Ang Paghahanda Para Sa Kaunlaran ng Pamilyang OFW

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a Presentation by Philamlife at the BSP Regional Financial Literacy Campaign for OFWs in Bacolod City, Philippines on June 28, 2007

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  • Ang Paghahanda Para Sa Kaunlaran ng Pamilyang OFW

    1. 1. Ang Paghahanda Para Sa Kaunlaran ng Pamilyang OFW Ma. Isabel “Mae” Elizalde Financial Planner – Elizalde Agency Philamlife
    2. 2. Story of the 3 Coins ABILITY TIME EXPERIENCE
    3. 3. Why are we here? We are here to talk about TIME Time to Protect (Pananatili) Time to Transfer (Pagpapamana) Time to Accumulate (Pagpapalago)
    4. 4. Investment Triangle Cash, S/A, C/A, T/D Mutual Funds Equities, Options, Derivatives, Real Estate Unit Investment Trust Funds; Variable Universal Life P R O T E C T I O N Basic Financial Foundation: PROTECT THE BREADWINNER
    5. 5. Life Events (Financial Goals) First Job/ Business Bigger House House Travel/ Family Vacations Children’s Education Get Married Retirement Business Car Legacy More Cars 20s 50s 60s 70s + 40s
    6. 6. Wealth Management <ul><li>It is a full-scale , needs-based management that aids individuals and families in to accumulation (pagpapalago) , preservation (pananatili) and transfer of wealth (pagpapamana) by customizing the right product solutions to meet financial goals and objectives </li></ul><ul><li>Designed to aid individuals and families to establish clear financial goals that will enable to fulfill your dreams for yourself and your family/ </li></ul><ul><li>Made possible by creating a blueprint or financial plan that fulfills your objectives </li></ul>WEALTH MANAGEMENT IS FOR EVERYONE
    7. 7. Investment Triangle Cash, S/A, C/A, T/D Mutual Funds Equities, Options, Derivatives, Real Estate Unit Investment Trust Funds; Variable Universal Life P R O T E C T I O N Pananatili… Pagpapalago** Pagpapalago Pagpapalago Pagpapalago* Pagpapamana…
    8. 8. Investment = Savings <ul><li>Investment: “ A temporary donation of money to a cause in expectation of making a profit.” </li></ul><ul><li>Savings: “ That which has been saved, particularly money that has been set aside for the future. </li></ul><ul><li>Source: www.wikipedia.org </li></ul>
    9. 9. Difference: Investing Saving
    10. 10. Let’s talk first about Investment… <ul><li>“ Temporary placement in expectation of making a profit” </li></ul>
    11. 11. <ul><li>PhP 3.99 Trillion* </li></ul><ul><li>in Bank Deposits </li></ul>*source: Bangko Sentral ng Pilipinas, Consolidated Statement of Condition as of Jun’06; for Universal, Commercial, Thrift, and Rural & Cooperative banks How much investment is “sitting” in bank deposits earning between 1-4%?
    12. 12. Important Considerations in Making Investment Decisions <ul><li>Credit-worthiness </li></ul><ul><li>Performance and Track Record </li></ul><ul><li>Risk Tolerance </li></ul><ul><li>Time Horizon </li></ul>
    13. 13. Credit Worthiness <ul><li>What if you had the following choice, which one would you go for? </li></ul>Bank Na Di Gaano 360 days TD rate for P100,000 Equitable PCI Bank 360 days TD rate for P100,000 12.0% p.a. 2.4% p.a. or
    14. 14. Performance and Track Record Philamlife Fund Performance (One Year Return) * One-year return for year ended June 25, 2007 17.17% Philamlife Dollar Bond Fund 12.37% Philamlife Global Bond Fund 68.42% Philamlife Equity Fund 13.85% Philamlife Fixed Income Fund Return Fund
    15. 15. Risk Tolerance Non-Par/ Guaranteed Returns, Bank deposits Participating Products Regular VUL Equities, Mutual Funds, UITFs, Real Estate SP VUL RISK RETURN
    16. 16. Risk Tolerance vs. Time Horizon Risk Age 30 65
    17. 17. Important Considerations in Making Investment Decisions: <ul><li>How do we fare? </li></ul><ul><li>Credit Worthiness </li></ul><ul><li>Performance and Track Record </li></ul><ul><li>Time Horizon </li></ul><ul><li>Risk Tolerance </li></ul>Client’s Personal Decision
    18. 18. <ul><li>Track record </li></ul><ul><li>As Little As P50,000 </li></ul><ul><li>Exempt from estate taxes </li></ul><ul><li>Backed by Philamlife/AIG </li></ul><ul><li>Insurance Coverage </li></ul>AIG Money Tree
    19. 19. <ul><li>Now, let’s talk about SAVING… </li></ul><ul><li>“ Setting money aside for the future” </li></ul>
    20. 20. Are Filipinos saving enough compared to our neighbors? What is our SAVINGS culture?
    21. 21. Savings Habits in the Region A typical Filipino saver puts 64% of his earnings in regular savings deposits Highest level of investment of the average Filipino is in the form of time deposits *Asian Development Bank 2006 Key Indicators (using 2005 figures) 13.90% Cambodia 20.10% Philippines 26.30% Indonesia 29.10% India 29.40% Thailand 30.20% Vietnam 33.30% Rep. of Korea 43.30% Malaysia 47.00% China 48.60% Singapore Savings Rates as % of GDP*
    22. 22. The Typical Savings Mentality Income – Expenses = Savings High income does not equate to accumulated wealth Expenses may oftentimes surpass income Note! Financial Discipline Growing your assets
    23. 23. How can we achieve a higher return in a low interest rate environment?
    24. 25. Asset Allocation: 91-TBill & 5-25YrFXTN rates (1999-August 2006) Growing your assets TBill rates are average auction rates FXTN rates are average bid rates from Bloomberg less 50bps 2.885% 91-day TBill yield as of Feb 2007 10.92% 10.62% 8.61% 8.13% 7.96% 5.38% As of 8/17/06 12.02% 11.64% 11.09% 10.54% 10.05% 6.07% 2005 12.45% 12.15% 11.88% 11.47% 10.99% 7.31% 2004 12.61% 12.12% 11.59% 11.28% 10.62% 5.97% 2003 14.84% 14.18% 12.72% 12.34% 11.49% 5.50% 2002 16.02% 15.66% 15.18% 14.90% 14.43% 9.74% 2001 15.58% 14.81% 14.49% 14.11% 9.93% 2000 15.57% 14.43% 13.92% 13.28% 9.98% 1999 25Yr FXTNs 20Yr FXTNs 10Yr FXTNs 7Yr FXTNs 5Yr FXTNs 91-day TBill Year
    25. 26. How to maximize returns in low-interest rate environment? More Risk Return Investment Period
    26. 27. How much do you need to save every year for 5 yrs to have P1M after 10 yrs? <ul><ul><li>@ 10% interest p.a? P100,000 </li></ul></ul><ul><ul><li>@ 4% interest p.a.? P150,000 </li></ul></ul>
    27. 28. Financial Instruments for Different Financial Objectives Pure risk protection Ordinary Life A&H Investment & risk protection Pure investment Mutual funds Unit-linked Investment Trust Funds Time deposits Real Estate Long-Term Savings and protection
    28. 29. In a nutshell, financial planning is… <ul><li>Planning for the Best vs. Planning for the Worst </li></ul><ul><li>Planning for Life: Good or Bad times </li></ul><ul><li>Planning for Death: Most Filipinos Die Intestate </li></ul>
    29. 30. Thank You! Mae Elizalde Philamlife Elizalde Agency [email_address] .com 433 3421 Loc 32015

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