Growing and Protecting What You Have

Saving money is the act of setting aside cold, hard cash and parking it in extremely liquid and safe accounts. Liquid means your money can quickly be encashed to answer any immediate need. Saving money should almost always come first before investing money as it is the foundation of your investments and the starting point of your wealth-building journey. Why? Because unless your wealth is the kind that’s inherited, it is your hard-earned savings that will serves as capital used in investing.

Monies tagged as “savings” are for emergencies and short-term goals, and should be accessible with zero to minimal fees, ideally stored in easily accessed accounts like savings, checking, or money market securities. Having a sufficient emergency fund prepares you for a rainy day that might require a sudden outflow of cash, and saves you from having to sell your investments at the worst possible time. After setting aside money (equal to 3 to 6 months of your living expenses) for your emergency fund, consider opening an investment account to save for long-term goals.

Investing money is the process of buying an asset you expect to appreciate in value, allowing you to become wealthier through time. Unlike saving money, the target of investing is usually a long-term goal like college education or savings plan for retirement.. Committing to a long-term investment allows you to wait-out and weather potential periods of volatility in the short-term, allowing your investments time to recover from any losses.

• Define your objectives. How to invest and where to invest your money will depend upon your personal circumstances; investment goals, time horizon, and tolerance for risk.
  
  
• Set goals and appropriate plans to reach those goals. Make a list of your goals and categorize them into short-term and long-term. Set separate plans to reach those goals.
  
  
• Diversify your investments. Diversification, although not a guarantee against losses, is regarded as an important part of attaining long-term goals while minimizing risks. Spreading your funds for investment across different financial instruments with varying risk profiles, industries, and tenure is rooted in the understanding that they would react differently to market risk events, thereby helping preserve capital, reducing risk exposure, and maximizing returns.
  
  
• Seek help. For starters, new investors can look to investment professionals for guidance in choosing a diversified mutual fund account. This allows you to start on the right foot—building an investment portfolio that is aligned with your goals and risk appetite.
  
  
• Start today. Every day you wait to start investing is a day wasted. Remember that each day that you’re invested is a day for your funds to compound in value.

Building wealth does not stop with growing your savings and increasing your investments; success also relies heavily on your ability to secure and protect your sources of income and yourself.

What if you get sick and get hospitalized? What if you unfortunately figure in an accident and cannot return to work immediately? These risks can delay or completely put a stop to your wealth-building plan. This is why building your wealth is never complete without choosing an appropriate insurance product to protect you and all your hard work.

BPI AIA’s Life Ready Plus is a perfect partner to every beginner investors’ wealth building journey; making saving and protecting your wealth easy, while rewarding you for being healthy!

Affordable and beginner friendly! It offers an affordable entry point for those with the goal of saving and getting insurance protection.

Building up savings is made easy. Insured individuals may fully allocate their premiums to investment fund(s) managed by experienced investment professionals, and may also conveniently place additional investments through top-ups.

Flexible and customizable. Individuals may choose from various additional benefits through the selection of optional unit-linked riders.

Through the AIA Vitality Program, policy-holders enjoy additional insurance coverage on their basic and rider face amount starting on policy year 1. This additional coverage is an incentive that is adjusted depending on the Vitality Status achieved by the policy-holder every policy anniversary.

Life Ready Plus is part of the BPI AIA Wellness Series. The Wellness Series is a range of insurance products powered by AIA Vitality – a program that encourages one to lead a healthy lifestyle and rewards you for it. Find the Wellness Series bundle that best fits your investment priority and enjoy an upfront 20% additional life coverage and supplementary benefits as you make healthy choices with AIA Vitality. Boost your Vitality Status and get to receive up to 50% additional coverage on the succeeding years. Plus, avail discounts from a range of partners as a reward for living healthy.

To take the first step on living longer, healthier, and better, head to a BPI branch near you or check our health and wellness programs.