Riding the elevator with JOY

source: http://www.legalpad.com

My title might be kinda out of this world or off topic.

I just read Francis Kong's blog post about Happiness and Joy. In this time I know most of us who invested in the stock market don't feel happy because the US crisis and the European Debt crisis is hurting us. Our portfolio has been in the red for the longest time and it seems cost averaging wont allow us to be in the point of even breaking even.

But again as the author Tony Campolo in Francis Kong's blog says many people are in the elevator and yet it seems that because in the elevator everyone is in a gloomy state waiting for their floor so that they can get off and go to their job or meeting. Why don't we enjoy the ride by singing with rest of the passengers. And when we get off why don't we continue singing and enjoy the rest of the day.  

I know it has been the longest time or probably you just got in the stock market and think it was the right time and yet you still end up in the red like the rest of us. Would you put a sad face or would you rather sing?

Yup analyst predict that this bearish market will drag on, the market seems to be moving sideways till the end of the year. But a some investors, not traders, are more happy than you think. They are happy because they can buy more stocks of good and great companies at a bargain price. Investors buy only when the price of a good and great company is down; did you catch that?

I say it again: Investors buy only when "PRICE" of a good and great company is down. A lot of traders buy up when a stock's price is climbing because they hope to catch the ride and profit by the time the stock's price is higher than what they bought it for which is correct. But if that company is not good or have poor fundamentals you will end up caught when the stock's price drop down. That is why the advice is to buy stocks of blue chips which gives regular dividends so that when such company's stock have a not so favorable price we can still profit with the dividend and in time the price of such stock will go up and that is the right time to sell.

How to file claims for your money in a bankrupt bank

source: http://www.davemanuel.com

With the recent news about LBC Development Bank's going into receivership and other banks in the Philippines I guess knowing how to file claims for your deposits in such banks must be a know how. I remember a comment by one fellow claimant who is already pissed off with the process as well as to the bank to which she deposited her hard earned money.

source:http://www.manilatimes.net

For young Pinoys and my fellow Pinoys who still invest in banks I hope you be cautious in were you invest your money. Though banks are the traditional ways of investing by way of savings and interest, one should always remember the rule that is "don't put your eggs in one basket." Many say diversify which is good but it should be a well manage diversified investment where a portion is invested in safe investments, a big portion is invested in investments that generate continuous returns or income, a little on risky investments for big returns, and a safety net like insurance or emergency fund readily available when the need comes.

Below are the steps on how to claim your money from a closed bank taken over taken by Philippine Deposit Insurance Corporation(PDIC) to guide us when claiming your money from a closed bank:

HOW TO FILE CLAIMS   

A. HOW TO FILE CLAIMS

Claims may be filed either:

Personally

At the premises of the closed bank where the deposit account was maintained or at a designated site during the period of Claims Settlement Operations (CSO), as announced in the Notice to Depositors or as published in a newspaper of general circulation, or

At the PDIC Claims Counter located at the 4th Flr., PDIC Ayala Extension Office, SSS Building, corner V.A. Rufino St., (formerly Herrera St.), Makati City.

Through mail - to be sent to the following address:

Claims Processing Deparment

Philippine Deposit Insurance Corporation

4th Floor SSS Building

6782 Ayala Avenue cor. V.A Rufino St.

1226 Makati City, Philippines

Note: Filing of claims for insured deposits will prescribe at the end of two (2) years from actual takeover of the closed bank by PDIC.

B. STEPS IN FILING CLAIMS

Secure a Claim Form (CF) and Claim Status Sheet (CSS) from any authorized PDIC representative. The CF and CSS can also be downloaded from the PDIC website.

Important Notice: The CF and CSS are free of charge. Please report to PDIC any information for the sale of the CF and CSS.

Fill up all the entries in the Claim Form and sign the “Signature of Depositor/Claimant over Printed Name”. Ensure that the signature in the Claim Form tallies with the signature of the depositor appearing in the bank records and the documents to be submitted to PDIC.

Signatures of depositor on the CF and CSS should be similar to the valid IDs to be presented.

For minor depositor (below eighteen [18] years old), parent should sign the CF and CSS.

For By or ITF accounts, the agent can sign the CF and CSS.

For joint accounts: “OR, AND/OR, AND”, each depositor in the joint account should accomplish separate claim forms.

Submit the duly accomplished CF and CSS, together with the following documents:

original evidence of deposit such as savings passbook, certificate of time deposit, latest bank statement including unused checks and ATM card. For joint accounts: “OR, AND/OR, AND”, the evidence of deposit should be photocopied as many copies as there are depositors to the account.

Original and enlarged clear photocopies of two (2) VALID PHOTO-BEARING IDENTIFICATION DOCUMENTS (IDs) with clear signature of depositor/claimant such as Driver’s License, SSS/ GSIS ID, Senior Citizen’s ID, Passport, PRC ID, OWWA/ OFW ID, Seaman’s ID, Alien Certification of Registration ID, Voter’s ID, IBP. Please ensure that the ID number is clear and legible.

Original copy and photocopy of the Birth Certificate from the National Statistics Office (NSO) or duly certified copy from the local civil registrar, for depositors below eighteen (18) years old.

PDIC will not accept claims which are incomplete/lacking in requirements.

4. Upon evaluation of your claim and documents submitted, other requirements may be requested by PDIC to complete the processing of your claim.

If the depositor is unable to file by himself, a representative may file in his behalf provided the representative will submit a duly notarized Special Power of Attorney (SPA). If the SPA is executed abroad, it must be duly authenticated by the Philippine Consul near the depositor’s residence.

For personal filing, a copy of the CSS indicating the status and/or additional requirements for the claim shall be issued by PDIC which shall serve as a notice of the status of the claim.

For filing through mail, a letter-notice of the status/requirements of the claim shall be sent by PDIC to the depositor, if additional documents shall be required.

C. HOW TO FOLLOW UP THE STATUS OF CLAIMS

You or your duly designated representative may follow up your pending claim through:

Telephone inquiry by calling the PDIC Hotlines at 841-4630 to 4631.

E-mail at pad@pdic.gov.ph or written communication addressed to:

Public Assistance Department

Philippine Deposit Insurance Corporation

10th Floor, SSS Building

6782 Ayala Avenue, cor. V.A. Rufino St.

1226 Makati City, Philippines

Inquiry in person at the premises of the closed bank, or at the designated site during CSO period or at the PAD Counter located at the 4th Flr., PDIC Ayala Extension Office, SSS Building, corner V.A. Rufino St., (formerly Herrera St.), Makati City.

When inquiring by telephone or letter, ensure that the following reference information are mentioned:

name of the closed bank;

name of the depositor, and

claim number and/or account number.

Downloadable forms:

Claim Form

Claim Status Sheet

Special Power of Attorney


I would like to re-iterate what was being told in the TV back there in the Philippines.

INVEST .......... INVESTIGATE!!!

Notice to Depositors of LBC Development Bank on Conduct of Depositors Forum

The Depositors Forum is a venue for PDIC to discuss the procedures and requirements for filing claims. Following is a partial schedule of the Depositors Forums: LBC DEVELOPMENT BANK BRANCHES DATE TIME VENUE Head Office Thursday, Sept. 15, 2011 2:30PM Makati Coliseum, Mascardo St., Brgy. Singkamas, Makati City Aklan Branch Tuesday, Sept. 20, 2011 8:30AM APSTA Teachers' Center 19 Martyr Cor. Mabini Sts., Poblacion, Kalibo, Aklan Angeles Branch Wednesday, Sept. 14, 2011 2PM Sangguniang Panglunsod Session Hall, New City Hall, P. Maragul, Angeles City (near Marquee) Baguio Branch Friday, Sept. 16, 2011 9:00AM CAP Development Center Auditorium, 4thFloor CAP Bldg., Post Office Loop, Baguio City Balanga Branch Wednesday, Sept. 14, 2011 3:00 PM Brgy. Tenejero Covered Court, Balanga, Bataan Batangas Branch Wednesday, Sept. 14, 2011   People's Quadrangle, Batangas City (At the back of City Hall) Cagayan de Oro Branch Monday, Sept. 19, 2011 9:00 AM Brgy. Camaman-an Covered Court, Cagayan de Oro Cebu Branch Friday, Sept. 16, 2011 9:00 AM Sinulog Hall, Public Library, Jones Ave., Cebu (in front of Cebu Doctor Hospital) Iloilo Branch Monday, Sept. 19, 2011 9:00AM Division Social Hall & Cultural Hall, Gen. Luna cor. Mabini St., Iloilo (near Mabini Elem. School) Imus Branch Thursday, Sept. 15, 2011 3:00PM 2nd Floor, Bulwagang Ugnayan (Old Imus City Hall) Laoag Branch Monday, Sept. 19, 2011   City Hall Covered Court, Laoag City Naga Branch Wednesday, Sept. 14, 2011 8:30AM Naga City People's Hall (inside City Hall), J. Miranda Ave., Naga City Olongapo Wednesday, Sept. 14, 2011 9AM Rizal Triangle Multi-purpose Center, West Bajac-Bajac, Olongapo City San Pedro Branch Thursday, Sept. 15, 2011 9:30AM Brgy. Poblacion Covered Court, 20 Ramirez Ave., Cataquiz 1 Subdivision, Brgy. Poblacion, San Pedro, Laguna Timog (Quezon City) Tuesday, Sept. 13, 2011 10AM Covered Court, Barangay Laging Handa, Scout Gandia, Quezon City Urdaneta Branch Thursday, Sept. 15, 2011 9AM Main Gym, Urdaneta City Convention and Sports Center, (near LTO Office), Urdaneta, Pangasinan Vigan Branch Friday, September 16, 2011 2PM Cuta Gym, Barangay 9 corner Rivero St. and V. delos Reyes St., Vigan City Schedule of Depositors Forums for the Head Office and other Branches not covered above will be announced later. The schedule of claims settlement operations (CSO) will be announced later. For more information and updates, please get in touch with PDIC through: PDIC Hotlines (02) 841-4630 and 841-4631 Email at pad@pdic.gov.ph Website: www.pdic.gov.ph

A video about how the Sub-Prime bubble came about

source: http://crisisofcredit.com/

If you still have no idea why our world is in a financial crisis here's a video from Crisis of Credit that explains the story in a informative and visualized presentation.



The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Always remember that when risk is not manage and when greed creeps in the likelihood of collapse is greater. It is each and everyone's responsibility to make sure that the financial system is strong. Invest in the right companies, save for emergencies, and still spend on basic needs to keep money flowing in cycle. When one stops and hoards money others will be affected.

Invest wisely and spend wisely as well.

Want to change your financial status?

I got this seminar in my beloved Krissy's blog moneylifeblood if interested you can follow the instructions and reserved your seats for the seminar. I heard seats are running out already so if you want to make a change in your life attend this seminar. Put Kris Diane Domingo as the referrer.

Your Last Chance in 2011 to Secure Your Future

Sharing with you email from Personal Finance Advisers (Sir Efren used to work in Standard Chartered Bank where he was the Head of Wealth Management. He's a fun cool guy listeners to his seminar would greatly enjoy the experience).

Secure your future!

Sign up for the

EnRich

personal finance training program. 

Your appointment is on Oct. 27, 2011.

To register for EnRich, please deposit your training investment as follows: BPI Family Bank Katipunan Ave. S/A #6863-0722-45 under the name Personal Finance Advisers Phils. Corp. or BPI Loyola Heights S/A # 3089-1535-72 under the name of Efren L. Cruz. Please email a scanned copy or picture of the deposit slip to info@personalfinance.ph indicating your name and the name of the person who referred you, if any. If you refer attendees, please have them indicate your name as referrer on the deposit slip. You may also fax a copy of the deposit slip and other particulars to (63-2) 939-9593. Kindly note that the Php2,000 per person early bird rate applies to payments received on or before Oct. 7, 2011 . Otherwise, the regular seminar fee of Php2,500 per person shall be your investment.

However, if you successfully refer people, you will be given a 20% referral fee based on the training investment paid. The 20% referral fee, gross of the 10% creditable withholding tax shall be awarded on the seminar date. Refer six people and you earn more than enough (net of tax) to attend the training program yourself.

Do hurry as there are limited seats available. 

Philippine Stock Exchange new look

It has been awhile when the Philippine Stock Exchange switch to a new trading platform and now if you go to their website you will see the new website which they have been preparing and tested in beta.

The new website is kinda still slow uploading most of its components probably since it is just new but in time as the glitches come out and troubleshooted it will soon be well just like when they implemented the new trading platform.

Below are some of the screen shots of the new PSE website; to check please go to www.pse.com.ph

Retiring at 40

source: http://exoticpetstore.blogspot.com/

While the market is still down deep(yup don't lose hope it will go up anytime now) lets talk about what you and I wanted to do in life.

Back then I have told myself that I will retire at 40. By that, to clarify, I mean to retire from being an employee and be the boss of my own. Kinda big job to accomplish but as they say unless you have a specific goal you want to achieve you will be always reckless and find yourself from where you have always been, that is the beginning.

So make a bold statement. Tell the world what you wanted in the next few years(and for me its about 10 more years to go). Tell yourself, yup of all you have to make yourself aware of what you have been asking or else after starting such journey you might give up).

I have started this blog primarily to document my journey to financial freedom. Many people think "FINANCIAL FREEDOM" is when one has a lot of money. That means you have money enough so that you can just sit down and relax in the comfort of one of your 200 40 hectare vacation houses in the world. Probably this is how you picture yourself being financially free but even though you are filthy rich(as most of us term it) Financial Freedom actually is not measured in the quantity of money you have. Rather one is said to be financially free once one has achieve mastery of how money works for oneself and not the other way around. Probably you may have all those vacation houses I just mentioned but you are still unhappy in spite of what you already have then I guess you are not financially free. Your accumulated wealth has just become an escape or a facade of your unhappiness.

A lot of people also say that to be selfless is the way to happiness. Yeah you did it. You join a charity group once in a while you do give donations and join in activities which are good. But in the middle of it you are still unhappy. Probably you cant put such activity to your schedule any more or maybe financially you are incapable yourself. Instead of feeling the happiness and self fulfilment it seems that your joining a group is choking you. And that is an unhappy situation.

So how should we be able to achieve our goals?

source: http://www.speaklifeyouthministries.com

2 Corinthians 9:7

Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. 

We have to strike a balance. As the verse from the Bible says, we must be decided, not reluctant, and not under compulsion. When we make decisions and set our goals we must give our 100% and not just a partial of it. When we give we must not have any hesitation. So if you are hesitant please don't give. Let that opportunity pass. Maybe you are not ready because at the back of your mind there are needs of your own or your family that you have to care of. 

So as early as possible decide what you really want(for me that is retiring at 40). Set a date for that and as you do your day to day living ideas or opportunities will open up for you to take action. Yes you may grab that opportunity but again if such opportunity is paired with hesitation or reluctance let go. It simple means you are not ready. 

If you are still undecided why don't you take a walk in your village or a nearby park where it is quite. Just walk. They say walking clears the mind. 

source: http://tripwow.tripadvisor.com

Will you join me in my walk? Yes in awhile I will be walking in the lovely sunset here in Tumon, Guam(I hope the dark clouds will be fully blown away) the stock market is probably in its bottom and I am thinking which stocks to buy next week.

Technical side: Chart Patters what are they?

source: http://www.chartpatterns.com/

Here is what Investopedia.com has to say about patterns:

In technical analysis, the distinctive formation created by the movement of security prices on a chart. It is identified by a line connecting common price points (closing prices, highs, lows) over a period of time. Chartists try to identify patterns to try to anticipate the future price direction. Also known as "trading pattern".

So generally chart patterns are formations made by connecting some points of the stock's movement for a period of time. With this definition one chartist may see a different chart pattern from another chartist if they have different time period and different movements as a connecting point.

Chart patterns can be made whether one uses a Candlestick chart, a Bar Chart, or a simple Closing Price Chart. These patterns are not exact and accurate answer to everyone's question if a stock is a buy or a sell but mainly it guides one to at least know what is the probable price action of the stock in the next couple of days base on historical price movement.

Patterns can be classified as Bullish pr Bearish chart patterns. 

source:http://www.torycapital.com

Bullish chart patterns are patterns that signify an upward trend meaning price action is predicted to go up because sellers are pushing the price up and buyers are willing to buy at a higher price believing that stock price are still going up due to an expected market recovery or boom in the economy.

Bearish chart patterns are the opposite of a bullish market. A bearish pattern signify an expected decline in prices brought about by fear of economic downfall or an expected poor economy. Such fear spur panic to investors thus sellers sell down to grab as much profit they can take before market gets stuck. Buyers on the other hand bargain hunt thus they bid for lower prices.

Patterns as well can be viewed as a Reversal or Continuation.

Source: http://tradegartleypattern.blogspot.com/

Reversal patterns indicate a opposite action from what has already been happening in the stock's price. If the stock has been on a downtrend for sometime a reversal pattern will indicate an expected upward thus investors anticipate such reversal and thus buy more of the stock to capitalize on the stocks lower price.

Continuation pattern on the other hand indicates that the stock price will be expected to go up further. With this expectation investors will buy more to ride with the stocks seemingly continuing rise.

Ways to be debt free: More on Savings Fund

source: http://www.dailymail.co.uk

Remember my blog post Allocating your salary or Earnings?

I would like to expound more on the topic on savings. I guess this post will make big wake up call for most of us.

Now lets understand how a normal YOU would do upon receiving your paycheck. First of all even before getting your paycheck you have probably already made plans where will you and your friends will go on gimmick. Or maybe you already called the store where the bag you wanted is being sold and asked them if they can reserve it for you till the night of payday. Or maybe your bags are already pack for a weekend getaway just waiting for your pocket money.

All of those are not bad, you work for your salary so you deserved to spend. So on your pay day you get your check and you invent all excuses to cash that check(if your employer don't do direct deposit). And then you pay the minimum required payment of your credit card, separate the money for whatever your plans for the weekend and the balance you give it to your wife, mom, or housemate for the utilities.

Yup that is YOU. Living from paycheck to paycheck.

You will tell me it is the only way you can de-stressed from the the toxic office or work you have. Or it is only the escape you can afford. Yeah I get you, it is but again why rush to this when you can actually just slow down. 

There is no need to go to out of town just to escape the toxic work or probably your toxic house or maybe the toxic people who will be part of your weekend. I know what you mean, I am human too I did and I am still experiencing the toxicity of people and everything but that action is just short term.

After the weekend getaway, after the buying spree or malling, or even after the gimmick where do you find yourself again? Isn't it you are back to the same toxic work that you hate, the same toxic people that you just escaped or left behind for the short moment, or even the same toxic life that you have. 

I have a suggestion. But let me warn you that this is not a quick fix and is not applicable to all. Do you understand the Law of Diminishing Returns?

Law what?

Yup its a law called Law of Diminishing Returns. This law is in connection to savings. 

Let me first tell you what is Law of Diminishing Returns mean.

Law of Diminishing Returns states that:

Decrease in the marginal (per-unit) output of a production process as the amount of a single factor of production is increased, while the amounts of all other factors of production stay constant.  

source: http://www.relationship-economy.com

Ok in layman's term: The satisfaction you get decreases when a particular factor is increase given that other factors remain the same.

For example as you increase your weekend getaway as time passes(meaning you increase the number of your getaway because you feel stress out every week in your work) it will seem that your excitement to go and your enjoyment going out lessens and at some point you don't feel your de-stressing at all. In the local term this is what we call "nakakasawa."

Back in my college years this topic was discussed in my economics subject(where were you when this was discussed?). The most example us is the bottomless Coke. In a certain restaurant there is a Coke machine where all customers who pay are given a single size cup and they can refill as long as they can and remember no sharing. The maximum a normal person can drink is up to 5 cups. With this restaurants already included the cost of this to each combo meal that comes with a bottomless drink. If you all already fed up at 3 cups of Coke they win because in reality you paid for 5 cups(remember the cost of such bottomless drink is included in the price you are paying for the meal) and if you go beyond 5 cups(you sure have a big storage there) they lose.

source: http://www.coca-cola.com

We have to apply such to our savings.

Yes you save for the gateway or anything that you want to buy that you think you deserve but do you think buying and buying such will make you happy in the long run? Probably for some yes specially for those who collects bags and treasure them like their babies. But it is a truth that you would eventually realize that it is a pointless spending when you don't find that happiness that such spending once brought you.

Here is the solution that I am talking about. Why don't you save and save and when it seems that you don't have that much liking already for the getaway or that bag, or that gimmick you set that saving aside for something more permanent? We call this delaying gratification.

Yup so many people and gurus have already talked about this and again I am reiterating their advice and adding something more; why don't you save up for something permanent. 

Is your work giving you stress? Then why don't you save up so that you wont work in that toxic work anymore? Why don't you be the boss of your own company. I know that is more stressful. Yup it may be more stressful running your own business but in this one you have control of everything.

If you are in my generation you night have also watched the Fullmetal Alchemist anime. Yup remember the rule of Alchemy: Equivalent Exchange.

source: http://media.photobucket.com

source: http://fma.wikia.com

Such is very true. What ever you save up has a value. Everything in this world is not free. If you want a comfortable life you have to sacrifice now to achieve it in the future. But then you ask me how come others are so rich that they don't worry and it seems they don't observe such Equivalent Exchange. To tell you the truth they actually did exchange something for what they are enjoying now.

Besides them sacrificing something along the way they have learned how to make money work for them that it came to the point that even if they are sleeping their wealth works for them a billion times harder than they did. 

How about you will you stay living from paycheck to paycheck waiting for the Law of Diminishing Returns to get at you and will feel it seems your stuck in a rut or will you be brave to sacrifice something in exchange for something so that you will be happy the rest of your life? 

I am working on it I hope you are also working on it as well.

Citiseconline sponsored show in GMA7: Pesos and Sense

http://www.pesosandsense.com/

I was just checking my Citiseconline Brokerage account when I noticed this show that is showing today at GMA7(Channel 11).

The show is titled Pesos and Sense. Below is a small preview of what is in the said new show:

It is a a 30 minute show that discusses all about how money works just like what the "tindera" in the video said. Wow if all Pinoys have the same wisdom as the lady above I would believe poverty will surely end in the Philippines .


Their first guest is no other than Bo Sanchez.

http://www.pesosandsense.com/

Again it is showing in GMA7 (Channel 11) 8:30 to 9:00 am and I guess every Saturday. I hope more shows like this will be on the free airwaves for our Kababayans to watch. It would be great to keep it short and simple in the most watch TV slot so that our Kababayans will learn something about how money works and how can they make it work for them instead of them working for money.

Have you lost money like Steve Jobs?

source: http://www.blogworld.com

“I’m the only person I know that’s lost a quarter of a billion dollars in one year…. It’s very character-building.”

- Steve Jobs

Have you lost already in your stock investments like Steve Jobs? Probably not or probably you might have. And as the great man of marketing and innovation said "It's character-building."

I have two online stock brokerage accounts. Ask me now how is my portfolio on both accounts? Answer is: Both are at negative after the sudden stung the stock market took from recent economic woes. How much? About 1/5 of my total investment. 

It is sad to hear when people ask me about my stock investment and how much I already earned expecting me to say that I already earned one million in just 6 months but in reality I only earned about 1/4 from my original investment(which is not yet a million by the way). And when they learned about it they would say "oh I thought I can be a millionaire in the stock market."

Here is the truth: The stock market is a risky place to invest but along with risk comes returns.

source:http://wilderdom.com

That is why we have what we call calculated risk. We place our investments in stocks that will generate an acceptable future earnings at the same time buying such stocks when they are at their bottom prices. We only put free cash in stocks. We are investors not gamblers. 

From time to time we might do short trades on our stocks to seize the moment and pocket gains to further buy stocks of great value that will give us at least two bagger returns within the next 3-5 years.

So should we stop investing in stocks because we made a bad stock investment decision and lost money? 

We should rather be good students who learn from such mistake and use that learning experience to avoid the same mistake and develop a better way of doing stock investing.

Yes as Jobs said it is humbling; accept your mistakes and learn how to  turn your mistake into your point of achieving your goals.

source: http://www.triathlontrainingisfun.com