The Blueprint to Financial Freedom: A 3-Step Guide toStructuring Your Investment Portfolio in the Philippines

The recent inflation scare highlighted for Filipinos how rising prices erode savings, often causing hasty financial decisions. Rather than reacting to news, it's prudent to have a plan that anticipates such events.

Many investors purchase financial products like VULs, mutual funds, and stocks without a strategy, similar to buying construction materials without a blueprint. Without a cohesive structure, assets can't secure a financial future.

This guide provides a blueprint with three essential steps to structure an investment portfolio for long-term goals in the Philippine market.

Step 1. Establishing Your Investor Profile (The 'Why') Before investing, it's essential to comprehend your individual financial identity. Your portfolio should mirror your distinct circumstances and goals.

To establish your investor profile, consider three questions:

What are your financial objectives? Are you saving for retirement in 20 years, a home down payment in five years, or your child's education? Each goal has a distinct target amount and timeline.

What is your time horizon? This is the duration to meet your goals. A 30-year-old saving for retirement has a long horizon for growth investments, while someone saving for a car in two years has a short horizon, focusing on capital preservation.

What is your risk tolerance? How would you react if your portfolio value dropped 20% in a market downturn? Your ability to withstand market volatility, both financially and emotionally, determines the level of risk you should take. Be honest with yourself. An overly aggressive portfolio can lead to panic selling, while an overly conservative one may not generate the returns you need.

Step 2. Designing Your Asset Allocation (The 'How')

Asset allocation involves dividing your portfolio among asset classes like stocks, bonds, and real estate, essential for long-term returns and stability. A practical strategy is the Core-Satellite approach.

• Core Investments, comprising 70-80% of your portfolio, focus on stable, diversified, low-cost options for long-term growth, such as PSEi index funds, blue chip dividend stocks, and government bonds. The Philippines, as an emerging market, represents under 0.15% of the global market, adding risk to a diversified international portfolio.

• Satellite Investments (20-30%). This portion of your portfolio is dedicated to pursuing higher returns .

Step 3. The Role of the Architect: Partnering with a Financial Advisor

A licensed financial advisor acts as your architect and project manager, helping define your investor profile, design asset allocation, select quality investments, and provide disciplined guidance to navigate market complexities and make informed decisions.

Build Your Future Today!

Get excited about your financial future. It's the most important project you'll ever embark on! Don't leave its construction to chance or settle for a shaky foundation. Crafting a solid investment blueprint is your ultimate tool for achieving lasting financial freedom.If you are ready to move from guesswork to strategy, let us help you design and build your personal financial blueprint.

Know more about our Investment Advisor:

Christian Ramos, L.F.A, has fulfilled all the licensing requirements established by the SEC and the Philippine Insurance Commission for both individual and corporate sectors.

Schedule a consultation with Christian by emailing chris.ramos@sanjoseandpartners.com

or schedule an online meeting by clicking here >