Aneth Ng-Lim

<p>This holiday season, let me add something to your gift pile – priceless money wisdom from Melvin Esteban, a financial expert with over 3 decades of experience in the field.</p><p>I spent most of my career working in a multinational bank and I confess that in the early years, I struggled to manage my own finances.  Raising two young children, there were too many bills to pay, and many dreams that my husband and I wanted to fund.</p><p>In all those years I was with the financial services industry, I’ve had the chance to meet many brilliant bankers, but at the top of my list whose money advice I would seek and listen to would be Melvin’s.</p><p>Let’s be real – money talk can give most people a nosebleed.  There is so much jargon, the math does not always add up for the simple folk, and there are also salespeople who are less than honest about what they are selling and the real cost to small-time investors.</p><p>That’s where Melvin’s money wisdom comes in.  He can cut through all the complicated information, and help his clients make informed decisions in the context of their risk appetite, investment horizon and product knowledge.  It’s probably those some 30 years of experience, or the fact that he has worked for leading multinational and local financial services firms in the country, from banks to insurance companies to wealth management.</p><p>Through 10 lessons outlined below, Melvin hopes to inspire people who are new to investing to start now. “These aren’t your typical textbook tips; they’re lessons I’ve learned and lived by. I hope these will resonate with your readers and help them take that first step.”</p><div><strong>#1 Know the difference between saving and investing<br/></strong></div><p>According to Melvin, “saving is about preserving and accumulating wealth, while investing is about making your money grow and work for you over time. This distinction is critical in developing the right mindset for investing.”  While saving is good, investing is better if you want to beat inflation, jump from just getting by to being able to get what you need and want and more, plus secure your financial future.</p><div><strong>#2 Investing is not gambling<br/></strong></div><p>“Gambling relies on luck and chance, whereas investing is a calculated process that involves understanding why an asset is likely to grow,” explains Melvin.  Let’s consider the stock market.  Many start investing in stocks by following what others do.  You may get lucky this way, but you could also lose your shirt.  “True investing requires discipline, knowledge, and risk management — not just hope or luck,” adds Melvin.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/Jdnv_ICJmiI?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><strong>#3 Know your risk profile but remain flexible<br/></strong></div><p>One of the first things you need to know before you start investing is your risk appetite.  Are you aggressive, conservative, or somewhere in the middle?  But Melvin clarifies that you should not box yourself in: “It’s about the opportunity, not blind adherence to risk levels. Risk-averse individuals often lean toward low-risk investments, while risk-takers explore higher-risk options. But flexibility is key: being a risk-taker doesn&#x27;t mean pursuing risk recklessly. If conditions favor a lower-risk asset, you should pivot accordingly.</p><div><strong>#4 Investment is dynamic<br/></strong></div><p>For Melvin, there is no one size fits all, or one product for all investors.  “There is no single ‘best’ asset. Investing decisions should always be based on the current landscape of opportunities and your financial objectives.”  This is why a regular portfolio review is critical.  Being aware of geo-political risks that could impact your investments may help you avoid losses and possibly make the switch to wins.</p><div><strong>#5 Focus on the future, not just the past<br/></strong></div><p>Nearly all investment products that have no guaranteed returns will have a statement that reads something like this, ‘based on past performance...’ Melvin cautions investors that “while history can inform decisions, investing is fundamentally about what may happen. Focus on potential scenarios, market trends, and economic indicators that could shape the future.”</p><div><strong>#6 Don’t fall in love with a specific investment<br/></strong></div><p>“Just because an investment performed well for you in the past doesn’t mean it will do so again in the future. Always evaluate opportunities based on current market conditions, and don’t hesitate to let go of an asset if it no longer aligns with your goals.”   This ties back to advice #5, which is to look ahead and focus on future possibilities, instead of relying solely on past performance.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/15aVQG477O8?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><strong>#7 Make it a habit to learn something new about investments<br/></strong></div><p>If you like learning a new word every day, or a new skill or language every month or year, channel the same interest to learning about investing.  “Whether it’s a term, strategy, type of investment, or even a company, constant learning will expand your understanding of opportunities,” explains Melvin. “You cannot invest in something you don’t know exists, so keep sharpening your knowledge daily.”</p><div><strong>#8 Each asset has its own unique benefits — don’t ignore them<br/></strong></div><p>One of the oldest and truest advice in investing is not to put all your eggs in one basket.  According to Melvin, “Stocks, bonds, real estate, and other assets all have specific advantages depending on market conditions and your goals. Understanding these benefits allows you to build a well-rounded portfolio.”</p><div><strong>#9 Be patient, but be mindful<br/></strong></div><p>Anyone who promises quick and high returns on your money is most likely not telling the whole truth or lying.  If it’s too good to be true, it most likely is. “You’ll often hear advice to “hold for the long term.” While there may be wisdom in that, staying invested blindly can lead to losses if the asset is underperforming or fundamentally flawed. Always reevaluate and ensure your investments remain sound,” relates Melvin.</p><div><strong>#10 Pay attention to fees and taxes<br/></strong></div><p>Melvin gave me this advice early in my investing journey, and sorry to admit this, but I still need to be reminded to this day.  If you don’t ask pointed questions, if you don’t read the fine print, you could be paying fees and taxes that eat into your investment returns.</p><p>“These are often overlooked but can significantly impact your returns in the long run. Be aware of transaction fees, fund management charges, and tax implications to make informed decisions that maximize your net gains,” warns Melvin.</p><p>Before you embark on your investment journey, consider having life insurance protection if you have a family. Insurance may be the most boring asset, but it could also be the most important one when all else fails. Always practice risk management, and with that, we wish you prosperity and good health.</p>

<p>This holiday season, let me add something to your gift pile – priceless money wisdom from Melvin Esteban, a financial expert with over 3 decades of experience in the field.</p>

This holiday season, let me add something to your gift pile – priceless money wisdom from Melvin Esteban, a financial expert with over 3 decades of experience in the field.

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Unwrap this Gift of Money Wisdom

Unwrap this Gift of Money Wisdom

Aneth Ng-Lim

Published Dec 25, 2024 08:00 AM PHT

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