financial planning

DID YOU KNOW THAT….?

1 - Rich

4 - Financially Independent

13 - Still Working

16 - Dead- Never reach age 65

66 - Dead Broke-Dependents of

Others

They Didn’t Plan to Fail.

They FAILED to PLAN effectively.

For every 100 people age

65:

Whatare your financial goals?

> Buying a home, car

> Education

> Life & Family

Protection

> Health

> Retirement

WHAT IF…

a couple retires at the age of 65 and expects to live 15 more years. On food expenses alone, how much will they spend?

Sample Computation … 365 daysX 2 personsX 15 yearsX 3 meals = 32,850 meals

X 50.00/meal

TOTAL = Php 1,642,500.00

Here’s a scenario for you to consider…

But most are still caught unprepared…

And social health insurance is almost always not enough…

Health has always been a major concern because of the cost it entails when someone gets sick.

53% would borrow funds from other family

members

95% would rely on personal savings to finance

treatment cost

HOW MUCH HAVE YOU SAVED since you HOW MUCH HAVE YOU SAVED since you

started working???started working???

INCOME

LESS

SAVINGS

EQUALS

EXPENSE

BEHAVIOR

3

EXPENSE

LESS

INCOME

EQUALS

DEBT

BEHAVIOR

2

INCOME

LESS

EXPENSE

EQUALS

SAVINGS

BEHAVIOR

1

Which one are YOU?

People’s Behavior on Money

Lack of DisciplineLack of Discipline

INCOME – EXPENSES = SAVINGSINCOME – EXPENSES = SAVINGS

INCOME – SAVINGS = EXPENSESINCOME – SAVINGS = EXPENSES

SAVE 10% to 30% of your Gross

INCOME regularly !

AM I REALLY ABLE TO SAVE?

ents sucSavings Account

Time Deposit

Low Interest Rates ( 0.80%-Savings; 1-3% TD)

Interest Rates subject to 20% withholding tax

No choice in how money will be placed

No life insurance

Am I happy with my Savings?

uments include:

•Savings Account

•Time DepositCannot be withdrawn upon death of depositor

In case of insolvency, deposit insurance guarantees only P500K

Deposits may be GARNISHED

Deposits are subject to ESTATE TAXES

Am I happy with my Savings?

Use SAVINGS for SHORT TERM (1yr & less) NEEDS LIKE…

Sinking Fund OR

Emergency Fund (6 Months x Monthly Expenses)

Day-to-Day Expenses

Other Miscellaneous ExpensesINVEST the rest of your Long-Term

Savings!!

AM I REALLY ABLE TO SAVE?

“THE POOR AND MIDDLE CLASS WORK

FOR THE MONEY.…THE RICH HAVE MONEY WORK FOR

THEM.”

HARD- EARNED MONEYHARD- EARNED MONEY

•WORKWORK

•BUSINESSBUSINESS

•PROFESSIONPROFESSION

Your Money makesYour Money makes

1%- Saving Account1%- Saving Account

4%- Time Deposit4%- Time Deposit

The banks investThe banks invest

your money andyour money and

make up to 42% make up to 42%

return.return.

15% - 60%15% - 60%

•PRE-NEED PLANSPRE-NEED PLANS

•MUTUAL FUNDSMUTUAL FUNDS

•INSURANCEINSURANCE

•INVESTMENT LINKINVESTMENT LINK

•HEALTH CAREHEALTH CARE

•STOCKSSTOCKS

TO MY FINANCIAL GOALTO MY FINANCIAL GOAL

(CHILD’S EDUCATION, BUYING A NEW HOUSE, OLD-AGE HEALTH-(CHILD’S EDUCATION, BUYING A NEW HOUSE, OLD-AGE HEALTH-

CARE, RETIREMENT,ETC)CARE, RETIREMENT,ETC)

PLAN effectively.

START EARLY.

LOOK FOR THE BEST FINANCIAL

PARTNER !

“No one plans to fail,

they only fail to plan”