Google (Nasdaq: GOOG) at $150 a share or Taser (Nasdaq: TASR) at $50. There's nothing wrong with taking some risk -- with money you can afford to lose. But don't set yourself back 10 years of retirement savings by doing something stupid.


7. Live below your means...


I know that was a long-winded seventh step to a lazy retirement, but I've seen enough people get burned by poor advice and poor planners. I've also seen too many people not do anything to plan for retirement, and that can be just as bad. Worse yet, I've known folks who had retired, made some mistakes, and have had to unretire. That's a path I plan to avoid at all costs. Don't let it happen to you.
.


Bob Bobala is the editor-in-chief of The Motley Fool. He doesn't own any of the companies mentioned here, and like most Americans, he will have to work 'til the day he retires.

#2 Jojo Ferrer

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Posted 01 December 2004 - 07:57 AM

Nice article, longvestor. A lot of wisdom there!

Ngayon pa lang, gusto ko nang mag-retire! :P

I hope you have a lot more tips to share with us. Thanks!

#3 sonny

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Posted 01 December 2004 - 09:26 AM

Ako rin, I'm practising how to part-time retire na! I believe it's my calling!

:D

Doc Longvestor, excuse me po....your website is still down! :(

#4 longvestor

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Posted 01 December 2004 - 10:04 AM

Nice article, longvestor. A lot of wisdom there!

Ngayon pa lang, gusto ko nang mag-retire! :P

I hope you have a lot more tips to share with us. Thanks!

Thanks, Jojo!

It's sad because I saw my own father - he worked hard until he retired without any pension plan or personal savings of his own.

#5 mikemuin

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Posted 01 December 2004 - 02:45 PM

Hi longvestor,

If you have some savings already, how would you start thinking of investing for the long-term? My wife and I are looking at Pension Plans from insurance companies and Time Deposits from banks. I find it to be low yield investment. Would you recommend saving up some more for Stock Exchange investments or Mutual Funds? Or what would you recommend for someone starting out their retirement investment in the Philippines?

Thanks!

#6 wolverine

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Posted 01 December 2004 - 10:21 PM

I started investing on real estates. 25 years to pay suburbs near manila. Also, I purchased a condo unit to be built near roxas blvd. hulugan din. Takot ako sa SE and MF at least sa lupa it always appreciate in value as time goes by except kung pangit lugar-- may baha, risky neighborhood o na lahar. I cant always sell it if the need arises ot least it to earn some dough. Just a thought on this matter.

#7 tonyboy

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Posted 02 December 2004 - 10:59 AM

I started investing on real estates. 25 years to pay suburbs near manila. Also, I purchased a condo unit to be built near roxas blvd. hulugan din. Takot ako sa SE and MF at least sa lupa it always appreciate in value as time goes by except kung pangit lugar-- may baha, risky neighborhood o na lahar. I cant always sell it if the need arises ot least it to earn some dough. Just a thought on this matter.

This is exactly what I was thinking of...investing for retirement..to be specific...a retirement home...my very own!

..handicapped-friendly just in case I'll be wheel-chair bound, convenient to hospitals (makati med, asian, st luke, etc), grocery and public transportation.

#8 tonyboy

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Posted 02 December 2004 - 11:02 AM

Hi longvestor,

If you have some savings already, how would you start thinking of investing for the long-term? My wife and I are looking at Pension Plans from insurance companies and Time Deposits from banks. I find it to be low yield investment. Would you recommend saving up some more for Stock Exchange investments or Mutual Funds? Or what would you recommend for someone starting out their retirement investment in the Philippines?

Thanks!

my questions too: the phil stock exchange is not very transparent..owned by elite families like the ayalas, gokungweis, lopezes, tans, etc.

#9 docyoda

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Posted 02 December 2004 - 01:00 PM

In the Philippines, treasury bills have high yield. However, not a lot of people know about this and it is not easily available because most of its buyers are the banks. Talk to your financial adviser.

CD's are low yield but can easily be liquidated if you need the money for an emergency. You will pay a small penalty if you terminate it early. However, if you have a certain amount of money that can stay long term like 20 years or more, it is still a good. low-risk investment.

docyoda

#10 sonny

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Posted 02 December 2004 - 02:17 PM

Nice tips, Thanks!

How about dollar based Philippine Mutual Funds? I know of one offered by BPI.

#11 tonyboy

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Posted 03 December 2004 - 06:15 AM

7 Ways to Retire

By Bob Bobala (TMF Bobala)
November 30, 2004

Excerpts:

Some people get better with age. I'm going to come clean, right here, right now. … I have always been obsessed with retirement.

I have a pretty darn good job. Aside from writing the great American novel or being the GM of the Boston Red Sox, there aren't a whole lot of other vocations that I think could be better. I love being a part of the Fool's mission to help people do better with their money every day.

But if I could retire tomorrow, I would. That's right. I would chuck it all and be on the beach ASAP. Or maybe I'd tour some of my favorite national parks like Canyonlands, Bryce, and Zion in Utah. Then I'd hit the beach and just lay there for about two years before I figured out my next move.

Some people talk a lot about never retiring. They talk about living a full and happy life by working on into their 70s or 80s. When I encounter these people, I just want to shake them and scream, "What is wrong with you?!"

If I ever met Oracle's (Nasdaq: ORCL) Larry Ellison, or had a meeting with Bill Gates at Microsoft's (Nasdaq: MSFT) offices in Redmond, or even sat down at a Dairy Queen eating Dilly Bars with Berkshire Hathaway ( NYSE: BRK.A, BRK.B ) Chairman Warren Buffett, I'd have a few questions: Aren't you done yet? Aren't  you done building your empire? Haven't you made enough money? Wouldn't you prefer to read a good book rather than a business report? Wouldn't you rather sit around sipping pina coladas instead of having power lunches with other billionaires?

I understand the need to be active. I'm not saying I want to lay down and die. But I have plenty of stuff I want to do beyond work. I still want to start a rock band. I want to visit every state in the Union. I want to swim in the Aegean. I want to coach third base for a Little League team that has a shot at the championship. I want to publish a short story in The New Yorker just so I can feel uppity and literary for a week. I want to build the biggest sand castle the Outer Banks of North Carolina have ever seen.

Working forever is just not on my agenda.

"That's all well and good, you slacker," you say. "Most of us aren't wired like Buffett. We want to call it quits and coast into our golden years. But how do you get there?"

Well, there's the rub. It's easier said than done.

1. Don't get ripped off

First off, don't get ripped off. Don't fall for get-rich-quick schemes, whether they be selling real estate with no money down, placing mysterious ads on the Internet that guarantee you thousands in sales, or hot tips from a broker who cold calls you. There's no better wisdom than this: If it sounds too good to be true, it probably is.

2. Don't turn down free money
If your employer offers you matching funds in your 401(k) and you don't take advantage of it, you are throwing money away. If you are eligible for an IRA and don't contribute as much as you can every year, you are throwing money away in the form of the tax breaks available to you.

3. Don't fear stocks
It's a fact: Inflation will erode your long-term savings if you leave it in low-interest-paying bonds or money market funds. You want to retire before you're 90, don't you? Stocks are still the best-performing investment vehicle for the long haul.

4. Take advantage of volatility
The best way to take advantage of the volatility of the stock market -- yes, take advantage of it -- is to dollar-cost average into your 401(k), IRA, or other investment accounts every month. That way you'll buy fewer shares of stock when prices are wildly high and more when stocks are at better prices.

5. Take the easy route to investing success
Nobody says investing in the stock market has to be rocket science. You can beat 75% of the mutual funds out there just by putting your money in a total market index fund. If you want to pick your own stocks, we can help you do that. But if you just want to put it on automatic pilot, you could do far worse than choosing an index fund.

6. Don't chase hot stocks
We've all been there. We bought Yahoo! (Nasdaq: YHOO) at $130 a share. Or Cisco (Nasdaq: CSCO) at $80. Or maybe we're even taking a flyer on Google (Nasdaq: GOOG) at $150 a share or Taser (Nasdaq: TASR) at $50. There's nothing wrong with taking some risk -- with money you can afford to lose. But don't set yourself back 10 years of retirement savings by doing something stupid.


7. Live below your means...


I know that was a long-winded seventh step to a lazy retirement, but I've seen enough people get burned by poor advice and poor planners. I've also seen too many people not do anything to plan for retirement, and that can be just as bad. Worse yet, I've known folks who had retired, made some mistakes, and have had to unretire. That's a path I plan to avoid at all costs. Don't let it happen to you.
.


Bob Bobala is the editor-in-chief of The Motley Fool. He doesn't own any of the companies mentioned here, and like most Americans, he will have to work 'til the day he retires.

nice, nice

here's one i read somewhere:

"The American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.

The Mexican replied, only a little while.

The American then asked why didn't he stay out longer and catch more fish?

The Mexican said he had enough to support his family's immediate needs.

The American then asked, "but what do you do with the rest of your time?"

The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."

The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise."

The Mexican fisherman asked, "But, how long will this all take?"

To which the American replied, "15-20 years."

"But what then?"

The American laughed and said that's the best part.

"When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions."

"Millions.. Then what?"

The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."


:lol:

#12 sonny

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Posted 05 December 2004 - 11:19 AM

^^ True but what your article failed to mention is by acquiring a source of wealth, e.g., rental homes, franchises, etc. one can help other fellow citizens who are less fotunate.

For what use is wealth if not shared?

My two cents!

:)

#13 sonny

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Posted 05 December 2004 - 06:58 PM

I started investing on real estates.  25 years to pay suburbs near manila. Also, I purchased a condo unit to be built near roxas blvd. hulugan din. Takot ako sa SE and MF at least sa lupa it always appreciate in value as time goes by except kung pangit lugar-- may baha, risky neighborhood o na lahar. I cant always sell it if the need arises ot least it to earn some dough. Just a thought on this matter.

This is exactly what I was thinking of...investing for retirement..to be specific...a retirement home...my very own!

..handicapped-friendly just in case I'll be wheel-chair bound, convenient to hospitals (makati med, asian, st luke, etc), grocery and public transportation.

Ako rin..another alternative - invest in a retirement home/hospice or mas mura marry a very young nurse specializing in Geriatrics!

;)

#14 tonyboy

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Posted 06 December 2004 - 01:17 PM

^^ True but what your article failed to mention is by acquiring a source of wealth, e.g., rental homes, franchises, etc. one can help other fellow citizens who are less fotunate.

For what use is wealth if not shared?

My two cents!

:)

can't argue with that, sonny!

that's why investing in real estate is one goal of mine. my problem though is how to buy without a credit history or collateral except my three years federal income tax returns.

also am thinking of applying for dual citizenship...perhaps to expedite the loan process.

#15 tonyboy

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Posted 06 December 2004 - 01:25 PM

In the Philippines, treasury bills have high yield. However, not a lot of people know about this and it is not easily available because most of its buyers are the banks. Talk to your financial adviser.

CD's are low yield but can easily be liquidated if you need the money for an emergency. You will pay a small penalty if you terminate it early. However, if you have a certain amount of money that can stay long term like 20 years or more, it is still a good. low-risk investment.

docyoda

can you recommend an adviser in pinas? ty, docyoda!

:)

#16 tonyboy

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Posted 06 December 2004 - 01:27 PM

I started investing on real estates.  25 years to pay suburbs near manila. Also, I purchased a condo unit to be built near roxas blvd. hulugan din. Takot ako sa SE and MF at least sa lupa it always appreciate in value as time goes by except kung pangit lugar-- may baha, risky neighborhood o na lahar. I cant always sell it if the need arises ot least it to earn some dough. Just a thought on this matter.

This is exactly what I was thinking of...investing for retirement..to be specific...a retirement home...my very own!

..handicapped-friendly just in case I'll be wheel-chair bound, convenient to hospitals (makati med, asian, st luke, etc), grocery and public transportation.

Ako rin..another alternative - invest in a retirement home/hospice or mas mura marry a very young nurse specializing in Geriatrics!

;)

or stay young forever by not celebrating your birthdays.

:lol: :lol: :lol:

#17 tonyboy

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Posted 06 December 2004 - 01:40 PM

I started investing on real estates.  25 years to pay suburbs near manila. Also, I purchased a condo unit to be built near roxas blvd. hulugan din. Takot ako sa SE and MF at least sa lupa it always appreciate in value as time goes by except kung pangit lugar-- may baha, risky neighborhood o na lahar. I cant always sell it if the need arises ot least it to earn some dough. Just a thought on this matter.

wolv, is that condo in roxas blvd called antel? one of my frequent balikbayan pals and advisers bought one two-bedroom unit there. pero he bought it with cash, not by installment.

ty!

#18 longvestor

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Posted 07 December 2004 - 11:26 PM

Hi longvestor,

If you have some savings already, how would you start thinking of investing for the long-term? My wife and I are looking at Pension Plans from insurance companies and Time Deposits from banks. I find it to be low yield investment.

Mike,

I woke this morning to read in BusinessWorld Online, a depressing article dated Wednesday, December 8, 2004 and titled:
Inflation rises to 7.6%

RIZZARENE S. MANRIQUE, Researcher, writes a gloomy picture.

Excerpts:

”Prices of goods rose sharply last month -- at their highest rate in five years in fact -- and continued to erode the peso's buying power because of soaring crude oil costs locally and abroad.

And while oil prices have begun to taper in recent weeks, analysts believe it will continue to "hurt" consumers this month.

"I think the effect of high oil prices in the global market is still making its presence felt on goods ... the cost of raw materials are on the high side at this time," said Elena Ponceca, research chief of Unicapital Securities.

However, should these prices continue to fall, local consumers can expect some benefit months ahead, said Lawrence de Leon, economist at Accord Capital Equities Corp.

"Crude prices have gone down by approximately 20% from the high of $56 per barrel in the world market. If it stays at this level, there is a good possibility that inflation will proceed slower than the current figure," he said.

But for now, people will just have to endure high prices over the holidays. The country imports nearly all of its crude.

Based on 1994 prices, inflation reached 7.6% in November from 7.1% in October, the National Statistics Office (NSO) said yesterday. This was the highest inflation rate in over five years. Based on 2000 prices, inflation was 8.2% last month from 7.7% in October.

The 11-month inflation average was 5.3%, slightly above the government ceiling of 5%.

Month on month, inflation for the fuel, light and water (FLW) group rose to 6.9% from 1.1%, and for services, to 0.6% from 0.5%.

"Price additions in LPG [liquefied petroleum gas], kerosene, firewood, charcoal and candle, along with higher electricity rates, [were] registered in most of the regions ... The services index [advanced] due to the continued acceleration in the prices of medicines, gasoline, diesel and engine oil," NSO said.

Price add-ons for the food, beverages and tobacco (FBT) group as well as clothing and miscellaneous items were unchanged from October to November. “


Would you recommend saving up some more for Stock Exchange investments or Mutual Funds? Or what would you recommend for someone starting out their retirement investment in the Philippines?

Thanks


My knee-jerk reply would be yes but with reservations. Let me first recover from my severe jet-lag due to our turbulence-stricken flight from NY to Pinas. :(

I have my notes somewhere about PSE and MFs.

:blink:

#19 tonyboy

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Posted 09 December 2004 - 05:26 PM

longvestor,

i just realized..your subtitle: "an easy way" is not accurate. saving is very hard for some of us. it's never easy...we have other priorities, you know.

:(

#20 stethacp

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Posted 11 December 2004 - 03:25 AM

wolv, is that condo in roxas blvd called antel? one of my frequent balikbayan pals and advisers bought one two-bedroom unit there. pero he bought it with cash, not by installment.

ty!

hi doc tonyboy,

Antel is located along roxas boulevard between San Juan De Dios Hospital and Hyatt. The location is very good because it is near the developing Macapagal hi-way, home to the new Manila Doctors Nursing School, Pricesmart and a lot of fastfood chains and upcoming sm mall of asia. Good investment! :eyebrows:

#21 longvestor

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Posted 11 December 2004 - 07:45 PM

longvestor,

i just realized..your subtitle: "an easy way" is not accurate. saving is very hard for some of us. it's never easy...we have other priorities, you know.

:(


Hehehe, I know about them priorities. Been there and done them and still doing those too, tonyboy!

True, for the majority of posters here, "saving for retirement" probably is the farthest thing on their minds. But the subtitle is not a misnomer!

Here's how I look at it: After a long exhausting struggle through medical school and passing the boards, looking for a profitable employment (whether as an intern or resident, MT, IT or going to nursing schools, etc.) is of paramount importance.

Then comes buying groceries, saving for a car, another car, educational plans for the kids, a home, etcetera - all equally essential.

My point though is by starting early (using the power of youth and compounding), saving for anything becomes second nature. It, therefore, becomes easy.

Para bagang nag simula tayo sa alkansya method. IIRC, I was six or seven years old, my wise and frugal father gave me a monthly allowance. Sabi nya, "Buy whatever toy you want - when you've saved enough." The first purchase I bought was the board game - scrabble.

One way to illustrate how "easy," IMHO, it is to save is to open a new stock account online in many participating companies.

Try to go to Buy Stock Direct or do a quick search by ticker symbol!

For example XOM (NYSE)

INDUSTRY: Oil/Gas Exploration/Development/Services

WEBSITE: http://exxonmobil.com

EquiServe is easy to access online. Try this link.

Through Account Access, you can conveniently view and, if needed, update any of the following:

- Your Account Access password
- Your mailing address
- Your e-mail address
- Your phone number
- Your Social Security or Taxpayer ID number


Posted Image

For illustration purposes only:

Owner of: EXXONMOBIL COMMON
Issue ID: 330010
Estimated Value of Holdings: XOM
Current Price: $50.15
Market Value: $1,366.94


Book-Entry History as of 12/10/2004: 27.2570 shares

History Period
Begin Date: 12/15/1998
End Date: 12/10/2004

Date/ Type/ Fee/ Net Amount/ Price per Share/Transaction Shares/ Net Balance

12/15/1998 CASH INVESTMENT 0.0000 250.0000 73.8530 3.3850 (initial) 3.3850 shares

03/10/1999 COM DIV REINVEST 0.0000 1.3900 68.6300 0.0200 3.4050
06/10/1999 COM DIV REINVEST 0.0000 1.4000 80.1030 0.0170 3.4220
09/10/1999 COM DIV REINVEST 0.0000 1.4000 79.9000 0.0180 3.4400
12/10/1999 COM DIV REINVEST 0.0000 1.5100 83.7590 0.0180 3.4580

03/10/2000 COM DIV REINVEST 0.0000 1.5200 76.7400 0.0200 3.4780
06/10/2000 COM DIV REINVEST 0.0000 1.5300 80.3600 0.0190 3.4970
09/11/2000 COM DIV REINVEST 0.0000 1.5400 83.1410 0.0190 3.5160
12/11/2000 COM DIV REINVEST 0.0000 1.5500 88.4690 0.0180 3.5340

03/09/2001 COM DIV REINVEST 0.0000 1.5500 83.8550 0.0180 3.5520
06/11/2001 COM DIV REINVEST 0.0000 1.5600 89.8240 0.0170 3.5690
07/11/2001 COM DIV REINVEST 0.0000 0.0700 86.5120 0.0010 3.5700
07/18/2001 STOCK SPLIT 0.0000 0.0000 0.0000 3.5690 7.1390
07/18/2001 STOCK DIV 0.0000 0.0000 0.0000 0.0010 7.1400
09/10/2001 COM DIV REINVEST 0.0000 1.6400 40.8650 0.0400 7.1800
12/10/2001 COM DIV REINVEST 0.0000 1.6500 38.0160 0.0430 7.2230

03/11/2002 COM DIV REINVEST 0.0000 1.6600 42.8030 0.0390 7.2620
06/10/2002 COM DIV REINVEST 0.0000 1.6700 39.3610 0.0420 7.3040
09/10/2002 COM DIV REINVEST 0.0000 1.6800 33.8530 0.0500 7.3540
12/10/2002 COM DIV REINVEST 0.0000 1.6900 34.8450 0.0490 7.4030

03/10/2003 COM DIV REINVEST 0.0000 1.7000 34.5240 0.0490 7.4520
06/10/2003 COM DIV REINVEST 0.0000 1.8600 37.1790 0.0500 7.5020
09/10/2003 COM DIV REINVEST 0.0000 1.8800 38.1400 0.0490 7.5510
12/10/2003 COM DIV REINVEST 0.0000 1.8900 37.0240 0.0510 7.6020

03/10/2004 COM DIV REINVEST 0.0000 1.9000 42.2520 0.0450 7.6470
04/06/2004 CASH INVESTMENT 0.0000 100.0000 41.8900 2.3870 10.0340
04/14/2004 CASH INVESTMENT 0.0000 350.0000 42.5160 8.2320 18.2660
05/04/2004 CASH INVESTMENT 0.0000 100.0000 43.1380 2.3180 20.5840
06/10/2004 COM DIV REINVEST 0.0000 5.5600 43.6180 0.1270 20.7110
06/22/2004 CASH INVESTMENT 0.0000 100.0000 44.7840 2.2330 22.9440
09/10/2004 COM DIV REINVEST 0.0000 6.1900 47.0710 0.1320 23.0760
10/19/2004 CASH INVESTMENT 0.0000 100.0000 48.9610 2.0420 25.1180
12/10/2004 CASH INVESTMENT 0.0000 100.0000 49.9320 2.0030 27.1210
12/10/2004 COM DIV REINVEST 0.0000 6.7800 49.9740 0.1360 (total) 27.2570 shares

Caveat: Research well before you invest your hard-earned money
Disclaimer: Wifey, family and I hold positions on XOM

:)

#22 tonyboy

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Posted 12 December 2004 - 04:30 PM

wolv, is that condo in roxas blvd called antel? one of my frequent balikbayan pals and advisers bought one two-bedroom unit there. pero he bought it with cash, not by installment.

ty!

hi doc tonyboy,

Antel is located along roxas boulevard between San Juan De Dios Hospital and Hyatt. The location is very good because it is near the developing Macapagal hi-way, home to the new Manila Doctors Nursing School, Pricesmart and a lot of fastfood chains and upcoming sm mall of asia. Good investment! :eyebrows:

thanks! it's one of the areas where i will be looking at. as a matter of fact, the condo worth investing into for rental or retirement purposes, according to my gurus, is something close to schools, groceries, hospitals and public transportation.

greenbelt in makati is one being touted by friends of mine. they say that one can walk to landmark grocery, mrt, movie houses and glorietta mall.

rockwell is another area they recommend.

as far as raw lands, cavite, tagaytay or laguna. they say half an acre would cost around a fraction compared to california land.

#23 tonyboy

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Posted 12 December 2004 - 05:46 PM

longvestor,

i just realized..your subtitle: "an easy way" is not accurate. saving is very hard for some of us. it's never easy...we have other priorities, you know.

:(


Hehehe, I know about them priorities. Been there and done them and still doing those too, tonyboy!

True, for the majority of posters here, "saving for retirement" probably is the farthest thing on their minds. But the subtitle is not a misnomer!

Here's how I look at it: After a long exhausting struggle through medical school and passing the boards, looking for a profitable employment (whether as an intern or resident, MT, IT or going to nursing schools, etc.) is of paramount importance.

Then comes buying groceries, saving for a car, another car, educational plans for the kids, a home, etcetera - all equally essential.


:)

well put! when one cannot even afford to buy groceries or pay for utilities..basic human needs, why even think of "saving"??? :(

My point though is by starting early (using the power of youth and compounding), saving for anything becomes second nature. It, therefore,  becomes easy.


:iagree:

am not here to argue but to speak my mind.

when money earned is in your pocket, it is good as spent. one older surgeon friend of mine was making oodles of money in his heydays but his lifestyle was such that he admitted to me that after so many years of lucrative practice, he has not put enough into his nestegg. he's close to retirement age of 65 but cannot retire yet. now, with the malpractice crisis overtaking him, he is caught between a rock and a hard place.

in marked contrast, five years ago...another friend, dr. ric tuazon, my former chief resident and role model, retired at age 50 in southern manila..investing in real estate...i remember, that what all he talked about.

btw, if anybody here knows him or his lovely wife, thiele and their wherabouts...pls...... pm me!



Para bagang nag simula tayo sa alkansya method. IIRC, I was six or seven years old, my wise and frugal father gave me a monthly allowance. Sabi nya, "Buy whatever toy you want - when you've saved enough." The first purchase I bought was the board game - scrabble.

One way to illustrate how "easy," IMHO, it is to save is to open a new stock account online in many participating companies.

Try to go to Buy Stock Direct or do a quick search by ticker symbol!

For example XOM (NYSE)

INDUSTRY: Oil/Gas Exploration/Development/Services
 
WEBSITE: http://exxonmobil.com

EquiServe is easy to access online. Try this link.

Through Account Access, you can conveniently view and, if needed, update any of the following:

  - Your Account Access password
  - Your mailing address
  - Your e-mail address
  - Your phone number
  - Your Social Security or Taxpayer ID number


Posted Image

For illustration purposes only:

Owner of: EXXONMOBIL COMMON
Issue ID: 330010
Estimated Value of Holdings: XOM
Current Price: $50.15
Market Value: $1,366.94


Book-Entry History as of 12/10/2004: 27.2570 shares

History Period
Begin Date: 12/15/1998 
End Date: 12/10/2004

Date/ Type/ Fee/ Net Amount/ Price per Share/Transaction Shares/ Net Balance

12/15/1998 CASH INVESTMENT 0.0000  250.0000 73.8530 3.3850 (initial) 3.3850 shares
03/10/1999 COM DIV REINVEST 0.0000  1.3900 68.6300 0.0200 3.4050
06/10/1999 COM DIV REINVEST 0.0000  1.4000 80.1030 0.0170 3.4220
09/10/1999 COM DIV REINVEST 0.0000  1.4000 79.9000 0.0180 3.4400
12/10/1999 COM DIV REINVEST 0.0000  1.5100 83.7590 0.0180 3.4580

03/10/2000 COM DIV REINVEST 0.0000  1.5200 76.7400 0.0200 3.4780
06/10/2000 COM DIV REINVEST 0.0000  1.5300 80.3600 0.0190 3.4970
09/11/2000 COM DIV REINVEST 0.0000  1.5400 83.1410 0.0190 3.5160
12/11/2000 COM DIV REINVEST 0.0000  1.5500 88.4690 0.0180 3.5340

03/09/2001 COM DIV REINVEST 0.0000  1.5500 83.8550 0.0180 3.5520
06/11/2001 COM DIV REINVEST 0.0000  1.5600 89.8240 0.0170 3.5690
07/11/2001 COM DIV REINVEST 0.0000  0.0700 86.5120 0.0010 3.5700
07/18/2001 STOCK SPLIT 0.0000  0.0000  0.0000  3.5690            7.1390
07/18/2001 STOCK DIV 0.0000      0.0000  0.0000  0.0010            7.1400
09/10/2001 COM DIV REINVEST 0.0000  1.6400 40.8650 0.0400 7.1800
12/10/2001 COM DIV REINVEST 0.0000  1.6500 38.0160 0.0430 7.2230 

03/11/2002 COM DIV REINVEST 0.0000  1.6600 42.8030 0.0390 7.2620
06/10/2002 COM DIV REINVEST 0.0000  1.6700 39.3610 0.0420 7.3040
09/10/2002 COM DIV REINVEST 0.0000  1.6800 33.8530 0.0500 7.3540
12/10/2002 COM DIV REINVEST 0.0000  1.6900 34.8450 0.0490 7.4030

03/10/2003 COM DIV REINVEST 0.0000  1.7000 34.5240 0.0490 7.4520
06/10/2003 COM DIV REINVEST 0.0000  1.8600 37.1790 0.0500 7.5020
09/10/2003 COM DIV REINVEST 0.0000  1.8800 38.1400 0.0490 7.5510
12/10/2003 COM DIV REINVEST 0.0000  1.8900 37.0240 0.0510 7.6020

03/10/2004 COM DIV REINVEST 0.0000  1.9000 42.2520 0.0450 7.6470
04/06/2004 CASH INVESTMENT 0.0000  100.0000 41.8900 2.3870 10.0340
04/14/2004 CASH INVESTMENT 0.0000  350.0000 42.5160 8.2320 18.2660
05/04/2004 CASH INVESTMENT 0.0000  100.0000 43.1380 2.3180 20.5840
06/10/2004 COM DIV REINVEST 0.0000  5.5600 43.6180 0.1270 20.7110
06/22/2004 CASH INVESTMENT 0.0000  100.0000 44.7840 2.2330 22.9440
09/10/2004 COM DIV REINVEST 0.0000  6.1900 47.0710 0.1320 23.0760
10/19/2004 CASH INVESTMENT 0.0000  100.0000 48.9610 2.0420 25.1180
12/10/2004 CASH INVESTMENT 0.0000  100.0000 49.9320 2.0030 27.1210
12/10/2004 COM DIV REINVEST 0.0000  6.7800 49.9740 0.1360 (total) 27.2570 shares

Caveat: Research well before you invest your hard-earned money
Disclaimer: Wifey, family and I hold positions on XOM




is this through traditional ira, roth ira, keough or your own personal/company pension plan?

#24 longvestor

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Posted 14 December 2004 - 09:12 PM

longvestor,




is this through traditional ira, roth ira, keough or your own personal/company pension plan?

None of the above. ;)

#25 tonyboy

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Posted 14 December 2004 - 09:36 PM

cryptic you are..so what is it?

:(

#26 dantia

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Posted 15 December 2004 - 12:32 AM

wolv, is that condo in roxas blvd called antel? one of my frequent balikbayan pals and advisers bought one two-bedroom unit there. pero he bought it with cash, not by installment.

ty!

hi doc tonyboy,

Antel is located along roxas boulevard between San Juan De Dios Hospital and Hyatt. The location is very good because it is near the developing Macapagal hi-way, home to the new Manila Doctors Nursing School, Pricesmart and a lot of fastfood chains and upcoming sm mall of asia. Good investment! :eyebrows:

thanks! it's one of the areas where i will be looking at. as a matter of fact, the condo worth investing into for rental or retirement purposes, according to my gurus, is something close to schools, groceries, hospitals and public transportation.

greenbelt in makati is one being touted by friends of mine. they say that one can walk to landmark grocery, mrt, movie houses and glorietta mall.

rockwell is another area they recommend.

as far as raw lands, cavite, tagaytay or laguna. they say half an acre would cost around a fraction compared to california land.

You can't go wrong with real estate. Just remember these three things: location, location, location!


:lol:

#27 dantia

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Posted 15 December 2004 - 02:36 AM

And talking about location, Makati is the premier place to be. Its proximity to Rustan, hospital, Glorietta Mall, Philippine Stock Exchange, hotels, restaurants, etc. just can't be beat!

Good luck, Tony!

#28 longvestor

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Posted 15 December 2004 - 02:55 AM

cryptic you are..so what is it?

:(

That sample portfolio is owned by my niece started when she was 5 years old.

:)

#29 dantia

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Posted 18 December 2004 - 04:17 AM

cryptic you are..so what is it?

:(

That sample portfolio is owned by my niece started when she was 5 years old.

:)

Your niece is one lucky girl!

:D

#30 dantia

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Posted 18 December 2004 - 04:21 AM

Forgot to mention how very lucky your sibling/s is/are too.

:)

#31 dantia

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Posted 18 December 2004 - 04:29 AM

Talking about location tonyboy,

My ideal retirement home is a condo on Ayala Avenue where my hubby and I (when my kids have finally grown and flown) can walk across the road and, lo and behold, Rustan grocery is right there. No need to have a car.

Yes, of course, naka-tsinelas, shorts and t-shirts lang kami sans jewelry din.

:lol:

#32 Pexxerdoc

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Posted 18 December 2004 - 04:57 AM

7 Ways to Retire

By Bob Bobala (TMF Bobala)
November 30, 2004

Excerpts:

Some <a href="http://www.ntsearch....=56">people</a> get better with age. I'm going to come clean, right here, right now. … I have always been obsessed with retirement.

I have a pretty darn good <a href="http://www.ntsearch....&v=56">job</a>. Aside from <a href="http://www.ntsearch....56">writing</a> the great American novel or being the GM of the Boston Red Sox, there aren't a whole lot of other vocations that I think could be better. I <a href="http://www.ntsearch....&v=56">love</a> being a part of the Fool's mission to help <a href="http://www.ntsearch....=56">people</a> do better with their <a href="http://www.ntsearch....v=56">money</a> every day.

But if I could retire tomorrow, I would. That's right. I would chuck it all and be on the beach ASAP. Or maybe I'd tour some of my favorite national parks like Canyonlands, Bryce, and Zion in Utah. Then I'd hit the beach and just lay there for about two years before I figured out my next move.

Some <a href="http://www.ntsearch....=56">people</a> talk a lot about never retiring. They talk about living a full and happy life by working on into their 70s or 80s. When I encounter these <a href="http://www.ntsearch....=56">people</a>, I just want to shake them and scream, "What is wrong with you?!"

If I ever met Oracle's (Nasdaq: ORCL) Larry Ellison, or had a meeting with Bill Gates at Microsoft's (Nasdaq: MSFT) offices in Redmond, or even sat down at a Dairy Queen eating Dilly Bars with Berkshire Hathaway ( NYSE: BRK.A, BRK.B ) Chairman Warren Buffett, I'd have a few questions: Aren't you done yet? Aren't you done building your empire? Haven't you made enough money? Wouldn't you prefer to read a good book rather than a <a href="http://www.ntsearch....6">business</a> report? Wouldn't you rather sit around sipping pina coladas instead of having power lunches with other billionaires?

I understand the need to be active. I'm not saying I want to lay down and die. But I have plenty of stuff I want to do beyond work. I still want to start a rock band. I want to visit every state in the Union. I want to swim in the Aegean. I want to coach third base for a Little League team that has a shot at the championship. I want to publish a short story in The New Yorker just so I can feel uppity and literary for a week. I want to build the biggest sand castle the Outer <a href="http://www.ntsearch....v=56">Banks</a> of North Carolina have ever seen.

Working forever is just not on my agenda.

"That's all well and good, you slacker," you say. "Most of us aren't wired like Buffett. We want to call it quits and coast into our golden years. But how do you get there?"

Well, there's the rub. It's easier said than done.

1. Don't get ripped off

First off, don't get ripped off. Don't fall for get-rich-quick schemes, whether they be selling <a href="http://www.ntsearch....arch.php?q=real estate&v=56">real estate</a> with no <a href="http://www.ntsearch....v=56">money</a> down, placing mysterious ads on the <a href="http://www.ntsearch....6">Internet</a> that guarantee you thousands in <a href="http://www.ntsearch....v=56">sales</a>, or hot tips from a broker who cold calls you. There's no better wisdom than this: If it sounds too good to be true, it probably is.

2. Don't turn down <a href="http://www.ntsearch....&v=56">free</a> money
If your employer offers you matching funds in your 401(k) and you don't take advantage of it, you are throwing <a href="http://www.ntsearch....v=56">money</a> away. If you are eligible for an IRA and don't contribute as much as you can every year, you are throwing <a href="http://www.ntsearch....v=56">money</a> away in the form of the <a href="http://www.ntsearch....x&v=56">tax</a> breaks available to you.

3. Don't fear stocks
It's a fact: Inflation will erode your long-term savings if you leave it in low-interest-paying bonds or <a href="http://www.ntsearch....v=56">money</a> market funds. You want to retire before you're 90, don't you? <a href="http://www.ntsearch....=56">Stocks</a> are still the best-performing <a href="http://www.ntsearch....>investment</a> vehicle for the long haul.

4. Take advantage of volatility
The best way to take advantage of the volatility of the <a href="http://www.ntsearch....v=56">stock</a> market -- yes, take advantage of it -- is to dollar-cost average into your 401(k), IRA, or other <a href="http://www.ntsearch....>investment</a> accounts every month. That way you'll buy fewer shares of <a href="http://www.ntsearch....v=56">stock</a> when prices are wildly high and more when <a href="http://www.ntsearch....=56">stocks</a> are at better prices.

5. Take the easy route to <a href="http://www.ntsearch....">investing</a> success
Nobody says <a href="http://www.ntsearch....">investing</a> in the <a href="http://www.ntsearch....v=56">stock</a> market has to be rocket <a href="http://www.ntsearch....6">science</a>. You can beat 75% of the mutual funds out there just by putting your <a href="http://www.ntsearch....v=56">money</a> in a total market index fund. If you want to pick your own <a href="http://www.ntsearch....=56">stocks</a>, we can help you do that. But if you just want to put it on automatic pilot, you could do far worse than choosing an index fund.

6. Don't chase hot stocks
We've all been there. We bought Yahoo! (Nasdaq: YHOO) at $130 a share. Or <a href="http://www.ntsearch....v=56">Cisco</a> (Nasdaq: CSCO) at $80. Or maybe we're even taking a flyer on Google (Nasdaq: GOOG) at $150 a share or Taser (Nasdaq: TASR) at $50. There's nothing wrong with taking some risk -- with <a href="http://www.ntsearch....v=56">money</a> you can afford to lose. But don't set yourself back 10 years of retirement savings by doing something stupid.


7. Live below your means...


I know that was a long-winded seventh step to a lazy retirement, but I've seen enough <a href="http://www.ntsearch....=56">people</a> get burned by poor advice and poor planners. I've also seen too many <a href="http://www.ntsearch....=56">people</a> not do anything to plan for retirement, and that can be just as bad. Worse yet, I've known folks who had retired, made some mistakes, and have had to unretire. That's a path I plan to avoid at all costs. Don't let it happen to you.
.


Bob Bobala is the editor-in-chief of The Motley Fool. He doesn't own any of the companies mentioned here, and like most Americans, he will have to work 'til the day he retires.

Very interesting!

:)

#33 longvestor

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Posted 18 December 2004 - 05:13 AM

cryptic you are..so what is it?

:(

That sample portfolio is owned by my niece started when she was 5 years old.

:)

Your niece is one lucky girl!

:D

Salamat, po!

:)

#34 longvestor

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Posted 18 December 2004 - 07:46 PM

7 Ways to Retire

By Bob Bobala (TMF Bobala)
November 30, 2004

Excerpts:

Some <a href="http://www.ntsearch....=56">people</a> get better with age. I'm going to come clean, right here, right now. … I have always been obsessed with retirement.

I have a pretty darn good <a href="http://www.ntsearch....&v=56">job</a>. Aside from <a href="http://www.ntsearch....56">writing</a> the great American novel or being the GM of the Boston Red Sox, there aren't a whole lot of other vocations that I think could be better. I <a href="http://www.ntsearch....&v=56">love</a> being a part of the Fool's mission to help <a href="http://www.ntsearch....=56">people</a> do better with their <a href="http://www.ntsearch....v=56">money</a> every day.

But if I could retire tomorrow, I would. That's right. I would chuck it all and be on the beach ASAP. Or maybe I'd tour some of my favorite national parks like Canyonlands, Bryce, and Zion in Utah. Then I'd hit the beach and just lay there for about two years before I figured out my next move.

Some <a href="http://www.ntsearch....=56">people</a> talk a lot about never retiring. They talk about living a full and happy life by working on into their 70s or 80s. When I encounter these <a href="http://www.ntsearch....=56">people</a>, I just want to shake them and scream, "What is wrong with you?!"

If I ever met Oracle's (Nasdaq: ORCL) Larry Ellison, or had a meeting with Bill Gates at Microsoft's (Nasdaq: MSFT) offices in Redmond, or even sat down at a Dairy Queen eating Dilly Bars with Berkshire Hathaway ( NYSE: BRK.A, BRK.B ) Chairman Warren Buffett, I'd have a few questions: Aren't you done yet? Aren't  you done building your empire? Haven't you made enough money? Wouldn't you prefer to read a good book rather than a <a href="http://www.ntsearch....6">business</a> report? Wouldn't you rather sit around sipping pina coladas instead of having power lunches with other billionaires?

I understand the need to be active. I'm not saying I want to lay down and die. But I have plenty of stuff I want to do beyond work. I still want to start a rock band. I want to visit every state in the Union. I want to swim in the Aegean. I want to coach third base for a Little League team that has a shot at the championship. I want to publish a short story in The New Yorker just so I can feel uppity and literary for a week. I want to build the biggest sand castle the Outer <a href="http://www.ntsearch....v=56">Banks</a> of North Carolina have ever seen.

Working forever is just not on my agenda.

"That's all well and good, you slacker," you say. "Most of us aren't wired like Buffett. We want to call it quits and coast into our golden years. But how do you get there?"

Well, there's the rub. It's easier said than done.

1. Don't get ripped off

First off, don't get ripped off. Don't fall for get-rich-quick schemes, whether they be selling <a href="http://www.ntsearch....arch.php?q=real estate&v=56">real estate</a> with no <a href="http://www.ntsearch....v=56">money</a> down, placing mysterious ads on the <a href="http://www.ntsearch....6">Internet</a> that guarantee you thousands in <a href="http://www.ntsearch....v=56">sales</a>, or hot tips from a broker who cold calls you. There's no better wisdom than this: If it sounds too good to be true, it probably is.

2. Don't turn down <a href="http://www.ntsearch....&v=56">free</a> money
If your employer offers you matching funds in your 401(k) and you don't take advantage of it, you are throwing <a href="http://www.ntsearch....v=56">money</a> away. If you are eligible for an IRA and don't contribute as much as you can every year, you are throwing <a href="http://www.ntsearch....v=56">money</a> away in the form of the <a href="http://www.ntsearch....x&v=56">tax</a> breaks available to you.

3. Don't fear stocks
It's a fact: Inflation will erode your long-term savings if you leave it in low-interest-paying bonds or <a href="http://www.ntsearch....v=56">money</a> market funds. You want to retire before you're 90, don't you? <a href="http://www.ntsearch....=56">Stocks</a> are still the best-performing <a href="http://www.ntsearch....>investment</a> vehicle for the long haul.

4. Take advantage of volatility
The best way to take advantage of the volatility of the <a href="http://www.ntsearch....v=56">stock</a> market -- yes, take advantage of it -- is to dollar-cost average into your 401(k), IRA, or other <a href="http://www.ntsearch....>investment</a> accounts every month. That way you'll buy fewer shares of <a href="http://www.ntsearch....v=56">stock</a> when prices are wildly high and more when <a href="http://www.ntsearch....=56">stocks</a> are at better prices.

5. Take the easy route to <a href="http://www.ntsearch....">investing</a> success
Nobody says <a href="http://www.ntsearch....">investing</a> in the <a href="http://www.ntsearch....v=56">stock</a> market has to be rocket <a href="http://www.ntsearch....6">science</a>. You can beat 75% of the mutual funds out there just by putting your <a href="http://www.ntsearch....v=56">money</a> in a total market index fund. If you want to pick your own <a href="http://www.ntsearch....=56">stocks</a>, we can help you do that. But if you just want to put it on automatic pilot, you could do far worse than choosing an index fund.

6. Don't chase hot stocks
We've all been there. We bought Yahoo! (Nasdaq: YHOO) at $130 a share. Or <a href="http://www.ntsearch....v=56">Cisco</a> (Nasdaq: CSCO) at $80. Or maybe we're even taking a flyer on Google (Nasdaq: GOOG) at $150 a share or Taser (Nasdaq: TASR) at $50. There's nothing wrong with taking some risk -- with <a href="http://www.ntsearch....v=56">money</a> you can afford to lose. But don't set yourself back 10 years of retirement savings by doing something stupid.


7. Live below your means...


I know that was a long-winded seventh step to a lazy retirement, but I've seen enough <a href="http://www.ntsearch....=56">people</a> get burned by poor advice and poor planners. I've also seen too many <a href="http://www.ntsearch....=56">people</a> not do anything to plan for retirement, and that can be just as bad. Worse yet, I've known folks who had retired, made some mistakes, and have had to unretire. That's a path I plan to avoid at all costs. Don't let it happen to you.
.


Bob Bobala is the editor-in-chief of The Motley Fool. He doesn't own any of the companies mentioned here, and like most Americans, he will have to work 'til the day he retires.

Very interesting!

:)

Thanks, pexxerdoc and welcome to PMD!

I saw your posts in PEx too. Great job!

:)

#35 longvestor

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Posted 19 December 2004 - 07:40 PM

My past history:

Three basic beliefs.

1. Risk is both based on variables I cannot control and one variable that I most definitely can. As a control freak, I can lower my risk by increasing my education/understanding of investing. Also, Input (stipend/salary/net income) is much harder to control than output (everyday expenses, utilities, etc) Think LBYM!

2. The most impact on my investment returns over the long haul was/is the amount I can save and how early. In other words, early on, I discovered that for many years the difference of a few percent will be completely overwhelmed by the amount I set aside from my income. If the money saved is more and hopefully won't be lost in the early years, one can produce a great passive income later.

3. At 25, I started investing (hulog-hulogan) in real estate much like wolverine and other posters have done/advised. My first deal was an empty lot in the province bought with a classmate from HS. It ended up costing me less (when I bought him out) to be the sole owner then because by buying real estate, it allowed me to use Other People's Money (OPM e.g., banks) to my own benefit (as a collateral) and thus one can magnify the returns.

A 3-5% rise in the value of a property or lot when you are leverage 5 to 1 means you can easily out-perform the stock market at 10% (comparing the cash-on-cash returns). I am not saying that RE is the way you should go. Just that shooting for 10%-12% is low when compared to some RE deals (ignoring the RE bubble or what ever others want to label the recent appreciation).

So, Mike and wife et al,

Invest in your education. Maybe as high as 10% of your combined income in your early years. Invest by saving as much as you can.

Be less concerned about finding the right investments right now as you will never quite find it. Just sock away the cash and as you increase your knowledge you will soon have more funds to invest.

:)

#36 dantia

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Posted 19 December 2004 - 09:21 PM

Our OPM is Metro Bank, pero their APR is going up next year. :(

#37 longvestor

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Posted 20 December 2004 - 07:19 PM

Hi longvestor,

If you have some savings already, how would you start thinking of investing for the long-term? My wife and I are looking at Pension Plans from insurance companies and Time Deposits from banks. I find it to be low yield investment. Would you recommend saving up some more for Stock Exchange investments or Mutual Funds? Or what would you recommend for someone starting out their retirement investment in the Philippines?

Thanks!


Save pesos or dollars??

According to an article, How to lessen the pain from the peso's fall INQ7.net written by Ma. Salve Duplito:

Danilo Mollasgo, vice-president for operations of construction firm Green Asia, who travels regularly every year on business and personal trips, says moneychangers in airports and hotels usually have a 20-50 centavo difference compared with banks.

He says with the peso now at 56 to the dollar, and the dollar also in depreciation mode, it might be a good idea to postpone vacations to Europe, for example, and instead go to other Asian countries whose currencies are pegged to the dollar.

Investment and savings-wise, fund managers told INQ7money that if you are going to buy dollars now in the hopes of benefiting from the depreciation, you've already missed the boat.

But assuming you have kept a certain level of your portfolio in dollars, fund manager Efren Ll. Cruz says buying shares in a dollar mutual fund is becoming an increasingly popular way to invest.

This way, Cruz says you don't have to worry about needing lots of time to monitor the market and making the right decision in the face of market volatility and lack of good research materials.

Aside from the professional management of your funds, you also get a slice of the benefits the fund gets from its diversified portfolio - something that's hard to achieve with your much smaller individual portfolio.

It pays to be watchful of the effects of the depreciation of the peso in both your spending pattern and your personal financial health.

Too many times, we just keep complaining about the political instability's effect on the local currency. Well, its time to stop complaining and start doing something about it.


My argument is obviously pro $$.

:)

#38 tonyboy

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Posted 21 December 2004 - 05:57 AM

Our OPM is Metro Bank, pero their APR is going up next year. :(

a forum member pm'ed me with an advice to put my dollars in citibank. am booked to fly home first week feb.05. will defintiely shop around for potential re investments around metro manila and tagaytay.

thanks everyone!

#39 miadaj

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Posted 21 December 2004 - 01:10 PM

It's never too early to start thinking about retirement. My advise might benefit those living in the US, but this is our experience --

My husband and I have been maxing out our contributions towards our 401K (or its federal equivalent, in my case). For 2005, the maximum contribution is 15% of total salary, as long as it does not go over $14,000 per annum. The nice thing about this is, (1) the company matches our contribution up to a certain percentage, and (2) it's all pretax, so our taxable income is smaller - and we don't even feel the pain, because it is automatically deducted from our paycheck (and LBYM).

Yes, real estate is the way to go. We bought our house recently as an investment. We live in an old community, where the older houses are worth nothing, but the land has appreciated in value in leaps and bounds over the past 15 years. If you've singled out a place to live in, look for properties where values have exponentially grown (or will have the tendency to grow). My husband has been in Houston for 4 yrs and when we decided that we were staying, we searched for months. When we zeroed in on our community and the house, we scouted around for mortgage companies. Luckily, my residents told me about the Doctor Loan program of Bank of America -- no down, no PMI. (Yes, a lot of our residents purchase their own homes/condos!) The loan officer was really nice, working overtime to meet the closing date. We brought VERY minimal money towards closing. It was a great deal, especially with the interest rates being as low as they were in 2004. And again, what we pay for the mortgage interest is a tax deduction!

#40 mikemuin

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Posted 21 December 2004 - 03:58 PM

Thanks for all the tips! My wife and I are looking into saving in dollars but spending in pesos. It's not that much yet, but as I continue to live below my means here in the US, I can slowly save up some dollars.

Any dollars I send home are not converted to pesos but are just saved up. I think longvestor's advice about education is good. I will just continue to save up and study about Stocks and Real Estate slowly. Once I am confident with my savings, that's the time I will invest. Save muna ngayon.

tonyboy, why was citibank recommended? Do they have better rates or plans for dollar accounts?

Thanks everyone. :D

#41 tonyboy

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Posted 22 December 2004 - 07:43 PM

Thanks for all the tips! My wife and I are looking into saving in dollars but spending in pesos. It's not that much yet, but as I continue to live below my means here in the US, I can slowly save up some dollars.

Any dollars I send home are not converted to pesos but are just saved up. I think longvestor's advice about education is good. I will just continue to save up and study about Stocks and Real Estate slowly. Once I am confident with my savings, that's the time I will invest. Save muna ngayon.

tonyboy, why was citibank recommended? Do they have better rates or plans for dollar accounts?

Thanks everyone. :D

mike, citibank was recommended because the forum member's parents were living in the philippines where a branch is located. i guess, i can do the same..open an account there...and deposit funds here sa states towards a collateral.

don't really know about the difference of interests between states and philippine banks...guessing uli...same..very low.

but us citibank deposits are protected by fdic up to 100k..is pinas the same?

#42 mikemuin

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Posted 23 December 2004 - 02:09 PM

We have PDIC in RP. Peso accounts are insured up to 100K pesos. I am not sure about dollar accounts.

#43 dantia

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Posted 23 December 2004 - 08:10 PM

We have PDIC in RP. Peso accounts are insured up to 100K pesos. I am not sure about dollar accounts.

To Mike and Tonyboy,

From Citibank, Pinas website:

Basic Features

Withdraw up to US$3,000/day (or its equivalent in local currency) or inquire about your balance through your international Citicard (ATM Card) at over 860,000 ATMs worldwide.

Access your money at over 3,000 BancNet and selected MegaLink ATMs nationwide.
Through Citibank Online or 24-Hour CitiPhone Banking, you can now monitor your account balance/activity, pay your Citibank credit card and utility bills, or transfer funds among your Citibank accounts or to other banks.
Other Features

Monthly consolidated statements.

No minimum balance required as long as you maintain a Total Relationship Balance (TRB*) of US$10,000.

Earn 0.1% interest rate per annum starting at a deposit of US$5,000.*TRB (Total Relationship Balance) refers to the combined average daily balance of a customer's deposits and investments.

Sobrang liit. :(


A member of the Philippine Deposit Insurance Corporation [PDIC]. Deposits (peso and dollar) insured up to PhP250,000 only.

#44 longvestor

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Posted 27 December 2004 - 10:24 PM

With our three year old BPI time deposit placement automatically re-invested, our dollar account of an initial $1000 earned 2%. As of today, it's now worth $1060. Slow but sure and protected by PDIC...well within the 250,000 pesos insurance protection, if ever BPI folds.

Thanks, dantia for the info.

;)

Edited by longvestor, 28 December 2004 - 09:52 PM.


#45 longvestor

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Posted 27 December 2004 - 11:13 PM

It's never too early to start thinking about retirement.

Thanks, miadaj,
:iagree:

My husband and I have been maxing out our contributions towards our 401K (or its federal equivalent, in my case). For 2005, the maximum contribution is 15% of total salary, as long as it does not go over $14,000 per annum. The nice thing about this is, (1) the company matches our contribution up to a certain percentage, and (2) it's all pretax, so our taxable income is smaller - and we don't even feel the pain, because it is automatically deducted from our paycheck (and LBYM).

Good for you, lucky love birds!

Yes, real estate is the way to go.

Yep!
:iagree::iagree:


We bought our house recently as an investment. We live in an old community, where the older houses are worth nothing, but the land has appreciated in value in leaps and bounds over the past 15 years. If you've singled out a place to live in, look for properties where values have exponentially grown (or will have the tendency to grow). My husband has been in Houston for 4 yrs and when we decided that we were staying, we searched for months. When we zeroed in on our community and the house, we scouted around for mortgage companies. Luckily, my residents told me about the Doctor Loan program of Bank of America -- no down, no PMI. (Yes, a lot of our residents purchase their own homes/condos!) The loan officer was really nice, working overtime to meet the closing date.  We brought VERY minimal money towards closing. It was a great deal, especially with the interest rates being as low as they were in 2004. And again, what we pay for the mortgage interest is a tax deduction!


Res ipsa loquitor!

:)

#46 dantia

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Posted 29 December 2004 - 04:44 AM

With our three year old BPI time deposit placement automatically re-invested, our dollar account of an initial $1000 earned 2%. As of today, it's now worth $1060. Slow but sure and protected by PDIC...well within the 250,000 pesos insurance protection, if ever BPI folds.

Thanks, dantia for the info.

;)

You are welcum! Better than saving it under your mattress, eh?

;)

#47 mikemuin

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Posted 29 December 2004 - 11:15 AM

Hmmm... only $60 after 3 years of time deposit for $1000. Parang masyadong maliit. Di pala pwede pang passive income yang time deposit. :huh: Hay naku, mukhang kailangan pang mag-kayod ng konti. Pangarap ko sana na kumita ng malaki tapos live off on interests lang. Mga magkano kaya kailangan para mangyari yan.

Will definitely have to look at real estate for more promising passive income.

#48 tonyboy

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Posted 29 December 2004 - 01:01 PM

We have PDIC in RP. Peso accounts are insured up to 100K pesos. I am not sure about dollar accounts.

To Mike and Tonyboy,

From Citibank, Pinas website:

Basic Features

Withdraw up to US$3,000/day (or its equivalent in local currency) or inquire about your balance through your international Citicard (ATM Card) at over 860,000 ATMs worldwide.

Access your money at over 3,000 BancNet and selected MegaLink ATMs nationwide.
Through Citibank Online or 24-Hour CitiPhone Banking, you can now monitor your account balance/activity, pay your Citibank credit card and utility bills, or transfer funds among your Citibank accounts or to other banks.
Other Features

Monthly consolidated statements.

No minimum balance required as long as you maintain a Total Relationship Balance (TRB*) of US$10,000.

Earn 0.1% interest rate per annum starting at a deposit of US$5,000.*TRB (Total Relationship Balance) refers to the combined average daily balance of a customer's deposits and investments.

Sobrang liit. :(


A member of the Philippine Deposit Insurance Corporation [PDIC]. Deposits (peso and dollar) insured up to PhP250,000 only.

ty,

sobrang maliit but it's the same with our certificates of deposit here..lower risk is directly proportional to lower returns...parang pinapark mo lang nman ang extra funds sa bank.

#49 tonyboy

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Posted 29 December 2004 - 01:14 PM

Hmmm... only $60 after 3 years of time deposit for $1000. Parang masyadong maliit. Di pala pwede pang passive income yang time deposit. :huh: Hay naku, mukhang kailangan pang mag-kayod ng konti. Pangarap ko sana na kumita ng malaki tapos live off on interests lang. Mga magkano kaya kailangan para mangyari yan.

Will definitely have to look at real estate for more promising passive income.

mike, think of it as temporary place of keeping your dollars in a safe place until it grows into a bigger amount for downpayment...say 10% or more.

where else would you put it? even in the us of a, inflation at 3% a year eats up your interest. what's the inflation rate sa pinas? 7%, 10%? maybe more...with devalued dollars vs the euro and pesos vs the dollar.

yes, kayod ng kayod pa rin ng marami tayong lahat. :(

#50 tonyboy

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Posted 30 December 2004 - 06:46 PM

Thanks for all the tips! My wife and I are looking into saving in dollars but spending in pesos. It's not that much yet, but as I continue to live below my means here in the US, I can slowly save up some dollars.

Any dollars I send home are not converted to pesos but are just saved up. I think longvestor's advice about education is good. I will just continue to save up and study about Stocks and Real Estate slowly. Once I am confident with my savings, that's the time I will invest. Save muna ngayon.

tonyboy, why was citibank recommended? Do they have better rates or plans for dollar accounts?

Thanks everyone. :D

mike, citibank was recommended because the forum member's parents were living in the philippines where a branch is located. i guess, i can do the same..open an account there...and deposit funds here sa states towards a collateral.

don't really know about the difference of interests between states and philippine banks...guessing uli...same..very low.

but us citibank deposits are protected by fdic up to 100k..is pinas the same?

correction...pinas citibank branch does not have reciprocity with stateside branch. kindna strange but a pmd forum member whose parents are presently residing in pinas informed me this. i guess, am advised to search another way to transfer funds.

is there another bank like pnb with us-pinas reciprocity? might have to open a pnb bank in ny and another in manila but am not sure it won't be the same again..parang intra-bank compartamentation. not customer friendly. :(

back to square one for me..more questions..will my us citibank checking account be honored..cashable ba ang personal check ko in pinas bank, or any pinas bank for that matter..and how long ang clearance of a personal check before i can get cash? is there a limit as to the amount to be cashed?

:rolleyes:

ty again, dantia for the links/info! :)