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What you do not see will hurt you

January 22, 2013

What you do not see will hurt you

Category: Banking & Finance
Published on Monday, 21 January 2013 19:52
Written by Kendrick Chua and Edmund Lao

LAST December 7, the boxing match between Manny Pacquiao and his longtime opponent Juan Manuel Marquez ended with the Mexican knocking out the boxing superstar in the last second of the sixth round. The humiliating result raised the question on who really won in their previous fights.

It was as if Pacquiao got a dose of his own medicine. Going into the sixth round, the boxing icon was leading after he and Marquez traded knockdowns in the earlier rounds. Pacquiao was already settling into the rhythm, gaining confidence and outboxing the Mexican. The Pambansang Kamao’s confidence, however, got the better of him. A second before the bell rang, Pacquiao carelessly took a vaunted sledgehammer punch that brought him to dreamland.

That was the first time Pacquiao lost a fight where he was favored to win.

When he regained consciousness, Pacquiao admitted that he did not see that phantom punch coming. If he had been extra careful, Floyd Mayweather Jr. would have been compelled to fight him, guaranteeing the biggest paycheck of his life. Sadly, our champion lost this rare opportunity.

What is the lesson we can get from the match between Pacquiao and Marquez? What we do not see can definitely hurt us.

Just like Pacquiao, we can also be put to sleep, albeit financially, if we’re not careful.

Below are some examples of getting knocked out financially:

1. Neglecting education. The only way to be ahead financially is to be educated and stay informed. As the late Ernie Baron said, “Knowledge is power.” Without education, the information one absorbs will often be wrong, leading a person to make a wrong financial decision. There are financial seminars that come with a fee, prompting people to complain that it is expensive. They forget that if education is expensive, so is ignorance.

2. Not acting on information. It is not enough that a person knows information. Knowing without acting on it will result in disaster. In any competition, lack of training will result in an athlete losing. The same with financial planning.

3. Neglecting inflation. A lot of people put their money to sleep in savings accounts that give only 0.5 percent per annum. Inflation is always present and is the silent killer of our finances. Most of the time, people who put their money in the bank have a false sense of security. Just like Pacquiao who felt confident and secure but was knocked out in the sixth round, depositors will experience the same, but on their 60th year.

4. Scams. This is the equivalent of Pacquiao’s defeat. Scams come and go, but people never learn. In the same way that Marquez got Pacquiao to believe that he is on the verge of losing, con artists also make people believe that they are winners if they invest in the opportunities they offer. Due to the trust factor, people do not make due diligence before parting with their life savings, only to discover later that they have been duped.

A man’s gain is another’s loss. For sure, a con artist will make sure he never loses. When we think we are winning, we are at risk of imitating Pacquiao in the financial sense. Huge rewards entail huge risks.

When investing, always keep in mind that if the offer is too good to be true, then it is not true. And before investing, always INVESTigate first.

A knockout punch is what every boxer dreads. It may not only end the match, but also his career—or his life. The last thing we want is a similar knockout. It may not end our lives, but it will hit us so forcefully that we may not get back on our feet.



Edmund Lao and Kendrick Chua are registered financial planners of RFP Philippines. To learn more about financial planning and how to become an RFP, e-mail at or visit


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