4 Common Financial Myths that iCon2015 Busted!

I like the show “Mythbusters” because they do exactly that.
It simply cuts through the crap that people

believe in & find out the truth behind the myth.

Essentially, that’s what we like with our true friend, they’ll
tell you like it is with no sugar-coating & Randell Tiongson’s
iCon2015 (Investment Conference) is a nice breath of fresh air
towards real-world investing without the hype.

iCon2015 presented some of the Philippines top personality
in personal finance : Randell Tiongson, Marvin Germo, Chinkee Tan,
Jess Uy, Efren Cruz, Michael Manuel, Alvin Ang & Francis Kong.

It also acted as a mythbuster itself & here are 4 of the biggest
myths that they busted!

1. There’s one best (financial) investment

“Where’s the best place to invest my money?”

That’s one of the most common questions asked by us , isn’t it?
We look for the magic tool that will deliver the best return
for our money.

There are a wide array of investments to choose from:
Insurance, real estate, business, pooled funds, stock market, forex etc.

The realistic answer: There is none.

What’s best for one may not be fit for another. A person may love
real-estate investing but may hate the fast-paced world of forex trading.
Another may love monitoring the ups & downs of the stock market then
stock market trading is for you. If you have a heart attack everytime you see
the charts – long-term investing may be best for you.

The best investment actually is to invest in your education. Learn about the
different investment vehicles & see how it applies to your situation,
personality & risk tolerance. Once you find the right combination of investments
to suit your need – that’s the best investment for you.

2. It takes money to make money

This is best explained by Chinkee Tan’s example:
Give a man with no skill nor experience in handling money
Php1,000,000 & he’ll probably lose all that money by the end of the year.

Now contrast that to taking away Henry Sy’s fortune but leaving him with his
knowledge & experience as a businessman & he’ll be able to generate (at least)
Php1,000,000 on his own by the end of the year.

Applied knowledge is money.

3. There is a best time to invest (a.k.a. timing lang yan)

Now while there is truth in this statement, blindly believing in it
is VERY dangerous. If you plan on timing the market without the
training & experience, you’ll go crazy following the ebb & flow of the market.

Kapag tumataas matatakot ka ba masyado nang mahal (high-blood!)
Kapag bumaba ang market, takot pa din pumasok, baka bumaba pa lalo (takot!)

Your uncertainty will keep you paralyzed & unable to join the market.
Sayang naman!

The answer is really to invest now & invest often. The Philippines is entering
what is called the demographic sweet spot where a large chunk of our population
is part of the work force. Leading to a highly productive society that has
a good size of disposable income to fuel our consumer-drive economy.

Plus! You’ll be taking advantage of compounding interest by investing
early & often:

With these 2 factors combined – The Philippines is definitely moving
upwards. The question is will you be part of it or not?

TIME & not timing is your biggest ally.

4. Finance is boring

This is quite a surprise for me personally. The line-up of speakers
generally made finance very understandable for a beginner, there were
parts when it became a bit too academic though but overall it was very engaging.

I was actually caught by suprise by the comedic timing of the speakers.
They were very open to self-depreciating jokes with:

>> Randell poking fun at his size & asking the audience to follow him of Twitter (parang awa niyo
na, i-follow niyo ako para madagdagan naman 40 followers ko)
>> Marvin heartily laughing about his lack of height (na binawi na lang sa pagkapogi niya),
>> Efren Cruz with his look-a-like story from John Lloyd to Mr Bean
>> Francis Kong sharing it took him 6 years to finish high school because of his pre-occupation
as a basketball varsity player. Disbelief? Yes, that’s what the whole SMX felt. Francis Kong a basketball player??? It’s true – he even bought a photo to shut all of us up 🙂

Overall iCon2015 was a great day of learning & fun – and that’s no myth.

Allan Ngo is a financial literacy advocate & an online entreprenuer. He created the free online training “Stock Market Crash Course for Beginners” to help Pinoys worldwide to learn the basics of stock market investment for free wherever they are, whenever they want. It’s been viewed more than 10,000 times.

 

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2 comments

  1. reygie avenido /

    salamat sir allan sa lahat,lage akong may natutunan sa inyo at sa trulyrichclub family.God bless us.

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