Nowadays there is a growing interest in wealth-management programs. These are informative sessions or forums dealing on various aspects of accumulation, growth, preservation and transfer of financial assets. Its popularity stems from the fact that people must be more financially astute during this period of low interest rates. We all need to learn more about how to make our money grow in an investment environment that no longer generates the much higher yields of previous years, especially prior to the 1997 Asian financial crisis. Moreover, real gain is challenged by situations wherein the inflation rate could be higher than actual interest earned, thus eroding the purchasing value of one’s funds.

Today we live in a time of greater investment appetite. The desire to find safe and attractive havens for putting money into so it will result in higher yields than what is commonly available in traditional savings and investment instruments has undoubtedly become much keener. Add to this the growing economic power of millions of overseas Filipino workers (OFWs), and the market of potential and actual investors is expanding significantly. Therefore, it is not surprising to note that a number of financial industries have taken to promoting money-management awareness via organized presentations and free seminars. This, of course, is well and good for enhancing our knowledge and acumen.

Many financial institutions lost no time in developing more innovative investment products to cater to the huge demand for better returns.  Banks were quick to offer unit investment trust certificates (UITCs) with tax-free returns for holding periods of more than five years, and this resulted in an unprecedented investor response of well over P350 billion at its peak in early 2006. The mutual-fund industry also marketed its services more aggressively, attracting both individual as well as institutional clients with prospects of better yields through pooled funds covering the entire range of investment-risk appetites. Not to be outdone, life-insurance companies came out with their own version of investment-laced products called variable unit linked insurance (VUL) offering attractive potential long-term returns in addition to life-insurance protection benefits. Single premium VUL is likewise taking the market by storm and has catapulted the insurance industry to record growth rates. Such developments are also beneficial for they offer the public more choices of savings and investment programs for the short, medium and long term.

Thus, today many Filipinos from all sectors are joining the personal financial management bandwagon, as they well should. We really need to know how we can stay ahead in the money-making game. The consistent rising cost of living should also impress upon us the necessity to be even more financially prepared for our future obligations and lifestyle needs.  Retirement planning, for example, is drawing more interest not only here but everywhere else because our world’s population is aging at a significantly growing—and disturbing—proportion. All these are better served if we are more aware and more competent in managing our personal wealth. Hence, the undeniable need to be investment-savvy.    

Without warning, on October 19, a horrific explosion ripped through a prominent shopping complex in the heart of the country’s financial district, causing widespread destruction to property, injuries to scores of people and a senseless loss of innocent lives. Within minutes, the initial news that spread like wildfire was that it was another terrorist-bombing incident. Over the next few days a debate raged whether it was truly that or an accidental explosion caused by a gas leak. No matter what the truth is, it will no longer matter to the 11 Filipinos who perished there, as well as to their families. The media had a field day covering every angle of that story, including featuring those who died. One such victim was a pregnant young wife who was just waiting near ground zero for her husband to fetch her. So were a female office worker and her friends who were celebrating her promotion at a restaurant next to the bomb blast. There were many more accounts of lives unexpectedly cut short, of death occurring too soon, of bereaved loved ones trying to understand why such a tragedy had to happen to them. It is reminiscent of America’s 9/11 experience: ordinary citizens leaving their homes in the morning of a perfectly normal day, without any inkling that they would never return to their families. The most chilling realization of all is this—it could happen to any of us!

Tragic events like this can never be justified or condoned. Every human life lost in such a manner is to be mourned. Unexpected occurrences that threaten anyone’s life are never welcome, yet they will continue to persist. We live in an imperfect and even unjust world.  On one extreme end of what could possibly go wrong is the evil we have come to know as terrorism, where plots are deliberately hatched to slaughter innocent lives wholesale and without warning. On the other end of that spectrum is the daily occurrence of unwanted accidents that can likewise cause injury or claim lives. In between these ends are many other ways for us to be reminded of our mortality, of the fact that our earthly existence is limited. In short, in everything we do or do not do, we face all sorts of risks that could harm or even extinguish our lives.         

Time is the essential factor for everything. Given enough time one can dream, plan, pursue and attain reasonable to enviable success. It is the same with our financial pursuits. We all need sufficient time to accumulate, grow, preserve and ultimately transfer our wealth. Having a good grasp of today’s financial road map in order to make proper investment decisions is important, but not all the investment-savvy in the world can compensate for insufficient time. Many people willingly deal with risk when it comes to deciding on what investments they will make, but many fail to provide full financial risk protection to their own economic worth, which can be adversely affected by premature death or disability, among other conditions. Therefore, even more fundamental than acquiring knowledge on how to keep making money is practicing adequate risk management.

In today’s faster-paced environment, it is so easy to be caught up in the moneymaking game that one forgets to lay a sound financial foundation to protect himself and his family from all the risks to their economic well-being now and into the future. At the very least risk protection merits the same serious attention that is given to investment and financial education. Someone who craves for the thrill of making financial bets for gain may experience only temporary security if he does not also pay attention to protecting his family’s greatest economic asset—himself. This is the view of every widow and her children who have to face life with financial uncertainty due to the untimely loss of their principal breadwinner. Life insurance should not be valued or improperly compared only for its living benefits or long-term savings and investment gains. 

Being an investment expert and doing well in this field is admittedly more gratifying or rewarding in the short run. It is analogous to being a seasoned navigator steering your financial ship in all sorts of waterways. Nevertheless, as every ship captain knows and understands, every seaworthy vessel must have its lifeboats. This is the right perspective to have. After all, when one decides to throw all caution to the wind by sailing without any lifeboats, he exposes himself and his crew to extreme peril in case his vessel flounders in stormy seas. This is what also happens to the erstwhile investment-savvy person who is only interested in yields, and not in long-term insurance protection. It will simply not be enough to cover the greatest financial risk of all—irrecoverable loss of time.

Aboard the Bicol Express

The devastation brought about by typhoon Reming in late 2006 had been largely unforeseen by many. What was originally a tropical storm prior to hitting Bicol soon turned into a supertyphoon, bringing with it winds reaching speeds of up to 265 kph and rainwater half a meter deep.

Winning: Keep from getting lonely at the top

Q: I find that, in running my business, I am making many decisions alone. I know that can’t be good. How can a leader keep from becoming isolated? Arthur Lakiisa, Kampala, Uganda                 

A: It’s something of a coincidence that your question arrived this week, just as two CEOs, Chuck Prince of Citigroup Inc. and Stan O’Neal of Merrill Lynch & Co., were cast out of their jobs and publicly crucified for the “sin” of surprising the market with bad results.

When investment savvy is not enough

Nowadays there is a growing interest in wealth-management programs. These are informative sessions or forums dealing on various aspects of accumulation, growth, preservation and transfer of financial assets.

Gearing up for a new Asean

When leaders of the Association of Southeast Asian Nations (Asean) hold their annual summit in Singapore next week, they will sign the Asean Charter, which will “relaunch” the 10-nation grouping into a rules-based organization with a legal personality to better equip it to meet the challenges of tougher competition and the development gap among its member-nations, as well as to reinforce its relevance and influence in the region.

Mall for all

PROVIDING equal opportunities means people with disabilities, the elderly and even breast-feeding moms should be treated just like any other person.

The audacity of hope

THE jungle trail is perilous. Even that is a treacherous understatement. To get to the refugee camps, the off-road vehicle has to be hauled up a steep incline from a winch. Then you have to slog through the quagmire of the monsoon season in the alternating heat and rain.

On the edge of Myanmar, prodemocracy movement keeps the faith

MAE SOT, Thailand—This bustling border town has long been a magnet for refugees fleeing Myanmar’s repressive military government and searching for a better life. But many arriving now, on the run from authorities for their role in organizing prodemocracy rallies last month, are not looking to settle here. They are preparing for their return.

Four ways to encourage more productive teamwork

In today’s densely interconnected workplaces, working with others—globally and productively—drives organizational and personal effectiveness. Employees work in teams formed to tackle projects, in virtual teams with colleagues and clients, or in ad hoc combinations. Whatever the provenance of the teams in your workplace, your organization depends on them.

Munchausen At Work

One particularly disturbing psychological disorder is Munchausen by proxy, in which a caregiver exaggerates, fabricates or induces illness in another person in order to get praise for then helping the victim. A similar pathology occurs in workplaces when employees create fictitious organizational problems, only to solve them. This behavior, which I call Munchausen at work (MAW), wastes managerial time and resources and can threaten morale and productivity.

The calling

Oscar Sañez wears a pin of the Philippine flag on his business suit and carries a photo of his role model Jose Rizal in his wallet—close to wearing his patriotism on his sleeve.

Winning: Knowing when you’ve stayed too long

Q: What criteria should be used to determine if you have been with the same company too long? Jason Morrow, Salt Lake City                 

A: Your question reminds us of a friend of ours, an investment manager at a highly regarded company in the Midwest, who drove to work one morning, parked his car in the usual spot and then found he simply could not bring himself to get out.

Smooth sailing

IN today’s global commerce, which requires seamless logistics solutions, a country’s geographical setting is indeed a determining factor in trade.

Advertising under siege

AGREEING with Mcluhan, marketing strategists Al and Laura Ries arrived at a conclusion that’s less than comforting to advertising people: if advertising is an art, it belongs in a museum, not in the marketing department (The Fall of Advertising and the Rise of PR, Harper-Collins).

When it comes to quality, consumer electronics giant Sony Corp. scores highly among buyers

CONSUMERS the world over are now shifting to products of high caliber—and Sony, among other brands, is certainly their first choice.