Disciplined Investing


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Journey with us as we study and navigate Personal Finance and Investing. Click join button in this facebook group/forum: Parents-Kids Personal Finance and Investing Journey (Parkid-PFI)

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That’s my goal for my daughters.

I had a bonding moment with them going to a BPI branch to submit the BPI Trade Account for my eldest. The bank representative seems not that knowledgeable familiar [or maybe I just had info overload?]  with the terms and conditions I read on the online application. Trouble is bank branches are just receivers of applications and can not provide much information about BPI Trade having disclaimer that they only receive applications, telling me what I already know as if they want to make sure the branch can not be faulted whatever happens to the application/account. That’s understandable.

Makes me think how many BPI Trade applications has that branch in Quezon City been actually receiving each day?

I presume too little, otherwise the reps would already be that knowledgeable and excited.

A number of bank branches I have visited lately seems not excited discussing about stock market or even their own brokerage house. Does it have something to do with the branch core business, which are deposit accounts and loans?

I feel they want to confine people to savings accounts so they can use the money to pocket higher earnings from instruments like stock market  that can earn as high as 20% in a year; and after earning that much, give back to depositor, who effectively lent its money to the bank, a less than 1% fixed earned income in a year (no tax deduction yet) !

Almost 6 Million pesos in 30 years!

If my eldest continue with the discipline of saving P20 pesos from daily school allowance (or P400 a month) and do it continuously for the next 30 years at an assumed (compounded) average annual rate of stock market returns of 20%, she will have about P5.7 Million. The first million of which will be realized around the 20th year.

What if I’m half-wrong? That’s still around P3 Million pesoses!

Well, P1.5 Million if I’m a quarter-wrong.  Still at fault with another half, my daughter is still better with P750k in 30 years.

Way much much better than me right now with ZERO. Nada. Zilch!

That is the benefit of saving + investing early.

I didn’t know these things when I was her age.

Warren Buffet did know about these things when he was about my daughter’s age. And look at Warren now after decades of disciplined investing.

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Journey with us as we study and navigate Personal Finance and Investing. Click join button in this facebook group/forum: Parents-Kids Personal Finance and Investing Journey (Parkid-PFI)

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https://www.facebook.com/groups/1662761680675420/

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