iNvE$tMeNt Q&A

i think the term is until 5 years not at least 5 years.

you can get it cguro 1year or less and then they will compute the equivalent interest rate.  and not tax ito.

 

 

—– Original Message —-

Subject: Re: [aiurp] The PERA Bill at its core

 

wow! dami mo info earth! thanks!

pass muna ako dun siguro sa pag-ibig na bonds. at least 5 years pala ang terms eh. wala pa ko enough money na sa tingin ko oki lang na ma-freeze for 5 years eh. check ko ung sa bpi. thanks!

On Sun, Oct 5, 2008 at 12:50 AM, nibirU <earathou@yahoo. com> wrote:

 

 

ah baka nag transform na ang sun life investments type nila.

if may part kang stocks sa insurance mo then ask mo ilan ang shares mo dat time and how much na worth ngayon.

for sure tataas na ang worth ng shares mo.

 

di ko nakikita sa unionbank website ang 4.5% na interest sa Time Deposit nila. baka more than 5M ang minimum dito kaya malaki ang interest.

 

ito ang complete listing ng Time Deposit rates ng BPI, BPI Direct and BPI Family Savings Bank

http://info.bpiexpressonline.com/bpiprod/produpd.nsf/Deposit+Rates/TimeDepositRates 2?OpenDocument

hanap ka nalang ng investments na madali ang liquidity nya. 

meaning the ability to turn assets or investments into cash. magagamit mo ito for emergency cases.

 

meron din Pag-ibig Housing Bonds. in which you have an interest of 5.0% per annum.

kaso madaling maubos ang mga bonds or certificates dito once magrelease na sila. as early as this month magrelease sila for next year new certificates.

 

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http://www.pagibigfund.gov.ph/sp_bonds. htm

 

Pag-IBIG Housing Bonds

WHAT ARE Pag-IBIG HOUSING BONDS

 

Pag-IBIG Housing Bonds (Series 2007)* are bonds issued by the Home Development Mutual Fund (HDMF) to finance its housing loan program. The Bonds have a term of five (5) years and one(1) day.

*Issuance of the Pag-IBIG Housing Bond is contingent upon the prior endorsement of the Department of Finance and the approval by the Monetary Board of the Bangko Sentral ng Pilipinas and the finalization of the HCG Contract of Guaranty.

WHAT ARE THE OTHER FEATURES OF THE BOND?

• Allowable investment of insurance companies
• Acceptable collateral for a developer’s loan with Pag-IBIG Fund
• Acceptable deposit in lieu of surety bond for collecting agents of Pag-IBIG Fund and
• For developer-investors , the Bonds are deemed sufficient compliance with Section 18 of R.A. 7279, subject to pertinent guidelines.

Eligible bondholders shall also be entitled to participate in an annual raffle draw with minimum of two (2) units of House and Lot packages/ Lot worth P1 Million each. For every P10,000 Bond held, an eligible bondholder is entitled to one raffle number.

 

Bond holder eligible to the annual raffle draws are:

• Individuals
• Retirement Fund
• Provident Fund
• Cooperatives

WHO CAN INVEST IN THE BONDS?

 

Members and non-members of Pag-IBIG, Filipinos and foreign nationals, corporations, developers and insurance companies may invest in the Pag-IBIG Housing Bonds. All Bond investors will be required to open and maintain a deposit account with either the Development Bank of the Philippines (DBP) or Land Bank of the Philippines (LPB).

Denomination of P10,000, P100,000, P500,000, P1,000,000 and P10,000,000 are available to all investors. There is no limit as to the amount of Bonds an investor can purchase.

WHAT IS THE INTEREST RATE OF THE BONDS?

An investor will be paid on a semi-annual basis a fixed interest rate which is tax-exempt by virtue of the Home Guaranty Corporation (HGC) guarantee on the Bonds. The interest earnings shall be automatically credited to the savings account of the bondholders on record with DBP or LBP. The actual rate on the bonds will be based on prevailing rate on Interest Rate Setting Date

Sample Computation ( Interest rate of 5.0% per annum)

Amount Invested	:PhP 10,000.00
Coupon Rate	:5.00% net (**)
Semi-Annual Interest Earnings(*** )	:Php 250.00

 

read more 

http://www.pagibigf und.gov.ph/ sp_bonds. htm

 

—– Original Message —-
From: yen <ryannecruz@gmail. com>

Subject: Re: [aiurp] The PERA Bill at its core

 

ay iba ba un? meh bat me nakalagay sa contract ko ne meron akong number of stocks or something ako? parang me part ng binabayad ko na napupunta sa policy ko tapos me part na balanced fund yata un … anyway, papaklaro ko na lang ulit sa agent ko.

me alam ka mataas na TD rates? ang nakita ko lang so far na medyo mataas is union bank na me 4.5% for 1 yr. ung BPI Direct ba how much interest? di na ko interested sa me insurance kasi me mga insurance plans na ko eh. ibang nature naman ng investment gusto ko.

On Sat, Oct 4, 2008 at 4:36 PM, nibirU <earathou@yahoo. com> wrote:

 

girl, iba ang sinasabi mong inenvest mo sa sunlife na may insurance. iba din itong Money Market Fund. walang insurance kasama. but not PDIC Insured. 

 

Mutual Funds / Intindihan Funds 

ay may tatlong risk type funds dito.

- low risk - Bond Fund

- medium risk - Balance Fund

- high risk - Equity Fund.

 

to get sample computations on the interest earna on this different mutual funds read more http://earathou. i.ph/investing10 1 

 

if gusto mo no risk talaga ay meron din sa Time Deposit. 

you can also open new account sa BPI Direct Save-UP account with insurance na din ito.

 

 

 

 

—– Original Message —-
From: yen <ryannecruz@gmail. com>

Subject: Re: [aiurp] The PERA Bill at its core

 

yup meron na ko nyan, sa sunlife din. medyo di ko lang din siya gets … pero oks na rin. me kasama din siyang insurance. 

me alam ka pang ibang low risk investments earth? thanks!

On Sat, Oct 4, 2008 at 1:25 PM, nibirU <earathou@yahoo. com>wrote:

 

mag money market fund ka if want no risk investments.

the same as savings in the bank pero mas malaki ang kikitain mo dito compare to ordinary bank deposits.

Money Market Fund ay isang uri ng Mutual Fund din ito

 

ang kaibahan lang pag nag invest ka ay di mo masasama sa groceries ang money mo. (^_^)

 

 

http://www.sunlife. com.ph/mutualfun ds/marketfund. asp

 

---

 

 

One of the most conservative mutual funds 
you can buy…

 

Money market funds are designed to provide current income at competitive yields with minimal risk to your principal investment. Compared to other existing mutual funds, money market funds are at the top of the heap when it comes to low risk.

Money market funds are comparatively low risk mainly because of the securities in their portfolio. These types of funds only invest in securities that are hort-term,�meaning those with a term of one year or less. As a general rule, short-term securities are less riskier than longer-tenor securities.

That said, you should know that the Sun Life Prosperity Money Market Fund is, at the time of launch, the only money market fund in the Philippines. Compared to other mutual funds at this time therefore, it is one of the most conservative mutual funds in the country, perfect for somebody who wants to ry out�investing in mutual funds.

 

Parking place for cash

In countries such as the United States and Canada where the mutual fund industry is well-established, individuals as well as institutions frequently invest in money market funds, which are multibillion dollar funds, even hitting the trillion mark. As of December 30, 2004, for example, total US money market fund assets stood at US$ 1.951 Trillion¹.

One of the reasons money market funds are an attractive alternative is that they are very liquid, meaning they can be withdrawn on any business day. It is because of this that money market funds become temporary parking places for cash and ideal facilities for short-term investing.

For example, you may want to park your cash in a money market fund while you wait for the time you are comfortable with investing in stocks, as the money market fund can provide a safe haven during volatile periods. The fund is especially useful for institutional investors who have large amounts of cash that they would like to see earn interest while still not being used. At the same time, individual investors like the freedom of knowing that they would be able to withdraw their money from the money market fund if needed.

 

Absolutely no sales load

 

The Prosperity Money Market Fund is the first absolutely no load fund in the Philippines. There are no fees to pay upon investing. This means that your Php 10,000 initial placement is invested wholly into the fund, thereby maximizing its earning potential. Subsequent investments can also be made for as low as Php 5,000.

In addition, the Prosperity Money Market Fund provides immediately access to your investments after seven (7) calendar days. This means you can withdraw your investments after seven (7) days without incurring any exit fees. Other mutual funds may not have any initial sales loads when you invest, but will require you to have at least a two year holding period otherwise your redemption shall be subjected to exit fee. But with the Prosperity Money Market Fund, you do not have to worry this.

 

Tax-free

 

Unlike bank products that provide tax breaks on your interest earnings only when you stay with them until your money atures� your mutual fund proceeds are not subject to the usual 20% withholding tax.²

This tax-free feature of Philippine mutual funds, combined with the liquidity, zero load, and no holding period attributes of the Prosperity Money Market Fund, make it a good alternative to time deposits. That dilemma of not being able to pull out your money because youl be axed�is no longer a problem with this Fund.

—– Original Message —-
From: yen <ryannecruz@gmail. com>

Subject: Re: [aiurp] The PERA Bill at its core

 

Lehman Sis?! hahaha. lakas talaga ng topak mo earth!

di din ako masyado maaalam sa mga mutual funds chuvaness eh. dati nagisip ako mag-try kaso di talaga ako risk taker eh. siguro in the future or pag oki nga itong PERA scheme na to.

sige pag me nabalitaan ulit ako dito share ko din sa inyo.

On Sat, Oct 4, 2008 at 12:25 PM, nibirU <earathou@yahoo. com>wrote:

 

great topic!

 

i read this on the paper.

and still have questions 

 

“This would include unit investment trust funds, mutual funds, annuity contracts, insurance pension products, pre-need pension plans, stocks, exchange-traded bonds, and others approved by the government.

“

-  in mutual funds - what will be the starting NAVPS? 0.00001 ?

- for stocks - we dont have a historical records on how will this perform in the market. if initial investment will be as low as 1000 php then surely all pinoys  can benefit on this and this stocks will perform well in the market.

 

- the money we will invest to the gov’t will be some used to lend it to the businessman or investors. still hope they will not  reinvest it to the foreign investors like Lehman Sis

 

- since it will be handle by the gov’t - they will not declared bankruptcy. instead they can make more and more money they want.

lol

 

tagal pa ng retirement age 55 but its worthy to wait. saving 5k each year x 20-30 years to go = 150k + benefits / incentives / interests. additional savings or money mo yan on that age. pambili ng gold na pustiso. lol

 

update mo nlng kami yen dito ulet soon.

 

“the higher the risk, the higher the return”

“dont put your eggs in one basket” 

 

 

—– Original Message —-
From: yen <ryannecruz@gmail. com>

Subject: [aiurp] The PERA Bill at its core

 

http://blogs. inquirer. net/moneysmarts/ 2008/09/25/ the-pera- bill-at-its- core/#more- 688

Since the Personal Equity Retirement Account (PERA) Bill wassigned by President Gloria Macapagal-Arroyo last August 22, 2008, those who have been conscious savers and investors were fairly bursting at the seams with excitement.

Ah, the joys of tax-free savings and investments. It’s enough to make hearts skip a beat despite the gloomy global environment.

But wait. This news should be something that excites the nation as a whole. Particularly OFWs and their families. I don’t see that happening. Yet. Let’s see what we can do with that.

For starters, here are the things that you need to know about the PERA Bill.

At its core, it will allow you to create a voluntary retirement nest-egg from accredited savings and investment instruments based on YOUR preference and give you the chance to grow this nest egg faster by not slapping you with taxes on its earnings AND rewarding you with a 5.0 percent annual tax credit for your contributions if you keep your money in the PERA until age 55.

If that’s still too complicated, just think about this: tax incentives, baby. They are the cake and the icing on this thing. Oh and the fact that, if you’re tired of how the Social Security System and the Government Service Insurance System are handling your contributions, here you get to make your own call on where to put your money!

Here are some other details from the law, demystified:

1.    Who can set up a PERA? If you can get a Tax Identification Number, you can set up a PERA. This money is yours and not given to the government, like in your traditional SSS or GSIS funds, for them to manage. You choose where it goes.
2.    How do you begin? To set up your account, you need to get an administrator that will oversee your account. This will be a company approved by either the central bank, the Insurance Commission and the Securities and Exchange Commission. You can have only one administrator, but open up to five PERA.
3.    Where to send your contributions? You also need to choose a custodian, which will receive the funds that you contribute. The custodian will operate independently from the administrator. Administrators and custodians are required to charge only “reasonable” fees that are approved by the government.
4.    How much can you contribute? Maximum of P100,000 for those living in the Philippines, and P200,000 for those living and working overseas, per year. Couples together will have a P200,000 maximum contribution, or P400,000 for those living overseas. The Finance Secretary can adjust this from time to time.
5.    Will your employer be required to add to your nest egg? No. They are encouraged, but not required. But employers who wish to use the PERA to enhance employee benefit packages on top of the SSS and GSIS contributions, are allowed to deduct their contributions from their taxable income. Now even if your employer contributes to your PERA, it does not have any authority where to put your funds. You still get to choose your investment outlets.
6.    Who can help you decide where to put your money? You may or may not get an investment manager to help navigate the waters of investing, but choose carefully one who will act always for your best interests, not his. And one who is, of course, qualified.
7.    What investment or savings vehicles can qualify under PERA? This would include unit investment trust funds, mutual funds, annuity contracts, insurance pension products, pre-need pension plans, stocks, exchange-traded bonds, and others approved by the government.
8.    Why would you want to set up a PERA? You get three sweet deals: a tax credit of 5.0% of your total PERA contribution per year. This means if you max out your contribution to P100,000, you get to deduct P5,000 from your annual taxable income. Aside from that, your money gets to compound faster because all income earned in your PERA is tax exempt. Third, once you retire at age 55 and need your money, it still won’t be taxed. If you die before reaching 55, the money goes to your heirs without going into probate.
9.    What are the disadvantages? Since the PERA encourages long-term savings and investments, make sure you contribute only the money that you can spare. Early termination or withdrawal means you get slapped with a penalty (still has to be determined by the Finance department) and taxes.
10.    What if you have an emergency? You may withdraw money penalty-free only if you need money to pay for hospitalization of more than 30 days and if you are suddenly totally disabled.

Make no mistake about it, the PERA Bill will not make everyone wealthy. Unless we take advantage of it. Unless we actually know what to do with it. Unless we in fact take the time to spend less and invest more. Unless we stop complaining and start doing.

So get ready to start doing! If the Finance department is on schedule, the PERA Bill should be effective by January 1, 2009. Happy New Year indeed.