Connect with us

Hi, what are you looking for?


‘Don’t chase returns’ — financial consultant

Recessions are cyclical, but so are recoveries. “Your future is not about waiting for the economy to get better,” said Marvin P. Germo, financial consultant, stock market trader, and president of Stock Smarts Learning Publishing Inc., which publishes books on finance. “It’s about you being faithful with what you have right now and being better at investing so you can determine your future.” 

At a recent webinar organized by insurance company Manulife Philippines, Mr. Germo advised investing in financial instruments that give growth or long-term capital appreciation, cash flow or predictability of income, and hedge or additional protection in case things don’t go as planned. “The younger you are, the more you should focus on investments that are growth-oriented,”  he added. “The older you are, the more you should focus on investments that give predictability.” 

Based on a 2020 Manulife Asia Care study, 87% of Filipinos are considering purchasing an insurance product this year, with 90% saying that retirement planning has become more important since the coronavirus disease 2019 (COVID-19) pandemic began—this is above the region-wide average of 73%.

This year is a recovery year, but there are risks to consider, according to Zed J. Matubis, vice-president and head of wealth sales of Manulife Asset Management. “While the rolling out of the vaccines provides optimism for the re-opening of economies, resulting in higher gross domestic product (GDP) growth and corporate earnings, we still have to be cautious of the increasing COVID-19 cases, which will have a great impact,” he said. “It would be best for investors to have a long-term investment horizon and diversify their portfolios.”

Investing is about hitting a goal, and investment earnings are a byproduct of how a goal is structured, Mr. Germo said. The sooner individuals prepare for the next recession, the better prepared they are to structure their investments well. “Don’t chase returns. Returns are a byproduct of how you plan. You invest to meet a need so that when the market drops, you don’t get rattled, because you have a plan.” 

Variable universal life (VUL), a type of life insurance policy with a built-in savings component that allows for the investment of the cash value, was mentioned by Mr. Germo as a way to get one’s feet wet and own a piece of the country’s largest companies. It’s an instrument that offers a hedge of protection as well as an investment component, he said.

“A VUL allows me to go all in [on riskier investments] because I protected all the bases already,” he added. 

Another important piece of advice by the financial consultant was to only invest in one’s excess money. “Never put in money you need today,” Mr. Germo said. “It has to be an amount that—even if the value drops to zero—you can still sleep soundly at night.” — Patricia B. Mirasol

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



A UK-backed mission which will search for Earth-like planets orbiting alien stars has been given the green light to continue with its development after...


According to a new survey a staggering 3 out of 5 UK professionals are unhappy with their current salary. The study, which surveyed 1,500...


A mental health crisis is looming among small business owners – with 82% reporting that their mental health has already declined due to the...


One of Britain’s biggest banks has called on the “social conscience” of large businesses to encourage them to settle bills to small and medium-sized...


The UK’s deep regional divides are widening despite the government’s promises to level up the country, a think tank for the north of England...


Britons are consuming too much alcohol at home due to sessions lasting longer than pub visits, an expert said, after data suggested millions of...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.