A truth about life…And what one man did to prepare for it.

We can never tell what fate may bring us. Although we are on the top of our health, sometimes, there will still be surprises that will shake us – a medical condition, breakdown or an accident. And that’s a sad truth about life ; our physical bodies can be subject to illness, and ultimately, death.  But what we may not be aware of is that we can do something to prepare for it.

This is shared on this story where a family is able to survive a father’s sudden illness, because of life insurance. As his wife Tonia, said, “Everyone thinks because you’re going through a hard time, well, the bills don’t stop.. That’s the truth, you know. Your life may seem like it stopped, but everything around you is still going.”   

Watch the video to know more.

Video credit: LifeHappens.org @ https://www.youtube.com/watch?v=wEfdx5l0ens

LIFE INSURANCE JARGONS EXPLAINED

A policy holder can purchase a term life insurance with additional benefits called “riders”.

Let’s define some of these terms.

What is a term life insurance?

A term life insurance is a policy that covers a certain period. It will depend on the policy owner if he wants to renew the contract once that period expires.

What is a rider?

To explain what a rider means, we will have to explain what a basic life insurance is first.

A basic life insurance includes a death benefit wherein the family or beneficiary receives a fixed amount stated in the contract should the policy owner passes away.

If the life insurance has a rider, this means that an additional benefit has been included to help meet some specific needs of the policy holder.  Some of these are: accidental death benefit, disability waiver, accelerated benefit and a lot more.

This means that life insurance is flexible and there are different riders available to suit our needs.  Amazing, yeah?

 

What this Man did the Night Before he Died Changed Their Lives Forever…

Life has always been very playful.

Sometimes things are working out the way you want it to be – fun, active, prosperous, and happy. On one day, everything seems to be very normal and exciting, and there is that one day where everything just snap out, with a flick of a second.

This story shows not only the tragedies occurred to a happy family, but also highlights one of the key characteristics of Life Insurance.

Video Credits: https://www.youtube.com/watch?v=FfSqwgYK7zo

Life Insurance Trivia

Once life insurance applications are signed and paid, the status of that application is temporarily enforced, even if the documents are still to be processed by the Life Insurance Company.

What does this mean?

Even if the application is still being processed, should something happens to the proposed insured, the Life Insurance Company is already liable to the beneficiaries of the life insurance policy. Yes, once you signed and paid your life insurance application, you are already insured.

Great huh!

Top Mutual Funds in the Philippines as of November 30, 2015

As of November 30, 2015, the Philippines has a total of 54 active Mutual Fund Companies as per Philippine Investment Fund Association (PIFA).

Equity funds have declined compared to the results of stock market performance last October. This trend is not unique to mutual funds. The equivalent managed fund UITF is also moving in the same direction as of month ending October.

Balanced funds in general are going down as well compared to the previous month’s performance, comparatively doing better though with equity funds. As we all know, balanced funds are in the moderate risk profile, consisting both stocks and fixed income instruments in the portfolio.

The most profitable market as of November month end is the fixed income market, providing the Bond Funds’ investors a YTD rate of return ranging from 1.55% to 4.57% for the top 5 in the category.

Need more information about Mutual Funds? Check out this podcast session.

Top 5 Equity Funds Year-to-Date

Fund Name Fund Type NAVPS YTD Return
1 United Fund, Inc. Equity Fund 3.1966 -1.70%
2 Philippine Stock Index Fund Corp. Equity Fund 788.1 -2.26%
3 Philequity PSE Index Fund Inc. Equity Fund 4.6841 -2.72%
4 First Metro Save and Learn Equity Fund,Inc. Equity Fund 5.4167 -2.79%
5 ALFM Growth Fund, Inc Equity Fund 250.33 -4.18%

Top 5 Balanced Funds Year-to-Date

Fund Name Fund Type NAVPS YTD
1 Cocolife Dollar Fund Builder, Inc. Balanced Fund $0.03546 2.49%
2 Bahay Pari Solidaritas Fund, Inc. Balanced Fund 2.0174 -0.82%
3 Sun Life Prosperity Dollar Advantage Fund, Inc. Balanced Fund $3.151 -1.76%
4 First Metro Save and Learn Balanced Fund Balanced Fund 2.7497 -1.80%
5 One Wealthy Nation Fund, Inc. Balanced Fund 1.0119 -2.61%

Top 5 Bond Funds Year-to-Date

Fund Name Fund Type NAVPS YTD
1 Cocolife Fixed Income Fund, Inc. Bond Fund 2.5308 4.57%
2 ATRAM Total Return Dollar Bond Fund, Inc. Bond Fund $1.0956 3.10%
3 ALFM Dollar Bond Fund, Inc. Bond Fund $417.65 2.31%
4 Philam Dollar Bond Fund, Inc. Bond Fund $2.1146 1.89%
5 Philequity Dollar Income Fund Inc. Bond Fund $0.0554466 1.55%

Top 10 Mutual Funds in the Philippines as of November 30, 2015 (5-Year Return)

Fund Name Fund Type NAVPS 5 yr. Return
1 Philequity PSE Index Fund Inc. Equity Fund 4.6841 12.52%
2 Philippine Stock Index Fund Corp. Equity Fund 788.1 12%
3 Philequity Fund, Inc. Equity Fund 34.3139 11.98%
4 First Metro Save and Learn Equity Fund,Inc. Equity Fund 5.4167 9.01%
5 NCM Mutual Fund of the Phils., Inc Balanced Fund 1.802 8.92%
6 First Metro Save and Learn Fixed Income Fund,Inc. Bond Fund 2.2091 8.74%
7 Sun Life Prosperity Philippine Equity Fund, Inc. Equity Fund 3.8807 8.73%
8 ATRAM Dynamic Allocation Fund, Inc. Balanced Fund 1.7553 8.09%
10 Bahay Pari Solidaritas Fund, Inc. Balanced Fund 2.0174 7.71%

7 Funny (but Practical) Tips to Maximize Your Savings

I’ve asked Reddit for their opinion on how members think the best way to spend their Christmas Bonuses. Surprisingly, received a funny but practical response from user send_me_more_ram, which is applicable not only for the upcoming holiday seasons, but to the remaining days ahead.

Some of which you might be able to relate. Here they are:

Tips on Where to Spend Your Christmas Bonus

– Pay off debts whether they may be credit card debts, 5/6 debts, or loans from friends/family

– put a portion in long term savings/investments

Tips on Spending Less

1. if you want to spend less, sleep more. Sleep costs nothing and gives you energy. You can also go to your local church and pray or meditate. It’s free and you may get the gods to be in your favor

2. if you want to spend less and want to lose weight? Skip your dinners for 3km walks and go to bed early before the hunger pains kick in. You’ll lose 8lbs per month and save around P1,500-3,000 on the dinners you’ve skipped, and you’ll feel healthier

3. want to spend less on toiletries? Shit in your office or nice mall bathrooms. Always ask for extra tissues at restaurants or food courts

4. want free ketchup? Always ask for extra ketchups at fastfood stores

5. want to save money on overpriced coffees and frappes from starbucks? Just use your imagination that you’re sipping that dark mocha frappe and its cold frappy goodness is making its way down your through. And then just drink a few cold glasses of water. The craving will go away

6. want to save money? Don’t get a bf/gf. If you do get a bf/gf, make sure you don’t make a baby you can’t afford

7. Want to save a ton of money on beauty and cosmetics, just use a regular bar of soap and avoid the sun like the plague. Beauty companies prey on your insecurities. They want you to know and feel that you’re ugly and that you’re not good enough for your crush or SO. Talk to elders in long term relationships and they’ll tell you that character/ugali would matter more in a relationship, if in the off-chance that your are not very blessed with good looks, you can always shut off the lights during sexy times (but you gotta make sure you’re good in bed)

There are lot of things that we do in order for us to save for a specific thing or a specific event in out lives. Nevertheless, we do work hard to get it. On this journey to financial success, let’s continue to learn how we can balance our present lives with the life that we are about to make in the future.

How about you? What tips can you share on how to save money for future use? Please share them in the comment section below.

4 Things That Kobe Bryant’s Retirement Could Teach Us About Personal Finance

If you are an NBA fan, you might have heard the news that one of the living (and playing) legends of the league announced his retirement last Sunday (Nov 29, 2015). Yes, I’m referring to Kobe Bryant. He’ll be playing only until the end of this season and will start facing a new stage of his life – Retirement.

Of course, we’ll not be talking about the Sports angle of this story. Let’s talk about what we can learn from one person’s story of success and perhaps emulate (on a smaller scale maybe) that could lead us to our own journey to Financial Success.

Here it goes…

Attributes to www.ThePlayersTribune.com
Attributes to www.ThePlayersTribune.com

I. We are not capable of working FOREVER.

Yes, walang FOREVER (no such thing as forever). Everything ends.

As the famous ironic quote says “The only constant thing in life is change”. Our mental and emotional state change, or physical ability deteriorates. This means that we cannot work forever. We cannot keep on depending on our active income to support us for the rest of our lives.

Here’s a more dramatic verse from Kobe’s poem ending his career where he earned a total of $680 Million:

You gave a six-year-old boy his Laker dream
And I’ll always love you for it.
But I can’t love you obsessively for much longer.
This season is all I have left to give.
My heart can take the pounding
My mind can handle the grind
But my body knows it’s time to say goodbye.

That’s the reason why we should and understand the second lesson (and take it seriously).

II. Build a second (third, fourth, fifth, etc…) Income Stream

Specifically, “Less-Active” to PASSIVE Income Stream

Knowing that our body will respond and perform differently when we are young compared to an age of more maturity (and seniority), we have to anticipate how we are going to live past the prime of our lives.

CNN reported that Kobe has earned around $680 Million from his 20-year stint at the NBA, majority of which were earned during the last few years as he acquire the “legend” status. Imagine how much he will be giving up by deciding to retire.

However, aside from his basketball career, Kobe do endorsement stints on the side for well-known brands like NIKE. Coming from a very physical and tiring profession, Kobe will still be able make money from less-active projects.

The lesson here is this, while we take our journey to Professional or Entrepreneurial success, we have to build an income stream that will require less energy and less stress compared to what we are currently doing. Everything should be aligning, our physical deterioration with our financial sources – from an active income, to a less active income, and eventually, to a passive income.

III. Invest in your Passion

Successful and happy people tend to do what they love to do, and that’s what we really want to achieve. At the end of the day, it seems that it will fill good to be wealthy, but it definitely feels good to be happy.

I don’t know where Kobe invests all his money, but based on my research, he have investments that are directly or indirectly related to the sport that he loves.

During 2013, he set up Kobe Inc. with the vision of owning and growing brands and ideas that challenge and redefine the sports industry while inspiring the world. I believe Kobe Inc. is a holding company that invests on other businesses (similar to Ayala Corporation, MPIC, amongst others).

The first investment made by the company was a sports drink called BodyArmorJust this 2015, he teamed up with a venture capital firm to invest in the The Player’s Tribune – a popular website that operate in the sports niche.

While we can make money on various ways, be it active, less-active, or passive sources of income, doing something that we really love will makes everything sustainable, since we are more likely to stick to something we love, through thick or thin, than to something we don’t.

My realization is that on the quest to generate less-active income, it could be an opportunity for us to explore the things that we love to do. Even at this point, say we are in a position that we don’t really like our primary source of income, we could always use our leisure time to make our passion profitable.

Easier said than done, but I remember a quote from some videos that I’ve watched that could inspire you anyway, “Version one is always better than version zero”. It just means that doing something, to achieve our passion in this case, is always better than doing nothing.

IV. Diversify

Diversification does not necessarily apply only to investments, but also to source of income.

With a variety of sources of income, we are able to decide freely on what’s best for us. Relying solely on a single income stream could probably lead to frustration and desperations specially if we don’t love what we do.

 

Top Performing UITFs in the Philippines as of November 30, 2015

Here are the Top Performing UITFs in the Philippines from UITF.com.ph as of November 30, 2015.

Top 5 Equity Funds (Year-to-Date)

Bank Fund Name ROI
1 China Banking Corporation CBC EQUITY FUND -0.47%
2 Bank of the Philippine Islands BPI Philippine High Dividend Equity Fund -1.11%
3 Bank of the Philippine Islands BPI Equity Value Fund -1.99%
4 Asia United Bank Equity Investment Trust Fund -3.15%
5 Union Bank UnionBank Dividend Play Equity Portfolio -3.58%

Top 5 Balanced Funds  (Year-to-Date)

Bank Fund Name ROI
1 Philippine Bank of Communications BEST BALANCED FUND 0.67%
2 Robinsons Bank RBank Balanced Fund 0.15%
3 Bank of the Philippine Islands BPI Balanced Fund -0.27%
4 LandBank of the Philippines Growth Fund -0.91%
5 China Banking Corporation CBC BALANCED FUND -1.46%

Top 5 Intermediate Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
1 Union Bank UnionBank Medium Term Fixed Income Portfolio 2.20%
Portfolio Duration: 2.28 year(s) as of 2nd quarter of 2015
2 Union Bank UnionBank Infinity Prime Fund 2.13%
Portfolio Duration: 2.41 year(s) as of 2nd quarter of 2015
3 China Banking Corporation CBC INTERMEDIATE FIXED-INCOME FUND 1.30%
Portfolio Duration: 0.26 year(s) as of 3rd quarter of 2015
4 Bank of the Philippine Islands BPI Premium Bond Fund 0.95%
Portfolio Duration: 1.26 year(s) as of 2nd quarter of 2015
5 EastWest Banking Corporation EastWest Peso Intermediate Term Bond Fund 0.89%
Portfolio Duration: 1.56 year(s) as of 3rd quarter of 2015

Top 5 Medium Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
1 BDO Unibank, Inc. BDO PESO FIXED INCOME FUND 3.08%
Portfolio Duration: 3.10 year(s) as of 3rd quarter of 2015
2 BDO Unibank, Inc. BDO PESO BOND FUND 2.62%
Portfolio Duration: 3.02 year(s) as of 3rd quarter of 2015
3 Union Bank UnionBank Philippine Peso Fixed Income Portfolio 1.94%
Portfolio Duration: 3.97 year(s) as of 2nd quarter of 2015
4 Asia United Bank Peso Investment Trust Fund 1.60%
5 BDO Unibank, Inc. BDO MERIT FUND MEDIUM TERM PORTFOLIO 1.56%
Portfolio Duration: 3.31 year(s) as of 3rd quarter of 2015

Top 5 Long Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
1 AB Capital AB CAPITAL PREMIUM FUND 6.34%
Portfolio Duration: 1.09 year(s) as of 3rd quarter of 2015
2 Union Bank UnionBank Long Term Fixed Income Portfolio 3.38%
Portfolio Duration: 4.44 year(s) as of 2nd quarter of 2015
3 Union Bank UnionBank Tax Exempt Portfolio 2.35%
Portfolio Duration: 2.65 year(s) as of 2nd quarter of 2015
4 Rizal Commercial Banking Corporation RIZAL PESO BOND FUND 0.49%
Portfolio Duration: 3.37 year(s) as of 3rd quarter of 2015
5 Security Bank Corporation SB PESO BOND FUND 0.02%
Portfolio Duration: 7.90 year(s) as of 3rd quarter of 2015

Disclaimer: Past performance is not an indication of future results. There are several risks associated with investing in mutual funds/UITF which are further discussed and enumerated in the fund’s prospectus. Please read the fund’s prospectus before you start investing.