Wealth Management In A World Of Turmoil by Mr. Rex Mendoza (CEO and President of Philam Life)

My awesome ticket to an awesome seminar headed by an awesome CEO!!!

After I came home from my morning appointment, I checked my Facebook account, then a surprise welcomed me.  Mr. Rex Mendoza, CEO and President of Philam Life is going to give a free seminar!  With just a very short notice, I grabbed the opportunity to see my financial idol for the second time in Cebu!  I first saw him during the second Money Summit in Cebu.  From that day forward, I considered him as one of my mentor and inspiration.

I got this photo from the Facebook page of Philam Life and I edited it to become my Facebook cover.

Since I believe in the principle of "pay it forward,"  I will share the notes I have taken during his awesome and fantastic seminar.  Mr. Rex Mendoza indeed is a great motivator and public speaker!

And now......

My notes......


Wealth Management In A World Of Turmoil
  • When the market is Down, it is a GREAT opportunity!
  • Economics, as we have learned in college, doesn't work the way it should be.
  • In democratic countries, politics gets in the way of their economy.
  • Since Greece is currently experiencing economic meltdown, German banks (from where Greece borrowed money) agree to 50% reduction on Greek debt, to help in their recovery.
  • French and Philippine paper are at the same level as we speak!
  • Volatility in the stock market is a FRIEND of a long-term investor.
  • Inflation rate in the Philippines is about 5% (more or less) so this means that the more you SAVE, the more LOSS OF VALUE you will get!  Investing your money will be the solution to this.
  • Filipinos have placed 1.3 trillion Pesos worth of money under the Special Deposit Accounts in Philippine Banks (savings or short-term time deposit accounts in other words).  If only Filipinos have invested more in mutual funds, stock market, or foreign exchange, they could have enjoyed higher interest rates!
  • We Filipinos were never taught how to handle money in schools!

Recent developments
  • USA QE3
  • Bank of Japan Stimulus
  • European Stability Mechanism
  • China Slowdown
  • Spanish Protest
  • Terrorist Attacks Looms
Global Environmental Issues
  • Global warming and climate change
  • Typhoons and hurricanes
  • Elevated rainfall
  • Droughts
  • Earthquakes

What should we do?
  • Invest in food production companies. 
  • Invest in real estate. 

QUO VADIS? (Where are we going and what will we be experiencing in the future?)
  • A rough ride! 
  • We can never manage the weather but we can manage our ship!

Factors of Success
  • Selectivity
  • Balance
  • Flexibility

Why invest your money?
  • Beat inflation
  • Achieve your financial goals

What is the challenge?

  • When money is accessible, you will probably touch it!  It is like committing malversation of funds!  If that's the case, you are corrupt with your own funds!  If you are the type who always point fingers at corrupt public officials, try to look at yourself first.  Maybe you are just like them!
2. Getting instruments that will help you achieve your goals.

3 Stages in a Person's Financial Life
  1. Man at work
  2. Man and money at work
  3. Money at work

RETIREMENT IS NOT AN AGE but the ability of your money to work for you!

Wealth is not what you earn but what you keep!

  • Fear drives people to be conservative in bad times.
  • Greed drives them to be aggressive in good time. 
  • to make your resources LAST as long as possible or to make your resources outlast your life!

Mr. Mendoza's Joke

"Wala ka nang pera, pero buhay ka pa? Patay ka!"

Let us define some terminologies:

Financial Planner - trabaho ko na i-make sure na mamahalin ang client ko ng mga beneficiaries niya 

Investment - the commitment of funds made in expectation of some positive rate of return

For you to become financially free, you have to be able to differentiate a NEED from a WANT!
  • Need - something you have to have
  • Want - something you would like to have
You have to wear clothes because it a basic need according to Maslow's Hierarchy of Needs.  It doesn't have to be branded.  Pero kapag nilagyan mo na ng buwaya or taong sumasakay sa kabayo na pumapalo ang shirt mo, want na 'yan!

If your income grows, the propensity to spend should not grow.  Instead, the rate of investment should grow!

You have to share your blessings because you cannot bring your riches with you if you are dead.  Wala naman kasing baggage compartment ang ataul (coffin) eh!

It all boils down to this question.

Anong problema ang gusto mo?

Gusto mo ba na konti lang ang pera mo or madami? (Do you like little money or big money?)  You choose!

Investing is more fun in the Philippines!
  • 1st half of GDP growth: beats expectations!
  • Positive outlook and upgrades
  • Growth in OFW inflows
  • BPO seats at over 600,000
  • Growth in service of manufacturing sectors (some factories in China are transferring to the Philippines) 
  • Healthy BOP position
  • Clean-up in government 
Yet, no matter how fast the market has grown, the biggest money is made on long-term investments and not on short term trading.  

What should we do?
1. Ambition!
  • Dream of BIG DREAMS!
  • Gusto mong yumaman pero ayaw mong pagsikapan? Ano ka? Hilo? Don't expect to become rich if you have that kind of attitude!
2. Breakthroughs!
3. Focus!
  • Keep your EYES on the PRIZE
4. Urgency!
  • The TIME to BEGIN is NOW! 

Contact  your favorite financial planner to help you achieve your financial goals in life!


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