With the collapse of many pre-need companies in the Philippines, parents are looking for other ways to prepare for their children’s college education.
Saan na tayo magse-save o mag-invest? Hindi pa naman tayo bihasa sa mutual funds or stocks.
Meron din namang mga reliable pre-need or insurance companies dito sa atin. Mag-research lang ng mga matatagal nang nag-o-operate here or abroad.
Puedeng mag-invest sa Pag-ibig MP2 or sa SSS Flexi-Fund. Ang Pag-ibig MP2 ay para sa lahat na Pag-ibig members samantalang ang SSS Flexi-Fund ay para lang sa mga OFWs na nagbabayad ng maximum monthly contribution.
Ito ay isang comparison ng estimates ng makukuha after paying 1,500 pesos monthly for 5 years.
|YEAR||PRE-NEED||PAG-IBIG MP2||SSS FLEXI-FUND|
|12th Year||Get 20,000|
|11th Year||Get 20,000|
|10th Year||Get 20,000|
|9th Year||Get 20,000|
|8th Year||Get 20,000|
|7th Year||Get 5,000|
|6th Year||Get 5,000||Get 104,500||Get 104,900|
|5th Year||Pay 1,500||Pay 1,500||Pay 1,500|
|4th Year||Monthly for||Monthly for||Monthly for|
|3rd Year||5 years||5 years||5 years|
|2nd Year||= Total is||= Total is||= Total is|
|Has Credit||No Credit||No Credit|
|No Government||With Government||With Government|
. Credit Insurance means the pre-need firm will pay the 1,500 monthly premiums if the payor dies within the paying period
. Some pre-need plans do not give 5,000 on the 6th and 7th year. Instead they give 20,000 on the 13th year.
. The pre-need plan above may not represent all pre-need plans.
More Info on SSS Flexi-Fund and Pag-ibig MP2
Question from one of our Young Readers:
Puede po bang turuan nio ako about time deposit, kasi first time ko pa lang sa mga bagay na ganito. Sana po magbigay kayo ng examples galing sa sarili ninyong time deposits.
One of my neighbors who is an OFW has been making wise real estate investments here in our subdivision in Muntinlupa. He buys abandoned and foreclosed homes here, repairs them, and then rent them out to good tenants.
Both these SSS Flexi-Fund and Modified Pag-ibig 2 (MP2) are savings programs offered by government agencies.
Both offer interest rates higher than those offered by banks for savings accounts and time deposits.
Both programs are guaranteed by the Philippine government.
Both are tax-free. Total savings plus their dividend or interest earnings are tax-free.
Here are the differences between the 2 programs:
We’re glad that the SSS has improved its salary loan program. In January 2011, I wrote on this blog that SSS salary loans are not really low-cost, compared to some bank loans, such as the Credit-to-Cash of BPI Express Credit and the Easy Pay of BDO Credit Cards.
Now, finally, SSS has listened to members’ concerns, and these are the changes:
Updated January 11, 2013
Puede mo nang iwidro ang total Pag-ibig 2 savings mo earlier than your maturity date.
You want to save and grow your money? Modified Pag-ibig II (MP2) is a great savings plan. It has advantages over regular savings accounts, time deposits, or pre-need plans.
Here are three BPI remittance partners in Saudi Arabia for sending money to the Philippines: