Top Insurance Company 2012 Based on Premium Income

12 Wednesday Jun 2013

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First of all, who needs an insurance? And why do you need an insurance?

An insurance is a need for those people whom somebody is depending on their income. An insurance policy can replace one’s income in case of death or disability.

According to investopedia.com, Insurance is defines as contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.

One of the method in calculating the amount of insurance is through DIME method. D – Debt, I – Income, M – Mortgage, E – Education.

The Debt shall be equal to the combined credit card, loans and other debts.

Income shall be equal to income replacement for 10 years. Sometimes it is also calculated as (Monthly Salary x 12 / Expected rate of Return), with this calculation it is anticipated that money received from insurance company will go to an investment portfolio and its interest will become the living allowance of the family left behind. Example if you earn Php 20,000 and an expected investment rate of return of 8% per year. Calculation shall be as follows:

Php 20,000 x 12/0.08 = Php 3,000,000, therefore your insurance coverage shall be Php 3,000,000.

There are some financial guru suggesting that a 5 years’ worth of salary is enough to let the remaining partner recover from the loss of their partner. In reality all fathers should have an insurance.

The mortgage shall be the total balance of mortgage to be paid.

Education shall be the amount of money to spend for the education of your children in the future.

Here are the reason why you need insurance:

  • As mortgage protection
  • For income replacement.
  • For college funding
  • Free from the claims of creditors
  • No Tax Estate tax
  • Can be used as payment for Estate Tax

According to the submitted Annual statements of Life Insurance Companies, based on Premium income, a list of top insurance company has been released.

The top 10 companies are as follows:

  1. Sun life
  2. Pru Life
  3. Philam Life & Gen
  4. Phil AXA
  5. BPI Philam
  6. Insular Life
  7. Manulife (Phils)
  8. SunLife Grepa
  9. Manulife Chinabank Life
  10. PNB Life

See the picture for the complete list

top insurance 2012

An insurance could also serves as payment for estate tax which is approximately 20% of the estate left by the deceased person. So if nobody is depending on you but you have lots of estate (land, mutual fund, savings account, UITF and more) it is wise to have insurance, so that your beneficiary will not have any problem taking your estate from the government.

Are you a Long Term Investor? Or a Trader?

03 Monday Jun 2013

Posted by in Stock Market

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psei

Seeing the decline of the Philippine Stock market price? Are you one of those who are afraid losing money? Or you are already thinking of going out from stock market? Well check out my post below.

All Equity Funds (Funds with high percentage invested in the stock market) in Mutual Funds are also affected by the sell-off which started from last week.

In stock market we have two types of players, first is Traders and the next is long term investor.

So Who are Traders?

Traders or commonly known as “Tsupiteros” are those stock market players who highly depends on Technical Analysis, rumors, tips and other things that really affect the market price. They sell if they think the price is high and they will buy if they think the price is really low and they could gain from it. Being traders is riskier compared to long term investors who are doing cost averaging.

So Who are Long Term Investor?

They are investors who believes on the company that they bought, they believed that they can act as a partner of the company and they have a strong belief in the valuation of the company. They also believed that when the market is down, they should buy more shares because it will be higher on the next bounce of the market. They are also doing Peso Cost averaging, in which they buy shares whatever is the market status. When the market is down, they can have more shares and when the market is high then it will be fewer position provided same value of money is being placed in a constant basis.

The Philippine Stock Market

The Philippine Stock market is one of oldest stock exchanges in Southeast Asia, having been in continuous operation since its inception in 1927.

The main index for PSE is the PSE Composite Index or PSEi, which is composed of thirty (30) listed companies. The selection of companies in the PSEi is based on a specific set of criteria. There are also six additional sector-based indices according to Wikipedia.

Based in market history, PSEi proves that stock market is a good investment for Long Term. That is also the reason why younger generation is highly recommended to enter stock market, since whenever there is correction or market crash, there are still room for recovery.(But of course market history should not be the sole basis of your investment. It is just an information)

Market Status (June 3, 2013)

Just for my record today, a report from BPI Asset Management Market Watcher.

The local equities market lost ground on persistent profit-taking due to valuation concerns.  The PSEi lost 258.57 points to close at 6,763.38. All sectoral indices closed in the negative territory led by property (-4.96%), financials (-3.80%) and mining and oil (-3.72%). Market breadth was negative with 138 declines outnumbering 33 advances with 33 stocks unchanged. Total value turnover was at Php16.58 billion. Foreign investors were net sellers at Php3.27 billion.

Happy Investing… Just for the record my YTD falls to +18.23% at least I am still positive.

 

GDP Up but Fails to Stir Up the Market

30 Thursday May 2013

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Despite the First Quarter 2013 GDP report that grows with 7.8%, ahead of estimates, the market still fails to recover from it’s lost that started last week.

GDP

If you are like me who does not really understood what GDP means, except that I know it’s a country’s economic growth calculation, I have researched the meaning from investopedia.com as follow:

What is GDP?

The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period – you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year.

The market continues to goes down as of this writing. Nobody really knows until when will be this Philippine bullish market will end and bounce back.

As a long term investor, don’t panic. I still believe that it is just a market correction and still not a market crash.

Did you remember that the market started the year at 5,860.99 which is actually a record high on that time, and market closed today at 6953.35 which is 18.63% higher than it’s opening price also known as YTD.

YTD %
The percent gain or loss that the portfolio has achieved over the Year To Date (YTD) period. Refer to the “as of” date to determine the exact period.

Since I am in the stock market for almost 1.5 years, I don’t have this problem of panic, I know it’s just part of the market cycle.

For investors, this is really a good time to buy since the market is down and there is really a good chance that the market will bounce soon. Investors have 2 option if they have money to buy more stocks.

1.)   Buy on stages ( aka Peso Cost Averaging)

2.)   Buy until the market is on it’s lowest price.

Number 1, is easier because you will be doing cost averaging. On number 2, nobody really knows when it will be up or until when it will be bullish. Yes there is Technical Analysis, but when the market is affected by outside force, nobody knows what might happen.

I have read a news about “BASE III” but I still need to understand the effect of this to Philippine Economy or I can say Global Economy. Read More about BASE III here and here

For research purpose, I have copied some information in the net about this article:

What is BASE III

“Basel III” is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector. These measures aim to:

  • improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source
  • improve risk management and governance
  • strengthen banks’ transparency and disclosures.

The reforms target:

  • bank-level, or microprudential, regulation, which will help raise the resilience of individual banking institutions to periods of stress.
  • macroprudential, system wide risks that can build up across the banking sector as well as the procyclical amplification of these risks over time.

What is BIS?

As shown in Wikipedia:

The Bank for International Settlements (BIS) is an international organization of central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks”.[2] As an international institution, it is not accountable to any single national government.

The BIS carries out its work through subcommittees, the secretariats it hosts and through an annual general meeting of all member banks. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City

All I can say is that stay with your plan, if you cannot handle the loss then make a cut loss, and if not just close your online broker account and watch some movie. Do some research. For long term investor, like those people in Equity Mutual Fund, relax and wait for the rebound.

Always remember the Higher the Risk the higher the possible Returns, The Lower the Risk the Lower the possible returns. So it’s up to you on which investment path will you go.

The best thing to do is to study first. Remember that you don’t have to be emotional when it comes to stock market movement.

For OFW, Our exchange rate today is Php 42.36 : 1 USD, good for us.

Happy to report that after the closing today I still have 19.5% Gain YTD.

Philippine Stock Exchange On Sale Today Due to Japan

23 Thursday May 2013

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Forums and different Facebook groups became busy today, checking on what happen in the stock market. Some ask if this is the start of the long correction. Or is there any other Coup D’ Etat in place, or even is there any mutiny who would like to overpower the President and more. The real story is shown below.

Asian stocks had been affected as Japanese NIKKEI 225 shares fall today at 7.32% down. Reports says that Japan’s trading was halted today.Today’s market halt happened in Japan last March 15, 2011, in the immediate aftermath of Japan’s earthquake, tsunami and nuclear disaster.

 Nikkei 225 May 23

The Philippine stock market has been affected by this fall as more investors goes profit taking in fear of continues fall of the stock market, However the market recovered immediately after few minutes of panic, we saw investor buying at low price. The Philippines Day Range is: 7,218.34 – 7,388.39. It only shows that more and more investors believe that it is more fun investing in Philippines.

Philippine stocks Exchange May 23

Actually this is the best time for those with extra amount in their account. In time like this it will be best to buy at low and take profit later on.

On the other hand, SMPH holding investors felt different today, SMPH close at 2.90 per share gaining a 2.90% increase on its share after breaking it’s support at 2.7.

Here is some notable decliners today in the Philippine Stock Market

  • Asia United Bank Corporation (AUB) -4.61%
  • First Gen Corp (FGEN)       -3.35%
  • Energy Development Corp (EDC)            -3.28%
  • Universal Robina Corp (URC)      -3.10%
  • Belle Corp (BEL)      -2.69%
  • Metropolitan Bank & Trust COM (MBT) -2.54%
  • Bloomberry Resorts Corp (Bloom)            -1.54%

Will the Market Recover?

Well nobody knows, I am not an expert to say but really nobody knows what will happen in the stock market. Yes, there is Technical Analysis (TA) and Fundamental Analysis (FA) but those are just analysis but nobody can foretell the future.

All I can say is that if you are a long term investor and if you do cost averaging, now is the best time to buy in the market. There are lots of opportunity now compared the last few days.

Knowing the Philippine market stability, we are for a long haul in the stock market, I believed that we are still in a bullish market.

Congrats to those who bought some position during the Market sale today. Anyway if you are in the market for a long term, you don’t have to bother yourself about this news and just increase your position. Happy Investing and it’s really more fun investing in the Philippines.

Some related news from Bloomberg here

Cost of Ignorance vs Financial Literacy

21 Tuesday May 2013

Posted by in Personal Financing

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They say that Financial Literacy Seminar and Financial Investment is too expensive for people to start and I say it is more expensive to be ignorant than to get Investment portfolio such as Insurance , Mutual Funds and other investment.

Let me explain my point.

Most people when asked about their savings and investment, they will just reply, “I don’t have investment, it is only for the rich”. It is the reason why our society needs to be educated about financial literacy.

Ignorance

Saudi OFW who goes back to Philippine with Final exit normally gets End of Service Benefits (ESB) from his employer. This is worth 50% of his/her monthly salary per year for the first 5 years and 100% of monthly salary for the next year of the total service rendered. The problem; whenever an ofw goes to Philippines without any financial literacy, chances are this money will only last for few months and end up being poor while in Philippines. It is also the reason why many old aged ex Saudi want to go back to Saudi to work again.

I can give you an example, let say an OFW earns 5,000 riyals per month (assuming it is his latest salary), and he stayed on his company for 15 years. This will be his computation:

  • First Step : 5,000 x 0.5 x 5 years = 12,500
  • Second Step : 5,000 x 1 x (15-5) years = 50,000
  • Total take home = SAR 62,500 = approx. Php 675,000

Imagine working for 15 years in Saudi Arabia who have no knowledge in Philippine Business, put his ESB in business and ended up of becoming bank craft.

Financial Literate OFW will definitely think of something on how he can grow his money, taking into consideration different risk that he will face on his venture on investment while,

An OFW without any Financial Literacy Background will definitely spend 10% or more for “Pasalubong”, then after arriving in Philippines “Painom” and more. This is just to tell everybody that he came back from overseas work. His friends will approach him to open a business and gives his money with no proper feasibility study. So what do you think will happen to this OFW? Will he enjoy his retirement?

Financial Literacy is important for all of us. Ignorance is the most expensive things in the earth as well as ignorance can also be equated to gambling. Any business without proper study will have high chances of business failure.

Learning Financial Literacy does not mean you don’t have faith in the Lord. Financial Literacy is preparing for your future and having faith that the Lord will help and guide you in your plan.

I always believe in If You Fail to Plan, You Plan to Fail.

Proverbs 22:3 ESV

The prudent sees danger and hides himself, but the simple go on and suffer for it.

Be wise on your hard earned money.

Suze Orman advises Filipinos to invest in Philippines

15 Wednesday May 2013

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Suze Orman, American author, financial advisor, motivational speaker, and television host, in the United States advises Filipino to invest in the Philippines. She firmly believe in Philippine economy and she even suggest investing through mutual funds. It was also mentioned in the interview that one should not be engage in Credit Card debt bondage, and if ever engage with it you need to get out as soon as possible. She also discuss the importance of having an emergence fund and then investing after reaching the goal of having an emergency fund.

ABS CBN even twitted quoting Suze Orman that she will invest in Philippines.

suze orman

Meanwhile, Philippine Stock Index have again reach an all-time high at 7392.20, today.

You may see the interview of Suze Orman in the embedded YouTube video below.


PH Stock Index All Time High at 7,313.46 breaches 7,300 for first time in history

14 Tuesday May 2013

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PH Stock Index All Time High at 7,313.46 breaches 7,300 for first time in history

Once again PSEi set a record of an all-time high at 7,313.460 a day after the election. It only means that investors have trust on the recently concluded election. In addition a new intra-day high was likewise hit at 7,349.95. It is 30th record breakout for the year and the 91st under the Aquino administration.

This sign is really good for investors because they could see gains from their investment. People who are not yet investing will not really feel the effect of the economy.

I believe that it’s high time for people to go to Investment. If you don’t know how to read graphs, and if you do not understand how the stock market works, I believe that is now high time to learn about this things. If you want to start you can go to banks or Mutual Fund Company and ask about equity funds.

Equity funds performance depends on the stock market movement. Just make sure that you know the risk that you will face in going to stock market.

Investing in stock market could give you a really high profit but likewise it could also give you a very high lost. The higher the Risk the Higher the possible gain and the lower the Risk the lower possible gains.

Your investing appetite will determine the type of investment that you will push through.

If you invest in equity funds, you will not bother about fundamental analysis and technical analysis of a certain stocks. But likewise you will not also have any part in decision making about which stocks to pick or to sell.

The beauty in stock market is that you control your investment but if you do not know this things better go to equity funds then learn about stock market.

Happy investing and I hope that many OFW will start investing and not just waster their money in gadgets and useless wants.

IMG Now Offers Philam Term Life Insurance for Members

13 Monday May 2013

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Good news for IMG (International marketing Group) members who believes in BTID, IMG now offers Philam Term Life Insurance exclusive for IMG members at an affordable price. Just recently Philam conduct a seminar at IMG office in Manila. I have also been informed that this policy gives triple A protection (Anywhere, Anytime and Any Cause of Death).

About Philam Life

Philam Life is the largest life insurance company in the Philippines and the market leader for over 65 years now.

Philam Life ranks first among life insurance companies in the Philippines in terms of;

  • Assets
  • Investments
  • Net Income
  • Net Worth
  • Paid-up Capital*

Philam Life is a member of the AIA Group Limited, the largest independent publicly listed pan-Asian life insurance group in the world.

The AIA Group Limited has wholly-owned main operating subsidiaries or branches in 16 markets in Asia Pacific – Hong Kong, Thailand, Singapore, Malaysia, China, Korea, Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei and Sri Lanka and a 26 per cent joint venture shareholding in India.

AIA Group Limited is listed on the Hong Kong Stock Exchange.

What is BTID

Upon reading about different investment article, I believe by now you have encountered the word BTID. BTID means, Buy Term and Invest the difference. This is a common philosophy in investing as opposed to getting whole life insurance or VUL.

What is Term Life Insurance?

According to investopedia.com

A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, in which duration extends until the policy owner reaches 100 years of age (i.e. death).

These types of policies provide a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period. However, the policy does not provide any returns beyond the stated benefit, unlike permanent life insurance policies, which have a savings component that can be used for wealth accumulation.

As an example if you buy a term life insurance that covers from January 30, 2012 with a Php 1,000,000 insurance coverage,  you will then be protected by insurance for a year up until to January 29, 2013. After those dates what you have paid will not be recovered since it’s a payment for your protection for that year.

Eligibility

  • All bonafide members of IMG;
  • Actively performing the normal chores of life;
  • Ages 18 – 64, renewable up to age 70

What are the Benefits?

  1. Group Yearly Renewable Term Insurance (GYRT)
  2. Accidental Death, Dismemberment & Disablement Benefit (ADD&D) rider
  3. Terminal Illness Benefit (TIB) rider

OPTIONAL RIDER: Critical Illness Benefit (CIB)

How much is the Policy?

The rates provided by Philam to IMG is really affordable, as an example at the age of 36 years old, I only need to pay Php 3,630 for basic insurance + Php 2,900 for Critical Illness Benefits (CIB) with a total of Php 6,530 (This is only for this year, It will be adjusted as I increase my age). There is an insurance package up until 70 years old.

But again, this offer is only applicable to existing IMG member. If you want to be a member and you want to know more about IMG you may fill up your details below and I would be happy to give you more details about the company.

 


AXA and Metrobank Card launch MSwipe

01 Wednesday May 2013

Posted by in Business and Economic News

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Today, AXA Philippines and Metrobank  launches MSwipe, the country’s first mobile insurance payment system. MSwipe allows AXA customers to make real-time credit card payment transactions using mobile devices such as smartphones or tablet devices, giving them an innovative, convenient and secure means of paying their life insurance premiums anytime, anywhere according to a report made by GMA Network.

mswipe

Photo Credit: AXA Philippines

This new innovation called, MSwipe will enable AXA financial advisors to use their registered smartphones and tablets to receive credit card payments for their customers’ premiums.

A good news for AXA customers since they will not need to carry cash or checkbooks in paying. But credit card users, needs to make sure that they will have to pay their credit card payment on time or else, this system will make them into debt if not handled properly.

It always good to have a new technology but users need to be aware on how to use it properly.

How Can I Start Investing if I am in Huge Debt?

25 Thursday Apr 2013

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Debt ManagementThe question mentioned in the title, is a common question from readers of this blog as well as messages from my Facebook Page and personal account.

When people started learning about Financial Literacy, they want to start immediately. NEWS that they are hearing as well as different comments that they are reading in the forums triggers them to do so.

Many want to start immediately but due to their debt they think they cannot start investing.

Did you know that you could start investing indirectly even in debt?

Let me explain what I mean with that statement. Well this is how you start investing even in huge debt.

First Pay off your debt, paying your debt is like investing, just imagine if you have paid off your debt earlier than what you expect, you have already earned those interest that was supposed to be given to whom you are in debt.

You can do this in two ways, either increase your cash flow or decrease your expenses. Know the priority.

When everything goes well. It only means that you have already earned from paying off your debt by not giving more interest.

As an example, if you are in debt of Php 100,000 with 20% interest per year. And you paid the Php 100,000 earlier than 1 year let say 6 months, the effective interest will now only become 10% of the capital (20%/12 * 6). So you save the 10% interest which is supposed to be given as part of the interest for the whole year.

Next, since you have already made a decision to pay your debt chances are, you have change your lifestyle and learn about delayed gratification.

Decide to have a mindset that even you are not in debt you need to continue doing things while you are in debt like delayed gratification, less wants, less social life and more, and now your money that was saved because you have not changed your lifestyle can now be placed in your emergency fund (3 months of your expenses).

Next, after completing your emergency fund, start getting Insurances, Mutual Funds and if you want more, go to the stock market.

Just a friendly advice, don’t start in stock market while in debt, especially if you are in debt, specially in debt with  credit card or debt to people which is commonly know us as “5-6”.

There is a very small chance that your earnings in stock market could beat the compounded interest that is being given by those credit card company.

I know that the steps I mentioned above is not easy to do, but if you have your goal for your family and for your retirement I believe that you can do it.

Remember the following verses:

Proverbs 22:7

“The rich rule over the poor, and the borrower is servant to the lender.”

Romans 13:7

Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.

Paying your debt is not easy, it takes courage and determination. So to avoid being servant of lender, pay off your debt and prioritize your payment. First pay those debt that yield the highest interest.

Lifetime PhilHealth Membership, Is It Possible?

21 Sunday Apr 2013

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I just learn that there is a PhilHealth lifetime membership for those who can reach the minimum required monthly payment by law (Thanks to OFIE M-Qatar Facebook Group).

To help our readers, I have made links and copied some of the useful content of PhilHealth below so that you could find out the information that you may be required upon application.

According to their website the following personnel are qualified to have their Lifetime membership:

The following members shall be entitled to PhilHealth’s lifetime coverage as Lifetime Members:

  • Old-age retirees and pensioners of the GSIS, including uniformed and non-uniformed personnel of the AFP, PNP, BJMP and BFP who have reached the compulsory age of retirement before June 24, 1997, and retirees under Presidential Decree 408;
  • GSIS disability pensioners prior to March 4, 1995;
  • SSS pensioners prior to March 4, 1995:
  • SSS permanent total disability pensioners;
  • SSS death/survivorship pensioners
  • SSS old-age retirees/pensioners;
  • Uniformed members of the AFP, PNP, BFP and BJMP who have reached the compulsory age of retirement on or after June 24, 1997, being the effectivity date of RA 8291 which excluded them in the compulsory membership to the GSIS;
  • Retirees and pensioners who are members of the judiciary;
  • Retirees who are members of Constitutional Commissions and other constitutional offices;
  • Former employees of the government and/or private sectors who have accumulated/paid at least 120 monthly premium contributions as provided for by law but separated from employment before reaching the age of 60 years old and thereafter have reached 60 years old;
  • Former employees of the government and/or private sectors who were separated from employment without completing 120 monthly premium contributions but continued to pay their premiums as Individually Paying Members until completion of the required 120 monthly premium contributions and have reached 60 years old as provided for by law;
  • Individually Paying Members, including SSS self-employed and voluntary members, who continued paying premiums to PhilHealth, have reached 60 years old and have met the required 120 monthly premiums as provided for by law;
  • Retired underground mine workers who have reached the age of retirement as provided for by law and have met the required premium contributions.

And here are the requirements as shown in their website:

Submit the following to any PhilHealth Office nearest you:

1. Duly accomplished PhilHealth Membership Registration Form

2. Two (2) latest 1″ x 1″ ID picture

3. Certified True Copy (CTC) of the SSS or GSIS Retirement Certification or the following as applicable:

  • For SSS Retirees/Pensioners:
  • Printout of Death, Disability and Retirement (DDR) from any SSS office indicating that the type of claim is retirement in nature and the effectivity date of pension; and
  • Printout of contributions issued by any SSS office indicating the latest contributions (if he/she retires after March 4, 1995.
  • For GSIS Retirees – any of the following:
  • Certification/Letter of Approval of Retirement from the GSIS indicating the effectivity date of retirement;
  • Service Record issued by the employer/s indicating not less than 120 months of service excluding leave of absences without pay;
  • Certification/retirement Gratuity from the employer indicating not less than 120 months of service.
  • For AFP, PNP, BFP and BJMP Retirees/Pensioners – those who are in active military service until they retire at age 56 and those separated by retirement or other reasons prior to the said age but have reached the age of 60, shall submit any of the following:
  • Statement of Services issued by previous employer indicating not less than 120 months of service excluding leave of absences without pay;
  • Certification/Letter of Approval of Retirement from the GSIS indicating not less than 120 months of service;
  • General, Bureau or Special Order indicating the effectivity date of retirement.

4. Certified true copy (CTC) of Birth Certificate or any two of the following:

  • CTC of Baptismal Certificate
  • CTC of Marriage Contract/Certificate
  • Passport
  • Driver’s License
  • SSS Members ID
  • Alien Certificate of Registration (ACR)
  • Service Record/s
  • Employee ID
  • School records
  • Voter’s ID
  • Senior Citizens ID
  • Duly notarized joint affidavit of two disinterested persons attesting to the fact of birth of the registrant

5. Any other valid documents acceptable by PhilHealth

Member will be issued his/her PhilHealth Lifetime Member Card which is a valid ID to be used in all PhilHealth transactions.

I believe that being a constant member of PhilHealth, will give you a long term health care after the age of 60. But please be noted that PhilHealth’s benefit is limited and cannot be the full source of your long term health care. My father is supported by PhilHealth (Part only) on his dialysis but it is only for a specified number of dialysis. What I am saying is that it is good to have PhilHealth and at the same time you need to think of an additional source of health care expenses at old age.

SSS and Philhealth alone is not enough to sustain our old age. Remember if you Fail to Plan, You Plan to Fail.

This could be one of you goals when planning for your retirement age. Set your goals and start to invest.

Creating Life Goals, Know How To Prepare

16 Tuesday Apr 2013

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Once, I heard that Vision should be defined and written so that it could be called Vision and not just a dream. Before investing or going to investment, we need to make sure that we have defined our vision and Life Goals.

There are different types of life goals that we can make, examples as mention below:

  • Wealth
  • Home and Family
  • Health
  • Self-Improvement
  • Philanthropy (Generosity)

Having merely a financial plan is not enough, you need to prioritize your plans. Which should come first? House Fund or the Education Fund of your kids? Your car? Or your vacation?

You need to prioritize each and every goals that you have so that you will be able to know which is the most important and which is the least important.

Remember Habakkuk 2:2

Then the LORD replied: “Write down the revelation and make it plain on tablets so that a herald may run with it.

Another thing that you need to do is to put a present money value to each of your goals. The target time frame, time that you can execute your goals, shall also be defined. The time is important because it will tell you the future value of your dream using the compounded formula and taking into consideration the inflation (How the value of money depreciate over time).

While planning for your future, you need to have a sound foundation and steady growth for your finances.

Life stages are categorized into three steps:

  1. Protect
  2. Build
  3. Transfer

Creating Life Goal (PinoyInvestmentGuide_Page_05

Protection means having an Emergency Fund which is equal to 3 – 6 of your monthly expenses (Very Liquid). Getting an Insurance and Long term Health Care is also suggested. We also need to secure the risk of having a Critical Illness and untimely debt.

Proverbs 27:12 (NLT) ”A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.“

On the Build Stage, You need to go into investment or even business. You can do paper investment like, stocks, mutual Funds, or even VUL (Investment + Insurance). On this stage you accumulate wealth for your future. You are preparing for your retirement age.

On the Transfer stage, you make sure that whenever you die, your family will not have any problem on getting your acquired wealth because you have not prepared for the estate tax or you were not able to make testament to where your finances goes.

More ideas about Goals in Life

  • The Younger You are the cheaper it is to protect
  • You need to avoid procrastination (Act now)
  • Time can help you create more money
  • Some might prefer BTID – Buy Term and Invest the Difference

Our goals should be SMART.

  • Specific
  • Measurable
  • Attainable
  • Realistic
  • Time Bound

Bible Concepts in Investing and Life Goals

But in everything we plan we need to understand the concept of the bible.

But Jesus also said “Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal; for where your treasure is, there your heart will be also.” Matthew 6.

If you set up your goals with God in your heart, you will not have any problem for whatever happen to your investment in the future. You need to trust the Lord on what he can do for you.

We need to be wise in our investment.

Proverbs 21:20 (NIV), The wise store up choice food and olive oil, but fools gulp theirs down. Do you always buy on wants basis? Or need basis?

The Bible also teach us about Diversification. Ecclesiastes 11:1-3 ESV

Cast your bread upon the waters, for you will find it after many days. Give a portion to seven, or even to eight, for you know not what disaster may happen on earth. If the clouds are full of rain, they empty themselves on the earth, and if a tree falls to the south or to the north, in the place where the tree falls, there it will lie.

So when you study about your goals, you need also to diversify your investment portfolio.

And the most important thing is that we need to be very vigilant when it comes to temptation:

1 Timothy 6:9-10 ESV

But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs.

We want to have a happy retirement and a good life for our family, but we should not be greedy. Remember I teach before on how to increase your giving.