How To Waive Credit Card Annual Fees

 

Last week started off with a decent surprise as I was able to save Php1,800 by having my Citibank Cash Back Visa's annual fee waived. No questions asked. No conditions necessary. I don't normally expect that from Citibank since it is the only credit card company that was able to force me to pay up on an annual fee a few years back. Getting away with an annual fee without anything in return is quite rare these days. But I did it with not one, not two, but three credit cards this year. That means I get to enjoy getting points and/or rebates on gas, phone bills, groceries and other purchases for another year. 

Credit Card Annual Fee is the yearly membership fee charged to a cardholder for the right to carry and use a lender's credit card. Today I am gonna share with you many different ways to save on your credit card annual fees. All based on personal experience. 

1. Use your points or miles. In most cases, banks just won't waive your annual fees without anything in return. They would suggest that you give up your points in exchange for the annual fee reversal. 
2. Transaction-based conditions. In my experience with Standard Chartered's Platinum Cash Rewards Visa, I had to make five (5) swipes in order to reverse my annual fee. I gladly obliged since there was no minimum amount required. I could have just bought five 99-cent Apps from the AppStore and I would have saved Php2,500. I didn't buy apps, but I did save twenty five hundred bucks.
3. Amount-based conditions. HSBC once asked me to spend a total of Php5,000 within 30 days so that they would waive my annual fee.
4. Auto-charge a utility bill. Saved another Php1,800 by enrolling my cellphone bill to my credit card.
5. Enroll to e-statements. If you haven't done so, go green now. You save a thousand bucks and you help save mother earth too.  
6. Subscribe to text/e-mail alerts. This is my favorite. Partly because it doesn't make sense (for the bank/credit card company). But hey, I saved Php1,200 by doing this.  
7. Request for an annual fee reversal/waiver. Sometimes, all you have to do is simply ask.

How about you? How were you able to reverse your credit card's annual fee?

P.S. If you like this post, kindly use the share button above, or subscribe to Richardson Consulting. That's all for now. Happy swiping everyone! =)

My Take On Cost Averaging

 

As many of you already know, the Philippine Stock Exchange Index (PSEi) has been on a rampage, breaking record highs day after day after day. Value investors must be smiling right now since most of the stocks they bought one or two years ago are probably 3 or 5-baggers by now. Those who invested in the stock market via cost averaging (as recommended by Bro. Bo Sanchez in his free e-book) are probably smiling too. But some people might be asking: what the heck is cost averaging?

According to wikipedia, Cost Averaging is an investment strategy wherein money is invested in equal amounts regularly and periodically over specific time periods (such as P1,000 monthly) in a particular investment or portfolio. By doing so, more shares are purchased when prices are low and fewer shares are purchased when prices are high. The point of this is to lower the total average cost per share of the investment, giving the investor a lower overall cost for the shares purchased over time.
Like I said before, I am not a big fan of Cost Averaging. I must admit, though, that I would have used this investment strategy during the global economic recession. Bu that was 2008. Fast-forward to 2010, if I were asked right now if I would cost average my investments, I'd probably say 'No'. Here's why:
Cost averaging is feasible in any market, whether rising or falling. But while it is true that a person who invested Php120,000 in a top performing equity mutual fund in 2009 through cost averaging (10k per month) would have probably earned more than 100%, fact is, that person didn't maximize his potential ROI. As seen in the image below, cost averaging was not as feasible compared to a lump sum investment. Both strategies, however, did give decent returns because we currently are in a bull market.

On the other hand, when the market is going downhill, it may be wise to cost average an investment for the simple reason that we do not know when a market hits its bottom. At the same time, we are able to mitigate the risk of buying too many shares at too high a price. As we can see in the theoretical scenario below, the total average cost per share of the investment was lowered significantly compared to a single lump sum investment. In this scenario, cost averaging was the more feasible investment strategy.

In a nutshell, money cost averaging is still feasible at any market. But in a bull market, doing so may not yield the maximum earning potential of your investment. In a bear market, however, cost averaging is a more favorable strategy. How about you? What's your take on cost averaging and other investment strategies? Let me know by dropping a comment below. Thanks! P.S. If you like this post, kindly use the share button above, or subscribe to Richardson Consulting. That's all for now. Happy investing everyone! =)

Maids Can Invest in the Stock Market, Why Can't You?

Last week, I wrote about how to open PDF files on iBooks, and gave away a copy of Brother Bo Sanchez' free e-book entitled "My Maid Invests In The Stock Market... And Why You Should, Too!". As promised, I will be sharing my thoughts about this e-book, and how it has affected my mindset when it comes to investing in the stock market.

Before reading Brother Bo's e-book, I was already investing in the stock market, or should I say, trading in the stock market. I started with a capital of Php1,250 and was only able to buy the minimum board lot of one of the blue chip companies here in the Philippines. Fast forward two and a half years later and out came this ebook with a really catchy title. I mean, really? Maids? Investing in the stock market? Yeah, right! But after reading the whole thing from cover to cover, multiple time, I was kinda wishing Brother Bo published this e-book one year earlier, back when the economy was still down and most stocks were cheaper.

But let's not dwell with the past and just try to move forward. Through this e-book I learned that Money Cost Averaging is actually feasible in a rising any market. I've never liked this investing strategy, partly because, it requires a lot of discipline, and more discipline. But experience has taught me that cost averaging actually works. Details will be discussed in a future post.

"Be fearful when others are greedy, and be greedy when others are fearful." This is one of Warren Buffett's rules on investing, which was quoted in the e-book. Why did I highlight this? Because when others were fearful (because of the global economic crisis), I WAS TOO! And it cost me. It cost me a lot. Let's charge that to experience. "How much of a lost opportunity was it?", one might ask. Here's how much:

• MEG was worth around fifty centavos per share back in early 2009, today it is worth around Php 2.50.
• AP was worth around five pesos per share back in late 2008/early 2009, today it is worth around Php 25.00
• DMC was worth around five pesos per share back in late 2008/early 2009, today it is worth around Php 33.00

In addition to these two valuable lessons, Brother Bo gave us a freebie by actually listing down some stocks that he recommends (this was then only available to Truly Rich Club members). Here are the YTD performances of some of them: 

Notice that the stock prices of most of the companies listed in the e-book rose pretty high. Their growth rates beat interest rates of bonds + regular savings + time deposit accounts combined. For the one that didn't, well, it gave out huge cash dividends. :D

In a nutshell, "My Maid Invests In The Stock Market... And Why You Should, Too!" is a good read. Had this book been published one year earlier, it would have made a big difference in my net worth. But this is not about me. It's about you, my dear readers. This e-book makes you realize how easy it is to invest in the stock market. And how instrumental stock market investing could be to the achievement of your financial goals. Bo's maids can invest in the stock market, why can't you?

How To Open PDF files In iBooks (Free e-book included)

What's not to love about the new iPhone 4? It can call & text (no-brainer), connect to the net via 3G or WiFi, Video Call via Face Time & Yahoo Messenger, play music & videos, and run a multitude of applications, among other features. Oh wait, there's one more thing, the iPhone 4 also has an e-book reader, aptly named "iBooks" (iBooks is also available on iPhone 3G/3GS, iPod touch 2G/3G/4G, and iPad).

I love iBooks, not because I can store tons of e-books on my iPhone, but because I can download PDF files or e-books in PDF format from the net, and open them in iBooks. Let me show you how. In this demo, I am going to do the following steps:

1. Open Safari from iPhone
2. Input the following link in Safari's address bar: http://bit.ly/aFZ3GJ
3. This will download Brother Bo Sanchez' free e-book entitled "My Maid Invests in the Stock Market... And Why You Should, Too!"
4. Click Open in iBooks (see screenshot 1)
5. iBooks will launch and should display e-books 
6. Select My Maid Invests in the Stock Market... And Why You Should, Too!

Click Open in iBooks

E-book is now displayed in the iBooks library

Read pdf from iBooks

Congratulations, you have successfully added a PDF file to your iBooks library. If you already know how to this, well, at least you got a free e-book, right? Get e-books by Bo Sanchez and lots more here. Enjoy this free e-book and let me know your thoughts about it. I'll be sharing mine in my next article.

That's all for now. If you liked this post and want to learn more techie and financial stuff, please subscribe to Richardson Consulting. Thanks!

Create Money Machines

One fine day not so long ago at work, my friend Fina and I were talking about how we've been doing, financially speaking, especially during the times when the economy was down, when she introduced me to the works of Brother Bo Sanchez. The curious little boy that I am, I googled him up, subscribed to his daily newsletter, checked out the Truly Rich Club, and read some of his free e-books. Months later, I, along with my fiancé, was able to attend Brother Bo's "How to be Truly Rich" seminar, in which, we also bought his latest best seller "Choose to be Wealthy".

What I particularly liked about "Choose to be Wealthy" was the power talk CD that came along with it. The talk was entitled "Create Money Machines". I'd like to share my reflections about "Create Money Machines" and hopefully, this entry wins me three tickets to the next "How to be Truly Rich" seminar on November 13th so I could bring along two of my friends. =)

I have heard the "Create Money Machines" power talk on my iPod many many times and I never get tired of listening to it. Why? Because in a way, it serves as a reminder to me of the "Whats and Whys" of my life. What am I gonna be after X amount of years? What am I gonna do with all the millions billions I'm gonna earn? Why am I investing in the stock market? Why would you buy an expensive condo unit? Etc. Listening to "Create Money Machines" answers all these questions and it keeps me in the right direction into achieving my goals.

Okay, just to be clear, I am not earning billions, yet. But I will. Very soon. Anyway, since we are talking about money machines, let me share mine, why I chose them, and their performance:

• Equity Mutual Fund - my first dive in the investing world was in the form of a equity mutual fund. I chose to invest in an equity mutual because I have a long term outlook and I had the risk tolerance for it. After 3 and a half years (recession years included), my equity mutual fund has gained 59% 
• Balanced Mutual Fund - I went for a little diversification and chose a balanced mutual fund that was just 2 months old. After 3 years and two month, my balanced fund has gained over 90%
• Variable Universal Life - If Suze Orman read this, I'd be getting a Suze Smackdown. But anyway, I invested in a VUL to protect my loved ones. This is basically a money machine for them just in case my manual machine (me!) shuts down for good.
• Stock Market - investing in the stock market was easier, cheaper, and more convenient than investing in mutual funds (less legwork, online accessibility), and it has a relatively higher rate of return (which, of course, also means, higher risk). My current portfolio has a paper gain of around 30% as of this writing. 
• Real Estate - my fiancé and I bought a pre-selling condo unit to live on for a few years before renting it out. Ground breaking hasn't even started yet but the condo's value already increased 3.9%

If you wanna learn how to create your own money machines, grab a copy of Bo Sanchez's latest book "Choose to be Wealthy" and also, if you like this post, please subscribe to Richardson Consulting. Thanks!

Unlock Huawei E160 3G Modem FREE

 

As of this writing, I am connected to the net using my honey's Globe Broadband Tattoo-provided Huawei E160 3G Modem on Sun Broadband Wireless. She got the modem as a freebie when she got her new Asus F80Q laptop. The Huawei E160 was previously locked to Globe Broadband Tattoo. But thanks to a very generous PExer, I, and other Huawei E160 users are now able to use the 3G modem with any network we want. I made this post to spread the good deed that deywet has done for me and many others. And if you also want your Huawei E160 3G modem to be unlocked, all you need to do is post your Huawei modem's IMEI on this link --> THREAD <-- and the unlock code will be posted shortly. This charitable act will help you save around Php200.

Disclaimer: Huawei E220 is not supported. However, a guide to unlocking the E220 is already posted here. DO NOT post your IMEI here because I don't have the unlocking software. If you are not a member of PinoyExchange.com, signing up is free. Happy browsing with your unlocked Huawei 3G Modem. :) 

Below is the list of supported models (all Huawei): E156,E160,E166,E169,ETS668,T128,T156,T158,T160,T161,T201,T208,U120,U3300,U7300.

3G Internet Connection Sharing Over WiFi On Windows XP

I am going to share with you today a step by step procedure on how to share your 3G internet connection over WiFi using the Internet Connection Sharing feature on Windows XP SP2.

Hardware Requirements:

• Laptop or Desktop with WiFi card. Most laptops and netbooks already have WiFi built-in. This PC will act as the host PC that will share its 3G internet connection.
• 3G modem connected on your PC's USB port. For this article, I used Huawei E220 on Sun Broadband Wireless.
• Another laptop, WiFi-enabled desktop, or any other wifi-enabled device such as the iPhone, PSP, or iPod touch. In my previous experiments, my MacBook was able to successfully connect to my honey's ad hoc network.

Now that you have the hardware ready, it's time to get your hands dirty (well, not really. It is as easy as 1-2-3):

1. Enable Internet Connection Sharing. To do that, go to Network Connections and locate your 3G internet connection's dialer. Right click and select properties. From the properties window, select the Advanced tab. Tick the check box for to enable Internet Connection Sharing. Select Wireless Network Connection to enable sharing via WiFi.
2. Create a wireless computer-to-computer network (also known as ad-hoc network). At the taskbar, right click on your the Wireless Network Connection icon. A window opens to let you choose a wireless network. On the left side of the window, click on the "Change advanced settings" link. You will be directed to the Wireless Network Connection Properties window. On this window, click the Wireless Network tab. Click the Add button to create a new wireless network. Make sure you tick the check box at the lower left side of the window to make your new wireless network an ad hoc (computer-to-computer) network. Adding network security protocols are optional but recommended.
3. And that's it! Now go get another PC, Mac, PSP, iPhone, iPod touch, or whatever, and connect to the new ad hoc network you just created. On Windows XP, you'll know you have successfully connected when you see something like this: [screenshot to follow]

There you have it. Everytime you connect to your Smart Bro, Globe Broadband Tattoo (formerly Globe Visibility), or Sun Broadband Wireless, any device that accesses your ad hoc network will have access to the internet as well. Happy Internet Sharing! :)

Sun Broadband Wireless Internet Sharing

It has been two months since I subscribed to Sun Cellular's wireless internet service that is weirdly named "Sun Broadband Wireless". I think it's weird because broadband was mentioned before wireless. And weirder because it is barely able to provide "broadband" service. But that's not the point. Now let's assume that you have Sun Broadband Wireless, and you want to share your internet connection, how do you do that? Well, you came to the right place. Because that's exactly what I'm going to write about. In fact, I am writing this post via a computer to computer wifi connection. I'm using a MacBook while the host (the computer connected to SBW) runs on Windows XP SP2. As promised, here's a list of internet sharing options for your Sun Broadband Wireless: [cbmage]Affiliate Marketing[/cbmage]

1. On a Mac, use AirPort Internet Sharing. Tested to be working with wifi enabled gadgets such as PSP, iPhone 3G, iPod touch, HTC touch. COST: zero. CONS: shortened battery life for Mac. Windows-based laptop cannot connect.
2. On Windows XP, enable Internet Connection Sharing on your SBW connection. Create an ad-hoc (computer-to-computer) wifi network. This is the current setup at home right now since the PCs can't connect to my Mac. Tested with 5 concurrent users. 1 Vista, 3 XP, 1 MacBook. I have yet to test if the wifi enabled gadgets are able to leech from the host's internet connection. COST: zero. CONS: shortened battery life for host PC
3. Use a 3G Mobile Router. Here's a sample. However, this router is very costly. At Villman, it costs Php8,988.

There you have it. Let me know what works for you or if I left out other internet sharing options. Thanks! :)