Sure, it would be nice to get rich quick but not all people are lucky. Getting rich slow means allowing the power of compounding returns transform a small capital into a significant fortune over time. There are plenty of compound interest calculators online if you want to run the numbers.
Here’s a video on the effect of snowballing dividends from Mr. Dividend Data, I think he illustrates the idea quite nicely:
Aside from rising interest rates, REIT investors are concerned about the long term viability of offices. But as the title says, offices are far from becoming extinct. They are, however, evolving. Check out this video from MREIT’s CEO, Kevin Tan, touring the offices of IBM in Eastwood. It shows us how the modern office is changing.
The latest 5-year retail treasury bonds (RTBs) from the Philippine Bureau of Treasury have a coupon rate of 5.5%. The Pag-IBIG MP2 Savings program has a yield of around 5-6% as well. Should I dump REITs and just invest in these safe government bonds instead?
With the challenges of keeping up with the rising cost of living, it’s no surprise that we do not spend a lot of time and effort on retirement planning. We hear of harworking people, particularly OFWs, who spend decades working but still end up poor in when they retire. We all get old at some point so it is better to be prepared than not.
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