Category Archives: Palago

Palago – Growing by investing wealth

Ano ang mararating ng PhP 20,000 mo?

Kung sa nakaraan walang nangyari sa 13th at 14th month pay mo, maaring may magawa ka ngayong taon.

Halimbawa, naitanong mo na ba kung ano ang mararating ng ₱20,000 mo?

Sa isang ₱20k, maaari kang bumili ng tatlo hanggang apat na taon na life insurance na P1m pesos kung age 35 and below ka. Kung kunin ka ni Lord ng maaga, ang mga mahal mo sa buhay ay makakakuha ng ₱1 milyon para kapalit ng kita mo.

Sa isang ₱20k, maaari kang magsimula ng iyong long term healthcare, at mag-bayad ng semi-annual premium (o premium para sa kalahating taon). May sukli pa na pang open ng mutual fund investment account.

Sa isang ₱20k, maaari ka ring mag-invest sa equity mutual funds, na may compounded annual growth rate na 12%. Sa ganitong assumption, ito ay magiging:

₱40k after 6 years
₱80k after 12 years
₱160k after 18 years
₱320k after 24 years
₱640k after 30 years
₱1,280,000 after 36 years
₱2,560,000 after 42 years

Isang ₱20,000 lang iyan!

Kung ₱20k/year for 5 years, starting at age 30
Maaring makakuha ka ng life insurance na ₱1 milyon hanggang 65 years old ka.
Maaring may mutual fund ka na worth ₱2.4 million kapag 60 years old ka na.

Kung ₱20k/year for 30 years:
Maaring kang mag-Buy Term-Invest-the-Difference strategy, combining term insurance and mutual fund investing at 12% CAGR, para insured ka ng worth ₱1 million hanggang age 60 AT may investment na worth ₱2.5 million pag 60 ka na, o ₱4 million kapag 65 ka na!

The earlier you start, the better!

Paano ba makapagsimula?
Maari tayong magusap sa Facebook sa Ask the Money Coach

Usap lang tayo.

Bobet
The Money Coach

What’s the best protection for your baby?

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What’s the best protection for your baby?

When your baby arrives, you begin thinking of your child’s future.

Many begin by opening a bank account for the child, promising to oneself to set aside money every month for the child’s future. But realistically, with today’s low savings account interest rates of 0.2% effective rate ( after witholding tax), a thousand pesos per month is expected to grow to only ₱245,000 after 20 years ( or total interest of ₱5,000 after 20 years )

The best protection for your child is a combination of equity mutual funds in-trust-for (ITF) your baby, plus term life insurance for the breadwinner with your baby as beneficiary.

If we set up an equity mutual fund, in-trust-for your baby, assume 12% growth and invest ₱1,000 per month, we get these projected values:

₱1m to ₱2.3m after 20 years, or
₱3.5m to ₱14m after 30 years or
₱12m to ₱86m after 40 years!

This investment can probably suffice to fund your baby’s college tuition after 18 years, or jumpstart family life on marriage after 30 years, or provide retirement as early as 40 years!

This is a great plan, but we know that what actually happens do not always match our plan. What if you die too soon?

If the breadwinner is 31 years old or younger. ₱500 per month can buy ₱1m of life insurance coverage for 18 years.

This means that if the Lord takes you, the breadwinner, home early, and you die too soon in the next 18 years, you can leave ₱1,000,000 for your baby as a parting gift.

With this combination, you protect your baby’s future whether you die too soon, or live long enough to see your child grow!

This solution requires only ₱1,500 a month or about ₱50 per day.
Can you commit ₱50 per day for each of your children?

Ask your questions or put your comments below this.

Paano makakakuha ng Life Insurance ang Overseas Filipinos?

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Paano makakakuha ng life insurance ang mga Filipinos na nasa abroad?
Ang sagot — group life insurance, kagaya ng kasamang benefit sa Kaiser Ultimate Health Builder!

May nagtanong sa akin:

I am an OFW. May question ako about sa Kaiser since healthcare product po siya with insurance.

I’ve read kasi na if kukuha ka ng insurance dapat nasa Pilipinas ka. What if kumuha ako ng Kaiser dito sa abroad and since may insurance siya kasama magiging invalid po ba iyon ?

Ang sagot ko:

Valid ang insurance na kasama ng Kaiser.

Ang bawal kasi ay ang pagpirma ng insurance policy outside the Philippines. Ang bundled na insurance na kasama ng Kaiser long-term-care plan ay group policy na napirmahan sa Pilipinas ng Kaiser.

Kapag kumuha ka ng Kaiser plan, i-enroll ka lang automatically under the group, kaya valid ang life insurance mo. At dahil group plan iyon, kasama ka sa lahat ng insurance benefits:

basic life insurance

accidental death and dismemberment

waiver of premiums on death

waiver of premiums on permanent and total disability

Yung waiver on death, ang ibig sabihin, kung ikaw ay kunin ni Lord ng maaga, ang Kaiser plan mo ay magiging fully paid. Ang matatanggap ng beneficiary mo ay ang buong insurance proceeds, at ang iyong fully paid na Kaiser plan.

Idagdag ko lang:
Halimbawa ang isang 50 year old, kumuha ng recommended na Kaiser K100 plan, may kasama iyon na life insurance coverage na ₱450,000.

Kung ang planholder ay kinuha ni Lord (after 2 year contestability period) ng natural causes, makakakuha ang beneficiary ng ₱450k.

Kung accidental death, ₱900k

Kung ang death ay habang nag-babayad ( halimbawa, dalawang buwan pa lang nagbabayad) ang plan ay magiging fully paid, at ma-i-inherit din ng beneficiary. On the 20th year, may projected maturity value ito na up to ₱1,166,168 kung walang health benefits na ini-avail.

Ang validity ng group insurance abroad ay para sa lahat ng group insurance, hind lang sa Kaiser.

Kung may company group insurance, pwede kang-i-enrol ng company para ma-cover ka. Kung kasali ka sa cooperative o association na may group life insurance, pwede ka ring i-enrol.

Mayroon kang tanong? Mayroon kang comments?
Ilagay lang sa ilalim. O sumulat kay Coach Bobet & Mary Ann, via email, o Facebook messenger

Enjoy Your SSS Pension – P1,200 per month?

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by Bobet Prudente

Note from the author: when first written, minimum pension was ₱1,200. With an across-the-board increase of ₱1,000 in 2017, all pension amounts were increased accordingly.

Imagine retiring, and getting a pension of ₱2,200 per month.

If you read the newspapers, you probably remember President P’Noy was in the headlines in early 2016, for vetoing a proposed law raising the pension of SSS retirees by ₱2,000 per month. He said doing so will bankrupt the SSS fund.

It was such a distressing news. SSS could not afford to raise the pension by ₱2,000?

President Duterte thought otherwise. Under his administration, the SSS implemented a ₱1,000 per month across the board increase in early 2017 for all SSS pensioners and is set to implement a second round in 2019. But this will reportedly bankrupt SSS by 2026 only eight years from now!

Maximum Contribution for 30 years

I computed how much I’d get as pension when I turn 60. I was a senior manager for more than 30 years, and hence paid the maximum SSS contribution for 30 years. Therefore, I expect the highest possible pension for 30 years contribution.

And the number I got was….. (drum roll please) ….. ₱ 10,900 per month!

What?

How could a highly paid employee, paying maximum contribution for 30 years, survive on ₱10,900 per month when he retires?

But that is NOT the sad part. ₱10,900 is for those who paid maximum. How about those who paid less?

What if you paid for only 10 years?

There are Filipinos who paid less, and contributed for 10 only years.

The minimum pension after paying 10 years is ₱2,200 per month!
Can you imagine living with a pension equivalent to ₱70 PER DAY?

The maximum pension after paying 10 years is ₱7,400 per month.

What if you paid for more years?

If you contributed:

for 10 years, your pension will be ₱2,200 – P7,400 per month.
for 15 years, your pension will be ₱2,200 – P7,400 per month. (same as 10 years!)
for 20 years, your pension will be ₱3,400 – P7,700 per month.
for 30 years. your pension will be ₱3,400 – P10,900 per month.
for 40 years, your pension will be ₱3,400 – P14,100 per month.
for 45 years, your pension will be ₱3,400 – P15,700 per month.

After contributing the maximum SSS premiums for 20 years, you will be eligible to a maximum pension of ₱7,700

We must build our own retirement fund!

Obviously, we can’t depend on the government or the SSS to provide us enough during our retirement. We must take control of our future, and build our own retirement fund. Otherwise, we might be among those who will retire with a ₱2,200 pension, or if you contribute the maximum premium for 30 years, ₱10,900 per month.

Do we want to prepare for your retirement?
We must take control of our future, so we will not retire dirt-poor.

Would you like to attend our free 1-hour “Building Your Future – Controlling Your Money” seminar in various locations, to get financial education?

After attending the Building Your Future seminar, you can attend workshops 1 to 4 at the
World Centre for FREE.

The third workshop is particularly interesting if you are planning to build your retirement fund.

Workshop #3. Building Wealth. Asset Accumulation.

Wealth Formula.
The Hidden Cost of Waiting.
The Rule of 72. Understanding Interest.
Peso Cost Averaging.
Mutual Funds.
Passive vs. Active Management.
Saving for your Children’s Education.

Plan to retire rich and retire happy!

p.s.
Learn the “The Secret to Saving and Building Your Future.” Click here to learn how.

p.s. #2
Get a free eBook “The Secret to Saving and Building Your Future.” Click here to download it.

p.s. # 3
My wife Mary Ann and I conduct the “Building Your Future” financial seminars on Mondays at 2pm and 6pm in Quezon City. Click here to register for our FREE seminar.

Is Someone Stealing Your Money?

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Have you ever wondered why you keep on earning money but it just keeps on disappearing into thin air? Maybe it is going down the drain?

There are many reasons why, and one reason is
SOMEONE IS STEALING YOUR MONEY!

Actually, there’s more than one thief! Let me name two thieves.

Suppose on January 1, 2016 you deposited P100,000 in a savings account in a leading Philippine commercial bank.
Most commercial banks in the Philippines give you 0.25% interest per annum. Let me simplify this example a little and assume annual interest.

This means that on Dec 31, 2016, after one year, the bank will give you about 0.2% interest on your P100,000, or the magnificent amount of P250!

     Beginning balance on January 1, 2016     P 100,000.00
     Interest credited on December 31, 2016         250.00

So after one long year, the bank decided to give you P250.00 interest on your P100,000. But wait!

Let me introduce you to one thief.

TAXES are stealing your money.

The Bureau of Internal Revenue will collect 25% withholding tax on that interest, or P50.00. So after one year your bank statement will look like this:

     Beginning balance on January 1, 2016     P 100,000.00
     Interest credited on December 31, 2016         250.00
     Withholding tax                               ( 50.00) 
     Balance as of December 31, 2016           P100,200.00

On January 1, 2017, exactly one year later, your bank will show a very slightly higher total: P100,200. Your P100,000 would have earned a disappointingly low interest of P200.

Let me digress a little.

I remember when I was young and I bought burgers from a local burger chain X. Their burger was pretty big and satisfying. Eat one and you’d be full!

Inflation is the gradual reduction in buying power over time.

Last week I bought two of the same burgers for lunch and after eating two (smaller) burgers, I was still hungry.

There was this other burger chain Y which claims their burgers are exactly the same size as when the burgers were introduced many years ago.

Inflation: Price increases over time

What happened? My money was buying either smaller burgers. or the same burgers at higher prices.

Gentlemen, the name of the second silent thief is INFLATION.
Inflation is slowly but surely stealing the value of your money through the gradual reduction of buying power of your money.

In January 1, 2016, your P100,000 was worth P100,000, and maybe I could buy 1,000 burgers for P100,000 from X, and another 1,000 burgers from Y.

In January 1, 2017, one year later, the same P100,000 had a higher number P100,200, but I could probably buy 1,000 SMALLER burgers from X, or FEWER burgers from Y. The P100,000 had a higher number, but the buying power was less. Suppose inflation was 5%. Then inflation caused the VALUE to go down by 5% x P100,000 = P5,000.

     Beginning balance on January 1, 2016     P 100,000.00
     Interest credited on December 31, 2016         250.00
     Withholding tax                               ( 50.00) 
     Balance as of December 31, 2016           P100,200.00
     Less 5% value lost due to inflation         (5,000.00)
     Value as of January 1, 2017               P 95,200.00

You LOST P4,800 because you kept your money in a savings account in the bank!

Now I am not saying you should not keep your money in the bank. The banks are great for depositing and withdrawing money and, processing checks, payments, and daily transactions. They are great for money you use on a day-to-day basis.

BUT, if you want to grow your long term savings, the money you are saving for your future retirement many years from now, DO NOT KEEP THEM IN YOUR SAVINGS ACCOUNT!

Put your money in high yield investment vehicles to grow your money.

This is why we need to learn about money.
This is why we must look for investments that can beat the effects of taxes and inflation.

Understanding money allows us how to fight wealth enemies such as the silent thieves: taxes and inflation.

Financial education enables us to take control of our money.
Financial literacy is about Building Your Future.
Learn about money by reading, researching and attending financial seminars.

#1M2020

Why Does IMG Recommend Kaiser and Soldivo Products

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(Author’s note: I encountered a post in social media which said IMG and Kaiser are owned by the same group of people and that this is the reason why IMG is pushing Kaiser. I quickly wrote a lengthy reply which I polished a little and reproduce below.)

You will note that the Ayala group of companies, the SM group of companies, the Gokongwei group of companies, the Metrobank group of companies and various other groups of companies have many common directors and incorporators in the different companies within the same group. Interlocking directorates are a common facet of the corporate world. It just means multiple companies in the same group are employing synergies to work and cooperate towards attaining interlocking goals.

For the IMG group, the goal is to help Filipino families achieve financial freedom through financial education, excellent but affordable financial products and powerful business platforms.

Why Does IMG Recommend Kaiser Long Term Health Care?

Most HMO companies today cater to short term healthcare of people who are generally young and healthy. There are very few who cater to senior citizens. Most HMO plans are for employees who are currently working and their dependents. Hence, the moment they resign, or retire, they and their dependents lose their coverage unless the former employee decides to shoulder the substantial costs of premium. In most cases, the resigned or retired employee, and dependent end up with no coverage.

The irony is you get excellent healthcare while you are young and healthy but you do not get healthcare when you are old or sickly or can no longer afford to pay. Most HMOs also have very little life protection coverage for members.

You will note that there are no viable long term healthcare products in the country today, except the Kaiser Ultimate and Kaiser Premium Health Builder products.

The premise of long term health care is very simple and logical.

pay for your health care today while you are young, and healthy and productive and can afford to pay, then
enjoy healthcare when you are old, or sickly, or can no longer pay.

If later, you need healthcare and you do not have short term healthcare, use your long term health care plan for hospitalization. If the Lord decides to take you home early, the long term health care plan gives your family the proceeds of life insurance. Hence you use your investment to get health and life protection within the maturity period.

And when the plan matures, you have the option to get the balance of your investment plus earnings, or keep it for future healthcare purposes.

In the case of Kaiser Ultimate, you pay for 7 years, to get 20 years of health AND life protection. On maturity, you can opt to get your investments including all profits/interests, or keep your fund growing at 7 to 10% compounded annual growth rate, definitely much more than the current 0.2% growth in savings accounts. You effectively have health care protection until you have “spent” all your health care investments.

If you paid your HMO for short term plans, and pay for 7 years, you will get 7 years of protection, and no more protection after the 7th year. Whatever benefits are unused at the end of each policy year are gone forever. None of the premiums are paid back to you.

One can avail of Kaiser short- and long-term plans whether one is an IMG member or not. IMG considers Kaiser Ultimate as a complete level 1 investment, and very strongly recommends it, especially to its own members.

Kaiser Ultimate Health Builder is a level 1 product which provides different benefits at different periods

Kaiser Ultimate by itself is difficult to understand.

If people compare it to short term healthcare, they will say there are better short term plans.
If people compare it to insurance, they will say there are better insurance options.
If people compare it to investment, they will say there are better investments.

This is because Kaiser Ultimate is an entry level product designed to give you the most basic and complete initial protection benefits while starting your investment.

If you think it does not have enough short term health protection, you can complement it with additional health care of your choice
If you think it does not have enough insurance coverage, you can complement it with additional PhilamMOST group yearly renewable term life insurance (available only to IMG members with active Kaiser long term plan)
if you think it does not have enough investment value, you can complement it with additional investments in the mutual fund(s) of your choice.

The combination Kaiser Ultimate + Philam MOST + MUtual Funds is unbeatable.

Why Does IMG Recommend the Soldivo Funds?

The Soldivo Bond Fund (a bond fund) and Soldivo Strategic Growth Fund (an equity mutual fund) were launched only in October 2014, at below P1.00 par value. As young funds, they have the potential to aggressively and quickly grow.

SSGF is considered a moderate-to-high risk type of fund, investing in shares of the companies listed in the primary and secondary boards of the Philippine Stock Exchange. Recommended for investors with a higher risk appetite who require the growth potential of the equity markets. Its investment objective is capital growth with returns and inflows derived out of investments in equity securities. This is one of the best options for investors who want to access and capitalize on the immense growth opportunities of the Philippine equity market.

The Soldivo funds are managed by respected personalities in local finance, led by Rex Mendoza, former CEO of Philamlife and former adviser to the group CEO of the AIA Group. Rex Mendoza was also at the helm of Philam Asset Management Inc (PAMI) during the explosive growth years for PAMI mutual funds. We believe the fund management group has the requisite expertise to drive the growth of the funds.

Kaiser International is a major investor in Soldivo funds. The stronger the Soldivo funds are, the more secure the Kaiser investments are, and thus, the better service Kaiser can provide to its members and planholders.

Soldivo mutual funds are available for retail to IMG members only at this time.

IMG includes Soldivo Bond Fund in its list of recommended bond funds, and Soldivo Strategic Growth Fund in its list of recommended equity mutual funds. IMG recommends a combination of bond and equity mutual funds as the preferred mode of paper investment.

What Benefits Do IMG Members Get?

IMG members get

free lifetime financial education,
free lifetime financial checkup,
free lifetime training on insurance, mutual funds,real estate and various money topics
discount/rebates on financial products
opportunity to help others, especially family and friends, save and invest,
opportunity to earn commission and build a big business

Why don’t you drop by and listen to what we have to say?

Our mission is to help Filipino families achieve financial freedom, NO FAMILY LEFT BEHIND! It starts with learning how money works, then teaching our family and friends how to save, invest and increase cash flow, and then reaching out to extended circles.

How to Spend Your 13th Month Pay

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Merry Christmas!

It’s that time of the year when Filipinos are happiest. Many are eager to receive their 13^th month pay to buy presents for family and friends, and to splurge a little on gadgets. For some, there are extras, perhaps even a 14^th and 15^th month pay.

How do I spend my 13th month pay?

How do you use it? I strongly suggest you think a little beyond the holiday season, Christmas presents and merry making. Why don’t you….

Plan

Close to 70% of people who get large amounts of money go broke within 5 to 7 years. This is because many people are so unfamiliar with having a large amount of money. Plan how to use your money, and budget how much you want to spend for Christmas and how much you want to allot for more productive use.A good rule of thumb is 10% for your spiritual community, 20% for your future, and 70% for your expenses and lifestyle:

10% for your eternity
20% for your maturity
70% for your family

And then you plan further. How do you spend your 70%?

Protect Your Family

Have you considered what would happen if the Lord decides to call you home early? What would happen to your family? You can be healthy today, but what if tomorrow, you meet an accident? Will your family go hungry?Buy SUFFICIENT life insurance coverage. There are inexpensive options available, such as term life insurance. P6,000 annual premium at age 25 can buy you P1M coverage.Combined with some mutual fund investments, P3,000 per month for 10 years can buy P1.2M of life insurance at age 25, slowly growing to more than P4.8M coverage ( or P3.8M cash benefit) by age 60.

Learn about protection, savings and investment in free seminars, like the SAVING YOUR FUTURE seminars on Practical Money Management from IMG.

Eliminate debt

The typical Filipino makes strange financial decisions. Most save in banks where their money earns 0.20% per year (that simply means if you put P100,000 in the bank on Jan 1, then by December 31, the bank will give you P200 interest after withholding tax), but borrow from the “friendly Bumbay” at 5-6, or from the “sosyal” credit card company at 3.5% PER MONTH.

Pay your credit card debt. By paying credit card debt you effectively invest your money at a rate at least equal to the 3.5% they charge you.

Read more about How to Invest by Paying Your Credit Card, and earn an equivalent compounded annual growth rate of approximately 51%

Invest

Investing is increasing the value of your assets using your existing resources, like time and money. While some consider investing a science, there are enough elements of creativity involved, I prefer to think of it as an art.Investing in your greatest asset – you – is probably your best investment. You probably invested hundreds of thousands of pesos in your formal education (elementary, high school, college) so you can get a good job, and work for money.

Invest in your financial education, to learn how make money work for you, and to gain financial wealth and spiritual abundance at the same time. Join the TrulyRichClub.

Start by taking a crash course in stock market investing.Invest in safe investment vehicles to build your retirement fund and your children’s college funds. Equity mutual funds and UITFs are good starting points.

Setup Your Emergency fund

Setup your emergency fund, normally three to six months of your living expenses. Emergencies are for emergencies or unexpected large expenses such as medical emergencies or temporary unemployment. Sale in malls are not emergencies, even if your dream shoes are on sale at 70% off.

Keep your emergency funds in savings or time deposits.

Indulge

Spend a little on yourself. Save specifically on little pleasures for yourself, maybe an occasional vacation or adventure. Save for your future, but treat your present self every now and then.

A note on the 10% for Eternity

Share your blessings to your spiritual community and to the less fortunate. Remember we are merely managers of of God’s wealth. Giving actually makes you feel more blessed, and appreciate the abundance of God’s universe. Giving makes you win in all areas of your life. In other words, TrulyRich.

Bobet Prudente is a financial coach and Senior Marketing Director at IMG TrulyRichMakers. He is a member of Bo Sanchez’ TrulyRichClub . He conducts regular FREE Saving Your Future seminars on Practical Money Management Techniques in Quezon City.

How to Invest by Paying Credit Card Debt

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Do you have credit card debt?

If you have credit card debt, one of the best gifts you can give yourself is to pay your credit card aggressively. Paying high-interest debt is actually a very good investment strategy, sometimes “earning” you more than 50%

It isn’t enough to just pay the “Minimum Amount Due” every month. Create a payment plan, put it in writing, and attack your credit cards, starting with the highest interest credit card first. If the cards have the same interest rate, choose the one with the lowest balance.

Aggressively pay your credit cards starting with the card with highest interest rate.

What happens if you just pay minimum? Let’s take a look. Suppose

you have credit card debt of P20,000 in one credit card
you do not add any more debt to that one credit card
your monthly interest rate is 3.5% and
you normally pay only the minimum P500 per month for this card
you keep your other credit card payments constant

Paying only the Minimum Amount Due will often increase your debt

After the first month, your P20,000 debt incurs 3.5% interest or P 700, and you pay P 500 only, so your ending balance is P 200 higher at P20,200. After 12 months, you would have paid P 6,000, but incurred P 8,920.39 in interests! Hence your ending balance after 12 months is higher at P22,920.39. Your debt and P 6,000 payment actually lost you P 2,920.39 or 49% loss!

But what if you decided to save an additional P10 per day or P300 per month to add to your credit card payments. That isn’t much, right? Instead of paying the minimum P500, you pay P800.

Paying more than minimum, at least more than monthly interest, will reduce your credit card balance.

Because you are paying P800, or more than the interest (3.5% of balance), your debt actually shrinks every month. Specifically, your P20,000 debt will shrink to P18,539.80 in 12 months. This means your twelve P800 payments totalling P9,600 earned P20,000 minus P18,539.80 equals P1,460.20 or about 14.6%* !!!

But what if, when you get your 13th month pay, you use part of it to make a large payment on your credit card debt? What if, after deciding to save an extra P10 a day or P300 a month, you paid P7,500 on the first month?

Making a balloon payment reduces the interest rate

The balloon payment of P7,500 substantially paid the balance of your P20,000 debt, so after the P700 interest, first month ending balance is P13,200. Hence subsequent interest per month dropped initially to P450 then lower every month.

So your debt shrinks faster every month, up to P8,758 after 12 months! This means your P7,500 plus P800 every month totaling P16,300 earned P20,000 minus P8,758 equals P11,242 or about 69%* !!!

But let us make a real plan. Can you save P33/day instead of P10/day? The P23 difference is about the price of a cup of coffee at the cafeteria, or that modest ‘turon’ after lunch. That translates P1,000 per month. What if, in addition to your P7,500 on the first month, you add the P1,000 to the original P500, and pay P1,500 per month?

Aggressively paying your credit card debt will enable you to quickly retire your debt

Wow! Is this for real? The P7,500 initial payment reduced the balance to P12,500 plus P700 interest increased the first month end-balance to P13,200. But the aggressive repayment at P1,500 per month very quickly reduced the balance to P1,022.81 after the 11th month, enabling you to fully retire the P20,000 debt after only 12 months!

Just think about this. Your P23,558.61 in payments earned you enough to fully retire one credit card with P20,000 beginning balance. That is like earning P20,000 on P23,558.61 in one year or 85%! Where can you find an investment that gives you 85% in a year?

After 12 months, it is time for your 13th month pay again. Time to start retiring your second credit card or next P20,000 debt. It will be easier for the second card. If you were paying minimum of P500 on your second credit card, you can then pay P1,500 more ( what you were paying for the first credit card ).

Pay high-interest debts! It is one of the best investments you can make!

* Strictly speaking, the effective interest rate is the same as the credit card rate, approximately 3.5% per month, or a compounded annual rate of approximately 51%.

Learn more about Practical Money Management Techniques in our FREE Saving Your Future seminars in

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Si Aga Maaga, Inna Sakana, Pol Pahabol at Loi Tuloytuloy

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Let me tell you the story of four college friends, who became millionaires when they retired.

The first friend, Aga Maaga, immediately started saving at age 21. He began saving P2,000 per month and investing it at 12% per year. After six years, he had a mini-reunion with two of his friends.

Aga Maaga started saving early, and invested P24,000 a year at 12% per annum. He did this for 7 years.

He told his friends, “Wow! I saved only P24,000 per year for six years, for a total of P144,000. But thanks to the power of compounding, my accumulated balance is now P218,13! But I am getting married already, and I can’t afford to save anymore, so I will stop saving.”

His two friends, Inna Sakana and Pol Pahabol said “Wow! We’re 27 years old already, but we want to start now! We will begin saving P2,000 per month too, and invest the savings at 12%”

The three friends met again six years later, and compared their portfolio.

All three friends saved P2,000 per month, or P24,000 per year for six years for a total of P144,000. But Aga Maaga already had P430,562 after 12 years, while both Inna Sakana and Pol Pahabol had P218,136, just like Aga Maaga six years earlier!

They noted Aga Maaga‘s investment was already P430,562, or almost twice their P218,136!

Inna Sakana said “I will also get married, and have to stop saving. Maybe my investment will grow like Aga Maaga”

Inna Hulina and Pol Pahabol copied Aga Maaga’s investment, but started 6 years later. They saved and invested P24,000 per year at 12% per annum for six years.

Pol Pahabol said, “I want to catch up with Aga Maaga, so I will keep on saving and investing, until my accumulated investments exceed Aga Maaga‘s”

The three friends met many years later, when they reached 60 years old. They compared their portfolios.

At age 60, Aga Maaga, after saving P144,000 from age 21 to 26, and waiting till age 60, had P10,283,493 in his portfolio. His money grew 71 times from age 21 to age 60!

At age 60, Inna Sakana, after saving P144,000 from age 27 to 32, and waiting till age 60, had P5,209,938 in his portfolio, about half of what Aga Maaga had! The only difference in their investment strategy, is that Inna Sakana began saving six years later!

After 40 years, Aga Maaga and Pol Pahabol both had P10M pesos. But Aga Maaga invested onyl P144,000 while Pol Pahabol invested P816,000!

Pol Pahabol observed that because he kept on saving and investing, his portfolio grew faster and through the years, he was slowly catching up with Aga Maaga. Finally, at age 59, he finally had more than Aga Maaga. At age 60, after saving P816,000 over 33 years from age 27 to 60, he had P10,335,924 in his portfolio, his money grew only 13 times compared to Aga’s 71 times!

Inna Sakana said “Hay naku, nakakainggit si Aga! Pareho lang ang aming na-invest, pero nahuli lang ako ng 6 years, tapos P5M ang diperensiya, kalahati lang ang aking investment ikumpara sa kanya?

Pol Pahabol said “Hay naku, ang hirap naman habulin ni Aga! Grabe! He saved and invested P24,000 a year for only 6 years, or P144,000! And I invested P24,000 a year for 33 years or P816,000! Tapos halos pareho lang pala kami?”

Then their fourth friend, Loi Tuloytuloy joined them. He said, that like Aga Maaga, he started saving P2,000 per month or P24,000 per year at age 21. Like Pol Pahabol, he continued saving P24,000 per year until age 60.

At age 60, he had P20,619,417, or about the same amount as Aga Maaga and Pol Pahabol combined!

Loi Tuloytuloy just kept on investing P24,000 per year for 40 years. At 12% per annum, he had more than P20M by age 60!

Who is your role model? Who would you like to copy?
Si Loi Tuloytuloy?
Si Aga Maaga?
Si Pol Pahabol?
O si Inna Sakana?

We’d all like to be like Loi Tuloytuloy, and accumulate P20,619,417, but if not we should be like Aga Maaga, who started early!

Are you ready to start saving and investing? Are you ready to grow your wealth?

Save Your Future by learning Practical Money Management Techniques in our FREE seminars. Register early, there are limited slots available! Click below to register for the FREE Financial Seminar in

Makati (World Center Bldg, Sen. Gil Puyat Ave. (across Mapua)
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Calamba Laguna (Highway corner Chipeco, Brgy Halang)

Soldivo Investing Made Easy via BPI ExpressOnline

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After you open a Soldivo Bond Fund or Soldivo Strategic Growth Fund account, you’d naturally want to make additional investments regularly to take advantage of money cost averaging.

You can make additional Soldivo investments electronically via your BPI Expressonline account. BPI treats the Soldivo mutual funds as “merchants,” so we can invest by “paying” Soldivo, using your folio number as reference or account number.

Soldivo Investing Made Easy with BPI Express Online

To Enroll Your Soldivo Fund Account(s):

Go to http://www.bpiexpressonline.com/ and log into your BPI Online account.
In the main menu, select the following: Payments & reloading → Bills Payment → Enroll Other Bills
On the e-form, fill in your BPI account details.
- Under the ‘Company Name’, select the Fund name (Soldivo Bond Fund Inc/SBFI or Soldivo Strategic Growth Fund/SSGFI )
- Under ‘Reference Number’ enter your corresponding folio number (e.g. 6001xxxxxx).
Click ‘Submit’.
You will receive a confirmation notice of your enrolment and a copy sent to your registered email address. You may now make your additional investment online.

To make Additional Investments:

Go to http://www.bpiexpressonline.com/ and log into your BPI online account.
In the main menu, select the following: Payments & Reloading → Bills Payment → Pay Bills Today
On the e-form, under ‘Pay’,
- select the SOLDIVO fund name with the corresponding folio number (SBFI 6001xxxxxx or SSGFI 6001xxxxxx)
- Input the amount to be invested
- Select which BPI Account to be used for payment
Click ‘Submit’.
A pop up window will appear verifying your investment details. If the information is correct, click ‘OK’.
You will receive a confirmation code of your investment and a copy sent to your registered email address.

To Schedule Regular Investments

After enrollment, you can automate your Soldivo investing by scheduling merchant payments to your Soldivo account.

Go to http://www.bpiexpressonline.com/ and log into your BPI online account.
In the main menu, select the following: Payments & Reloading → Bills Payment → Scheduled Bills Payment → Schedule Bills Payment
On the e-form, under ‘Payment Details’,
- select the SOLDIVO fund name with the corresponding folio number (SBFI 6001xxxxxx or SSGFI 6001xxxxxx)
- Input the amount to be invested
- Select which BPI Account to be used for payment
On the e-form, under ‘Schedule Options’
- select Recurring Payments
- select Monthly or Quarterly
- Input How many
- Input Start Date
Click ‘Submit’.
A pop up window will appear verifying your investment details. If the information is correct, click ‘OK’.
You will receive a confirmation code of your investment and a copy sent to your registered email address.

Over-the-Counter

Visit any BPI Branch
Fill-out a Deposit/Payment Slip. Fill in the following details:
- Under ‘Account Name/Merchant’s Name’, indicate the fund’s complete name.
- Under ‘Reference No.’, indicate your folio number (e.g. 6001xxxxxx).

Truly Rich Makers

No Family Left Behind in the Journey to Financial Freedom

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