Professional Documents
Culture Documents
Name of Speaker
Bought a house
Drove a brand new SUV
Gave money ranging from
Php 1,000 to Php 850,000 to
relatives and friends
Lost Php 14 Million in 3 months
Financial Planning
Salary
Credit Card or Cash Loan
Unpaid credit card debt can grow as high as 36% per year.
Savings
Cash you dont spend for day-to-day needs or cash you set aside for
emergency purposes and financial goals that are not immediate
Wealth PROTECTION
Preservation Life, Health and Property Insurance FINANCIAL
BUILDING
EMERGENCY FUND
Cash, Savings and Time Deposit Accounts
BLOCKS
Philam Life confidential and proprietary information. Not for distribution.
Secure your needs and dreams.
You need your income to finance your needs and reach your dreams.
Health coverage
Risk of getting
Cash benefits as income replacement
sick/injured HMO or health insurance plans
Retirement
Dreams
Own business
New car
New house
Travel
College education
Food Basic
Tuition
Fare/gas Needs
Bills
Rent/mortgage
Emergency fund
Critical Years 10
Accumulation
EDUCATION, HOME & RETIREMENT
Education & Retirement Programs, Home Loan
Philam Life confidential and proprietary information. Not for distribution. Source: www.finduniversity.ph
Other Expenses for College
You are responsible for setting up your own retirement fund, no one else.
or
What is risk?
Risk-return trade-off:
The higher the risk, the higher
the return
Savings account
Financial vehicle offered by banks; Where the bank
keeps your cash intact
Fixed income
instruments Equities
What you will earn depends on the type of investment you choose.
Long-term instruments can offer higher returns.
The dream: Phillip and Steve want to retire when they turn 60.
They chose the same investment vehicle with the same annual return.
But the one who started immediately earned twice as much.
Philam Life confidential and proprietary information. Not for distribution.
Advice Stay invested for the long term.
Lets look at how the two investors reacted when the market did not
perform well and went down by 47%.
December 2012:
570.00
Phillip stayed and grew his
520.00
investment to Php 1.75 Million
470.00
October 2007:
420.00
Phillip and Steve
370.00
invested
Php 1 Million October 2008:
320.00
270.00
Steve pulled out
220.00
Php 530,000
170.00
120.00
Short-Term Outlook
Long-Term Outlook
Save 50,000 per bank for 20 years Invest 50,000 per asset for 20 years
Bank Time Deposit Amount after Asset Ave. Amount
Interest Rate 20 yrs Annual After 20
Return yrs
BPI 0.75% 58,059.51 ATM 0.75% 56,101
BDO 0.625% 56,635.39 Time Deposit 0.75% 58,135
Metrobank 0.625% 56,635.39 Philam Bond Fund 6.00% 151,279
China Bank 0.875% 59,516.99 Blue Chip Stock 10.00% 305,795
RCBC 0.625% 56,635.39 Philam Strategic 15.00% 711,588
Growth Fund
Total after 20 yrs Total Fund after 20 yrs
P288,482
Philam Life confidential and proprietary information. Not for distribution. P1,282,898
Level 3: Wealth Transfer
Wealth PROTECTION
Preservation Life, Health and Property Insurance FINANCIAL
BUILDING
EMERGENCY FUND
Cash, Savings and Time Deposit Accounts
BLOCKS
Philam Life confidential and proprietary information. Not for distribution.
Financial Planning Steps
Prioritize Goals
3
ESTATE
Family Provider
PLANNING
Estate Taxes
Insurance and Trust Fund
INVESTMENTS &
MoneyTree
BUSINESS
Investment & Own Business
Insurance-Investment & Business Loan
EDUCATION, HOME &
Bright Future Invest & MoneyWorks
RETIREMENT
Education & Retirement
Education & Retirement Programs, Home Loan
CASHProvider,
Family FOR EMERGENCIES
Health Invest
Life Insurance
Savings, & Health
Checking & Time Deposit
FINANCIAL
GOALS, NET WORTH &
PROTECTION BUILDING
FINANCIAL
Life, HEALTH
Health, Property Insurance CHECK BLOCKS