You have a private equity fund. And you say to yourself, I have arrived.
But, have you?
Because, in fact, it may take you longer to arrive.
First things first. Let me explain what a private equity fund is (but please bear with me – we will be going a little technical here). It is typically a limited partnership, in which the private equity firm acts as the general partner and accredited investors fund the investments of the partnership. According to Daniel R. Solin in his book, TheSmartest Portfolio You’ll Ever Own, the average returns on equity funds, net of fees, were 3% below that of the S&P 500 (an index that consists of 500 stocks weighted by market value, often incorrectly used as a benchmark for the performance of the US stock market) and fees were a whopping 6% a year.
The fraud (it is fraud) does not start, or end, with private equity funds.
I figured – I might as well plunge head-on into the world of personal finance. And what better way to continue my education than by formal training.
Good too that I got a semi-scholarship / discount through MoneyDoctors partner and friend, Salve Duplito, who is a finance guru herself. (thanks, Salve, and to Mr. Henry Ong, head of the RFP – Philippines program)
So my friends, in a few months, I hope to be a Registered Financial Planner. I also want you with me on that journey so I am cooking up something that I hope will positively impact the financial future of one (or two, or three) of you. (hint, hint)
I found this lone piggybank in a toy store and embraced it right away, looking suspiciously to my left and to my right to check if someone will get it from me.
No other takers. I breathed a sigh of relief.
But to tell you the truth, when I got it, I initially thought of giving it as a gift to one of my nephews or nieces but then as the countdown to Christmas lost digit after digit, I started wanting it for myself (it would be perfect too for my daughter…).
I am not sure that I learned about money when I was young. Actually, I am almost sure that I did not.
To be fair to my parents, I think there was no consciousness yet, at that time, on the importance of teaching kids about money. What they knew was that they had to provide and that was the end of it.
But the power to dream of riches and making it come true lies at the core of one’s life – in one’s childhood. His views about poverty, about money, his poverty mindset (money does not grow on trees) and his wealth mindset (money grows on trees) start at that time which is at the root of all his memories.
And so we as parents have a duty to make those memories good ones, and that the mindset we cultivate is one of wealth.