3/7/2017 WhyIIncreasemyHDMF/PagIBIGContribution?

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WhyIIncreasemyHDMF/PagIBIGContribution?

August27,2016August27,2016
AsperRA9679,membershiptotheHomeDevelopmentMutualFund(HDMF)orpopularlyknownasPagIBIGfund,hasbecome
mandatoryforallemployees,workers,professionals,ocersandcompanieswhoarealsocompulsorilycoveredbytheSSSandGSIS.The
amountofmonthlycontributionisat12%ofthesalarywithP5000usedasthemaximummonthlycompensationusedinthecomputation.
Basically,thatistheP100employeeandP100employershareyoumayhavenoticedinyourpayslips.

Forme,Ihavebeensavingmorethanthisminimumamountforseveralyearsalready.IhaveincreasedtheamounteverytimeIreceived
salaryincreases.SoherearetheprimaryreasonsonwhyIchosetoincreasemymonthlyHDMFContributions.

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3/7/2017 WhyIIncreasemyHDMF/PagIBIGContribution?CebuAccountant

1.Itservesasforcedsavingsforme.

ImayhavesaiditpreviousblogsthatIamnotverythrifty.However,Iknowtheimportanceofsavingsandinvestments.Savingsthatare
autodeductedfrommygrosspayworksbestforme.WithPagIBIGContributions,Inolongerneedtoworryaboutseingasidemoney
forthisasitisalreadydeductedfrommypay.

Also,savingsinPagIBIGarenotaccessible.Ourmonthlysavings,employercounterpartshare(ifany)andtotalannualdividendearnings
comprisethemembersTotalAccumulatedSavingsorTAV.OurTAVcanbewithdrawnafter20yearsofcontinuousmembership,upon
retirementatage65,separationofserviceduetohealthreason,permanentdeparturefromthecountryorupondeathandtotaldisability.
Thismeansmysavingsherewillsurelygotomyretirementfundandwillhavethechancetogrowovertime.

2.Annualdividendearningsthataregovernmentguaranteed.

ThePagIBIGSavingsProgramisafast,easyandaordablewayforPagIBIGmemberstosaveforthefuture.Thedividendrateisnot
xed,butasfarasImconcerned,anydividendrateismostlikelyhigherthananybanksavingaccountinterest.

ThereareseveralUITFsandMutualFundsavailableinthemarketthatalsoprovidesreturnshigherthanbankinterest.Ialsohavethose
withothernancialinstitutions,butwhatIseeasadvantageouswithpuingmoneywithHDMFisthatthereisnoxedorminimum
amount.SoforthosewhocannotaordtosetasidetheusualP1000ormoremonthlyinvestment,wecanjustadduptoourHDMF
contributionsforanyamount.

3.Imightjustavailahousingloansomeday.

MyfamilyandIarecurrentlylivingacozyhomewithinthecity.Itsnothingbig,butitisclosetojusteverything.However,itisnot
exactlythedreamhomeIhadinmindwhenIwasyounganddreamy.Someday,myhusbandandImightjustwanttobuildourdream
retirementhome,andanHDMFhousingloanmightcomehandy.

Therearetwoimportantfactorsthataecttheloanamountyouareentitledto.Firstistheamountofcontributionandsecondisyournet
disposableincome.Ifyouwanttoavailofabiggerloanamount,youneedtoincreaseyourcontributionandshowthatyournetdisposable
incomeisalsolargeenoughtocoverthemonthlycontributions.Idonthavemuchcontroloverournetdisposableincome,butwe
denitelycontroltheamountofcontribution.

4.Highercontributionsmeanshigherloanableamounts.
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3/7/2017 WhyIIncreasemyHDMF/PagIBIGContribution?CebuAccountant

4.Highercontributionsmeanshigherloanableamounts.

Asidefromhousingloans,shorttermloansarealsoavailableforHDMF/PagIBIGmembers.ThereisaCalamityLoanformembers
aectedbyunforeseencalamitylikeood,re,volcaniceruptionandothersimilarcases.ThereisalsoaMultipurposeloanthatyoucan
useforanyreason.

Imanynothaveanyurgentneedforaloanrightnow,butwhoknowswhatmightcomeinthecomingyears.Havinganavailablecredit
lineisaddedinsurancetoanypossiblenancialissues.

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3/7/2017 WhyIIncreasemyHDMF/PagIBIGContribution?CebuAccountant
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Postedin:BusinessandFinance | Tagged:hdmf,pagibig,retirementfund,savings

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