Investing

Over the more than 3 decades of working in the corporate world, I have asked hundreds of people what their ultimate dream is and predominantly, they would answer “I want to be my own boss”. Everyone wants to be an entrepreneur but only few would take the bold move. Myself included.

My bold move was sort of “forced” on me as it was a couple of years earlier than my original plan.

The pandemic slowed down every business and no one was spared. Being realistic, I know that my role cannot be justified anymore knowing that mine was an expensive item. I readily accepted the reality and quickly moved to implement my plan…to build a Resort that will be the source of my Retirement Income

It seems everything was orchestrated by my mother who’s passing triggered the construction of VirCris Mountain Resort as a tribute to her hardwork to raise us and my 3 siblings and to honor our beloved father who died 35 years ago. A few months before my retirement, we started its construction with only Phase 1 in mind. Upon my retirement, I decided to accelerate the construction of Phase 2 as I do not want my retirement money to stay idle and with the very unstable market, there weren’t too many options out there.

My new chapter as an entrepreneur and Resort Owner is certainly not only a bold move but the most daring one I’ve taken. Considering the ongoing pandemic then and no end in sight yet, putting something that is capital intensive is not for those with a faint heart. It is a leap of faith and that is absolutely the best way to put it – a leap of faith!

My corporate experience though has prepared me for this. In my role, I would lecture on basic business management principles – it is time to execute the talk.

“Education is the most powerful weapon which you can use to change the world.”
~Nelson Mandela

One thing I am truly proud of as a Filipino is how we value education and parents go through great lengths to have their children finish a degree as we believe that it increases the probability of our children having a good future.

My story is no different. The conversation I had with my father that fateful night when I was in second year high school continues to be vivid in my mind until now. He came home and saw me crying because I was not yet enrolled as he was still sourcing the money. He sat me down and told me that no matter what happens, I will be enrolled and he promised that even if it takes selling all that he has, he will make sure he gets me through school. He passed away when I was in my junior year in College and indeed, he left provisions so I could finish my degree. His life insurance policy made sure I continue my studies despite the unstable income of my mother from her “sari-sari” store (a sari-sari store is a small neighbourhood store that sells common sundry items; sari-sari is a Filipino word for variety).

Thank you, Papang for fulfilling your promise.

When it was my turn to have a child of my own, setting up an education fund for our daughter was one of the first decisions we made as parents. Both my husband and I got separate policies three months apart. Last year, after 15 years, our education plans matured so we now have her college fund ready (she will be entering college in less than 2 years). Since both my husband and I are still earning, we have the choice to re-invest a portion of it which she can use later after graduation or if we need it for some education requirements, we can do that too. Our decision to set it up early gave us the options now plus the peace of mind that no matter what happens to our ability to earn, she can finish her chosen degree just like what my father did to me.

Our bundle of joy at about the time we started her education fund

The key is to start early. As soon as your bundle of joy is born (or better still, before birth), start setting up his/her education fund because the more years you have to grow the fund, the less amount you need to start it.

Invest it in a fund that is not easy to access. Simply putting it in a savings account does not only put your money to sleep (as it hardly earns anything) but it also gives you easy access to it so the risk of diverting it to other things is high.

Make it grow. If you start it early, like ten years or more before you actually need it, you can be more aggressive in the funds you invest in. Aggressive funds like equity give more upside but may also be more volatile. However, the longer time horizon you have mitigates the risks. Do frequent top-ups so you catch the “downs” of the market and get higher returns. Don’t just invest one time. Invest frequently.

Having more children requires an even more deliberate approach to education funding especially that we have other needs to prepare for like our retirement. Considering the ever-increasing cost of education, it’s either you will compromise the comforts of your daily living now by cutting your expenses here and there or you compromise your ability to save for a comfortable retirement. Both require long-term planning.

So while you still can, start it now. Every delay has a price to pay.

For related blogs, please read the links below:

From a fast lane to a different kind of busy (My New Chapter)

Set it up early…ensuring your child’s future