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Retirement fund

Discussion in 'Band of Glockers' started by ilocano, Mar 6, 2009.

  1. ilocano

    ilocano Down Under.

    Dec 9, 2004

    Apart from our unreliable SSS, can you suggest a more plausible (and safe) way to save up for retirement??
  2. cznayr

    cznayr Dis-member

    Jun 14, 2004
    well sir, depende sa risk aversion mo... less risk less ang interest rate na you can earn...

    I would prefer ang mutual fund kaso ngayon dahil sa crisis baka magnegative or di gumalaw ang principal mo...

    May mga banks din na dahil sa kakulangan ng funds ay nagtataas ngayon ng interest rate.. i.e. hsbc e-saver (kaso middle east lang) that offers 5.3% p.a., lang maintaining balance lang minimum account... ito pinakasafe na maisip ko..

  3. Allegra


    Mar 16, 2003
    real estate , look for bargains
  4. bugoyski


    Oct 7, 2008
    Real estate, as mentioned above.

    Or precious metals like gold or silver.

    Pwede rin lead, brass, and copper. :2gun:
  5. cebuboy

    cebuboy toy soldier

    Apr 27, 2004
    What about guns and ammo? Price of 5.56 is around 12 a pop now its 24-28...
  6. I think it should be liquid funds.
  7. akula

    akula BizDuc NM Millennium Member

    Oct 11, 1999
    Diri, Diha, Didto
    I like how you think...
    None of my guns has depreciated so far... and I'm enjoying them :)

    Real estate would be relatively hard to liquidate, but would be a nice investment IF you're have them rented or leased. Otherwise, squatters and realty taxes are headache.

    Precious metal is quite volatile.

    Cars and Electronic gadgets -- forget them...

    Spread your risk. There are some pension plans from RELIABLE companies with added life insurance bonus. Be careful of high returns... just too good to be true.
  8. You will get about P11K-P12K/month, at this time, from the SSS, if your contributions (at least 120 months) are fully paid. You can get the first 18 months lump-sum, with some discounting.

    I teach Personal finance and retirement. Will post some stuff.


    1) the hardest part is NOT finding where to invest in. The hardest part is SAVING up enough from your current income, so that you have a significant amount to invest. I have 32 ways to save.

    2) there are ways to avoid (not evade, there is a difference) taxes. E$very peso you save will COMPOUND for all the years until you retire, so avoiding what taxes you can is very important.

    3) yes, there are good investments and there are bad investments. Would take several pages to explain all. But here's a tip ; you can get 8% or more per annum from hi-grade corporate bonds. From a 91-day bank certificate of deposit or T-bill you will get only about (depending on the bank) 3.5% per annum before tax , or only about 3.15% after tax - because there is a 10% withheld tax on the interest earned - at today's rates.

    Meanwhile, Inflation is about 7.3%, so you LOSE (7.3%- 3.15%) = 4.15%, when you put your money into a 3.5% before tax bank certificate of deposit, or 91-day T-bill. (BUT, that is better than losing the entire 7.3% of inflation, which you would if you kept your savings in your mattress at home instead of in a bank certificate of deposit.)

    4) I will just add one more thing in this posting : DIVERSIFICATION. There is such a thing as the "Investment Pyramid", which tells you into what kinds of investments you should START investing, and then move on up into other types. YOU NEVER PUT ALL YOUR EGGS IN ONE BASKET, as all those people who put their mlife savings into the Legacy group are now deeply regretting. There are mathematical ways to determine how much of your total investment portfolio should go into what kinds of investments.

    Then there is the POWER OF COMPOUNDING, different types of insurance, investment vehicles for retirement, Longevity Risk, overall cash flow matching, Death and Estate Planning, other things.

    Will look for some postings I made 2-3 years ago and re-post them here.

    One thing for sure - if you do not want to rely on your children and relatives in your retirement - to pay for your living expenses and illness expenses and funeral expenses - if you do not want to be a mendicant when you are old - then you must take steps NOW. And it's NOT EASY. How much NET WORTH do you have now? I can show you whether it is enough for your age (in most cases, it isn't.)

  9. ilocano

    ilocano Down Under.

    Dec 9, 2004
    Thanks for the reply guys.

    Definitely not going for real estate- easy to buy; hard to liquidate.

    Retirement plans through insurance companies-not anymore. Lost two educational plans for my two kids to CAP.

    SSS, yeah- I'm paying, but am not counting on it either.

    I've been working overseas for 3 years now WITHOUT savings (attributed to reckless spending). The current crisis brought me back to my senses though, so now I'm a bit worried.

    I'm so anxious on Ante's next post. Regards.
  10. Allegra


    Mar 16, 2003

    mahirap iliquidate ang real estate kung mahal ka magbenta
    Di naman pwede ibenta ng mura kung binili mo rin ng mahal
    That's why I said look for the incredible bargains available now
  11. How about bonds from very reputable companies?
  12. bugoyski


    Oct 7, 2008

    I also want to know your recommendations. Many investments vehicles are no longer safe nowadays due to the global crisis.

    Any good long-term investments possibilities? Say, for example, that I just want to preserve the value or purchasing power of my money. Any recommendations?
  13. Allegra


    Mar 16, 2003
    Anyone know any reputable companies? Can you share?
    Maybe mawala allergy ko sa other people investing my money for me
  14. kidlat_tahimik


    Aug 21, 2008
    pinaka safe ngayon ay bumili ka ng mga government issued na treasury bills. pinaka mababa na denomination ay nasa 5thou to as high as 1million. yung interest pag nagmature na ay mas higher with regular bank time deposit. ang kagandahan ng treasury bill ay guaranteed ito ng philippine government di malulugi kagaya ng legacy.
    Last edited: Mar 7, 2009
  15. Vault Keeper

    Vault Keeper

    Sep 14, 2004
    The Vault
    Some banks are offering a 3 and 5 year investment for Globe Telecom and might want to consider getting some.
  16. Allegra


    Mar 16, 2003

    what return are we talkin about here?
  17. I bet Tbills are very low at the moment.
  18. ppts799

    ppts799 Daisho

    Oct 12, 2002
    i dont know how the rate compares to others, but i heard SDAs are very safe. 4 months ago, interest was at a Net of 4.4% but as of last month, i think net of 4%.
  19. mikey177

    mikey177 Remember

    Jan 28, 2003
    I really appreciate all the advice that Ante and the other BoGs offered in this thread from 2005. It got us on the right track for preparing for the future and eventual retirement. Thanks a lot, guys.