As planned, I met my friend who is a licensed financial adviser as my first step to financial literacy.
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Here's what transpired and my corresponding thoughts...
Prior to our meeting, I shared to him that I may be able to save 3000 per month based on my current salary and expenditures. So, he discussed with me an insurance & investment plan based on the amount I said I was capable of.
The benefits of the insurance policy he offered included if I die by accident or if I get permanent disability and hospitalization.
But what I was really interested to was when he explained that if I will be able to save and invest Php 3000 per month from 37 until I was 60 years old (totalling to Php 828,000), I will be able to receive a little more than 1.5 million in return. This was only a projection, considering 10% interest per annum and compounded continuously of the money I've invested.
Wow! To me that would be a lot. The most cash I have seen in my entire life is Php 350,000. What a nice retirement bonus! If I'll have my way, when I reach 60, I would just be blogging and if physically possible play badminton. My mind was in overdrive on how I can come up with the money to invest consistently.
Of course, the bubble burst immediately. In life, nothing is certain but taxes and death. So, inquired if I miss to pay for the monthly investment. He said that I will be given 30 days to pay up which means I have to pay double in the next month. And when worse comes to worst, I will be able to withdraw the money I invested with some deductions.
There's a good chance that I will sign up for this insurance and investment policy.