Tag Archives: grow money

Combined Mutual Fund and Insurance

by: Francisco J. Colayco

first published in Good News Pilipinas on October 23, 2009

Some asked me about a kind of insurance policy, which offers the insured the option to define whether he wants more protection or investment in one single instrument. His kind of policy is sometimes called VUL or Variable Universal Life.  VUL generally offers higher returns compared to the ordinary life insurance policy.

You should remember that like mutual funds, there is no guarantee of a specific rate of return. Some VUL policies guarantee return of principal if maintained over a specific period of time. In such a case, you will at least get your investment back even if it does not earn.

VUL policy can be a good alternative particularly if you need to have life insurance protection.  The main advantage is that you have both the mutual fund and an insurance coverage.  The mutual fund that is incorporated in the VUL is a mutual fund that is established and managed by the insurance company itself.  In general, there are agents for insurance policies and therefore, their commissions are deducted from the premium that you pay.  This means that the amount to actually go into the investment for the mutual fund portion could be reduced by that commission.

You should ask your insurance provider about the effect of the commission and what specific type of mutual fund your premium payments would be invested in.  Usually, there are fixed income, equity and balanced mutual funds. Be also sure that you fully understand the terms of the VUL, particularly the provisions on lapsation if any.  Lapsation means that if you forget to pay your premium, will the insurance company consider your policy as cancelled or will it give you time to pay etc.

Generally, VULs are cheaper and more cost effective compared to the ordinary whole life insurance policy.  Another advantage of VULs is that being an insurance product, your VUL policy is not subject to garnishment.  Garnishment means that if your assets are foreclosed for whatever reason, the VUL policy is not considered an asset for foreclosure.

On the other hand, investing directly in a mutual fund offers only pure investments.   It gives you more flexibility in case you want to withdraw part of all of your investment should the opportunity or need arise. If you take this route, in addition to the mutual fund, you should consider getting yourself term life insurance, which is simply buying life insurance protection year by year.

“Nang Magising si Juan” Season Ender

The first season of Nang Magising si Juan ended last Aug. 10.  Look out for announcements on the second season by late August or early September.  Ariel went to Hong Kong with the CFE Team to attend an orientation of members of KsKCoop.  He had such a great time with them and Ariel realized how much sacrifices the OFWs in Hong Kong have been enduring through the years.

 

Ariel got a little emotional at end of the KSK Coop Orientation Seminar — with the following realization:’Na-realize ko, kung ito ngang mga kababayan natin — naghihirap at nagtitiyaga dito sa ibang bansa, malayo sa kanilang mga pamilya — ay kayang ayusin at harapin ang kanilang mga problemang pinansiyal, ako pa kaya na nasa sarili kong bansa at may maayos na trabaho. Nagising ako…

Ariel with Mr. Armand Bengco (KSK Coop Gen. Manager) and the rest of KSK Coop members in Hong Kong

Missed the past episodes of season 1? Catch it on www.pisobilities.tv!

Pinoy or Pinay: Sinong Mas Matinik Pagdating sa Pera?

Sa ating lipunan, marami nang tunggalian kung sino ang mas magaling pagdating sa isang partikular na bagay. Kasama na rito ang halos walang-sawang pagtutunggali sa pagitan ng babae at lalaki. Mula pag-ibig hanggang pagtatrabaho, hindi pa rin matigil kung sino sa dalawa ang mas magaling.

Pero paano naman kaya kung pera ang pag-uusapan? Sino kaya sa dalawa ang mas wais/matinik sa pag-aalaga at pagpapayaman ng pera?

Gumawa kami ng pag-aaral tungkol dito, at ito ang nakita naming resulta:

Ikaw, ano sa tingin mo?

Gusto mo bang pagplanuhan ang iyong buhay-pinansiyal? Sali na sa “Pera Mo, Palaguin Mo Workshop” sa Agosto 30. Tawag na sa 637-3731/41 o mag-text sa 09178632131.

 

Pisobilities @ the Business Portal: Social Entrepreneurship

Interested to get into social entrepreneurship? Catch this episode from Pisobilities @ the Business Portal on what it takes to be a social entrepreneur!

Want to watch more quality videos? Visit www.pisobilities.tv today!

Should you Own Your Home Before You Have Kids?

by: Francisco J. Colayco

*First published in Good News Pilipinas on Sept. 23, 2013

You could be one of a growing number of Filipinos who believe that owning your own home is first and foremost. This is especially true when you get married or when you are starting a family. Family planning is now practiced by so many. Because of the more difficult economic conditions, having a career or a business may even come before having a family. Before that, of course for the great majority, education is the most important goal.

Or you could be a traditional Filipino who will want to start a family as early as possible. After all, having a child is a wonderful experience and most Filipinos still value the family as its most important wealth. During my time, when life was a lot simpler, we didn’t even think of family planning. Getting married at an earlier age was more normal than it is today. It seemed then that it was automatic to get married, have children and in the process of it all, save for your own home.

But this article is about whether it is true that you should own your own home first before having a baby. There is no rule here. You really need to make a personal family budget forecast. You need to understand that having children increases your expenses. Giving birth, feeding and sending them to school can be really a heavy drain on the budget. Therefore, if having your own home is a major goal and you cannot afford to make that investment at the same time as having children, you need to make a good choice.

Want to read more? Click here!

Protect Your Greatest Asset

Here’s an article from our Managing Director, Guita Gopalan, about getting financial protection for your greatest asset!

Protect your greatest asset – YOU. You are your greatest wealth generator.

Now just a reminder, a REALLY REALLY IMPORTANT REMINDER! All your hard work in investing can be washed away if your don’t have financial protection. Major emergencies and unforeseen situations befall everyone at least once in their life. And then you have the many minor emergencies. Sometimes we get so used to managing them that our life becomes a series of things to ‘damage control’ and our finances never take off towards the wealth goal.

Major emergencies – hospitalization, operation, calamity, job dismissal, loss of life, disability, etc. – often require a significant amount of money to be able to address adequately. If you don’t have financial protection and all you have are investments then you may find yourself in a position where your investments are doing badly and because of an emergency you’ll have to get your investments…You lose out on what you could have or should have earned. Or your investments could be doing really well but you’ll be trading in your intended financial goal to meet the emergency requirement. The good news is that both situations can be avoided simply by having enough financial protection.

Want to read more? Click here!

BEWARE OF THE LATEST SCAM

by: Art Ladaga

A few hours ago, a man named Peter Jay Abrico who pretended to be linked to a certain government institution, solicited money from them, promising to return their money TWO TIMES ITS WORTH a few days after. In some cases, Abrico also gave extra items like a television and a pajero! Investors became suspicious when most of them complained that they were not able to get their money back afterwards. Eventually, Abrico was captured in Makati.

Scams like this are very rampant. There are still those who fall prey to these false opportunities for a chance to “get rich quick.” Sadly, the only ones who get rich quick in these cases are the scammers. On the other hand, the victims are left deeply traumatized for giving away a huge amount of money. It will take a long time until they are able to get back up again.

At these times, the words of Mr. Francisco Colayco strongly reverberates: the quickest way to get rich is to GET RICH SLOW! If one does not accept this fact, then one will continue to fall prey to the hundreds of false “opportunities” around And the only way to distinguish an authentic wealth vehicle from a false one is summarized in two words: FINANCIAL LITERACY! Only with the right and timely information can you guard and grow your wealth properly, and not become a victim of financial scams.

BE UPDATED WITH THE LATEST SCAMS! Click here for a guide on the suspected and confirmed scams in the country.

Source:http://www.abs-cbnnews.com/nation/metro-manila/07/31/14/cops-lose-millions-double-your-money-scam

 

* Art Ladaga is the current Programs Development Officer of Colayco Foundation for Education

Pisobilities: Kapiso Mo, T-say Alonzo Episode 2 (Needs and Wants)

by: Francisco J. Colayco

People often complain that they do not have enough money to save because of numerous expenses. Most of the time, however, it all boils down to knowing if what you’re spending for is a need or a want. Is most of your money going to your needs? Or is it going to your wants? And given that fact, what are you doing about it?

Here’s an interesting episode from our mini-series, “Kapiso Mo: T-say Alonzo” regarding Needs vs Wants!

 

Want to give yourself an upgrade on your personal finances? Through One Wealthy Nation (OWN), you CAN! Visit www.onewealthynation.com today.

Upside and Downsides of Credit Cards

It’s Monday again! Credit cards has its ups and downs. What are the bad practices related to credit cards? And how do you properly use them? Check out Ms. Guita Gopalan, Managing Director of the Colayco Foundation, as she answered these questions in the segment, “Wise Spending Wednesday” on Solar Daybreak:

Want to start taking charge of your financial life? Attend our Pisobilities: Wealth Within Your Reach seminar. For the schedules, click here!

Kagandahan ng Mutual Funds sa Pagpapalago ng Pera

ni: Francisco J. Colayco

Unang lumabas sa Bulgar noong ika-18 ng Hunyo, 2011

Tunghayan ang mga tanong ni P:

Gusto ko lang pong magtanong tungkol sa mutual funds. May isang kilalang American advisor na hindi inirerekomenda ang mutual funds sa mga seryosong investor. Pero mukhang alam na alam po ninyo ang ikinaganda ng mutual funds, kaya gusto ko pong itanong sa inyo ang mga sumusunod:

 

1.) Ano ang ikinaganda ng mutual funds kung ikukumpara sa ibang investments?

2.) Ano po ang opinyon ninyo sa American advisor na hindi nagrerekomenda ng mutual funds para sa mga seryosong investor? Sabi niya, para lang daw iyon sa mga investor na walang karanasan at kulang sa kaalaman.

3.) Sinasabing mas ligtas ang mutual funds kumpara sa mga stock investment. Pero ano naman po ang “catch” o kapalit ng pagiging ligtas nito?

 

Ang ating sagot:

Napakaraming pagpipilian na investments. Maganda ang marami sa mga ito. Pero ang mahalaga ay matukoy mo kung ano ang angkop para sa iyo. Hindi sapat ang maikling sagot para matugunan ang iyong tanong tungkol sa kagandahan ng mutual funds kumpara sa ibang investment options.

Ito ang pangunahing reklamo sa mutual funds ng American advisor na iyon: Hindi raw hamak na mas kikita pa ang mga marurunong na investor kung IPUNIN na lang nila ang 1-2% na management fee na kinokolekta ng mutual funds. Sa ekonomiya ng U.S., ang maliit na porsiyentong ito ay maaaring maging katumbas na ng 25-30% ng tubo ng equities market. Tandaan na mas matanda at sopistikado ang merkado sa U.S. Hindi  angkop para sa atin ang kanyang payo dahil karamihan sa ating mga indibidwal na investor ay walang sapat na kakayahan na makamit ang diversification upang bawasan ang panganib ng DIREKTANG pag-i-invest sa stock market.  Kung walang sapat na diversification, napakamapanganib ng pag-i-invest!

Isa pa, kaunting-kaunting investors na nagtatrabaho bilang empleyado o may aktibong propesyon ang may oras upang bantayan nang husto ang merkado. Kauting-kaunti lang ang may kakayahan na makakuha ng napapanahong research tungkol sa ekonomiya, ang capital markets, pati na rin ang long term trends. Napakaimportante sa investing ng tama at napapanahong impormasyon.

Marami na akong nasulat na libro at sinadya kong talakayin lamang ang mga basic na impormasyon tungkol sa investments. Ang aking adbokasiya ay turuan ang mga regular na Pilipinong income-earner kung paano humawak ng pera at magpalago ng yaman sa pinakasimpleng paraan na angkop sa kontekstong Pilipino. Para sa karaniwang income-earner na gustong palaguin ang kanyang maliit na ipon, ang pag-iinvest sa pooled fund  – na gaya ng mutual fund – lang talaga ang tanging paraan.

Ang mga sopistikadong investor ay puwedeng mas maalam pa sila kaysa sa akin o kaya ay may kakayahan silang piliin ang mga mas komplikadong investment. Pero isang bagay ang tiyak: Kailangan ng mga sopistikadong investor na makatanggap ng de-kalidad na research work upang masiguro at mapanatili ang kanilang tagumpay.

Lagi tayong bukas sa mga katanungan at sasagutin ko kayo sa abot ng aking makakaya.