For about 95% of Pinoys, the answer to that question is...THE BANK!
(www.investingpinoy.blogspot.com)Banks are good partners in depositing and withdrawing money. But, if you are looking at a bank as an investment option, think again. Here's why...
The interest rates of banks are tyically about 0.5% per year. For time deposits, it can go to as high as 5%. You say to yourself, then time deposits are good! The answer: Yes and No! Yes, because it preserves your money (I'll explain later). No, because money has an enemy. And the enemy's name is INFLATION. Inflation in the Philippines is somewhere between 3-6% per year. That means if you deposit P100,000.00 in a time deposit at 5% rate, and if the inflation rate is 6%, your money will lose 1% of it's buying power. That is, if you can buy a top-of-the-line video system today for P100,000.00, at a time deposit, your money is not enough to buy that same system because it has increase its price by 6% while your P100,000.00 only increased by 5%. Hmmm...
So, the big question is where do I invest my money?
(www.investingpinoy.blogspot.com)I attempt to provide you some guidelines in my blog. Check it out at
www.investingpinoy.blogspot.comBryan UyInvestment Opportunities for Pinoys
www.investingpinoy.blogspot.com
