Today I’d like to introduce you to a 24-year old marino who started investing in stocks. This will also serve as first of many interviews I’ll be doing on ordinary people who has helpful and inspirational stories when it comes to personal finance, investment and making extra income.
Romer Navarro was a former high school classmate of mine at Dr. Arcadio Santos National High School – Parañaque. Just last week he shared his stock portfolio on Facebook and I was literally A-M-U-S-E-D! This marino is doing extremely well investing in the Philippine stock market.
Stock market investing for seafarers is not that common and I feel lucky to know someone like Romer who can really share on his own words the best investment for seaman.
In this interview Romer will briefly discuss…
- The step-by-step procedure he took to invest in stocks
- Some misconceptions to a seafarer or marino’s life especially when it comes to finances
- How a typical marino budget his money
- His investment strategy
- And his advice other young marinos out there especially when it comes to saving and investing their earnings
1. How did you start investing in the stock market? Please be specific on the steps you did. Will appreciate a step-by-step procedure. What attracted you to invest in the stock market?
I first heard the word stock market in year 2014. I was onboard the ship when one of my co-workers suddenly spoke about it. I became curious and I’ve started researching for it, how it works and how to get started.
I started investing at the last trading day of 2016. Maybe you’ve been thinking why it took me two long years to invest when I already have the idea since 2014.
Misconceptions about the market kept me away from investing. Misconceptions are the toughest hindrance we have when it comes to investing so before I started investing, I invested in myself first through learning.
Being onboard the ship that time didn’t stop me from getting in to the stock market. I devoted my time reading books I’ve requested to be sent on board, reading blogs and watching videos tackling the stock market.
It took me months before all of my misconceptions about the market vanished. A lot are asking how I started, when is the right time to start and etc., here are the enumerated steps I’ve taken:
1. Have a secured financial plan- Don’t just invest one time but you should make it a habit and do it regularly. Also, have financial goals.
2. Choose a broker- In my case I’ve chosen an online broker, that’s COL Financial. With COL Financial you invest in your chosen stock and also invest in mutual funds through the COL Fund Source. A lot of my friends ask why we still need a broker when it comes to investing in the stock market. To put simply, I’m telling them that it’s like ordering on a fast food restaurant. You can’t go directly in their kitchen and get your food there, you need to process your order in the counter first.
3. Fill up forms- I’ve had my forms filled out then sent the forms through a courier at COL Financial’s office. You can go directly at their office and fill out the forms there.
4. Fund the account- My chosen broker has confirmed my application then instructed me on how to fund my account. In my case I fund my account through online banking.
5. Get started- I’ve familiarized myself first in my broker’s online platform to get started.
One of my financial plan is to set up my retirement fund. This attracted me in investing in the stock market. I believe to be effective in the stock market, given its volatility, we need to stay long term.
This will help lessen the market risks and help us take advantage of the compounding power our money while still being invested in the market. Since my retirement is still many years ahead, I’ve decided to reach my goal of having a retirement fund through stock market.
2. There are a lot of misconceptions to a seafarer or marino’s life especially when it comes to finances. Is being a seafarer or marino really a ticket to getting rich and having comfortable lifestyle? Can you mention other misconceptions about a seafarer’s life?
Being a seafarer is not really a ticket to get rich. The real ticket to get rich is to properly manage your finances. No matter how high your salary is, if you don’t know how to manage it you’ll never be rich.
There is one big misconception why most of the people see seafaring as a ticket in getting rich and it involves the S-A-L-A-R-Y.
With the lack of financial literacy, people are fooled that the only way to get rich is getting a high paying job. I, myself has this misconception because my parents kept on telling me this when I was a kid.
It hurts me to hear misconceptions about my career from money, women to vices and etc. But, I just don’t pay attention to those things because I know in myself the truth.
3. How do you budget your money as a seafarer/marino?
I budget my money by having part for my family then money for investing, money for savings then the rest of expenses.
4. Can you describe your investment strategy? Are you a long-term investor? How do you pick the stocks you will buy?
Since majority of the year I’m on board the ship, I have very limited resources especially internet to do my research and monitor my portfolio. I need help to pick what stocks to buy and to do the research for me.
I’ve learned about the Truly Rich Club and I eventually joined, so that all I have to do is choose which among the recommended stocks. Now I’m free from worries on what stocks to buy.
Remember to choose your stocks by logic and not by emotions. No matter how big the company is, if you will not time your trades, you can’t maximize profits.
In my case, I have the Truly Rich Club doing the logic for me. I’m a long term investor since the reason why I am investing in the stock market is for my retirement fund.
5. Do you consider investing in stocks the best investment for seafarers?
I can say stock market is the best investment if it suits your financial goal. Like I’ve said before, have a secured financial plan enumerating your financial goals then decide what investment will help you achieve your goals whether it’s the stock market, bonds and etc.
6. What’s your next financial move?
My financial plan is to retire with Php 90,000,000 million. I used Excel for computation and it shows I need to invest Php 11,000+ monthly for the next 37 years with 12% average Compound Annual Growth Rate (CAGR).
I don’t have a plan to travel but to teach, yes. I’m planning to invest in a small business though I’m still thinking what business suits me. Currently, I am studying preferred shares.
7. What advice can you give to other young marinos out there especially when it comes to saving and investing their earnings?
Plan ahead, make a financial plan and manage your finances well. If you don’t know how to do these, then you can have a financial adviser to help and to guide you.
Prioritize providing your needs and at the same time securing a bright future through investing. Finally turn your spending on whims into investment. Some of my personal recommendations: Stock Smarts Series Books of Marvin Germo and the blog Ready To Be Rich by Fitz Villafuerte.
Romer is 24 years old from Taguig City. He is a Fourth Marine Engineer seafarer and currently on vacation. He loves reading books and blogs about financial management. And this post is where he share his investing journey and how he got started.
Final Notes from SavingsPinay
Thank you Romer for sharing your inspiring story which definitely set as a guide to financial planning for seafarers. How to save money as a seaman and how to invest are common questions being sent to me so I do hope Romer’s answer did enlighten us all. In summary Romer shared the following key lesson on how marino started investing in stocks:
- Have a solid financial plan
- It’s not about how much you earn but how you us what you earn
- Choose your stocks by logic and not by emotion
- You can invest in the stock market for your retirement fund
- Plan ahead, make a financial plan and manage your finances well
Are you a seafarer or marino too? Are you investing your money on stock market?
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Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglinofull.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at firstname.lastname@example.org