The Starter Investor Tips on Investing for the 55-65 Age Group
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Updated April 6, 2023
AT THIS STAGE OF LIFE, is it possible to end the fourth quarter of the game of money with something significant, even if you only have a small amount to start with? Our life has come full circle since we started this blog in 2009, and we find ourselves back to square one. But now, in the so-called "fourth quarter of life" (ages 55-65, arbitrarily), we're determined to make the most of what we have. To begin with, we have a budget of Php5,000.00, and we're ready to explore our investment options.
Game of money
Robert Kiyosaki, the author of Rich Dad Poor Dad, breaks the game of money into four quarters, each representing a ten-year period of a person's life. These quarters are 25 to 35 (first quarter), 35 to 45 (second quarter), 45 to 55 (third quarter), and 55 to 65 (fourth quarter). Kiyosaki encourages people to increase their financial intelligence to retire young and start enjoying life instead of working hard all their life and being old. You may watch the video presentation entitled Investing In The four quarters Of Life -Robert Kiyosaki by The Rich Dad Channel in YouTube.
Quarters of life
You may also read an excerpt to to a self-improvement meeting shared by Cori&Belle, FOUR QUARTERS OF LIFE - THE REAL GAME OF LIFE (ebonydad.com) discussing the same concept. In summary, the speaker used an analogy from Robert Kiyosaki's book 'Rich Dad, Poor Dad' to break down life into four quarters, with each quarter representing a 10-year interval. The first quarter represents the time from age 25-35 when most people are focused on building their careers and establishing themselves. The second quarter represents the time from age 35-45, when people focus on family and material possessions. The third quarter represents the time from age 45-55, when people start to worry about retirement and wonder if they have saved enough. The fourth quarter represents the time from age 55 and up, when people may have to work past retirement age and have regrets about how they played the game of life.
Our understanding
To our mind, we understood the four quarters of the game of money this way:
- First quarter (age 25-35): Focused on building a career and laying the foundation for future success.
- Second quarter (age 35-45): Focused on expanding wealth and building businesses.
- Half-Time or the Mid-Life Crisis
- Third quarter (age 45-55): Focused on maximizing wealth, enjoying the fruits of one's labor, and planning for retirement.
- Fourth quarter (age 55-65): Focused on preparing for retirement, spending time with loved ones, pursuing personal interests, and giving back to the community.
- Overtime (age 65 and beyond): Focused on retirement, legacy building, and enjoying the later stages of life.
Retirement fund options
In a blog post titled 5 of the Best Retirement Fund Methods in the Philippines on www.fwd.com.ph, Sheen Moringa listed several options, including pension plans, Personal Equity Retirement Account (PERA), investment funds, and real estate. Experts recommend investing in multiple plans or a combination of these options for long-term financial security.
Building wealth guide
In an article published on iMoney.ph titled Building Wealth: A Step-By-Step Guide, the author imoney, discusses the four phases of financial life, which are similar to those proposed by Robert Kiyosaki. Francisco Colayco, the founder of Colayco Financial Education, has been helping Filipinos manage their money and build wealth since the early 2000s. Colayco divides financial life into four phases: Start-up, Build-up, Asset allocation, and Retirement. According to him, the key to progressing from one phase to the next is to increase passive income through saving and investing. To move up to the next financial phase, individuals must increase their passive income by setting financial goals for each life phase. Colayco warns against three major mistakes: premature acquisition of assets, living beyond one's means, and falling for scams.
Best investments in 2023
Moneymax Editorial Team has a longer list in its blog post titled Reach Your Financial Goals with the Best Investments in the Philippines. Marvin Fausto, founding President of the Fund Managers Association of the Philippines (FMAP), advises investing with a purpose. Some of the best investments in the Philippines with great earning potential in 2023 and beyond include time deposits, money market funds, short-term corporate bond funds, high-yield savings accounts, GInvest, and certificates of deposits. For low-risk investments with short investment durations, it is best to choose liquid assets such as time deposits and money market funds. For medium-term goals, it's best to put money in a mix of risky and less risky investments, including Balanced funds and equity-based UITFs and Pag-IBIG MP2. For long-term goals, one can invest in mutual funds, equity funds, bond funds, real estate investment trusts, and the stock market.
Best investment based on one's budget
The article titled How To Grow Your Money: 21 Best Investments in the Philippines for Any Age or Income written by Moanna Santos in FilipiKnow, provides guidance on choosing the best investment based on one's budget, risk profile, age, and investment goals. The aim of investing is to build wealth over time, protect money from inflation, provide passive income, and reach financial goals faster. There are many investment options to evaluate, and the article offers advice on whether to start investing with a small or large amount, whether a fund manager is worth it, and whether investing in stocks is better than real estate. The article lists 21 best investments in the Philippines for any age or income.
GInvest: Our Budget-Friendly Investment Option
To meet our budget constraints, we require an investment option that starts with a modest amount of Php5,000. Grace Maala's YugaTech article GCash’s GInvest: What you need to know, provides valuable insights on how to begin investing using the platform. Although the article was published on May 10, 2021, and some changes to GInvest have since been made, it still serves as an excellent guide. Marginal Investor suggests giving it a read.
From vision to action
To start investing with GInvest, we need to have funds in our GCash account. You can fund your GCash account through various channels such as bank transfers, online payment platforms, or by going to a GCash partner outlet. Once we have funds in our GCash account, we can start investing in GInvest.
And there you have it, a fresh start towards a new beginning of investing for the fourth quarter of life.
Join us as we embark on our investment journey! We are currently in the process of getting verified, and as soon as we're ready, we'll start investing with our Php5,000.00 starting capital. Stay tuned as we share our progress with you.
