“Risk comes from not knowing what you are doing” – A quote from Warren Buffet, the famous and most successful investor of the 20th century.

INVESTING, as defined by Investopedia, is the act of allocating resources, usually money, to generate an income or profit. Society is in constant pursuit of high returns for their hard-earned money. This quest had led to many cases of scams, including investment. The SEC (Securities and Exchange Commission) released an Investment Scam Checklist to warn people and promote due diligence. Sadly, even with the enormous effort of the agency, many still succumbed to unscrupulous individuals who prey on novice investors.

Investing has an emotional aspect of being heedful. I, myself, was guilty of uncontrolled emotion that caused me substantial financial loss. The bad experience taught me to set aside feelings instead think rationally of the situations, risks involved, time horizon, and the financial goal in mind. Perhaps you would ask; Is there a silver bullet to the risks in investing? Sadly none, there are always risks. The cliché, “The higher the risk, the higher the return” conversely “The lower the risk, the lower the return.”

In the Philippines, the typical way to invest is through stocks, bonds, mutual funds (MF), unit investment trust fund (UITF), Variable universal life (VUL), and time deposits. Stocks/Equities ownership is where you become part of a publicly-traded company; in…

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