Page 13 - Cocolife Times - ISSUE 2020-08 REV 3

Save smart of your funds in investment
Part of managing risk is creating
safety nets for yourself,
especially through your
savings. “It is very important
that we have an emergency
fund for various concerns such
as medical expenses,” explains
distribution channels training
director Janus Dellava, who
specializes in financial wellness
programs for Cocolife’s agency
force and clients. “Coming up
with a savings account is a
non-negotiable part of every
millennial’s new normal.”
It would be best if the savings
fund is four to six times your
monthly salary, in the event
of an emergency or sudden
unemployment. Getting there
is faster if you pick up the habit
of tracking your expenses
and setting your priorities.
“[You should] earn, save, and
spend—in that order,” Dellava
adds. “Save at least 20 percent
of your salary every month.
Whatever you don’t spend on
your needs goes back to your
savings account.”
Find investments that
work for you
When already you have the
cushioning you need, what
comes next? According to Atty.
Robert Beltejar, it’s all about
investment, be it opening
a business or putting your
money in investment products
like mutual funds or insurance
products with investment
components.
“For our generation, simply
putting our savings in the bank
is no longer an option,” he says.
“The advantage of putting part
chartered
products is that it decreases
what you can allot for expenses
that won’t be consequential
in the medium to long term.
You won’t, for example, easily
give in to the temptation of
buying the latest version of
everything.”
He adds, “You earn passive
income through the help of
financial experts, and you
are able to build a nest egg
separate from your eventual
retirement fund.”
Let risk be your guide
In times as volatile as these,
caution goes a long way. And it
applies in more ways than you
would think. Take it from Atty.
Alloysius Yebra, Cocolife’s vice
president for risk management
and compliance. “From
[something] as simple as going
to the mall and hanging out
with friends to something as
complex as managing your
financial profile, I highly suggest
evaluating all kinds of risk—
from risk of infection to loss of
investment—and learning how
to properly manage them,”
he explains. “[Recent events]
showed us the unpredictability
of life.”
It’s a good time to examine
your own risks and look for
ways to manage them. It is only
then that it would be advisable
to consider other pursuits.
Keep yourself secure
with insurance
“This is the first economic crisis
that many of us millennials
are experiencing,” notes Atty.
Julio Bucoy, currently the only
financial analyst-
lawyer in the Philippines. Aside
from making sure you do not
spend what you don’t have, it
is important to manage risks to
your financial security.
“This is where insurance comes
in,” says Bucoy, who heads the
corporate strategy and finance
division of Cocolife. “You get
health insurance to cover the
costs of getting sick; you get
fire insurance in case your
house burns down; you get
liability insurance to cover you
if you get sued. Life insurance
is unique in the sense that
you get life insurance not to
secure yourself financially, but
to secure your loved ones from
the greatest risk of all: the loss
of your life.”
People are now more
cautious in the wake of
significant loss during the
pandemic—and naturally,
many will shift their focus
to risk rather than reward.
As the world continues
to realign itself to an
environment where new
normals constantly come
into play, Cocolife and its
subsidiaries continue to
work towards improving
lives and keeping them
secure from uncertain times
such as these. Its full suite of
products are meticulously
designed to address one’s
needs, expenses, and
circumstances — making
sure you can insure your
future in times like these.
Source:
esquiremag.ph/money
June 17, 2020
13