Knowing the Basics of Investing
Have you ever thought of investing? If not, it’s time to plan for it. Many people regret not investing early. Some of them say, “I should have invested during that time when the price is still cheap” or “If I invested early, I would be a billionaire right now”. It is a good thing that people nowadays are getting more interested in investing. Even younger generations are getting curious about it. Why invest? What are the advantages and disadvantages of it? How to invest? What are the tips to remember? There’s so much more to know about investing.
Luckily, there’s a way to learn about it.
SparkLearn is an e-learning platform for Sparkpoint. In SparkLearn, there are free courses that the users can take — a course about investing (Investing 101 for Beginners: Most Common Types of Investment Instruments by Queenie Naño-Zuñiga) is one of the courses available. In this course, you will get a quick idea about the basics of investing. However, a prior reminder was mentioned by Mrs. Zuñiga that she is not a licensed financial advisor. According to her, it is an advantage to consult a financial advisor if you’re planning to invest. Mrs. Zuñiga explained in her video the basics of investing. She mentioned the different types of investment. She also added its pros and cons.
I strongly recommend taking the Investing 101 course of Mrs. Zuñiga. Everything that she discussed is very helpful, especially for beginners. The tips and lessons that she mentioned are essential. It will guide you to what type of investment you want to invest in.
Although I already know some information about investments, I still grabbed the chance to take the course for I know that I will be able to grasp more ideas from it. And after completing the course, it truly gave me more ideas about investing. Also, it refreshed my mind and I recalled some of my past experiences.
In 2016, I became a licensed insurance agent. In my experience as a financial consultant, I was more focused on variable policies wherein part of your premium will go to your life insurance while another portion will be in your investment. You also have a choice of where to invest, will it be in bonds, stocks, or so on. In my experience, people between the ages of 20–35 are more likely to invest in stocks. I said to myself, “Maybe because they love the challenge or maybe they treat it like a game”. I remembered asking one of my clients, “Why do you want to put your investment in stocks?” He replied, “It is risky but if I get lucky, I’ll gain more profit in stocks than in bonds”.
Stocks are indeed riskier than bonds. When I was still reviewing and training with my unit manager, she mentioned that if you want to have a good return or if you want assurance, you should invest in bonds. So that’s when I figured out why people aged 35 years old and above want to put their investment in bonds. It is because they want assurance compared to gaining more in return. With that, I can say that everyone has their own choice.
Moreover, the company that I worked in has its partner who manages the investment of the policyholders. The partnered company is the one that places the investment in a certain corporation or company.
For almost two years of being a financial consultant, I learned a lot about investing. I met different kinds of people and gained a lot of realizations. After watching the video of Investing 101, I completely realized that people have different opinions and that they invest in a certain type of investment because of various reasons.
As Mrs. Zuñiga mentioned, there are four considerations to remember: time, money, effort, and profit or income. When I was still a consultant, I can certainly say that these considerations that Mrs. Zuñiga mentioned are always used by my clients when deciding. When I discussed the policy that I think best suits the expectation of my clients, I always take into consideration those key points. Also, age is a concern of both parties — client and company. Age has a big impact on insurance. Even a minor can invest with the assistance of his/her guardian. However, it is better to invest at an early age especially if the individual has the capacity. Most individuals who started during their 20s or 30s and did not stop investing will likely get more in return. It is a good thing that I have experience being a consultant, it will help me with my plans on investing.
Investing when you are younger will indeed give you more room for learning and would give you a lesson about investment. Another is when you are younger, you can recover the downturns that you have experienced. However, isn’t it right that as early as now you can identify the dos and don’ts in investing? You should be prepared and have enough knowledge in investing because it will give you an edge compared to those who aggressively invested their money anywhere they want. Having a concrete plan is also a good way to start investing such as knowing your objectives.
In my case, I am only in my 20s but it does not mean I am not welcome to invest. I am planning to invest ever since I became a mom. I consider investing and having insurance as a must especially in my situation. Also, I want to start investing before I reach the age of 30. When I get an income, I am planning to set aside for my investment fund.
I prefer long term investment because it will potentially grow in the future. Moreover, if I’m going to choose to invest long term, I will invest in stocks especially that it has more potential to grow. In my opinion, investing while the price of stocks is low is a good opportunity — one good example of it is during this pandemic.
Stock prices in our current situation are dropping and investing while the price is at rock bottom is good knowing that it will rise again in the future. Investing in short-term investment is also a good thing especially if you are planning to withdraw your investment after a few years. If you’re planning to invest in short term investments, you can consider investing in bonds and deposit accounts.
Some people invest in both long and short term investments. I guess this is the best idea when investing. Having long and short-term investments at the same time could give you more security or assurance. Imagine that you acquired both investments and you’re planning to have a down payment for your dream house, you can make use of your short term investment such as your deposit accounts. A deposit account has a set rate of return that could make you withdraw your money anytime. At the same time, you still have a long term investment that would generate profit for you.
As for me, a mixture of long and short term investments is a good idea because it provides balance. If I have the capacity to invest in both investments, then why not? Being contented in one investment and having an all-in attitude is not a good idea.
Investing is like a way of securing your finances. We can’t predict what will happen tomorrow, next year, or so on — you might get into an accident, or lose your job but if you saved and invested, you can say that you’re still in the safe zone.
To wrap things up, I want to commend Mrs. Quennie Naño-Zuniga for sharing her knowledge about investing. Again, for those interested or planning to invest, you can take the free course — Investing 101 for Beginners: Most Common Types of Investment Instruments by Queenie Naño-Zuñiga at SparkLearn.
