Steps to Financial Security for OFWs

OFW UsapangPiso Forum Pocket Seminars
HOW TO INVEST
ofwup
INVESTMENT-BUSINESS-FINANCIAL PLANNING FORUM FOR PINOYS ABROAD
Speaker:
Tristan Cristobal
LOGO
http://www.ofw-usapangpiso.com
Who We Are ?
Angat Pilipinas Coalition for Financial Literacy is a global
non-profit organization of active and former Overseas Filipino
workers (OFWs) and personal finance advocates who have
bonded together as a support group to address issues, discuss
concerns, and share knowledge with OFWs on entrepreneurship,
investment, and financial literacy in order to contribute to poverty
alleviation and improve the quality of life in the Philippines.
Steps to Financial Security for OFW’s
2
Vision & Mission Statement
Vision
OFW UsapangPiso envisions a nation by the year 2020 where 100,000
or more former OFWs and dependents are financially-independent,
entrepreneurial, and investing in the Philippine capital market.
By 2050, being an OFW comes as a choice rather than a need.
Mission
To provide affordable and accessible information on how to save and
invest their money wisely through education and workshops, interactive
online forum, webinars, social media, life-coaching, and by bridging
resources from other organizations to active and former OFWs and their
families.
It also aims to serve the best interest of its members and other
stakeholders, and participate to the achievement of the nation's economic
objectives.
Steps to Financial Security for OFW’s
3
About The Speaker
Tristan Cristobal
He is a CPA, Daddy of a lovely daughter, and husband.
He is a financial educator advocate
He is the Western Regional Director – KSA of OFW Usapang Piso
He is currently working in Toyota as Compliance Officer
He is an entrepreneur
He is an investor of various investment vehicles like insurance investments, stocks, uitf etc…
He was exposed in their family business at a young age
He experienced the success and failure of their family business
He is a Financial Advisor of Pru Life UK
He practices basic yoga daily
He likes to watch anything that interests him, plays badminton, billiards, basketball, swimming etc..
He belongs to the generation of getting good grades to graduate and get a high paying job
He will soon escape his day job after the established safety net needed
Mobile # - 0542136373
Email: [email protected]
Steps to Financial Security for OFW’s
4
SAD FACTS
Only 1% of Phil’s Population invests in
Stock
Only 15% is successful while the
remaining failed
Only 1.1% has life coverage
Steps to Financial Security for OFW’s
5
Investment
– Is an asset that you buy to generate an
economical value in the future
– Is use for financial personal planning
– is not a get-rich quick scheme
– controlling your finances
– is a magic touch of TIME
– fights back inflation
– better than bank savings
Steps to Financial Security for OFW’s
6
INVESTMENT VEHICLES
BUSINESS INVESTMENTS
STOCKS
PROTECTION (VUL -Variable Unit
Linked)
MUTUAL FUNDS, UITF
PRECIOUS METALS
etc
Steps to Financial Security for OFW’s
7
What’s your Purpose?
Protection
Cover emergencies
Education
Savings
Retirement Fund
Steps to Financial Security for OFW’s
8
WEALTH FORMULA
SMALL amount of MONEY
+ BIG amount of TIME
= WEALTHY INVESTOR
Steps to Financial Security for OFW’s
9
COMPOUNDING OF INTEREST
Year Invested
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
TOTAL
Investment A
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
1,200,000
Investment A
Value in Year 20 @ 10%* growth
66,006.60
72,639.23
79,893.48
87,847.73
96,618.36
106,382.98
116,959.06
128,479.66
141,509.43
155,440.41
171,428.57
188,087.77
206,896.55
228,136.88
251,046.03
275,229.36
303,030.30
333,333.33
365,853.66
402,684.56
3,777,503.96
*PSE Min Ave Growth from 1987-2010
Steps to Financial Security for OFW’s
10
Investment Strategies
Small amount of Money (monthly)
Long term investment
Invest in strong companies (blue chip
companies)
Market Timing
Steps to Financial Security for OFW’s
11
UNDERSTANDING STOCK
MARKET
Steps to Financial Security for OFW’s
12
Steps to Financial Security for OFW’s
13
Steps to Financial Security for OFW’s
14
Steps to Financial Security for OFW’s
15
Basic Consideration
Invest in Basic Needs
– Food, Water, Shelter
– Infrastructures
Invest in BIG Companies
– Ayala, Sy, Gokongwei, Tan, etc
Steps to Financial Security for OFW’s
16
Steps to Financial Security for OFW’s
17
Philippine Online Stockbrokers
Steps to Financial Security for OFW’s
18
Mutual Funds
Steps to Financial Security for OFW’s
19
UNDERSTANDING POOLED
FUNDS
Steps to Financial Security for OFW’s
20
Kinds of Mutual Funds
EQUITY
BALANCED
FIXEDINCOME
75% - 90% invested in
stocks
50% in stocks, 50% in
fixed-income
100% in fixed-income
securities
Average annual return:
15% - 20%
Average annual
return: 10% - 15%
Average annual
return: 6% - 10%
Medium risk, Higher
risk compared to other
MF types
Medium risk,
Moderate risk
compared to other MF
types
Medium Risk, Lower
risk compared to
other MF types
For aggressive
investors
Ideal for long term
growth (5 years or
more)
For balanced
investors
Medium to long term
growth (3-5 years or
more)
Steps to Financial Security for OFW’s
For conservative
investors
For long term capital
preservation (5 years
or more)
MONEY
MARKET
100% in short term
fixed-income
securities
Average annual
return: 1% - 2%
Medium Risk, Even
Lower risk compared
to other MF types
For very conservative
investors
For short term capital
preservation (1-2
years)
21
Philippine Mutual Fund Companies
Source: www.pifa.com.ph
Steps to Financial Security for OFW’s
22
Philippine Major Banks with UITF’s
Steps to Financial Security for OFW’s
23
UNDERSTANDING VUL
Steps to Financial Security for OFW’s
24
Steps to Financial Security for OFW’s
25
Steps to Financial Security for OFW’s
26
VULs
Protection
Exact
Period Term – 5yrs,
7yrs, 10yrs, 15yrs
Focus on Protection
Partial or Full
Withdrawal based on
available Fund Value
Investment either in:
Bond Fund, Managed
Fund, Growth Fund,
Equity Fund, Money
Market, Active Fund
Risk would depend on
Investment Vehicle
Ideal for long term
growth
Protection
Account Plus
Investor
Account
Millionaire
Account
Life time payment
Single Payment
Single Payment
Focus on Protection
Focus on Investment
Focus on Investment
Partial or Full
Withdrawal based on
available Fund Value
Partial or Full
Withdrawal based on
available Fund Value
Partial or Full
Withdrawal based on
available Fund Value
Investment either in:
Investment either in:
Investment either in:
Bond Fund, Managed
Fund, Growth Fund,
Equity Fund, Money
Market, Active Fund
Bond Fund, Managed
Fund, Growth Fund,
Equity Fund, Money
Market, Active Fund
Bond Fund, Managed
Fund, Growth Fund,
Equity Fund, Money
Market, Active Fund
Risk would depend
on Investment Vehicle
Risk would depend
on Investment Vehicle
Risk would depend
on Investment Vehicle
Ideal for long term
growth
Ideal for short to longterm growth
Ideal for short to longterm growth
Steps to Financial Security for OFW’s
Source: Pru Life Uk
27
Steps to Financial Security for OFW’s
Source: Pru Life Uk
28
Steps to Financial Security for OFW’s
29
Protection Account
Age : 45 -50
Fund: Pro Active
Term:
Premium
Benefits
Sum assured
TPD, LCB, ADD
Number of Yrs
10 Yr
Lifetime
4000/mo (48k/Yr)
3000 (36K/yr)
Financial Products
PEP10
PAA+
P250,000 - 300,000
P600,000- 800,000
P250,000 - 300,000
P600,000- 800,000
Projected Fund Value of Investment
10 Yr
Amount
P518,276 - 542,774
Amount
P173,519 - 203,793
20 Yr
P1,071,179- 1,186,627
P517,746 -658,734
Steps to Financial Security for OFW’s
30
Investor Account
Age : 45-60
Investment Link: ProActive Fund
Single Premium
Benefits
Sum assured (25%)
Accelerated TPD
Accidental Death & Disablement
Accidental TPD
Murder & Assault (included in PA-ADD)
Accidental medical reiumbursemnt
Number of Yrs
1 Yr
5 Yr
10 Yr
15 Yr
Steps to Financial Security for OFW’s
P100,000
P1,000,000
Financial Products
PIA +
PruMillionaire
25,000
250,000
100,000
100,000
50,000
10,000
-
Projected Fund Value of Investment
Amount
Amount
P94,602- 97,505
P1,005,328 -1,008,258
P107,000 - 127,993
P1,357,271 -1,364,777
P115,713 - 173,946
P1,903,903 -1,913,021
P117,516 -234, 985
P2,624,033 -2,654,687
31
Steps to Financial Security for OFW’s
32
Top 5 Insurance Companies
Sun Life of Canada (Philippines) Inc
Philippine American Life & General
Philippine AXA Life Insurance
Pru Life Insurance Corp of UK
Manufacturers Life Ins Co (Phil)
Steps to Financial Security for OFW’s
Source: insurance.gov.ph
33
Our Websites and Social Media
Accounts
Our Main/Parent Site:
– www.pinoymundobiz.org
(Angat Pilipinas Coalition for Financial Literacy)
OFW UsapangPiso Forum Site:
– http://www.ofw-usapangpiso.com
Facebook Group
– https://www.facebook.com/groups/
OFWusapangpiso/
(Discussion Group and Forum Extension)
Twitter :
– https://twitter.com/ofw_usapangpiso
Steps to Financial Security for OFW’s
34
Things to remember
Where are you now financially?
What are your financial goals?
How are you going to achieve that goals?
Steps to Financial Security for OFW’s
35
OFW UsapangPiso Forum Pocket Seminars
INVESTMENT-BUSINESS-FINANCIAL PLANNING FORUM FOR PINOYS ABROAD
Speaker:
Tristan Cristobal
LOGO
http://www.ofw-usapangpiso.com