Flint vs GInvest: Deep Dive

I’m excited to partner with Flint in sharing financial literacy. I’m honored that Andre Mercado, the CEO of Flint, has reached out to me so that I can write blogs for their website, as my finance blogs give value to others. He said that I have the DNA of Flint that enables me to share money tips and tricks to everyone. 

We all know that saving and investing in the Philippines is now accessible to anyone as long as you’re of legal age. That’s why I’m excited to share my learnings and best practices with the target market of Flint, which consists of students, OFWs, seafarers, and even low to middle-income earners. The days when you needed hundreds of thousands or even millions before you could invest in real estate are long gone. Now, you can invest in real estate for as low as ₱1000. 

For my first blog post, I will be comparing Flint with GCash Invest Money (GInvest) that just released new funds, so you can know which one is the better choice for you. You’re probably already aware of Flint since you’re reading this article, but if you haven’t registered yet, you can sign up here. GInvest boasts hassle-free, real time, and no charge investing through GCash, the recommended mode for top-ups and withdrawals in Flint.

I suggest reading both my blog posts before proceeding, so you can have a better understanding of what Flint and GInvest are and how they work. You might be thinking that we are comparing apples to oranges as Flint is a crowdfunding platform while GInvest is an example of a Mutual Fund/Unit Investment Trust Fund (MF/UITF). But, I hope through this blog, I’ll be able to give you all the information you need to make your best informed decision.

We all know that each investment vehicle has its pros and cons. The important question when choosing one would be whether the vehicle is fit for you to help you reach your financial goals. So let’s see a head-to-head of their similarities and differences so you’ll know where to invest your hard-earned money. 

So in summary, you would want to choose Flint over GInvest if you want a short-term investment that gives a stable source of returns per month. This is considered a passive income as you will only fund once and you will expect a payout for the succeeding months. On the other hand, you would prefer GInvest over Flint if you want more flexibility on the duration and returns of your investment. As a recap, the higher the risk of an investment, the higher the possible returns. So choosing a higher risk fund in GInvest can yield higher returns. 

There’s no “one size fits all” when it comes to investments as we are all in different situations, which would mean different risk appetites, capital, time horizon, etc. What might work for me, might not work for you. As you can see, both Flint and GInvest are great investment options, so if it’s not a question of which is better than the other, why not try both as they both require only a little capital? With just ₱2,000 you can have the best of both worlds. 

In investing, we have the principle of matching. This means that the younger we are, the more likely it is that we can take higher risks as we have a long way to go in our investment journey. As we grow older, especially as we near retiring age, we should take fewer risks as our priority is not wealth accumulation, but wealth preservation. 

That’s why when it comes to Variable Universal Life (VUL), we can always change our fund allocation based on what stage of life we are in. This is usually forgotten which is why you should have regular policy reviews with your financial advisor to check if your funds will reach your goal within your expected time horizon. 

The best practice is, for example, starting with a risk fund like an Index fund, then as you’re growing older, you should allot a certain percentage for fixed income securities such as bonds or money market funds. The same applies to mutual funds, but you have to manually redeem and subscribe them to switch fund allocation.

As we all know, time is one of our biggest assets when it comes to investing, so we should start ASAP. 

With this example, you can see the difference of investing with more time versus investing with more money: Investing ₱30,000 annually for 10 years and holding it for 30 years compared to Investing ₱60,000 annually for 25 years and holding it for 25 years.

Even if you invested a smaller amount, all in all, 300k compared to the 1.5M, the value after inflation of the former is on par with the latter just because of time. It’s not how much you put in, but it’s how early you start so you can maximize the power of compounding interest, where your interest is also earning interest. 

You can use this link for a sample compounding interest calculator. You can also download the app that I used in the Playstore or Appstore. It’s under Compounding Interest then choose “Advanced” in the upper-right so you can also include the inflation rate. 

Hope you learned a thing or two after reading this. I would appreciate your feedback. Do share this so we can help Filipinos, students and even OFWs know that investing is not just for the rich, but for everybody. 

“Time is more valuable than money. You can get more money, but you cannot get more time.” – Jim Rohn

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