Question: Why are the citizens of our Asian neighbors much richer than us Filipinos?—Name withheld by request

Answer: This is a question that ‘hits the spot,’ as the saying goes.

I just read an article stating that Singapore has the highest concentration of millionaires in the world with 16 percent of its households having at least $1 million in assets, as determined by a study released by the Boston Consulting Group.

Switzerland comes next on the list with 9.9 percent of its households having $1 million in assets. Hong Kong comes in at fourth with 8.7 percent and the United States is at 7th with 4.5 percent.

Don’t even ask where the Philippines ranks as I can’t seem to find it in the news feeds… ouch!

I was in Singapore last weekend on a business trip and whenever I am there, I marvel at how progressive a tiny country with hardly any natural resource can be. I enjoy going to Singapore because it gives me an image of how the Philippines can be when we put our acts together.

We don’t need to limit our sights to Singapore; we can also look at …

Read full column at http://business.inquirer.net/3554/why-our-neighbors-are-richer-than-us

The rising cost of goods and services have been a big concern to us Filipinos for many months now. Official numbers puts inflation at around 4% but it seems that the rising prices goes beyond the official numbers. Generally, the barometer to measure inflation is the Consumer Price Index of the CPI. An earlier 3 part blog delved a lot about the rising prices and how we can survive amidst the higher cost of goods and services. For me, CPI is not a very realistic measurement of personal inflation since there are many items in our budget that are not being measured in the index such as education, among others. We all experience that tuition and education related expenses are somewhere between 5 to as much as 12% and if education composes a big chunk of our budgets, actual realized inflation will be much higher than the index.

Read Rising prices blog, part 1, part 2, part 3

I was listening to a podcast earlier and hyperinflation in Zimbabwe was referred to in a coy manner. Zimbabwe has suffered an incredible rise in prices in the past that actual measurement of inflation is rather moot. It was said that hyperinflation in that African country was so bad that prices doubles every 30 hours or so.

Just what is hyperinflation anyway? Investopedia has this to say:

Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.

Investopedia further explains…

When associated with depressions, hyperinflation often occurs when there is a large increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked this causes prices to increase, as the currency loses its value.

One of the most famous examples of hyperinflation occurred in Germany between January 1922 and November 1923. By some estimates, the average price level increased by a factor of 20 billion, doubling every 28 hours.

The experience of Zimbabwe is now for the books… they actually have multi-billion dollar notes so the term ‘Billionaire’ does not really mean anything there. The good news is Zimbabwe has since been able to curb its unbelievable hyperinflation and is trying to put it’s macroeconomic situation in order.

Looking at the situation of Zimbabwe or even other countries which registers double-digit inflation gives us a bit of relief and we must acknowledge that we are still a blessed nation despite our many issues.  There are many things we should be thankful for, we just need to be reminded from time to time.

Let them thank the LORD for his steadfast love, for his wondrous works to the children of man! – Psalm 107:15 (English Standard Version)

Who are the top Life Insurance Companies in the country? The Insurance Commission releases the list of the top insurers albeit late. The latest figures show the numbers of 2009. The ranking is according to total premiums registered.

There are many other areas one should consider when choosing an insurer other than its ranking such as claims experience, customer service, charges, etc. Further, chose a life insurance intermediary (agent, broker, adviser) who will take time to educate you in the rudiments of risk management and not just push a product.