PE CAPITAL INVESTMENTS www.pecapital.org

Investing In Your Passion: Part 2

by Eliseo "Jojo" Prisno

CRPC, MS Chartered Retirement Planning Counselor



I wrote this article a few months back and got it published twice. I’m republishing it again to educate you, dear readers, further on funding altruistic initiatives. This is a follow to my article from last month on “Investing In Your Passion.” This is also a segway to our ad promoting D’Balayan Club of Chicago’s altruistic program for their hometown in Balayan, Batangas next year. This group of Balayanons headed by Frank Martinez in Chicago is embarking on a very significant out-reach program for the indigent patients of Batangas in need of surgical care.

In collaboration with the World Surgical Foundation (www.worldsurgicalfoundation.org) and the Philippine College of Surgeons, this band of Balayanons is targeting 300 to 400 surgical care recipients with minor, major or complex surgeries in different disciplines, free of charge. This is a huge relief to the beneficiaries considering that surgical care in most cases is a financial burden to most Filipino families. Please take note of the ad below and we look forward for your support to the fundraiser. Now, to ensure that you have the proper “kitty” to fund your altruism, please read the article below:

What is altruism? Sociologists define altruism as an act to promote someone else's welfare, even at a risk or cost to himself.

Though some believe that humans are fundamentally self-interested, recent research suggests otherwise: Studies have found that people’s first impulse is to cooperate rather than compete; that toddlers spontaneously help people in need out of a genuine concern for their welfare.

This perspective obviously suggest that the key to our dominance in the animal kingdom is through our cooperative mindset. It is simply part of our nature to help others; thus, to ensure that we can perform effectively our altruistic ideas, we should allocate some resources for it. The most common resource we normally devote is our time and expertise; however, for some people time is a rare commodity. Our day-to-day struggle to ensure our livelihood is vital to our existence but society keeps us somewhat self-centered and insensitive to extend help to others.

If time is a rare commodity, another asset which we can easily allocate is our financial resources. If we cannot share our talents and time, then funding other people's altruistic initiatives is a perfect alternative.

Funding Altruistic Initiatives

Every one of us is passionate about a certain cause whether it is environment preservation, societal interests or eradicating diseases. Whatever our passions are, there will be others who are passionate as well and all we need to do is "ride" with them. The bottom line is, we are trying to achieve the same goal. For most people, however, to give away a financial asset seems to be a difficult proposition which by itself needs a different mindset.

Funding your altruism or advocacy or ministry (pertaining to a religious endeavor) is a matter of financial discipline and investment strategy. The first step of course is to identify which advocacy you want to be part of and once your cause is found, the next step is to discover who are its champions. If you can identify yourself with your cause's champions i.e. a PVO's (Private Volunteer Organizations) or NGO's (Non-Government Organizations), try to do your due diligence if their organizational structure is adaptable to you. For example, if your trust is to be a passive donor, learn where and how to forward your financial resources to the PVO.

If you want to be an active fund ranging (proactive fund raiser for the PVO) learn the organizational protocol in fund raising and how much of your time commitment is needed.

Getting involved in fund ranging augments your personal resources by enticing others to join in.

Augmenting your resources with others makes it easier to let go of your portion because the majority of the donation will not come from your own pocket.
If you just want to be a passive benefactor, create a funding strategy that will not put a strain in your personal finance. To be able to do this your first step is to establish a seed fund. This seed fund must be on top of and independent from your other funding commitments such as your 401K and IRA retirement contributions, reserved fund savings (rainy day savings), medical savings program and insurance planning. Once your target base is met, estimate the potential passive income from investment dividends--this cash flow becomes your commitment for gifting. If the investment delivers growth and growth is realized, this surplus cash becomes your windfall gifting. The idea is to preserve the seed fund or the principal. On situations where you did not achieve any growth, then you may suspend your gifting until you recover. However, to avoid this situation on a cycle where you created a windfall return, reserve a portion of the realized gains for rainy day situations.

This very basic strategy is a simple approach to fund your altruism without straining your asset base. As some people would say "the best way to gift is when you're able to look at the face of the donee" and at the end of the day if you're six feet under these assets can't be brought to where you're heading. To invest in equities or stocks, always work with an investment professional properly licensed to deal with securities.

ABOUT THE WRITER: Eliseo Jojo Prisno is a Chartered Retirement Planning Counselor (CRPC) and holds a master's degree in engineering For over a decade, he has managed the wealth of select families and business owners. He founded P/E Capital Investments in 2010, a State Registered Investment Advisory Firm (CRD# 172695) and is currently the firm’s Managing Director and Senior Investment Advisor.

Mr. Prisno also manages a Fund of Funds investment program with Ameritas and runs an All-Equity Growth and Income customized portfolios in separate accounts via E*Trade Securities. He is also a licensed professional on insurance products and annuities. If you have questions or desire a complimentary analysis of your investments or retirement readiness, email j.prisno@PEcapitalinvestments.com or call 1-888-929-2825. Visit our website www.pecapital.org and our Facebook Page.




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