Tag Archives: Financial Seminar

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

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.

 

Take Charge of Your Children’s Future!

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By Bobet Prudente

I remember 39 years ago, when I first enrolled at the University of the Philippines in Diliman, Quezon City. I was a full scholar and didn’t have to pay for tuition fee, but we were still assessed. And our typical assessment was about P300 tuition and fees for the entire semester. Not P300 per unit, it was about P300 for the entire semester.

UP Diliman

The Oblation at the University of the Phillipines in Diliman, Quezon City.
By Rinangel Buenavente, Crispin Sta. Ines [Public domain or Public domain], via Wikimedia Commons

Last January, my youngest son enrolled in the same campus at UP Diliman, and his tuition and other fees totalled P30,000. And I think UP has not increased tuition fees for at least 5 years.

Let us do the math.
* P300 x 10 = P3,000
* P300 x 100 = P30,000

In my lifetime, in 39 years, the tuition fee in my school increased 100 times, or about a compounded rate of 12.5% every year.

How much would YOU pay for YOUR children’s college education?

Most of you will be sending kids to college in less than 15 years, so maybe you will not pay 100x, but perhaps 8x to 10x what YOU paid when you were in college?

I talked to a seminar attendee a few weeks ago, and asked him how much he paid in college. He said, P15,000 tuition fee per semester.

Let us do the math again:

  • in 15 years, maybe tuition will increase only eight times.
  • P15,000 x 8 = P90,000 in one semester
  • P90,000 x 8 semesters = P720,000

And that is just for tuition. How about other school fees, transportation, allowance?
Let us say you spend another P280,000, and the cost of sending one child to college is P1,000,000.

If the basis is P30,000 (like what I paid in UP Diliman), the cost of sending one child to college in 15 years, will probably be P2,000,000

If you have two children, that is P2,000,000 to P4,000,000 you’ll be spending in 15 years.  Are you preparing to send your children to college?

Are you saving and investing so you’ll have an extra two to four million pesos in 15 years?  Are you saving enough, so you’ll have some money left over for your retirement?

Would you like learn ways to increase your cashflow, save and invest, so that you can send your children to college?

IMG launched a new seminar “Building Your Future” in January 2016 to help Filipino families achieve financial freedom through financial education, saving and investing. Our goal is to have 1 million financially educated families by 2020 ( hashtag #1M2020 )

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

Would you like to take charge of your children’s future?

#1M2020

Save Early!

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

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”

Aga Maaga, Inna Hulina and Pol Pahabol

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

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

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

Are you ready to grow your wealth?

Are You Ready to Grow your Wealth?

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Investing early and correctly make it easy!

Don’t’wait for the right time to invest, now is the right time!

People who wait till tomorrow to invest never actually  start, because tomorrow never comes;   there will always be another tomorrow.

Suppose you are 20 years old, and you want to have P5M in your retirement fund at age 60, then you have 40 years to build your retirement fund.

If every month, for 40 years, you save P421 in an investment vehicle that earns 12% per year, you will have P5,000,000 in your retirement fund.

Investing P421 monthly at 12% will give you P5M in 40 years!

Investing P421 monthly at 12% will give you P5M in 40 years!

But most young people will say, “I’m young, I’m healthy and I just got my first job! I’ll enjoy my salary and begin saving later!”

At age 30, you wonder if you should begin saving.  You still have 30 years to save before you retire at age 60, right?

If every month, for 30 years, you save P1,416 in an investment vehicle that earns 12% per year, you will have P5,000,000 in your retirement fund.  Because you waited 10 years, the amount of money you need to save to reach P5,000,000 already tripled!

Investing P1,416 monthly at 12% will give you P5M in 30 years!

Investing P1,416 monthly at 12% will give you P5M in 30 years!

At age 30, people say, “I just got married and have lot of new expenses.  I’ll save tomorrow.”

Many people have excuses not to begin saving and investing.  But just look at this table.

Investing early makes it easier to build wealth

Investing early makes it easier to build wealth

At age 40, one needs to save  P5,004 every month, investing at 12% per year for 20 years to have P5,000,000 at age 60.  But people at age 40 say, ”The kids are growing up, and I have lots of school expenses.  Maybe I can begin saving tomorrow.”

At age 45, one needs to save  P9,909 every month, investing at 12% per year for 15 years to have P5,000,000 at age 60.  The amount needed almost doubled in five short years!  But still people say, “My God, I didn’t know college can be so expensive! I can’t afford to start saving.  Maybe tomorrow.”

At age 50, one needs to save  P21,500 every month, investing at 12% per year for 10 years to have P5,000,000 at age 60. The  amount more than doubled! But still people say, “My parents’ retirement money just ran out, and we have to support them.  And I have more bills to pay. I really hope I can start tomorrow”

At age 55, one needs to save  P60,600 every month, investing at 12% per year for 5 years to have P5,000,000 at age 60. The  amount almost tripled!  That is about P2,000 per day!

Which is easier, saving P421 PER MONTH starting at age 20, or saving P2,000 PER DAY starting at age 55? At age 55, people sadly say,

“I should have started saving yesterday.”

And finally at age 65, people say, “My retirement money is just enough to pay for my debts. What will I spend tomorrow?”

It is never too late to start saving and investing! The earlier you start, the better!  It keeps on getting exponentially more difficult as you grow older.

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, Makati across Mapua)
  • Quezon City (Timog Ave cor. Quezon Ave, in front of Ninoy Aquino monument)
  • Dasmarinas Cavite (Camerino Ave, near main Church)
  • Calamba Laguna (Highway corner Chipeco, Brgy Halang)

FREE Seminar Request

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We have numerous requests for seminars from all over the country, and from many countries. IMG conducts financial training in numerous training centers all over the world, via personal coaching, and sometimes, online via the Internet through webinars and audio/video conferencing,

No FAMILY LEFT BEHIND!

To register for the seminar in

Otherwise, request for a free seminar below.  We will do out best to find a seminar or a coach in your desired area ( no promises, except best effort )

Bridging the gap in health care

Kaiser : Bridging the Gap in Healthcare

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by J3 Patino

What is Kaiser?

Kaiser HealthGroup International is the healthcare partner of the International Marketing Group (IMG). It is a lesser known Health Maintenance Organization (HMO) compared primarily because it’s focus is on the individual family clients (and not the corporate accounts). The reason why Kaiser was created was to address the LACK of long-term healthcare provided in the country.

Why Do We Need Long-Term Health Care?

Typically, an average Filipino employee would have a healthcare plan provided by his/her employer. This is certainly very beneficial and helpful to the employee and his dependents, and this covers for the person’s SHORT-TERM healthcare needs.

But what happens when the person has to leave the company? What if he is already forced to retire, or perhaps was made to be redundant? The healthcare benefits will also disappear! I honestly find it quite sad that when people get older, that is the time they will most likely need a healthcare plan, but that is also the time when they won’t have it already.

This is the BIG GAP in healthcare. Everyone has the typical short-term plans, but no one is preparing them for the future – a time when they will no longer be covered by any company, and a time where medical and hospitalization expenses would most likely be in the millions. This is the need that Kaiser is solving, one family at a time.

The Kaiser Short and Long-Term Plan

During the seminar, the Kaiser 4-in-1 plan must have been discussed to you. Depending on the skill on the speaker, there are some things that might not be really clear to you, so let me simplify it.

The Kaiser plan has 3 phases:

Phase 1: The Accumulation or Paying Phase (Year 1-7): For the first 7 years you will be paying for the plan. During this time, it works like a typical HMO wherein you have an annual benefit usable for hospitalization expenses. (There are a couple of bonuses like the Annual APE, and Dental Benefits, but honestly I think these shouldn’t even matter in your decision making).

Comparison to Other Providers: During this phase, the kaiser plan addresses the Short-Term healthcare needs. When compared to other healthcare providers, this plan is actually very sub-par. Short-term healthcare is definitely NOT this plans strong point).

Phase 2: The Growth Phase (Year 7-20): During this phase, you have completed all the payments and all you have to do is WAIT and let the plan mature. At this point your plan will have a starting cash value, that you can also use for medical expenses. The money is invested in government and corporate bonds, which are expected to yield 5-8% per year.

Comparison to Other Providers: During this phase, the Kaiser plan is still there for your short-term needs. The money is still growing at this point and it is at this phase when the Kaiser plan starts to step-up and be more competitive with the other health providers.

Phase 3: The Maturity (Year 20 and beyond): At the plans maturity at year 20, several bonuses will be awarded like the Long-term Care Benefit and Bonus. Plus about 85% of the premiums will be returned to you if you didn’t use the plan during the earlier phases. Here the cash value of your investment would also be good as cash – meaning you can use it for anything, not just hospitalization and medical expenses.

Comparison to Other Providers: At this phase, Kaiser stands out because most healthcare providers are already TOO expensive (Try this: add 20 years to your age now, and inquire how much a healthplan will cost….) Meanwhile, your money with Kaiser has already accumulated (and depending on the plan you chose, your Total Health Benefits would be upwards of P500,000 all the way to several millions).

All in all, I think the Kaiser plan is a great compliment for those who have existing healthcare plans (especially if its provided by your employer). This way you’re covered for both your short and long-term needs.

Where the Kaiser Plan Fits

As you learned in the seminar, there are 6 steps to financial freedom.

  1. Increase Cashflow (by increasing income and decreasing expenses)
  2. Manage Debt (by debt consolidation and eliminating it)
  3. Create Emergency Fund (Save 3 to 6 months of your expenses)
  4. Ensure Proper Protection (Portect for medical emergencies, and risks)
  5. Build Long-Term Savings (through investments)
  6. Preserve Estate (through estate planning)

Where does Kaiser Fit into the Picture?

Kaiser is in the 3rd and 4th step of achieving financial freedom. While investing in the stock market is at the 5th step already. And to build a solid financial foundation, these steps must be STRICTLY FOLLOWED.

(Imagine a child asking for dessert BEFORE even eating the main course and the vegetables. Would you, as a responsible parent, actually do this even if the child wants it so badly? Of course not! That would be very unhealthy, and it would ruin the whole point of eating (which is to make us healthier).

It’s the same thing in building a solid financial foundation. No matter, how good investing may make you feel, if not done with the right foundation it is also unhealthy. The right way is to Have a source of income first, THEN make sure you don’t have any high interest debts… THEN save and secure yourself with insurance and healthcare, THEN that’s the only time you invest.

Should You Get the Kaiser Plan?

Affiliate Disclaimer: I (along with your IMG financial coaches) will receive a commission should you decide to purchase a Kaiser plan through us. But as an independent and Registered Financial Planner, I will only recommend the plan if it suits your needs.

So let me start off with who should NOT get the plan..

PLEASE DO NOT get the plan IF:

  • You have no source of income.
    The unemployed, children and students are a big-no no. Retirees can get the plan only if someone else will cover for it, and you have savings that will last you at least 3 years.
  • You are buried in high-interest debts.
    If you cannot fully pay your credit cards, then please repay them first. Auto and Home Loans are okay since these are more acceptable interest rates.
  • You cannot save more than 10% of your salary.
    Focus on increasing your income and decreasing your expenses first. Learn how to budget and save first. Learn how to increase your income before moving on to the higher stages.

If you belong to any of the above, you can still come to IMG for coaching, but it is really not recommended that you get the health plan. Put the first things, first.

If you DO NOT belong to any of the above, then you can consider getting the plan. For this, I will simply rank it if it’s excellent, very good or good for you to get a plan:

The plan is EXCELLENT for you IF:

  • You are a young professional and you are already covered by your employers health benefits.
    This is a perfect compliment to your short and long-term healthcare needs. This is actually also very good because if you do not use the Kaiser plan in the early phases, you get the 85% return on your premium. So you current plan acts like a BUFFER to your Kaiser plan.
  • You are self-employed with no form of health/medical benefits.
    The bonuses are really valuable here like the insurance, APE, and of course the health plan. It being a 4-in-1 (savings, insurance, short and long-term healthcare) is also very convenient for your complicated and busy lifestyle.
  • You are an employee planning to transition into business.
    One of the fears that employees cling on to are the ‘benefits’ in the company. This almost always prevents them to take the leap of doing what they truly want to do. When you have your healthcare covered, at least you’ll have a safe foundation as you venture into the unknown.

The plan is VERY GOOD for you IF:

  • You are an established family man/woman in your 40’s to 55’s.
    Given that the plan takes 20 years to mature, it would just be in time for your retirement years.
  • You plan to grow old SINGLE.
    Not to assume anything about your future, but generally you will have less people to rely on in your old age. (Both socially, and financially). Having to hiring a personal caregiver is also very possible so it would be good to prepare as early as now.

The plan is GOOD for you IF:

  • You are starting or building a family.
    Healthcare is always a good thing, but the challenge in your case is the very tight budget. In this case, I would actually recommend you to focus on getting life insurance first, and really saving up for the emergency fund prior to getting additional healthcare. I would also recommend that you start saving for your child’s college tuition already if you have excess money. So invest in this Kaiser plan only when you can really afford it, and all the other necessary steps are already covered.

If you did not belong to any group above, sorry for missing out on you. But I believe with these examples, you already know the befits of the Kaiser plan.

Abouit J3 Patino

This review was written by J3 Patino – the founder of Pinoy Money Academy and an independent Registered Financial Planner. J3 helps Filipinos understand investments and other financial instruments so that they can make the right investment decisions and achieve their financial goals.

 

Win Bo Sanchez’  Best Selling Book “8 Secrets of the Happy Millionaire*”

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Bo Sanchez’ most popular financial education book is “8 Secrets of the Happy Millionaire.” Demand  is so great he even wrote a Filipino version of the book.

8 Habits of the Happy Millionaire

“8 Habits of the Happy Millionaire” is Bo Sanchez’ best selling financial education book

In this book, you’ll learn the 8 Habits of the Happy Millionaire which include

  •  Finding Your Emotional Hunger
  • Being Consistently Aggressive
  • Creating Money Machines
  • Sticking to Your Game

When you acquire these same habits, you’ll find that wealth creation becomes automatic. Spontaneous. Systematic. Effortless. Fun!

Every Saturday, during the 7pm event,  we will select one lucky seminar participant for the week, and send this book* to his/her mailing address.Simply fill out the form below and drop it at Room 901 to join the raffle!

  • Or book of your choice.