5 Reasons Why Investing In the Stock Market is Suitable For Me

So, some friends are asking me, “Why stock market? Why not just start my own business? Is the return from stock market really good that I opted to venture into it?”

Well, my answer is, “This is the investment instrument I see fit to my needs and current situation”. It’s not because the return is higher than running my own business, but right now, the stock market is the investment I understand best compared with the other investment instruments in the country. In short, the stock market is the one which is within my reach right now, mentally, emotionally and financially.

In this blog, I will share with you the 5 reasons why I chose to invest in the stock market and why I strongly believe that this is the best investment for me. But before I start, I would like to emphasize that I am an active investor and I am not a trader. There is a great difference between this two. As an investor, I am actively putting my money in the stock market for a long term. For me to become a trader, I have to learn how to analyze complicated graphs and numbers and watch the market intensively to know when to buy and when to sell. I don’t have the skills to do this. I am not trained to trade. I may learn it in a long run but I need to quit my full time day job to watch the market everyday. Like Bro. Bo Sanchez, I too dislike complicated things. I like simplicity. It’s easy and stress free.

So, here are the 5 reasons why I chose to be an investor in the stock market.

Reason Number 5: My SSS Pension alone when I’ll be 60 years old won’t suffice to cover my old age needs

Because I was never a government employee, I am not entitled of the GSIS benefits. Instead, I have the SSS. When my father was still alive, he only used to receive a meager amount from SSS for his monthly pension. So little that it barely buys him his daily medication. I was so curious that I wanted to know the approximate amount I’ll be receiving also once I’ll reach the age of 60. So I visited the SSS website to learn how to compute the members' retirement pension. I was shocked to see the amount that appears on my calculator. I calculated it twice, thrice, many times hoping that I previously pressed the wrong button and that it will give me a bigger amount this time, but unfortunately the calculation was right. The amount is only a little more than 9,000 Pesos. This will be the money I will be receiving monthly after 27 years, and 27 years from now, what can 9,000 Pesos buy?

Investing in the stock market will absolutely give me more chances to take care of myself financially when I can no longer work to earn. If I will continue investing actively, regularly, for 27 years, I will not only have 9,000 pesos a month, but more. Below is a screen shot of a sample computation from the Truly Rich Club Retirement Calculator.  You may also try it by clicking it here.

So, there. That’s my reason number 5.

Reason Number 4. I don’t possess remarkable skills to manage a business

Starting a business is a very interesting topic for me. It may seem easy to begin our own business after watching our neighbor’s business growing or by just looking at the fad businesses around us. We couldn’t help ourselves saying, “Kaya ko rin yan”.  But if you don’t have the skills to run a business, don’t ever try it. Believe me, I tried and I failed.  I am not saying that don’t do business at all. What I am saying is you have to invest on yourself first before embarking on entrepreneurship. Like what Mr. Ernie Baron used to say, “Knowledge is power.”   Learn, do research and devote time.

Two years ago, I was so eager to start a buy and sell business. My Chinese friend and I bought products from China, sent them to my friend in the Philippines. Then, finally my friend, who is based in the Philippines, sold them. I even created a Facebook page to promote our products. Was the business successful? Absolutely NOT. That was two years ago, but we still have unsold products until now. Why? No research done, not enough knowledge and there was no enough time devoted to the business because we are all busy doing our full time day jobs. But again, I’m not giving up on it. But for now, entrepreneurship as a vehicle to wealth is not yet suitable for me.

Reason Number 3: No pressure from due dates

Unlike other investment instruments, stock market investing gives me the freedom to make my own schedule of funding my online stock market account. I no longer need to undergo the pressure of meeting premium due dates. Before I enter into the stock market world, I was only aware of VULs that is offered by many insurance companies, which is actually one of the most expensive investments because of the insurance that is tied to it. To pay for my premiums, I used to borrow money just to meet my Insurance company's set payment schedule which I find it very stressful.

Reason Number 2. Freedom to decide on the amount of money to invest regularly

In connection to reason number 3, directly investing in the stock market provides me freedom to decide how much money I will invest in a particular time. Compared with other investments like my VUL, I have to pay a fixed amount whether I have enough money or not. In my stock market investing, if my budget is tight, I may only invest a little and buy few shares, if there is more cash, I may also invest more and buy more shares. No pressure but or course, I have to bear the sole responsibility of  growing my wealth. 

Reason Number 1: I teach full time

I am an OFW, and I work 8 hours everyday from Monday to Friday which is also the same time the stock market opens. I teach and as a teacher, work does not end in the classrooms. I have to prepare lessons, mark papers, talk to students, and attend meetings and more related and unrelated responsibilities. So, this working setup makes me realize that the best money machine for me to use right now is the stock market. While exchanging my knowledge as a teacher for money here abroad, I can also let a part of my monthly salary earn more money for me.  With stock market, I can have the ability to duplicate myself earning both an active income and a passive income.

So, there. These are the 5 reasons why I think stock market investing is suitable for me. It is within my understanding, within my power, and through the guidance of the Truly Rich Club, I am confident that I will be able to manage it well. If I understand what I’m putting myself into, the chances are, I can minimize risks and maximize returns. As Robert Kiyosaki said, “The stock market is not risky. The investor is risky”. 

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