Building financial confidence in times of crisis
In general, the younger you are and the more time you have left to invest, the more of your assets you can allocate to the aggressive part of your portfolio. Of course, this is over-simplified and factors such as investment knowledge, personal circumstances, and life goals can change what is safe and what is aggressive. For example, for some people, time deposits are the safe part of their portfolio and stocks are the aggressive part of their investments. For others, stocks are the safe part of their investments while cryptocurrencies are their aggressive part. It really all depends.
Also, try to resist following the herd or unattributed sayings. I was once told that a person should invest 100 minus your age in the aggressive part of his portfolio. In general, following rules of thumb are not the best way to structure your investment portfolio. Do not follow “hot tips” unless you carefully study the investment. When in doubt, don’t! If it sounds too good to be true, it is.
It is best to consult investment professionals such as our Investment Distribution Desk or Specialists in Metrobank branches and Metrobank Trust. We follow a strict process to find suitable investments for you, and at the same time help you increase your investment knowledge.
Open your minds to the changes that are happening and do not insist that the world will return to what it was before. Be prepared to do things differently. We have to be comfortable with technology. We have to be able to communicate clearly even if we are not interacting face to face. We have to decipher what will be needed in the new economy and prepare ourselves for it. This is valid for businesses as well as people. You do not want to own the biggest candle making factory when Edison invented the lightbulb. Reinvent yourself and acquire new skill sets. Use the time you have on your hands to improve yourself.
FERNAND ANTONIO A. TANSINGCO, CFA (TOTO) is the senior executive vice-president and treasurer of Metropolitan Bank and Trust Company. He has oversight of the bank’s financial markets sector covering treasury, wealth management, private banking, institutional investors, and asset management. He also currently serves as the vice-chairman of the board for AXA Philippines, and advisor to the board of First Metro Investment Corporation, and Metrobank (China) limited.
This opinion article is part of Metrobank’s Financial Education campaign series.