Chapter 5: How Should a Millennial Invest?

Millennials referred here are those that have ages between 21-35 years old. They comprise more than 50% of the total population of the Philippines as of 2017. If you belong to this group, you have a totally different situation, and needs a different approach into investing. Actually, you are the luckiest bunch of investors. You have the luxury of time. Time is your greatest asset.

Millennials are highly connected in the internet. They are on-line most of their time. They are exposed to interesting travel spots, updated gadgets, and places to eat. Search engines in the net exposes them to many spending opportunities. They would normally hop from one job to another. Most of them, plan to marry in their early 30’s. 

Most millennials go by the by-line “YOLO- You Only Live Once”. Thus, they enjoy their freedom and spend most of their income on food, travels, and gadgets. Investing for them takes the back seat. They simply want to enjoy life.

However, these millennials are gifted with time. They do not have to invest a lot of money to prepare for their future. 20-30 years of investment period is an advantage they have. They don’t have to invest so much to accumulate their millions. They just have to start early.

Do you know that if you are a millennial at 21 years old, you only need to invest 3000Php for 20 years, and you can achieve more than 3M. Then you can leave your investments to compound to 15M Php investment accumulation, when you retire at 60 years of age. You invest in your Level 1 (Kaiser LongTerm HealthCare)  for 7 years and move your Level 1 Investments to Level 2 (Mutual Funds) on the 8th to 20 year. The balance of your investible funds can simultaneously be invested into either Level 2 or Level 3 (Direct Stocks).

At 31 years of age, and up, they normally start to plan for their marriage and have their own family. This is their new challenge. How to accumulate money for their wedding day. If they start to save at 21 at least 50Php/Day or 1500Php/Month, they will have 346,069 Php for their wedding (assuming a compounded rate of return of 12%)!

A complete retirement plan for a 31 Year Old can be as low s 4000Php/Month. With this, they can achieve about 7.7M investment accumulation at age 60.

Based on the above examples of two guys investing at the same time,  one is 21 years old (let's give him a name: John) who invested 3000 PHP per month and the 31 year old (say his name is James) invested 4000 per month at about 12% Annual Return, John can accumulate about 3M, and James  can achieve about  4M in 20 years , James  can accumulate 1M more versus John after 20 years. However, if both stop investing at age 50, the total accumulation of James is only 4M but John who invested only 3000Php who continued to invest till he turn 50 will have about 9.8M. This is because  John has 10 more years of investing. So do you see the importance of starting young?

Time is really of essence. The earlier you start, the more you can accumulate through the Power of Compounding Interest. This is practically in the range of 100-150 Php per day of savings only which most of Millennials working with even just 500Php/day income can save. “Agree ka ba bes”?

Allyssa Joy Dajay is a prime example of starting it early. She was 19 years old when she started in IMG in 2016. She was barely earning 10K PHP per month as a Perfume sales lady in a mall in Cavite. She had the burning desire to uplift their financial status that in spite of the not so big income she looked for ways to get started. And as the Law of Attraction manifest she met Luz Lozada one of our Trainers/Coach in Truly Rich Makers in a Van and her investment and business career in IMG got started. Now after 9 years in IMG, she had built her investment and savings and is now one of our youngest multi-millionaires in our team.

Now, if you are a Millennial and want to secure a bright and prosperous future like Allyssa, don't delay. Contact us NOW at 0920-902-1217 or eMail me at richbenj.santiago@gmail.com.

I also encourage you to attend our FREE ON LINE FINANCIAL COACHING to learn how to do it.

You are the hope of this nation! Be rich before your life begins at 40! Retire early and Wealthy!


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