money Financial Planning

[brazzerboy]

It is important to know the yield percentage of your portfolio net of cost so that you can do your own projections. For example, if you want to live off your dividends and your pricipal would be inherited by your kids, so if your portfolio yields 5% and you want to received Php 100,000/month, then you need a portfolio of:

Portfolio = (100,000 x 12 months)/5% = Php 24 M

 

Notice that i didnt consider inflation here, so my match is fundamentally wrong. But i just want to make a quick back of the envelope calculation without any further complexity to illustrate a point.

 

So in my example above,if your retiring today and plan to receive 100,000/month your investment portfolio should be Php 24M if the yield is 5%. There are lots of calculators online that considers inflation so that would be of great use.

This would answer the question if 10 years is feasible to retire with the expected income you desire to have. If not, then you can make adjustment on the income, expenses side of things.

 

I've actually done similar basic calculations. The only problem is that I'm not very confident with my math skills . I don't even know how to count inflation as a factor. But based on my very simple computation, I would be needing as much P30-35 million to be able to sustain a generous lifestyle and be able to afford other things such as a decent house and lot property, a car, and an emergency fund. Again, it's very basic and does not take into account many other factors. But from the looks of it, building my portfolio to enable early retirement within the next 12 years (by the time I'm 45) will be a very daunting task.

[brazzerboy]

 

What's in your portfolio at the moment, if i may ask? just to get a better idea of the spread. baka lang makatulong.

 

re: savings - congrats on saving that much monthly! completely agree that it's being wasted if nasa savings account mo lang siya. (not sure if you're building up your emergency fund though.)

 

re: investments - strict ka to transact only with banks? if yes, i think mas okay to ask other MTC members on investments with banks/stocks. i mainly dabble in equity/businesses dahil mas greedy ako and i find it more engaging. my UITFs are more of a remnant of the past when i started learning about financial wellness. tapos never ko na inalis yung pera ko dun haha.

 

I just completed a VUL with Philam Life last year (when I turned 32) which guarantees at least P1.6 million when I reach 65 years old. Since 2017, I've started building a portfolio with Sunlife (P600K spread in 10 years by the time I will be 41 years old) which projects a fund value of P6.5 million when I turn 65 years old. Thankfully, my income and savings have grown significantly over the past 2 years and I was able to pay in advance 5 years' worth of premium for Sunlife in just 2 years (the payment was done last month). With that, I am planning to complete the remaining 5 years' worth of payment next year, which should accelerate the growth of my fund value by 7 years. The thing is, just like @neville's concern, I don't feel like I am accumulating enough savings and investments in order to make early retirement possible or even to achieve financial security. I have prepared an emergency fund of around P200K, which I plan to expand to P500K next year right after I complete my premium for Sunlife.

 

Those are essentially the closest I have to assets. I'm not really familiar with financial risk management, which is why I'm trying to explore many avenues for wealth management that won't require intensive worrying and monitoring, although I understand it is very important to ensure the well-being of any investment.

[MartinDomingo]

Congrats!! Hope everything goes well for you. Alam ko medyo too late na, pero did you run the financials of your business factoring in capex recovery, opex, and other expenses?

 

Thanks for sharing the info on the auto debit arrangement. baka makatulong rin sa ibang nagbabalak. haha

 

re: crediting to account, 5 business days sounds about right.

 

re: profits/"okay" naman - again, not sure sa definition mo ng "okay" but is this net of everything already?

 

Also, did you go by the 3 year term?

Thank you sir. Yes I sure did. I'll update after a month

 

So I applied for the loan this Monday .

Nacredit na last night

So today Wednesday accessible na Yung funds. Ang bilis Lang pala .2 days processing for personal loans sa Bpi

 

 

Also tanong ko Lang

 

Normal Lang ba talaga na 6,000 Ang doc stamp?

Tapos 1500 Ang processing fee

Nagulat ako na 6k Ang doc stamp lol

[MartinDomingo]

I just completed a VUL with Philam Life last year (when I turned 32) which guarantees at least P1.6 million when I reach 65 years old. Since 2017, I've started building a portfolio with Sunlife (P600K spread in 10 years by the time I will be 41 years old) which projects a fund value of P6.5 million when I turn 65 years old. Thankfully, my income and savings have grown significantly over the past 2 years and I was able to pay in advance 5 years' worth of premium for Sunlife in just 2 years (the payment was done last month). With that, I am planning to complete the remaining 5 years' worth of payment next year, which should accelerate the growth of my fund value by 7 years. The thing is, just like @neville's concern, I don't feel like I am accumulating enough savings and investments in order to make early retirement possible or even to achieve financial security. I have prepared an emergency fund of around P200K, which I plan to expand to P500K next year right after I complete my premium for Sunlife.

 

Those are essentially the closest I have to assets. I'm not really familiar with financial risk management, which is why I'm trying to explore many avenues for wealth management that won't require intensive worrying and monitoring, although I understand it is very important to ensure the well-being of any investment.

Wow . I hope to do that soon

How old are you now .if you don't mind me asking sir

[JohannBeckham]

I got solid dividend this month (July 2019) from my ETFs amounting to AUD $4,908.92. I'm pump!

[brazzerboy]

Wow . I hope to do that soon

How old are you now .if you don't mind me asking sir

 

Currently 33 years old. Other than my policy with Philam Life, I really don't have any other savings during my 20s, that's why I'm cramming to build a substantial portfolio at the moment.

[JohannBeckham]

 

Currently 33 years old. Other than my policy with Philam Life, I really don't have any other savings during my 20s, that's why I'm cramming to build a substantial portfolio at the moment.

Ako din nag start lng mag invest (in index fund) in late 2011, so i have the same feeling na i wasted my early working career on frivolous things like gadget and gimiks. Pero oks lng yan, what's important is your current trajectory.

 

I personally hate VUL though because of the high cost and non transparency of some funds kya i prefer index fund. I prefer to separate insurance with investment since magkaibang vehicle yun and i prefer flexibility and greater amount of total returns. Some VULs commission can exceed 40% of the premium (meaning 40% of the money you gave ay di ini invest, but pure cost on you). So you take 100% of the risk, but would only be entitled for 60% of the return because of cost, thats why i hate VULS. Whereas index funds or ETFs your cost is like 1% lng (atleast sa pinas) or like me since i invest overseas my expense ratio is just 0.10% lng. Some funds can go as cheap as 0.04%. so ky cost is miniscule

[brazzerboy]

Ako din nag start lng mag invest (in index fund) in late 2011, so i have the same feeling na i wasted my early working career on frivolous things like gadget and gimiks. Pero oks lng yan, what's important is your current trajectory.

 

I personally hate VUL though because of the high cost and non transparency of some funds kya i prefer index fund. I prefer to separate insurance with investment since magkaibang vehicle yun and i prefer flexibility and greater amount of total returns. Some VULs commission can exceed 40% of the premium (meaning 40% of the money you gave ay di ini invest, but pure cost on you). So you take 100% of the risk, but would only be entitled for 60% of the return because of cost, thats why i hate VULS. Whereas index funds or ETFs your cost is like 1% lng (atleast sa pinas) or like me since i invest overseas my expense ratio is just 0.10% lng. Some funds can go as cheap as 0.04%. so ky cost is miniscule

 

Can you recommend how to start at ETFs or at least some reliable investment partners here in PH as it might be what I'm looking for. I did read a lot of complaints from disappointed investors about VULs notably from AXA and PruLife UK. Just the other day, I saw an AXA advertisement in my timeline, and when I checked the comments section, almost all the comments were made by disgruntled policy holders who got less money that what they invested despite the 20-year maturity period. This is why I'm very keen on diversification.

[JohannBeckham]

 

Can you recommend how to start at ETFs or at least some reliable investment partners here in PH as it might be what I'm looking for. I did read a lot of complaints from disappointed investors about VULs notably from AXA and PruLife UK. Just the other day, I saw an AXA advertisement in my timeline, and when I checked the comments section, almost all the comments were made by disgruntled policy holders who got less money that what they invested despite the 20-year maturity period. This is why I'm very keen on diversification.

To start investing in ETFs is easy. Here's the steps:

1. Open a brokerage account e.g. bpitrade, BDO, COL, etc. Just open with the cheapest brokerage fee e.g. 0.25% of the gross amount in bdo or minimum bof 20 pesos for bpitrade

2. Start buying ETF with that Etfs ticker code e.g. FMETF

 

i dont know kung meron pang etf sa Pinas other than FMETF , research mo na lng

Edited July 17, 2019 by JohannBeckham

[brazzerboy]

To start investing in ETFs is easy. Here's the steps:

1. Open a brokerage account e.g. bpitrade, BDO, COL, etc. Just open with the cheapest brokerage fee e.g. 0.25% of the gross amount in bdo or minimum bof 20 pesos for bpitrade

2. Start buying ETF with that Etfs ticker code e.g. FMETF

 

i dont know kung meron pang etf sa Pinas other than FMETF , research mo na lng

 

Thanks will definitely look into it.

[K0RN - RETIR3D]

Best time to buy is now

 

Actually, that's only second best time to buy.

 

Yesterday to 20 years ago was the best time to buy.

[JohannBeckham]

 

Actually, that's only second best time to buy.

 

Yesterday to 20 years ago was the best time to buy.

Especially kung meron kang time machine lol!

 

Kidding aside, there's no point regretting late investing. Regret does not solve anything. Being discipline and good investing habits does.

[Papa Popoy]

Angyayaman na ng mga tao dito 😜

How often do you monitor your investments?

Ako kasi pag naisipan lang...i just follow my strategy to continuously put certain amount every month (usually pag sweldo),

 

I agree with JB that theres no pint of regretting late investment. Move on from the past, do whatever you can do today and plan for your future. 😉

[neville]

Angyayaman na ng mga tao dito 😜

How often do you monitor your investments?

Ako kasi pag naisipan lang...i just follow my strategy to continuously put certain amount every month (usually pag sweldo),

 

I agree with JB that theres no pint of regretting late investment. Move on from the past, do whatever you can do today and plan for your future. 😉

Haha. Hindi pa ako mayaman. Wala pa along 1M na spare cash 😁😁😁

 

I check my portfolio daily. Then infuse fresh capital when I have at least 20k for either stocks or mutual funds or 40k for both.

 

Nanghinayang ako na last year Lang ako nag-invest nang seryoso, pero...water under the bridge

 

Use whatever time I have now.

[Papa Popoy]

Haha. Hindi pa ako mayaman. Wala pa along 1M na spare cash

I check my portfolio daily. Then infuse fresh capital when I have at least 20k for either stocks or mutual funds or 40k for both.

Nanghinayang ako na last year Lang ako nag-invest nang seryoso, pero...water under the bridge

Use whatever time I have now.

Ok lang yan, naenjoy mo naman yung last year mo dba? But I think it is better kung may financial goal ka for your future at the same time naeenjoy mo buhay ngayon.