Financial literacy 1of2

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  • 1. Is an independent Years in USA/Canadawhose More than 25 marketing company &associates, through its affiliated companies, offer 14 Years in the Philippines a broad array of financial services and products.
  • 2. OUR MISSION Make a Difference for Families At IMG, we can help make a differencefor families by showing them a new path towards achieving their financial goals. No Family Left Behind
  • 3. OUR VISION To Build and Provide the Best Business Opportunity in the WorldOur plan is to revolutionize the financial services industry by bringing a fresh, new approach to empower the world on how money works.Help people who desire to help themselves. Bring life-changing financial concepts and solutions to middle income individualsand families who are overlooked by the financial services industry.
  • 4. OUR CRUSADEChange people from: ENTREPRENEURSSPENDERS SAVERS INVESTORS Deliver the world’s financial wake-up call
  • 5. Joen certainly knows what he’s talking about. He is a registered financialJoen has a mission: to change the adage that "the rich get richer and the planner and has more than 12 years of financial management poor get poorer." He believes that "the average person, even the poor, experience. He sits as the president and chairman of the board of has an equal chance to become wealthy if given the right information." International Marketing Group (IMG)
  • 6. Common Money Mistakes• Overspending / Not Living Within One’s Means  Sale, Discounts, Promotions, 0% Interest Instalments  Wants = Needs, or Wants > Needs  “Materialism”• Credit Mismanagement  Personal Loans, Credit Cards, Mortgages  Market Manila 2011, Southeast Asian Central Banks 2008: Philippines has 28% of total household debt in the form of credit card loans
  • 7. Common Money Mistakes• Overly conservative in Investing Money  Philippine Daily Inquirer 2008: Only 3% of OFWs invest and less than 35% of OFWs save in “banks” ($15.9B 2008 OFWs’ total remittances)  Consumer Expectation Survey 2010: 5.8% of OFWs invest and 43.7% save in banks ($18.76B 2010 OFWs’ total remittances)  BSP: P3.7 Trillion total “bank deposits” in April 2011• Lack of Financial Education  Citibank Survey June 2011: Filipinos’ Financial IQ = 48.9 %  Citibank Survey June 2011: Filipinos’ average savings in reserve = 9 weeks
  • 8. IMG Offers Total Financial Solution• Financial Literacy  Learn the fundamentals of Debt Management, Insurance, & Investments  Learn to plan your own Financial Strategy  Learn the proper solution to achieve your goals• Business Solution  Learn the Financial Products & Services Industry  Build a Proper & Solid Financial Foundation
  • 9. IMG Offers Total Financial Solution• Direct Access to Financial Services Companies  Be informed of the latest updates  Remove the middle man  Earn from your own needs• Investment and Business Opportunity  Towards PASSIVE INCOME for retirement
  • 10. Cashflow is the movement ofmoney into or out of an account.
  • 11. Cashflow Quadrant • Time• Full Time • Establishment• Employer• Income• Tax (huge) E Employee B Business • System • Money • Tax (low to zero) Financial Literacy  Financial IQ• Full Time • Time• Consumer• Income• Tax (huge) S Self-employed I Investment • Money • More money • Tax (low to zero)
  • 12. How do we increase our Cash Inflow?1. Earn additional income  passive2. Manage your expenses • Prioritize your needs, lessen your wants
  • 13. Pay Yourself Firsto Problem: Most people want to save but Expenses INCOME Debts don’t know how. They know only Income – Expenses = Savings how to spend… Change your living formula Poverty Formula  Pay God and yourself first! God Savings Expenses At the beginning of the month, (20%) INCOME (10%) (70%) before you pay anyone else, reserve 10% for tithes, then save 20% of Income – Tithes – Savings = Expenses your income. Prosperity Formula  Discipline yourself to live within your means With this, we can surely fund our “financial plans”
  • 14. Most people are indebted.Live simply.
  • 15. Debt Management Types of debt: • Bad Debt – cash flows out of your pocket • Good Debt – cash flows into your pocket
  • 16. Most people are indebted.Live simply.This will help us avoid debt traps
  • 17. Most people are indebted.Live simply.This will help us avoid debt trapsBefore we build our wealth--We need protection for assets and life
  • 18. Protection:1. Get the maximum benefit * Healthcare * Insurance * Investment link (emergency fund)2. Go for term insurance * Short payment period
  • 19. Most people are indebted.Live simply.This will help us avoid debt trapsBefore we build our wealth--We need protection for assets and lifeEliminate Bad Debts before you investInvest safely and correctly
  • 20. The X-Curve Concept 2 Stages of Financial Life  Food  Education  Food STAGE 1  Shelter  Healthcare  Clothing  Debts/Loans STAGE 2  Shelter  Healthcare  Clothing  Debts/Loans  Retirement Active Income Passive IncomeYou work hard for the money Money works for you Protection YOUNGER Investment OLDERWhat if… I die to soon? What if… I live too long? Who will take care of my family? Who will take care of me?
  • 21. Long Term Savings / Investments• Concentrate on acquiring ASSETS(cash inflow)  Mutual Funds  Real Estate• Avoid LIABILITIES (cash outflow)  Consumables(gadgets,expensive furnitures, etc) with no return of investment
  • 22. The Rule of 72 (LXXII)Dividing the number 72 by the interest rate of your savings or investmentswill give the estimated number of years it will take for your money to double 72 4 = 18 72 8=9 72 12 = 6Money doubles every 18 years Money doubles every 9 years Money doubles every 6 yearsAge 4% Age 8% Age 12% 29 Php 100,000 29 Php 100,000 29 Php 100,000 47 Php 200,000 38 Php 200,000 35 Php 200,000 65 Php 400,000 47 Php 400,000 41 Php 400,000 56 Php 800,000 47 Php 800,000 65 Php 1,600,000 53 Php 1,600,000 59 Php 3,200,000 4X 65 Php 6,400,000 16X
  • 23. The Rule of 72 (LXXII) Albert Einstein called COMPOUND INTEREST the eighth wonder of the world, greatest mathematical invention, and mankind’s greatest invention, because it is a force for amassing wealth.
  • 24. oINFLATION is a rise in the general level of prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects an erosion in the purchasing power of money. http://en.wikipedia.org/wiki/Inflation
  • 25. INFLATION RATE, PHILIPPINES 2005 – 2011 Month 2011 2010 2009 2008 2007 2006 2005Average 4.8 3.8 3.2 9.3 2.8 6.2 7.6 Is an Investment Interest of 5% good enough? No! As a 20% tax will still be deducted on earned interest. http://www.nscb.gov.ph/stats/http://www.nscb.gov.ph/secstat/d_price.asp [National Statistical Coordination Board]
  • 26. Best Interest Rates on a 1 Year / 12 month Time Deposit in the Philippines as of December 2011 Deposit Account Details AccountTOP #1 Interest Rate is determined by the amount deposited in Peso over a 12 month/1 year period. 10,000 - 99,999.99 2.000% 100,000 -299,999.99 2.125% 300,000 - 499,999.99 2.375% 500,000 - 999,999.99 2.625% 1 M - 4.99 M 3.250% 5 M - 9.99 M 3.375% 10 M and over 3.625%
  • 27. Best Interest Rates on a 1 Year / 12 month Time Deposit in the Philippines as of December 2011 Deposit Account Details AccountTOP #2 Interest Rate is determined by the amount deposited in Peso over a 12 month/1 year period. 50,000.00-299,999.99 2.65% 300,000.00-999,999.99 2.75% 1 M - 1,999,999.99 2.85% 2 M - 2,999,999.99 2.95% 3 M - 4,999,999.99 3.05% 5 M and over 3.25%
  • 28. 10 YRS @ 15%P 132,520 P 3,226,766.05
  • 29. Building a Solid Financial Foundation INVESTMENT EMERGENCY FUND DEBT MANAGEMENT PROTECTION: INSURANCE HEALTHCARE INCREASE CASH FLOW« BUILD IT RIGHT. BUILD IT STRONG»
  • 30. « BUILD IT RIGHT. BUILD IT STRONG»
  • 31. Most people are indebted.Live simply.This will help us avoid debt trapsBefore we build our wealth--We need protection for assets and lifeGet out of debts before you investInvest safely and correctlyTransfer inheritance to our children
  • 32. Proverbs 6: This chapter advises release from foolishindebtedness (vv:1–5), admonishes avoiding laziness(vv:6–11), warns of the danger of poverty (vv:9–11)6 Take a lesson from the ants... Learn from their ways and become wise!8 they labor hard all summer, gathering food for the winter. Proverbs 6:6,8
  • 33. “ To be born rich or poor is not achoice, but to become rich or poor,thats a choice that GOD leaves up tous.” Bo Sanchez
  • 34. What IMG can Offer1. ONE STOP SHOP of all Financial Services2. By-Pass The Middle Man (earn the commission yourself)3. Create Your Multiple Passive Income Stream4. Have Your Own Business Franchise5. Earn Interest Income from Investments (invest correctly and safely with high returns)6. Earn By Helping Others to Save and Invest
  • 35. ONE STOP SHOP OF ALL FINANCIAL SERVICES
  • 36. What IMG can Offer1. ONE STOP SHOP of Financial Services2. By-Pass the Middle Man (earn the commission yourself)3. Create Your Multiple Passive Income Stream4. Have Your Own Business Franchise5. Earn Interest Income from Investments (invest correctly and safely with high returns)6. Earn By Helping Others to Save and Invest
  • 37. YOUYOU (BROKER) BROKERINVESTMENT
  • 38. What IMG can Offer1. ONE STOP SHOP of Financial Services2. By-Pass the Middle Man (earn the commission yourself)3. Create Your Multiple Passive Income Stream4. Have Your Own Business Franchise5. Earn Interest Income from Investments (invest correctly and safely with high returns)6. Earn By Helping Others to Save and Invest
  • 39. Always inform your relatives of your insurance.
  • 40. DID YOU KNOW THAT:1. Near 90% of Filipinos are not saving for long-term medicalneeds2. Medical Inflation is 3 to 4 times the economic inflation3. About 60% or more of senior citizens are still dependent ontheir children for medical care4. About 45% of total Filipinos are vulnerable to poverty ifconfronted by surprise of health problems, death and naturaldisasters5. Philippine Life Insurance Association: Pinoys spend more oncigarettes than Life Insurance
  • 41. INVESTMENT EMERGENCY FUND DEBT MANAGEMENT PROTECTION: INSURANCE HEALTHCARE INCREASE CASH FLOWhttp://www.kaiserhealthgroup.com/
  • 42. http://www.kaiserhealthgroup.com/
  • 43. MUTUAL FUNDS
  • 44. Mutual Funds vs Bank Deposits• Bank Deposits  Your money is actually invested in financial instruments with higher return  Interest earned is based on account agreement, regardless of how much the bank earns on your money  You only own what was agreed to be given to you• Mutual Funds  Ownership: You’re a co-owner of the company  Number of shares: The cost per share is secondary  Long-term investment: Long-term benefits
  • 45. TYPES OF MUTUAL FUNDS STOCK/EQUITY FUNDP8+$1 BALANCED FUNDP9+$4BOND/FIXED-INCOMEP11+$8+€2http://www.pifa.com.ph/advantages.html MONEY MARKET FUNDP5
  • 46. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS1. Professional management: One of the main attractions of mutual funds isthat it affords its investors the services of full-time professional managerswhose job is to analyze the various investment products available in themarket.2. Low capital requirement: Direct investments usually require substantialcapital. In contrast, most mutual funds in the Philippines require a minimuminitial investment amount of only Php5,000.00 and minimum additionalinvestments of Php1,000.00.http://www.pifa.com.ph/advantages.html
  • 47. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS3. Potential Higher Returns: Very few individual investors can match theexperience and skill of full-time professional fund managers who can selectthose that would give the best possible returns.4. Liquidity: Liquidity is the ability to readily convert investments intocash. While the law provides that redemption proceeds must be given withinseven (7) banking days from the date of the redemption request, most fundsare able to pay the redemption proceeds within a day.http://www.pifa.com.ph/advantages.html
  • 48. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS5. Diversification: investing in variety of assets; here is a saying that goes,“Do not put all your eggs in one basket.” When people invest in a mutualfund, they achieve instant diversification.http://www.pifa.com.ph/advantages.html
  • 49. WHAT IS DIVERSIFICATION? Stocks
  • 50. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS5. Diversification: investing in variety of assets; here is a saying that goes,“Do not put all your eggs in one basket.” When people invest in a mutualfund, they achieve instant diversification.6. Safety: Mutual funds are highly regulated by the Securities and ExchangeCommission under the Investment Company Act and its implementing rules.http://www.pifa.com.ph/advantages.html
  • 51. How safe is it to invest in mutual funds?o Mutual Fund operations are governed by the Investment Company Act (RA 2629) whose implementing rules and regulations specify particular limits and constraints in the investment activities of all mutual funds. The Securities and Exchange Commission (SEC) sees to it that all mutual funds comply with these statutory regulations. Mutual fund companies are regularly audited by an independent auditor. The assets of the mutual fund are held by a third-party custodian bank.
  • 52. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS7. Convenience: The popularity of mutual funds in the Philippines is fastcatching up. Investment application can now do online and additionalinvestment/s can now deposit thru banks’ online banking fund transferfacilities.http://www.pifa.com.ph/advantages.html
  • 53. Are gains in mutual funds taxable?o NO. Mutual fund “gains” are exempted from taxes based on the Comprehensive Tax Reform Program (CTRP), Section 32 (B) (7) (h). This was done to promote long-term savings in the country.
  • 54. Why invest in MUTUAL FUNDS and not in INDIVIDUAL STOCKS?o If you’re not a good stock picker.o If you don’t have time to follow and track your investments actively.o If you can potentially become an emotional investor if you handle your investments too actively.
  • 55. COST - AVERAGINGhttp://www.investmentphilippines.com/
  • 56. TOP 3 MUTUAL FUNDS IN 20111: FAMI Fixed Income Fund 12.34% 2: EkklesiaBPI Mutual Fund 10.35% 3: Philequity Peso Bond Fund 9.02%
  • 57. http://www.philequity.net/
  • 58. REAL ESTATE
  • 59. 18341954 2007
  • 60. 2 BASIC TYPES OF REAL ESTATE PROJECTSHORIZONTAL DEVELOPMENTS  Socialized Housing  Affordable Housing  Middle / Upper Middle  High End
  • 61. 2 BASIC TYPES OF REAL ESTATE PROJECTSVERTICAL DEVELOPMENTS  According to Market  According to Height • Low-rise, Mid-rise, High-rise
  • 62. As per BIRs Revenue Regulations No. 16-2011dated Oct. 27, 2011, starting January 1, 2012,sales on real properties exempt from VAT:For lots below P 1,919,500 (prev P1.5M) and onHouse & Lot below P3,199,200 (prev 2.5M). LOCATION
  • 63. WHY INVEST IN REAL ESTATE PERSONAL USE  Family residence SAVINGS  Has the potential to offer higher than bank and/or money placement yield through the years BUSINESS  Location/Site/Place of business  Can be resold or mortgaged/collateral for loan  Can generate rental income
  • 64. You can buy these needs as a CLIENT ORyou can get it as your own BROKER and earn the commission yourself.
  • 65. Associate – 20% Field Leader – 30%Asst. Marketing Director – 40% Marketing Director – 50%
  • 66. “ You can’t cross the sea merely bystanding and staring at the water.” Rabindranath Tagore
  • 67. Financial Independence isnot a dream. It’s a decision!
  • 68. END OFSESSION
  • 69. Review Card DATE: ____|____|____NAME: SPOUSE:ADDRESS: WORK PHONE:EMAIL: CELLPHONE: I AM INTERESTED IN…(PLEASE CHECK ONE) STARTING A BUSINESS/CAREER IN IMG LEARNING MORE ABOUT FINANCIAL SOLUTION FOR MY FAMILY BOTH OF THE ABOVE APPOINTMENT: __|HOME __|IMG OFFICE (INDICATE AVAILABILITY) NUMBER __|MON __|TUE __|WED __|THU __|FRI __|SAT __|SUN DATE: ____________________ INVITED BY: ________________________________ TIME: ___________________ TRAINER: _________________________________ BPM____ S1-S2____ PPL____ FTS____ JOIN____ OWN____