Tag Archives: money matter

Insurance, Investing – Financial Freedom

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Better City Better Life

Better City Better Life (Photo credit: Wolfgang Staudt)

 

Inquirer:

 

ask lang po ako ng advice. i had the chance to talk to one of the financial consultants of INSULAR LIFE. she shared a promising and guaranteed investments. in accordance to my own research, investments are unpredictable. how can i know if INSULAR LIFE is a good investment house and not a scam. sir, kung alam nyu po itong company na ito at may negative feedback po kayu i’l keep this confidentially.naka-pm naman po tayo e.gusto ko lang talagang matulungan nyu ako.mahirap na po kung isusugal ko yung hard earned money ko. tnx poh!God bless yu! ;)

 

 

 

Guita of Colayco Foundation

 

First of all Insular is an INSURANCE company and not an investment management company. It is a legitimate insurance company. But if you compare the returns of its investments with others, there are others that are better. The primary reason for the difference is that it is an insurance company and not an investment company.

 

 

 

You are probably being sold an insurance product linked with an investment. Answer the following for me:

 

1. Do you have insurance? If yes, how much is the total coverage? Are you finished paying for it?

 

2. Do you have dependents?

 

3. Do you have other investments?

 

4. Do you have savings?

 

5. How much can you save every month?

 

 

 

Answers to these questions will help identify what instruments you can look into further.

 

 

 

Inquirer:

 

cge po matutulungan nyu po ba ako kung anu ang pd saking investment + insurance house… i am a bachelor with 15k income monthly i save 10%, 10% for the church; 5% for my mutual fund; 5% for my family, 70% for my other expenses..

 

 

 

Guita of Colayco Foundation

 

How much do you have invested in mutual funds? What type of mutual fund are you invested in?

 

 

 

Inquirer:

 

i started 5k then 1k monthly. sa Philam Asset Management Investment po ako. nag iisip pa po ako ng other investment house z po sayang ang pera ko sa bank ang baba ng tubo..ala naman po akong experience sa business..3 months ago na po ako sa PAMI. yung insurance naman po.papasok palang ako sa Asian life. shoulder po yun ng work ko.

 

 

 

Guita of Colayco Foundation

 

Insurance is for financial protection. It is technically not an investment. Don’t put too much of your money/savings in insurance products. The return that they project will be lower than the potential return of your investments from mutual funds or other ownership investments.

 

It would be good to invest in another MF company so you can diversify, included in the top 4 MF management companies are:

 

- First Metro Asset Management

 

- BPI Asset Management

 

- Philequity Asset Management

 

- PhilAm Asset Management

 

 

 

Other investments:

 

1. Stocks are something you can consider but it will require more investment into learning and understanding how it works.

 

2. Real Estate is a good investment. Don’t purchase condominiums unless you can manage renting it out and maintaining it. Instead, look for property in growth centers (Cebu, Batangas, Laguna, Davao, CDO, etc.).

 

3. Government Securities. While the returns may not be very high it’s a good investment to consider as it is the least risk.

 

 

 

 

 

Inquirer:

 

citisec is for investing on stocks, how about for investing on mutual funds? can i also do that online? Where can i find list of fund manager for mutual fund?

 

 

 

Guita of Colayco Foundation:

 

For investing in mutual funds there is no ‘online’. But you can make fund transfers to their bank accounts when you want to invest. And when you want to redeem your investment they credit to your bank account. List of Mutual Funds can be found on www.pifa.com.ph

 

 

 

 

 

Inquirer:

 

regulated po b ang mutual fund? How risky po ung mutual fund compare sa buying stocks? Are there cases po b na si fund manager bigla nlang nawala kasama ung investments? How secure po ung investment sa mutual fund?

 

 

 

Guita of Colayco Foundation:

 

Mutual fund companies registered with the SEC. Mutual funds are less risky than stocks because mutual funds provide you with instant diversification. Since you do not have the time to learn more about this instrument i recommend you read through this website www.pifa.com.ph and get in touch with a sales agent of one of the funds and they can answer your questions about mutual funds. Just remember that their goal is to get you to invest.

 

Related articles

 

 

Trust Fund for my Kids

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Inquirer:
ok lang mag pasok ng pera sa trust fund para sa mga anak ko?

Guita of Coalyco Foundation:
Yes that is a good goal. Be sure however that you’ve got the basics covered: insurance, emergency funds and cash reserves. While you are saving for your children be sure to also set aside and invest money for your retirement

Clarification: Investing in Insurance

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Inquirer:
ask ko lng puh kung ok lng puh bang mag invest s mga life insurance???
like ng philam life???

Guita of Colayco Foundation
Paalala lang, ang insurance ay HINDI investment. ito ay financial protection-prinoprotektahan mo ang kakayahan mong kumiti para kung sakali na may mangyari sa iyong hindi mo inaasahan mayroon ka (at ang iyong pamilyang) matatanggap na pera katumbas ng iyong buwanang kita hanggang sa panahon na makaahon ka.
Ang PhilamLife ay lehitimong kumpanya, suriin mo kung ang mga produkto nila ang tama para sa iyo.

What’s a sure investment?

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Inquirer:
any suggestion of investment na sigurado kahit dito kmi abroad makapag invest kami sa pinas..yung hindi na kami kailangan umuwi pa..thank you po

Guita of Colayco Foundation:
Walang investment na ‘sigurado’ ang lahat ng investment ay may risko. Mula sa riskong tinatanggap mo ang paglago ng iyong investment

What investments are available

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There are many different types of investment however the Colayco Foundation recommends the following especially for those with little experience in investing so far:

1. Time Deposit and Special Deposit Accounts – These are bank based investments. Low Risk, PDIC insured and may have tax advantages. Average Return: 2.5-5% annually. Minimum investment: can be as low as Php5000.
2. Retail Treasury Bonds – These are government securities. Low Risk, Guaranteed by government, and may have tax advantages. Average return: 5-8% annually depending on the offering. To avail you must have an account with a government securities eligible dealer (GSED). For a list of GSEDs visit http://www.treasury.gov.ph. Minimum investment: in multiples of Php5000.

Guita’s note: I recommend you approach a non-bank GSED as they are often easier to interact with.
3. Mutual Funds – These are security or equity investments. Medium-high risk. Volatile (price changes daily). No guarantee and no-insurance. Average annual return: 10-20% (but in some years i.e. 2008 it could be -40%). You can read more about mutual funds on http://www.pifa.com.ph or check out the links below. A list of available mutual funds can be found on the PIFA website. You need to be willing to remain invested for at least 3-5 years. Minimum investment: usually as low as Php5000.
If you are retirement age/nearing retirement it would be best to put most of your money (at least 70%) in #1 & #2 as these will give you regular income (from interest earnings) and are low-risk which means that the chance that your investment doesn’t give you what you are expecting is low.
There are other traditional investments available such as stocks, corporate bonds, real estate, business and franchising as well as non-traditional investments: foreign exchange, gold (and other precious metals), etc. however these require more knowledge and skill for you to be able to utilize them effectively in your wealth generation.

Can I invest in stocks while abroad?

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Inquirer:
very interested po ako mag invest sa ating local market. Pero di ko po alam kung san ko uumpisahan. I have PLDT shares po dahil Ito lang po ang Phil. Company na listed dito sa NYSE. Meron na po ba tayong brokerage company na pwedeng mag trade online? Pano po ba ang best way na mag open ng account sa isang brokerage company diyan,na di na kailangan pang umuwi ngPinas?

Guita of Coalyco Foundation:
Our laws require you to be in the Philippines to open a stock trading account with online brokers.

Two Types of Financial Goals

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There are 2 types of Financial Goals: Aspirations and Obligations.

According to Merriam-Webster Free Online Dictionary…

  • Aspiration is “a strong desire to achieve something high or great”
  • Obligation is “something one is bound to do: duty, responsibility”

Simply, an aspiration is something that we really really want (usually for ourselves), it is our hopes and dreams, our heart’s deepest desires. While our obligations are things we want due to a certain role we play – as parents, community members, etc. Most of the times our aspirations are distinct from our obligations, this is ok IF and ONLY IF, both the achievement of aspirations and obligations are pursued. However most of the time, obligations reign and aspirations are forgotten. This is most true when it comes to people with families and children or parents (and siblings) that need looking after. So sometimes it seems like its our obligations vs. our aspirations – this eventually leads to resentment. You either resent those who you are obligated to (because you cannot pursue/achieve your aspirations) or they resent you because you pursue your aspirations at the cost of your obligations.

So, here’s what, make a list – what are your financial goals? Which of them are goals of aspiration and which are goals of obligation? If you were to rate each goal from 1 (low)-10 (high) according to how much resources (time, energy, money) you put into achieving that goal, how would you fare? Strive to balance it out. That’s the only way that you can be truly happy with any financial success you achieve. :)

Questions to Ask Before Buying Insurance

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Inquirer:
.ano pong masasabi nyo’,may nagooffer po ng 1 million Life Insurance,,sa mga credit card holder na katulad ko,,847ph a month.1o yrs to pay,,covered 1 million,in case na anuman mangyari sakin within 1o yrs.But after 10 yrs.,at buhay pa ako,walang money back.Hindi ko na po binanggit ang company ng Insurance at ang sister company,,ay ang number 1 bank ngayon.Thank U po and God bless.

Guita of Colayco Foundation:
Do you have dependents-children? How many years till they are 21 years old/finish college? Do you have insurance already? Is it enough to cover your needs should something happen to your ability to earn income?

Mutual Fund Performance Terms

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Inquirer:
ask lang tungkol sa UITF uli, may mga tinatawag Year to Date (YTD), Year to END (YTE), at Year to Year (YTY) sa pag compute ng ROI, ang tanong ko, Kailan po ba magstart ang YTD, YTY at YTE? thanks?

Guita of Colayco Foundation:
Year to Date – 1st day banking day of the year to today/latest banking day of the year so far (I.e. Jan 3 2011 – Dec 16 2011)

Year to Year – same/closest date of the previous year to today/latest banking day of the year so far (i.e. Dec 16 2010 – Dec 16 2012)

Year to End is not a common term, but it probably means their projected return for a whole year.

Read up on http://www.uitf.com.ph/toap/FAQ/index.asp

What if your spouse is why you’re in debt?

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Inquirer:
anu po nah ang dapat gawin kung ang aswa mu ang dahilan ng pagkabaon nyo s utang????

pumasok lng po s utak ko…randon question,,,,

Guita of colayco Foundation:
mahirap na posisyon iyan. Mahalangang maintindihan ng buong pamilya na malaking problema ang utang na hindi nababayaran. Nakakatulong kung may Personal/Family Income and Expense Statement at Assets and Liabilities documents kayo upang mas matanto kung ano ang kalagayang pinansyal ng pamilya. Matatagpuan ito sa Pera Palaguin Workbook available sa lahat ng bookstore.