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Monday, October 21, 2013

NU12 #7: Submitted by Ermel Retuta - encouraging investment in stocks

NU12 #7 – Employee Investment Options


Submitted by Ermel Retuta
MBA – MM, SPENTREP
Employee Investment Options
Industry data shows that only less than 1% of the Filipinos are investing in the stock market. Lack of knowledge is one of the reasons why we see less on the percentage of investors as compared to other countries in Asia.
My suggestion is to incorporate an investment package as part of the options given to newly hired employees in every company. This should be led either by a government or a private company.
Employees will just choose how much he or she is willing to invest every month and upon confirmation and approval, this will be automatically deducted to his monthly salary like SSS, Philhealth and Pag-Ibig.
The government led agency will then use and invest the money on income generating investments like stocks, bonds, and others.
As there are no assurances on the return and the profit to be generated, the employees may opt to modify the amount that they are willing to invest every year.

In this way, the government is not only helping its countrymen to earn & save but also involves them to engage in investing. 3

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