Mutual funds provide investors access to a professionally managed portfolio of securities, allowing them to benefit from the expertise of fund managers without needing substantial capital. They offer investors an affordable way to diversify their holdings across different asset classes and companies to reduce risk. Over the long run, mutual funds aim to achieve higher returns than fixed-income instruments like savings accounts through exposure to growth opportunities in the market.

3. Common Money Mistakes
 Impulsive Spending
o Shopping when you’re bored/stressed/upset will make
you buy things you will rarely use or never use at all
o Never checking for cheaper deals
 “Brand only” Mentality
o A lot of items we buy just because of the famous
brand labels are not cost-effective

4. Common Money Mistakes
 Being Swayed by Sale Strategies
o Sale, Discounts, Promotions, & 0% Installments
 Not Tracking Your Finances
o People have no idea on how much was spent since the
last pay day or how much debt still needs to be paid
 Wants Become Needs
o Wants = Needs, or worse, Wants > Needs

5. Common Money Mistakes
 Credit Mismanagement
o Credit Cards, Personal Loans, Mortgages
o Borrowing money to buy things that lose value

6. 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. 6 Steps to Financial Security
1. Increase Cashflow
Cashflow is the movement of
money into or out of an account.

9. 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)

10. 6 Steps to Financial Security
1. Increase Cashflow
How do we increase our Cash Inflow?
 Earn additional income  passive
 Manage your expenses
o Prioritize your needs, lessen your wants

11. Pay Yourself First
o 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 (20%) INCOME
(10%) (70%)
month, before you pay anyone
else, reserve 10% for tithes, then Income – Tithes – Savings = Expenses
save 20% of your income.
Prosperity Formula
 Discipline yourself to live within
your means
With this, we can surely fund our “financial plans”

12. 6 Steps to Financial Security
2. Manage Debt
• Consolidate Debt
• Eliminate Debt

13. Debt Management
 Types of debt:
• Bad Debt – cash flows out of
your pocket
• Good Debt – cash flows into
your pocket

14. 6 Steps to Financial Security
3. Create Emergency Fund
• To avoid debt traps, save 3-6 months of
your monthly income for:
• Sudden/Frequent Medical Needs of
family
• Loss of Income Source

15. 6 Steps to Financial Security
4. Ensure Proper Protection
• Ensure that your family will not
struggle to survive in case of:
• Sudden Death
• Total/Permanent Disability

16. Protection:
1. Get the maximum benefit
* Healthcare
* Insurance
* Investment link (passive income)
2. Go for term insurance
* Short payment period

17. 6 Steps to Financial Security
5. Build Long-Term Savings /
Investments
• Acquire ASSETS (cash inflow)
• Mutual Funds
• Real Estate
• Avoid LIABILITIES (cash outflow)
• No return of investment:
Consumables, Gadgets, Expensive furnitures

18. 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 Income
YOU WORK hard for the money MONEY WORKS for you
Protection
YOUNGER
Investment OLDER
What if… I die to soon? What if… I live too long?
Who will take care of my family? Who will take care of me?

19. The Rule of 72 (LXXII)
Dividing the number 72 by the interest rate of your savings or investments
will give the estimated number of years it will take for your money to double
72 4 = 18 72 8=9 72 12 = 6
Money doubles every 18 years Money doubles every 9 years Money doubles every 6 years
Age 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. 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.
Inflation reflects an erosion in the purchasing
power of money.
http://en.wikipedia.org/wiki/Inflation

24. o Projection of a P10,000 expense

25. INFLATION RATE, PHILIPPINES
2005 – 2011
Month 2011 2010 2009 2008 2007 2006 2005
Average 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 Jun 29, 2012
Deposit
Account Details
Account
TOP #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 3.125%

27. Best Interest Rates on a 1 Year / 12 month
Time Deposit in the Philippines
as of Jun 29, 2012
Deposit
Account Details
Account
TOP #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 3.00%

28. 10 YRS @ 4%
P 132,520
P 1,787,211.29

29. 6 Steps to Financial Security
6. Preserve Your Estate
• Ensure that everything you’ve worked for in
your entire life (assets / investments) will be
turned over only to your beneficiaries
• Limit probate cost
• Every breadwinner/provider should have a will
• Spouse should be co-owners of Assets /
Investments

30. Building a Solid Financial Foundation
INVESTMENT
EMERGENCY FUND
DEBT MANAGEMENT
PROTECTION: INSURANCE
HEALTHCARE
INCREASE CASH FLOW
« BUILD IT RIGHT. BUILD IT STRONG»

31. « BUILD IT RIGHT. BUILD IT STRONG»

32. Is an independent Years in USA/Canadawhose
More than 25 marketing company &
associates, through its affiliated companies, offer
15 Years in the Philippines
a broad array of financial services and products.

36. OUR MISSION
Make a Difference for Families
At IMG, we can help make a difference
for families by showing them a new path
towards achieving their financial goals.
No Family Left Behind

37. OUR VISION
To Build and Provide
the Best Business Opportunity in the World
Our 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 individuals
and families who are overlooked by the financial services industry.

38. OUR CRUSADE
Change people from:
ENTREPRENEURS
SPENDERS SAVERS
INVESTORS
Deliver the world’s financial wake-up call

39. Joen has a mission: towhat he’s talking about."theis a registered financial
certainly knows change the adage that He rich get richer and the
poor get poorer." He believes12 years of financial management
planner and has more than that "the average person, even the
experience. He sits as the president and chairmangiven the right
poor, has an equal chance to become wealthy if of the board of
information."
International Marketing Group (IMG)

41. IMG Offers Total Financial Solution
• Financial Literacy
 Learn the fundamentals of Protection, Debt Management,
& Investments
 Learn to plan your own Financial Strategy, to achieve your
financial goals
• Business Solution
 Learn the Financial Products & Services Industry

42. 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

43. What IMG Can Provide
1. ONE STOP SHOP of all Financial Services
2. By-Pass The Middle Man (earn the commission yourself)
3. Create Your Multiple Passive Income Stream
4. Have Your Own Business Franchise
5. Earn Interest Income from Investments
(invest correctly and safely with high returns)
6. Earn By Helping Others to Save and Invest

45. What IMG Can Provide
1. ONE STOP SHOP of Financial Services
2. By-Pass the Middle Man (earn the commission yourself)
3. Create Your Multiple Passive Income Stream
4. Have Your Own Business Franchise
5. Earn Interest Income from Investments
(invest correctly and safely with high returns)
6. Earn By Helping Others to Save and Invest

46. YOU
YOU (BROKER)
BROKER
INVESTMENT

47. What IMG Can Provide
1. ONE STOP SHOP of Financial Services
2. By-Pass the Middle Man (earn the commission yourself)
3. Create Your Multiple Passive Income Stream
4. Have Your Own Business Franchise
5. Earn Interest Income from Investments
(invest correctly and safely with high returns)
6. Earn By Helping Others to Save and Invest

49. Proverbs 6: This chapter advises release from foolish
indebtedness (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

51. “ To be born rich or poor is not a
choice, but to become rich or poor,
that's a choice that GOD leaves up to
us.”
Bo Sanchez

52. Most people are indebted.
Live simply.
This will help us avoid debt traps
Before we build our wealth--
We need protection for assets and life
Get out of debts before you invest
Invest safely and correctly
Transfer inheritance to our children

53. Always inform your relatives of your insurance.

55. DO YOU KNOW THAT:
1. Near 90% of Filipinos are not saving for long-term medical
needs
2. Medical Inflation is 3 to 4 times the economic inflation
3. About 45% of total Filipinos are vulnerable to poverty if
confronted by surprise of health problems, death and natural
disasters
4. Philippine Life Insurance Association: Pinoys spend more on
cigarettes than Life Insurance

56. INVESTMENT
EMERGENCY FUND
DEBT MANAGEMENT
PROTECTION: INSURANCE
HEALTHCARE
INCREASE CASH FLOW
http://www.kaiserhealthgroup.com/

59. Major Advantages of Kaiser
 Pre-existing illness:
• excluded from healthcare claims during payment period only
• excluded from insurance claim for the first 2 years only
 Plus Rider option – 2x insurance amount without 2x premium
 Healthcare coverage & investment is transferrable

60. http://www.kaiserhealthgroup.com/

61. MUTUAL
FUNDS

62. 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 is more important than the cost per share
 Long-term investment: Higher gain

63. TYPES OF MUTUAL FUNDS
STOCK/EQUITY FUNDP8+$1 BALANCED FUNDP9+$4
BOND/FIXED-INCOMEP11+$8+€2
http://www.pifa.com.ph/advantages.html
MONEY MARKET FUNDP5

64. TYPES OF MUTUAL FUNDS
TYPE COMPOSITION OBJECTIVE AVERAGE RETURN*
MONEY MARKET SHORT-TERM FIXED- STABILITY + MINIMAL
FUND INCOME INSTRUMENTS GROWTH 2%
BOND/FIXED-INCOME FIXED-INCOME STABILITY +
FUND INSTRUMENTS REASONABLE GROWTH 6%
MEDIUM TO LONG-
STOCKS & FIXED-
BALANCED FUND
INCOME INSTRUMENTS
TERM FOR MODERATE
INVESTORS
12%
LONG-TERM CAPITAL
STOCK/EQUITY FUND SHARES OF STOCKS
GROWTH 18%

65. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
1. Professional management: One of the main attractions of mutual funds is
that it affords its investors the services of full-time professional managers
whose job is to analyze the various investment products available in the
market.
2. Low capital requirement: Direct investments usually require substantial
capital. In contrast, most mutual funds in the Philippines require a minimum
initial investment amount of only Php5,000.00 and minimum additional
investments of Php1,000.00.
http://www.pifa.com.ph/advantages.html

66. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
3. Potential Higher Returns: Very few individual investors can match the
experience and skill of full-time professional fund managers who can select
those that would give the best possible returns.
4. Liquidity: Liquidity is the ability to readily convert investments into
cash. While the law provides that redemption proceeds must be given within
seven (7) banking days from the date of the redemption request, most funds
are able to pay the redemption proceeds within a day.
http://www.pifa.com.ph/advantages.html

67. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
5. 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
mutual fund, they achieve instant diversification.
http://www.pifa.com.ph/advantages.html

68. WHAT IS DIVERSIFICATION?
Stocks

69. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
5. 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 mutual
fund, they achieve instant diversification.
6. Safety: Mutual funds are highly regulated by the Securities and Exchange
Commission under the Investment Company Act and its implementing rules.
http://www.pifa.com.ph/advantages.html

70. 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.

71. PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
7. Convenience: The popularity of mutual funds in the Philippines is fast
catching up. Investment application can now do online and additional
investment/s can now deposit thru banks’ online banking fund transfer
facilities.
http://www.pifa.com.ph/advantages.html

72. 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.

73. 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.

74. COST - AVERAGING
http://www.investmentphilippines.com/
Investment Scenario
Buy P100 worth of
mutual fund shares for 6 months

76. TOP 3 MUTUAL FUNDS IN 2011
1: FAMI Fixed Income Fund
12.34%
2: EkklesiaBPI Mutual Fund
10.35%
3: Philequity Peso Bond Fund
9.02%

79. REAL ESTATE

80. 1834
1954
2007

81. 2 BASIC TYPES OF REAL ESTATE PROJECTS
HORIZONTAL DEVELOPMENTS
 Socialized Housing
 Affordable Housing
 Middle / Upper Middle
 High End

82. 2 BASIC TYPES OF REAL ESTATE PROJECTS
VERTICAL DEVELOPMENTS
 According to Market
 According to Height
• Low-rise, Mid-rise, High-rise

83. As per BIR's Revenue Regulations No. 16-2011
dated 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 on
House & Lot below P3,199,200 (prev 2.5M).
LOCATION

84. WHY INVEST IN REAL ESTATE
 PERSONAL USE
 Family residence
 SAVINGS
 Has the potential to offer higher return than bank
 BUSINESS
 Place of business
 Can be resold at a higher price
 Can be used as a collateral for loan
 Can generate rental income

85. Options for acquiring products/services:
1. CLIENT - you don’t join as an IMG member but you get
timely updates from the companies
(i.e. pricing, offerings, regulations)
2. AGENT - you join as an IMG member and reduce the cost of
products/services using the commission
- earn overrides

86. Commission Rates
Kaiser Mutual Funds Real Estate
Membership Level (premium) (Sales Load) (i.e. Vista Residences)
Associate 20% 20% 2.25%
Field Leader 30% 30% 2.35%
Asst. Marketing Director 40% 40% 2.45%
Marketing Director 50% 50% 2.75%

87. “ You can’t cross the sea merely by
standing and staring at the water.”
Rabindranath Tagore

88. Financial Independence is
not a dream. It’s a decision!

89. END
OF
SESSION

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BOTH OF THE ABOVE
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