A Lesson from the Vetoed SSS Pension Increase Bill

Last year, the Senate approved the bill granting an extra P2,000 monthly to SSS pensioners. This was in response to the two million Filipinos who receive a meager amount of P1,200-P4,000 monthly pension which is not enough to pay for medicines due to illnesses that come with old age and other needs. There were some speculations though that the approval was linked to the 2016 elections. Nevertheless, retirees and pensioners were hopeful that the increase will happen.

However, the pensioners’ mood soured when Pnoy vetoed the bill this Thursday, 14th January. Apparently, Pnoy said that the increase will significantly decrease SSS’ income that will result to negative funds and undue closure by year 2029.

Here’s an excerpt of the president’s message:

“…the proposed pension increase of P2,000 per retiree, multiplied by the present number of more than two million pensioners, will result in a total payout of P56 billion annually. Compared against annual investment income of P30 billion-P40 billion, such total payment for pensioners will yield a deficit of P16 billion-P26 billion annually..In view of these considerations, I am constrained to veto” (House Bill No. 5842).

Source: http://www.interaksyon.com/article/122711/pnoy-vetoes-p2000-hike-in-sss-pensions

With the turn of events, what can we learn from Pnoy’s decision?

If we think about it, retirement should be a time to enjoy the fruits from years of our labor. But it seems that if we rely on our government for our retirement needs, there is no guarantee that we will be assured of our future. Even if we receive the highest monthly pension limit of P13,000, it will still not be enough to sustain the increasing cost of living especially during our retirement years.

So, what do we do now while we have the ability to earn?  

The best step to take is to look for different instruments that will fund our retirement. SSS pension is there to assist our future financial needs but it should not be the main source of our retirement fund.

We may look at different options out there by learning how savings, insurance, mutual funds, UITFs, stocks, bonds and other financial vehicles can help in reaching our goals.

It sure is better to save and invest early. I have a disclaimer though, make sure that we entrust our money in reliable institutions. Because in the end, it may already be too late and we may end up regretting not taking any action to secure our retirement needs. Don’t you agree?

Why Do People Get Tricked In Joining Investment Scams?

It’s all over the news, and it’s really sad to see people fall and become victims of empty promises aimed to rob them of their hard earned money.

“They deserve it, those GREEDY people!”

That’s what I often read in Facebook groups and forums. Well, really? Are they really just Greedy?

Let’s explore the different types of people that become victims of these types of transactions.

Victims of an Investment Scam

1. People who wish to be taken out of poverty as soon as they can.

I remembered a story from one of my clients regarding the scandal of Aman Futures that happened during 2012.

During the height of one of the most controversial investment scam in the history of the Philippines, farmers started to sell their farms to invest in Aman futures – expecting hefty profits from the company.

The hype increased as members parade their newly bought SUVs in the provincial roads.

What’s sad in this story?

Those farmers sold everything they had for a hope that it will be “the one investment” that will lift them up from poverty.

We already know how this tragedy ended up.

2. People running for the quick buck

Few years ago, I started exploring the world of Forex trading. The promise and potential was so great that I thought I could buy a 3 Million Peso condo unit in a year of trading with an investment of P5,000.00.

I didn’t expect that I would burn my P5,000 in just 1 week of trading. Burned as in nawala lahat!

Well, I thought that I can get back the lost money by investing another P5,000.00. After a week, I lost it again.

Just to be clear, Forex trading is not a scam. But the behaviour on how I dealt with the investment is somehow the same with people who are going after the fast and easy money.

As the famous investment mantra says “The higher the potential returns, the higher the risk.”

Investment scams offer a tremendous amount of return in a short time frame. No doubt that the risk is equally high as well.

3. People with good intention to do business but fell in the wrong organization.

There are some who are just there in good faith, trying to make an honest income, but for an unfortunate reason, was involved in a questionable organization.

The best way to get away from this is to do our due diligence. It’s best to check out the collection of articles  below to help you detect whether the company you’re trying to deal with is legit or not.

It won’t hurt to spend time checking out which company you’ll involve yourself in before putting that much effort in trying to build your business.

4. People who wish to ride the scam parade and benefit from it

These people already knew clearly what they are diving into, they knew that one way or another, they are involving themselves in an investment scam. They proceed anyway.

Well, in fact, these people try to ride the scam parade with the aim to get out with as much they can.

How can we avoid being a victim?

In most cases, being aware of how scams operate would help us get away from the headache of being a victim.

In some instances, even though some people are aware, they’ll dig in anyway. That’s a risk they have voluntarily taken.

How to spot a scam? You may refer to the following articles.

1. How to spot investment scams by Rappler.com
2. How to Avoid Scams by Edmund Lao
3. How you can detect an investment scam by Abs-CbnNews.com

Here’s Why Financial Advisors Should Market Online

The traditional approach of prospecting (in general in most industries) starts with the Natural Market, then crawls to the referrals. Some do it on cold markets.

These prospects have one thing in common. For all of them, we don’t know if they are already on the mindset of taking initiative to their finances or not.

Convincing them drags the Sales Process.

What if there’s a way to find those people who are actively taking initiative to their protection and investing needs, and all they need is a bit of guidance?

That’s how I built my Financial Advisory business. I never ran out of prospects to call and meet, but I ran out of time to do appointments.

Building An Unlimited Source of Prospects Through Internet Marketing

…and not just any prospect but an unlimited source of prospects who are looking for investments and insurance.

Online Marketing

These are marketing initiatives done online through several platforms like websites, social media, emails, sms, videos, podcasts, and more.

Advantages of Prospecting Through Internet Marketing

1. Reliability. A successful internet marketing campaign provides a reliable source of prospects. I never really bothered asking for referrals, unless my clients excitedly give their friends names to me because they have established their trust on me (which is another topic to talk about).

2. Profitability. Needless to say, investments on internet marketing, if done correctly, pays very well. Remember, the prospects you have gathered are already interested, which means there’s a higher probability of closing them.

3. Sustainability. One of the most crucial part of business is to establish sustainability – the ability to maintain profitability for a long period of time.

4. Never chase a client ever again. One of the most frustrating part of having a very limited prospect base is that Financial Advisors will end up chasing a client to close, which compromise the self-esteem of the advisor. The worst part here is the more you chase your client, the more they’ll run away.

5. You’re at a psychological advantage. Since your prospects are the one reaching out to you, you’ll be able to set appointments with ease.

With the unlimited source of prospects, you can proudly say “Mission before Commission”.

There are lots of great benefits if you learn to market yourself online, and make yourself an authority of a particular niche.

All you have to do is to invest time, effort, and money to setup everything.