Peso Cost Averaging

By Cheryl Sperling

Last time, we were talking about investing in mutual funds. Some will be asking when is the best time to invest and how often do we invest? Well, there's is no best time to invest than NOW! The sooner we start investing, the better, due to the power of compounding or the rule of 72. We invest even when the market is down, or the market is up, or when there is a political chaos, or when there is political peace and quite. We may hear that we should time the market, but in the following chart below, it will illustrate three (3) scenarios of different market conditions in the stock market.

Peso Cost Averaging. Like saving, we should make investing a regular habit. We should invest regularly, say monthly at a fixed amount! This is what we call as peso cost averaging. By doing so, we minimize or reduce the risk of our investment when the market goes up and down, or simply said whether the prices of stocks are high or when the prices are down. "Save as fast as you can while you can."

                                                         *Courtesy of IMG

In the illustration, an investor, Mr. A, decided or planned to invest 100 pesos every month for 6 months: (Today, or at present, we can start investing in mutual funds starting at

Wealth With Responsibility

By Cheryl Sperling

The X-Curve concept of Wealth and Responsibility: 

This concept theorizes that a person's responsibilities generally decreases and wealth generally increases over time. Every peso you save will correspondingly go towards decreasing your responsibility. 

While we are young, we are generally less secure as we are still starting up; our salary is low, our kids are still schooling, we are still starting out in life and most probably no house or car, yet. So, at this point in time our responsibility is at its highest as well. At this stage in our life, our concern is what if we die too soon? The solution for such is to have an insurance so that our family will be taken cared of and their needs for education and sustenance will be provided should you, the income earner, unexpectedly die or be disabled.  

* Courtesy of IMG.

On the other hand, as we grow older, ideally, we should have accumulated enough wealth to make our responsibilities go to zero. At this stage,