Financial Literacy 101: Tamang pamamahala sa instant millions o salapi na dumating nang hindi inaasahan
Financial Literacy 101: Tamang pamamahala sa instant millions o salapi na dumating nang hindi inaasahan
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00:00Let's talk about financials, this is what we are often asked, especially those who acquired a lot of money or won a lotto.
00:11What will you do if you suddenly have a lot of money, the life-changing money?
00:19What will you do, Rod?
00:21First of all, I was so overwhelmed, it was like overnight, but one of the things I thought about is to invest or save
00:29because I don't want to go back to my old life before I had this kind of value.
00:33Well, usually, there are documentary studies that I've watched,
00:38some of them make it public, they let people know that they have that kind of big amount of money.
00:42There's a sense of entitlement, relatives, friends, suddenly it's gone, it disappears right away.
00:48Or maybe their life is not in danger because they know that they have a big amount of money.
00:53But what should we do to save or sustain our money?
00:58Let's find out from Sir Floyd Wicoco, a financial advisor.
01:02Good morning and welcome to Rise and Shine Philippines, sir.
01:05Good morning, sir.
01:10Okay, I think he's on mute, sir.
01:12There.
01:12There.
01:13Good morning.
01:15Okay, sir.
01:17For example, if I suddenly become a billionaire,
01:21how can I protect or maintain my money?
01:28Well, the most important thing is the security of the wealth that we acquired.
01:36There are many ways.
01:39For example, one of the best ways is to get life insurance.
01:47It's a very basic move.
01:50But if we look at it, let's just say the money suddenly came,
01:59or maybe we're expecting it, or maybe not, or it's a huge amount.
02:06Now, it will not hurt if we have insurance because, of course, we don't know what can happen to us.
02:12So for unexpected reasons, the best is to secure it first.
02:18So get a life insurance.
02:19There are many insurance products that can help you protect your wealth.
02:27For example, we have what we call VUL, so Variable Unit League,
02:33or there are also term insurance.
02:36So in the case, for example, maybe for Carlos Yulo because he got a big amount.
02:42So one of the recommendations for him is a single pay VUL.
02:47It means that he doesn't have to pay the insurance itself.
02:52It means that his money is invested.
02:57That same investment, there is no payment on the insurance side,
03:02but he's protected with a life insurance already.
03:07So it means that he's invested, but he's also insured at the same time.
03:11He's not allowed to pay the insurance.
03:13Sir, aside from that, what is the best thing to do to save the money that we have?
03:23Okay, well, again, of course, it's unexpected.
03:29Or maybe in an unexpected situation, he got a huge amount of money.
03:35To be honest, if we look at the top 10 billionaires in the whole world,
03:42even just in the Philippines, if we're going to look at it,
03:44we can say 8 out of 10 or 9 out of 10 or even 10 out of 10 are invested in real estate.
03:51So my recommendation, even though, let's say, in the case of Carlos Yulo,
03:57he can give a condo unit on top of that.
04:01I think he can also consider creating passive income.
04:04So that way, of course, when you have a real estate investment,
04:11it gives you somehow one, security, and second is a passive form of investment.
04:17And a lot of the richest people in the world are heavily invested in real estate.
04:26Imagine, for a real estate investment, you can get at least around 8 to 10% on average per annum return or per annum return.
04:36So he needs to create passive income because, of course, it's unexpected, that certain form of income.
04:47So now, the best way is to continue that kind of growth.
04:51Because you're already there, you've already achieved that kind of wealth or that kind of wealth.
04:56So best is to maintain that.
04:58So that's one, real estate.
05:01So other is, he can also invest in bonds.
05:04So let's say, there are government bonds that can give you at least around 5 to 7% per year.
05:13So bonds are the government projects that will seek loan from the private investors or even private companies will seek loan from private investors.
05:27So bonds is one way.
05:30And of course, he can also invest in investments like the stock market or equity market, I should say.
05:41Or he can also invest in crypto if he's also opening into that kind of financial instrument.
05:47Okay, sir. Ideally, your suggestions are good because you can maintain your money.
05:53But there are people who suddenly have a lot of money that they've been working for their whole life.
06:00They don't know about stocks, bonds, or how to run a business.
06:06How important is it for people who suddenly have a lot of money to get financial advisors?
06:15That's a good question.
06:17And of course, I will also recommend.
06:20So if this kind of situation happens, and let's just say that this kind of situation is new to us.
06:30So best is to get a financial expert.
06:35So we have what we call registered financial planners.
06:40These are the people who won't actually sell you insurance.
06:44It's more of they're going to help you on how you can maintain your wealth.
06:49So it is important for you to get a registered financial planner because it goes beyond your wealth.
06:57It also goes to how you can protect it and at the same time sustain.
07:02There are historical information that we got, even those who won lotto, for example.
07:10So some of them, they lost whatever they won, even if they got hundreds of millions of pesos.
07:16So if we don't want to lose the opportunity that is given to us,
07:21so best is to protect it.
07:23And for you to protect it, if you have less knowledge about it,
07:26best if you get to consult with a registered financial planner or a financial expert.
07:32Okay, that's right, Rod. Consult with an expert.
07:36Because sometimes the people who advise us are family, friends.
07:39Others are mothers.
07:40So it's better to have an expert or a professional.
07:43So there's a guide, right?
07:44If the value of the money is big.
07:46Go ahead, Rod.
07:47Sir, one of the concerns is impulsive spending, especially if you have a big value.
07:52What should be done or an effective way to resist spending and using money in a balanced way?
08:00Again, that's a good question.
08:03So again, this is a situation where, let's say, of course, you got a big prize.
08:12You got a big income.
08:15So in these kinds of cases, we have a psychological mindset that it won't go away.
08:22So if we have a tendency that, let's say, you deprived yourself.
08:30Before, I didn't have this kind of wealth.
08:34And now, I have a lot of money, it won't go away.
08:37So best is, well, of course, it's easy to say to stop.
08:41But my recommendation is at least around 5% to 10% of your unexpected income,
08:50spend it on things that we can say are for yourself or for your family or friends.
08:59Once you go beyond that limit, you have to stop.
09:03Because again, you're going to gauge it.
09:06Let's say, 5% to 10% of your winnings suddenly went away in one day.
09:10Or let's say, in less than a month, it went away.
09:14So that means, if you're going to do that in the next coming months, it will go away immediately.
09:19So we don't want that kind of situation to happen.
09:22So best is that we just allocate for free.
09:27Or if we really want to give to our friends or even to our family,
09:32at a limit of 5% to 10%.
09:34Because again, if you want to help your family further,
09:39it's not just going to be measured by just giving money.
09:42Best is that give them as well or teach them as well on how they can grow that money.
09:47So maybe teach them how to invest.
09:51And then, we also need to be careful when it comes to running a business.
09:57Because that's the heart of it.
09:59For example, if you make a lot of money, your family will say,
10:03let's do business here.
10:05Of course, your family is not that expert when it comes to running a business.
10:11So make sure that you know what kind of business you're running.
10:15Because again, it's an unexpected income or a kind of wealth
10:22that suddenly comes to our lives.
10:25And let's just say that it only comes once in our lifetime.
10:29So if that kind of opportunity comes, best is to continue to maintain that kind of wealth.
10:34And by maintaining that kind of wealth,
10:36we need to invest properly and allocate properly so that we can grow even more.
10:42There you go, Karles Mina.
10:44If you're going to have a lot of money,
10:46do the things mentioned by Sir Floyd W. Coco
10:49that he shared this morning so that you can protect and grow your money.
10:53We also asked for advice from experts such as financial and legal experts
10:58who can help you manage your money.
11:01Again, thank you very much, Sir Floyd W. Coco,
11:05for answering our questions and information.
11:08Thank you very much, sir.
11:09Thank you, sir.