Accidents do not happen without a REASON

Amiel Alcantara's life was cut short by an unthinkable accident in the Ateneo campus. Never in my life did I hear such story where a boy is squeezed in between to vehicles in a traffic, in a parking , and while in a campus.

The accident is a concrete example that such can happen to anyone regardless of social status, age, gender or place. Very often do we think that we are sheltered from danger as long as we take extra precautions. Unfortunately, not all think and act the same way. Even how careful one is , there is still no guarantee. If the person next to you is not as particular with road safety or his social responsibility, then anybody can be a victim.

To the Alcantara's, our family is deeply shocked and saddened by what had happened to your son and your family. The pain from the loss will take some time to heal. It's only through God's grace that you will surely move on and find meaning in these difficult times.

Because of the accident, I realized that life is too short. It's best that we continue to invest in nurturing the relationships in our families and communities. So that when we retire and go back in the loving arms of our Lord, we can say that our short stay has changed the lives of others.

Warren: 10 Tips on Managing Your Finances in 2009

Warren Buffet's advice for 2009

We begin this New Year with dampened enthusiasm and dented optimism.

Our happiness is diluted and our peace is threatened by the
financial illness that has infected our families, organizations and
nations. Everyone is desperate to find a remedy that will cure their
financial illness and help them recover their financial health.

Theyexpect the financial experts to provide them with remedies,
forgetting the fact that it is these experts who created this
financial mess.

Every new year, I adopt a couple of old maxims as my beacons to
guide my future. This self-prescribed therapy has ensured that with
each passing year, I grow wiser and not older. This year, I invite
you to tap into the financial wisdom of our elders along with me,
and become financially wiser.

1 Hard work: All hard work bring a profit, but mere talk leads
only to poverty.

2 Laziness: A sleeping lobster is carried away by the water
current.

3 Earnings: Never depend on a single source of income. [At
least make your Investments get you second earning]

4 Spending: If you buy things you don't need, you'll soon sell
things you need.

5 Savings: Don't save what is left after spending; Spend what
is left after saving.

6 Borrowings: The borrower becomes the lender's slave.

7 Accounting: It's no use carrying an umbrella, if your shoes
are leaking.

8 Auditing: Beware of little expenses; A small leak can sink a
large ship.

9 Risk-taking: Never test the depth of the river with both
feet. [Have an alternate plan ready]

10 Investment: Don't put all your eggs in one basket.

I'm certain that those who have already been practicing these
principles remain financially healthy. I'm equally confident that
those who resolve to start practicing these principles will quickly
regain their financial health.

With Best Regards,
Warren Buffet

5 Financial Planning Tips during a Financial Crisis

Having a balanced portfolio can bring you one step closer to achieving financial freedom regardless of where are you in the life cycle. When risks are recognized, the effects of crisis is minimized. Availing life and health insurance, creating an educational fund and setting up a retirement plan provides you a buffer against the economic effects of dying too soon or living too long.

Have a personal vision. Enumerate your three important lifestyle dreams. Do you envision your children studying in an ivy league university ? Do you want to be retiring by 50 or do you like to toil until you reach 70? Visualization allows you when and how much resources and money you need to achieve the dream.

Determine your time horizon. If you want a house 10 years down the road, the saving strategy will be different from saving for a Europe vacation 2 years from now. You might want to invest in a retirement plan where you just put in money and avail the benefits at age 60.

Know thyself . You would know how risk averse or risk tolerant you are. There are investments that produce long term high yield overtime but the volatility is like a roller coaster ride. You may be attracted to the yields, but experience stomach acidity when the market crashes. This type of investment is not for you. You may be more fit to have guaranteed paying plans.

It can be the other way around , you may get so bored with single digit returns. And the moment the market slides down , you are the happiest person because you are buying at a low price. Then go for the equities and market linked type of investments i.e. variable life insurance or mutual fund investments

Allocate resources according to your needs. Financial planners and institutions can advise individuals matching needs, risk tolerance and time horizon. Some would have greater percentage of their money in investments, while others in guaranteed plans like life insurance policies and educational plan. No individual financial plan can answer everyone’s needs.

For the family to enjoy the benefits of a new house, you need to have a contingency fund to source from when illness strikes the bread winner. Or else the healthy members will be surprised to be the payors of the mortgage. Thus create a contingency fund which can be from your own funds or from the funds of companies like the insurance companies.

What you sow is what you reap. You need to do your assignment in knowing what it takes to pursue your dream. There is definitely no free lunch. Discipline and delayed gratification will make the difference in successfully achieving your vision.

Feel free to share your financial planning tips and experiences.

If you need more information about the components of a financial plan, click here

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