I am a seaman, 37 years old and I’ve saved a lot for my 13 months “on board ship” amounting to one million pesos. Before my money runs out due to mismanagement and invest in other means I seek your financial advice and correct me if I’m wrong to the things I planned to do when returned home in the Philippines by 1st week of October. By the way, if you ask me about my profile as an investor I can say that I can take any risk and can afford whatever to lose, in fact an aggressive type seeking for high returns with high risk. My financial objectives are for retirement, college funding and accumulate enough money for my financial freedom, which all goes with long-bdo forex investment.
The following are my planned investment with this 1 million. One thing more also, I will receive 5,000 USD leave pay which I planned to invest in MBTC dollar fund which please advice. 1 million pesos is a very good amount to start investing with. Now let’s take a look at your plan.
You have 1 million pesos and 5,000 USD at your disposal or a total of around 1. First, the car loan and the emergency fund are not really investments. You have allocated a bulk of this amount to the different kinds of UITFs offered by different banks and in doing so, perhaps you were trying to manage risk through diversification. I see three problems with this strategy. So let’s say you want to maintain this mix. I suggest you get historical prices of the funds that you’re interested in and compute for the Sharpe Ratio of each fund.