by Jet Villamor
Do we really need to invest? The answer is – how badly do we want to grow our money? Apparently, all of us really want more money – of that I am very certain. It is as certain as the sun rises every morning.
The only reason why people consider putting their money to work is obviously growing it as fast as it can. And that is one of the reasons why more and more people are lured into investment scams because they fail to realize the primordial concept of risks and return. We should always remember this — the higher the return, the higher the risk; the lower the risk, so is the return. If the returns that you will get out of an investment vehicle is simply too good to be true – then, it probably is, and you have to think not only twice but a thousand times before throwing away your money.
When the industrial age began, the concept of job security was also born. People then were so concerned about getting a good high paying job and work for the rest of his/ her productive life in that one same job, hoping that when he/she retires the company will provide him/her with a good substantial retirement income to tide them over as they go into the sun set of their lives. Plus the funds that they had contributed to their Social Security System (SSS) would boost their day to day retirement survival.
That maybe true in the 1990’s, but as politicians became more involved in the many facets of the social funds, the possibility of a bankrupt Social Security System is a very scary scenario. Hence, the average Filipinos should not leave their retirement survival to chance. Unless individuals put matters regarding retirement into their own hands, their one and only old age pension may be in jeopardy.
Facing this current reality, one of the best allies that we have as we move forward towards a better future is no other than — investment. Proper, well planned and timely investment will practically give us the refuge that we need as we grow older.
I would say, gone are the days of job security. Job security these days should be the least of our worries, What we should really be concerned about going into the middle of this century is more of financial security. Our main objective, therefore, should always be financial independence.
Financial independence can only be had if we will educate ourselves regarding money matters and its workings. It will be a lot easier to let our money work for us if we know the basic commands and the program necessary for it to operate – just like how a computer works.
We should enjoy our retirement years rather than retire from enjoyment when we are out of work because of old age. For the longest time, we have been working for money, that is why even before we are retired, we should have already started putting our money to work for us – when we are retired our money should be working for us full time. When money begins to work for us, rather than us working for money, we regain our freedom, we have control over time and we have all the options that we need.
(for questions, comments, suggestions and reactions email @ jvvillamor@insular.com.ph)
