SEC Region 5 Director Atty. Norma Tan-Olaya said the learning session aims to educate the community by starting with participants from different sectors who are expected to become ‘Scam-Proof, Equipped, and Empowered (SEC-SEE) investors.
‘’To avoid being scammed, to invest in a legitimate business or company, and to know if the transaction is an investment contract you should use Howey Test and investment checklist as well,’’ Olaya added.
‘’To determine through Howey test, an investor should check if there is a profit or monetary investment. There should be an expected profit and increase of profit through human effort,’’ she added.
Olaya cited the various kinds of scam such as the Pyramid Scheme or promise of unrealistic returns from imaginary investment through invitation or recruitment of other investors.
There is also the Ponzi scheme which pays the existing investors through the money collected from the new investors.
Also noted during the session is the need to personally record transcations such as the "ins' and "outs" of money to determine the amount of savings.
Likewise, the utilization of the 4Rs strategy - Reduce, Reuse, Repair, and Recycle should be practiced to minimize expenses.
The participants are also encouraged to practice the 50-30-20 rule in budgeting.
This include 50% for needs, 30% wants and 20% for savings.
Olaya further encouraged the participants to invest as one way to cope with the impact of inflation.
As reported by the Philippine Statistics Authority (PSA), inflation rate in the country increased by 7.7% from January to October 2022 compared with the 4.0% average inflation rate for the same period last year. (PIA5/Albay)