Financial planning jo abonalla


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Financial planning jo abonalla

  1. 1. WELCOME!Financial Planning SeminarA financial wellness check during today’s hard times
  2. 2. Financial Health Indicators How would you describe your current financial health? Level 1. EXTREMELY CONFIDENT. Level 2. CONFIDENT. Level 3. SOMEWHAT CONFIDENT. Level 4. NO WORRIES. Level 5. I’M BROKE.
  3. 3. Level 1: Extremely Confident “I can retire anytime.”Money not a problem.Managed to acquireproperties and items to livecomfortably.Future already covered.
  4. 4. Level 2: Confident “I can go on leave for 6 to 12 months.”Managed to save anemergency fund.In case of job loss, moneyavailable may shoulderneeds for several months(under normalcircumstances).Risks: getting sick
  5. 5. Level 3: Somewhat Confident “I have money to spare for emergencies.”Stashed some cash forbasic emergencies.Minimal worries about thefuture.Risks: job loss and gettingsick.
  6. 6. Level 4: No Worries“I’ll be OK until the next payday.”Expenses = Income.Risks: job loss, emergencyexpenses, getting sick
  7. 7. Level 5: I’m Broke “Credit card companies and creditors are after me.”Salary wiped out as itreaches the ATM.No savings.Risks: future, job loss,emergency expenses,getting sick
  8. 8. You & your dreams...
  9. 9. Where can people put their money?Piggy bank Savings Time Deposit Shares Bonds Business Insurance
  10. 10. Where people invest their money? PIGGY BANK DISADVANTAGES: Money is always available  Risk of losing money from Very High Liquidity theft  Decrease in purchasing power thru inflation effects1
  11. 11. Where people invest their money? BANK DISADVANTAGES: Savings Deposit P300,000  Inflation risk Interest *0.5% + 1,500  Decreasing interest risk Tax 20% - 300  Re-investment risk (Opportunity cost) Net Income P 1,200 “You won’t get rich if you invest your money in the bank”
  12. 12. Where people invest their money? BANK DISADVANTAGES: Time Deposit P300,000  Inflation risk Interest *2.25% 6,750  Decreasing interest risk Tax 20% 1,350  Re-investment risk Net Income P 5,400 (Opportunity cost) Time deposit – 91 days (2.25% p.a.) “You won’t get rich if you invest your money in the bank”1
  13. 13. Where people invest their money? STOCKS DISADVANTAGES: •Chance of bigger capital  Investment fluctuating, very gain volatile •High risk  Needs some time for •Only invest a small part of monitoring their money – couldn’t give  Needs good information access maximum investment because stock market is very result reactive to rumors “You must be willing to take great risks when investing in the stock market”1
  14. 14. Where people invest their money? T-BILLS/T-BONDS DISADVANTAGES:  Low liquidity Provides fixed  Moderate return income at a fixed  Inflation risk period Low risk Low capital requirement2
  15. 15. Where people invest their money? BUSINESS DISADVANTAGES: High Return  Investing in Business can High Risk also be risky  1 out of 10 new business Low to High capital start-up close after 3 requirement, years depends on capacity of investor2
  16. 16. Where people invest their money? Insurance  Better returns than the AXA banks  Pooled Fund so the investor gets access to better opportunities  Your money is managed by experts in investments2
  17. 17. How Investment Links Work Diversified pool ofInvestors Investment Pool investments •Corporate Debts •T-Bills •Blue Chips •Fixed Treasury Notes GAIN PROFIT
  18. 18. Why invest in Pooled Funds?1. Access to diversified portfolio.2. Expert advice from professional fund manager - Risk management - Strictly follows the set risk level - Exposure only to prime investment at all times - Continuous portfolio review3. Potentially higher returns4. Minimisation of risks
  19. 19. Why invest in Pooled Funds?1. Diversified portfolio2. Higher returns3. Expert Professional Fund Manager4.
  20. 20. Communication messengers homing pigeons drums pagertelegraph / morse code fax telephone radio
  21. 21. Communicationanalog cell phone GSM cell phone 3G cell phone
  22. 22. Banking Before: Savings & LoansNow:Savings & Loans, Credit Cards, Financial Advice,Money Transfers, Retailer of other financialInstruments i.e. Bonds, Mutual Funds, Insurance,etc.
  23. 23. InsuranceBefore: Term, Whole Life, EndowmentNow:Term, Whole Life, Endowment, Waivers, DisabilityBenefits, Hospitalization, Critrical Illness Coverage,Pension, Retirement, Education, Investment-Linked Products etc.
  24. 24. Banking & Insurance Term Current Account PDF Unitized Investments Whole LifeSavings Account Asset Pooling Time Deposits Bonds Endowment Equities Trading Loans Riders
  25. 25. World TrendsPeople want simplicityPeople want “all-in-one” gadgets People want “one-stop-shop” centers
  26. 26. Financial Services Trends People want simplicitySaving Period Waiting Period Maturity / Availment What are my benefits along the way? LIVE, QUIT, DIE?
  27. 27. Financial Services TrendsPeople want an “all-in-one” & “one-stop-shop” services SAVINGS PROTECTION INVESTMENT BANKINVESTMENT HOUSEINSURANCE AXA
  28. 28. The World Is ChangingImagine…If you didn’t ride the wave of Communication…If you didn’t ride the wave of Information Access…If you didn’t ride the wave of Banking…If you didn’t ride the wave of Insurance…If you DON’T RIDE THE WAVE OF TOTAL FINANCIAL PLANNING…THERE IS NO ESCAPING CHANGEWhether you like it or not…
  29. 29. shifthappens
  30. 30. The AXA Group AXA is a worldwide leader in financial protection. Headquartered in Paris, AXA operates in 64 countries across Europe, North America and Asia Pacific. Europe Asia Pacific Austria Australia Belgium Middle East China France Bahrain Hong KongAmerica Germany Lebanon IndonesiaArgentina Hungary Japan Ireland KoreaBrazil Malaysia ItalyCanada Luxembourg New Zealand Africa PhilippinesChile Portugal Cameroon SingaporeUruguay Spain Gabon Thailand SwitzerlandUSA Netherlands Guinea IndiaVenezuela Turkey Ivory Coast Vietnam UK Senegal South Africa Togo
  31. 31. AXA is a global company 91 billion Euros in revenue 3.9 billion Euros The AXA Group is in underlying present in earnings 64 countries million 95 clients 214,000 AXA employees worldwide and exclusive distributors 1 trillion Euros in assets under management AXA PHILIPPINES Marketing Department October201138
  32. 32. AXA’s PERFORMANCE: According to: Fortune Global 500 The 9th largest corporation worldwide regardless of industry Largest Insurer worldwideWorld Leader in Employee Benefits Package According to: Top 4 Biggest Earnings Insurance Company worldwide
  33. 33. Overview of AXA’s presence in Asia AXA PHILIPPINES Marketing Department October 201140
  34. 34. Contact AXA Head Office Philippine AXA Life Centre Tel: (02) 885 01 01 Sen. Gil Puyat Ave., Makati City Fax: (02) 844 46 61 Our Clients Our Figures 123,368 Individual clients 15000 10000 Gross Written Premium 800 600 Operating Profit 4000 3000 Shareholders’ Equity and 150,800 certificate holders 5000 400 2000 1000 0 0 200 of group policies 0 2008 2009 2010 2011* Assets Under Dividends Paid -Up Capital Our Activity 40000 Management 800 600 400 300 35000 200(in % of 2010 Total Premium Income) % of 2010 New Business (in 30000 400 100 25000 0 Variable Alternative Index) Agency 200 0 81% 2008 2009 2010 2011* 20% * annualized 19% III third quarter actual 5% 61% Our 14% AXA IS STRONG Traditional Group Shareholders AXA IS STABLE Bancassurance AXA SA FMIC Our People 45% 28% AXA IS PROFITABLE 350 operations and support staff AXA IS TRUSTED1,450exclusive agents 450 112 financial executives direct sales staff 25% 557 servicing Metrobank branches 2% Others GT Holdings41
  35. 35. AXA is a partnership between two financial giants1. Recognized as Strongest Bank in the 1. Over Php30 billion of funds under management Philippines by the Asian Banker 2. Over 100,000 customers2. Best Bank in the Philippines in 2010 and 3. Over Php800 million revenue in 2010 2011 awarded by Euromoney3. Conglomerate of industry leading businesses (First Metro Investment Corporation, Metrobank Card Corporation, Federal Land, Toyota, Manila Doctors Hospital)4. Second largest bank in the Philippines AXA PHILIPPINES Marketing Department October 2011
  36. 36. AXA is a life insurance company of prestige Number 1 in new business of investment- linked products Number 3 in terms of total premium 30% share of investment- linked marketAXA PHILIPPINESMarketing Department15 April 2011
  37. 37. AXA offers both:Traditional products - basically provides life insurance for income protectionVariable Life Insurance product - an innovative product that provides best value in life insurance protection and long term investments Life Insurance + Investment Life insurance + Investments
  38. 38. AXA INVESTMENT FUNDS EarningType of Fund Currency Risk Description PotentialWealth Bond Php Low Invest your money in long- LowFund term Bonds issued by the Philippine GovernmentWealth Php Medium Have the best of two MediumBalanced Fund worlds. This is a combination of Bonds and EquitiesWealth Equity Php High Invest your money in blue- HighFund chip stocks listed in the Phil. Stock Exchange Index
  39. 39. AXA Fund Performance as of September 2012 Type of Risk Inception Cumulative AnnualizedFund Date Performance Perforrmance since since inception inceptionWealth Bond Low September 61.61% 6.21%Fund 2004Wealth Medium September 128.05% 10.90%Balanced 2004FundWealth Equity High April 2006 181.66% 17.56%Fund
  40. 40. Life BasiX: An illustrationLife Insurance Coverage P400,000 35-year old male, non smoker P16,004.00 Annual PremiumEnd of Policy Total Projected account value Year Premium Paid 4% 8% 10% 5 80,020 44,551 50,358 53,501 10 160,040 128,025 157,568 175,040 15 240,060 235,958 324,376 381,964 20 320,080 362,601 565,361 709,796 P1,333.68 - Monthly
  41. 41. Axelerator: An illustrationLife Insurance Coverage P 150,000 35-year old male, non smoker P30,000 Annual PremiumEnd of Policy Total Projected Account Value Year Premium Paid 4% 8% 10% 5 150,000 118,107 131,628 138,898 10 Premium Holiday 137,593 187,413 217,658 15 Premium Holiday 157,154 264,158 338,752 20 Premium Holiday 188,586 389,822 550,552
  42. 42. AmbitionX: An IllustrationLife Insurance Coverage P1,250,000 35-year old male, non smoker P1,000,000 Single Premium Projected account value End of Policy Year 4% 8% 10% 5 1,154,082 1,393,763 1,527,684 10 1,464,932 2,129,102 2,553,917 15 1,782,313 3,128,350 4,113,108 20 2,262,376 4,778,846 6,876,119
  43. 43. There is no doubt that this has happened to them. Each person who arrives in the with a Emergency RoomHeart Attack Strokewas not planning on being or athere. People never get SICK at the right time. It is always at the WRONG time. Yet statistics show that ILLNESS can happen and will happen. How much did these people spend on their treatment?
  44. 44. If you had a stroke last night, in reality you will not be able to speak today, …do you agree? Do you insure your car before or after a car accident? Would you insure yourhome before or after your house is on fire?
  45. 45. Few notes from Warren Buffet If you started saving P1,000 monthly at age 20, ,where your investment earns 17% interest per annum… By the time you reach the age of 60, you would have P42M plus already
  46. 46. The Key is starting early…And looking for a safe andhigh yielding investment
  47. 47. Don’t Save what is LEFT after SPENDING… SPEND what is LEFT after SAVING.
  48. 48. AXA  You and your dreamsTODAY’S P HILIPPINES to the IntroductionAGENDA world of financial planning  Choosing the right partner  What it takes to be successful