[VetDocMLL]

Hi, im new to this forum and after my introduction this is my first post:

Im 37yrs old and i have 3 daughters (7yo, 3yo, 1yo). Both my wife and i are currently employed. But my wife plans to resign before the start of next school year (we expect to have 2 of our 3 kids in school by then). My wife will lose the group life insurance and the medical insurance that she is currently emjoying now.

Thinking ahead, the following are what i have in mind as my is financial plan:
1. Build up emergency fund until October of this year.
2. Get investment plans from insurance companies (we are currently looking at Generali's College secure plan for our 3 girls and Philam Life's lifeSave plus accumulator for me and my wife)
3. Invest in mutual funds (MetroBank's Metro Wealth Builder 5yr bond) and equity fund (BPi equity fund) every month.

My objectives for thinking of the plan above are to secure my daughters' education, have safety nets for me and my wife, and start building up my portfolio.

And these are my questions:
1. What's your opinion or experiences on Generali's College Secure Plan and Philam's LifeSave Plus Accumulator?
2. What's your opinion or experiences in Metrobank's 5 yr wealth builder fund and BPI's equity fund?
3. Do you think i have better options from all of the above?
4. What would you do differently? Why?

I already took metrobank's online investor assessment, and from there, i was a Moderate Investor.

Thank you very much in advance for your opinions and help on my questions.

[george88]

First If your willing to divulge the amount of your emergency fund, you and your wife monthly salary, estimated monthly expenses such as electric,water,phone,internet billing etc etc and food cost i am willing to answer your following question...

[MsPerryK]

Hello,

I am currently working in a financial firm here in the states and this is my advice to you:

Buy Term (life insurance) and invest the difference.
Stay away from any type of insurance that offers cash/savings/retirement and life bundle. You will be over paying for premium and the return is little to none compared to if you buy term (which is cheaper) and have a separate investment account. When deciding how many years you should have the term insurance; good rule of thumb is have it until the last child turns 18 years old. Since your youngest is 1 year old, buy term that is 18-20 years. Hopefully, your children will be out of the house, your mortgage are paid off and you have no debt.

For emergency fund, good rule of thumb is to take the total amount of your monthly bills times 6-9 months.

Historically, mutual funds offers more % returns compared to government bonds, CDs etc.

[SirZap]

Hi VetDocMLL,

since you're building emergency fund and your wife would be resigning, you should have built 6 months of the total gross salary of you and your wife's. now I know that your wife could get a resignation pay of 1 month's salary for every year she stayed with her current company, in my opinion that should be a separate fund for her own disposable income.

[VetDocMLL]

@george88,

For discussion purposes, let me give the add'l infos:
My wife earns ~PHp25k net per month...
I earn ~Php250k net per month...
Our monthly expense is Php100k per month...
My target emergency fund is ~Php600k, plan to have it in TD, monthly...
Looking at investing ~Php100k a month
Current net worth is ~Php3.5M, (real state, SDA)

Hope you can give your recommendation with the info above...

Thanks.

Post Merge: Aug 02, 2012, 06:27 AM@MsPerryK,

Thank you for your reply. I'll try to shop around for term insurance...
Post Merge: Aug 02, 2012, 06:30 AM@SirZap,

Thank you for your advice, i will convince my wife to invest whatever she may get as get as last pay...

[kithe]

Hi, im new to this forum and after my introduction this is my first post:

Im 37yrs old and i have 3 daughters (7yo, 3yo, 1yo). Both my wife and i are currently employed. But my wife plans to resign before the start of next school year (we expect to have 2 of our 3 kids in school by then). My wife will lose the group life insurance and the medical insurance that she is currently emjoying now.

Thinking ahead, the following are what i have in mind as my is financial plan:
1. Build up emergency fund until October of this year.
2. Get investment plans from insurance companies (we are currently looking at Generali's College secure plan for our 3 girls and Philam Life's lifeSave plus accumulator for me and my wife)
3. Invest in mutual funds (MetroBank's Metro Wealth Builder 5yr bond) and equity fund (BPi equity fund) every month.

My objectives for thinking of the plan above are to secure my daughters' education, have safety nets for me and my wife, and start building up my portfolio.

And these are my questions:
1. What's your opinion or experiences on Generali's College Secure Plan and Philam's LifeSave Plus Accumulator?
2. What's your opinion or experiences in Metrobank's 5 yr wealth builder fund and BPI's equity fund?
3. Do you think i have better options from all of the above?
4. What would you do differently? Why?

I already took metrobank's online investor assessment, and from there, i was a Moderate Investor.

Thank you very much in advance for your opinions and help on my questions.

We have these financial needs analysis where in you can actually compute and know how much fund will you be needing for the future like the education of your children, retirement fund, emergency fund, insurance protection, etc.

Based on your situation, and next year your wife will be resigning from her job, your family income will be lessen and you are the only one who will earn..

Its good to build up emergency fund at least 6 times or more of your monthly expenses, or much better if base on your salary...but consider also to have a life insurance protection to protect your income..

If you are earning 250,000 monthly, or 3,000,000 per year (net)
Your expenses is 100,000 monthly or 1,200,000 yearly..

Here is a SAMPLE COMPUTATION;
If you want to maintain the standard of living of your family, your life insurance protection would be at least 12,000,000
How is that? What if you die yesterday, your family will get the 12M, if she put it in a bank that can give 10% interest, your wife will get 100,000 monthly or 1,200,000 yearly.. It is like you are supporting them, even if you are no longer around.. That is love for your family..

You can get term insurance or whole life or vul, depends on your budget..

For the education funding, consider the following:
Age your child will start in college,
Years in college,
Cost of tuition fee, if you have school in mind where she will go to.
And the annual increase of tuition fee..
Investment products are good choice to fund for education..

Hanap ka pa ng ibang company and compare ..

[GoodSteward]

Here is a SAMPLE COMPUTATION;
If you want to maintain the standard of living of your family, your life insurance protection would be at least 12,000,000
How is that? What if you die yesterday, your family will get the 12M, if she put it in a bank that can give 10% interest, your wife will get 100,000 monthly or 1,200,000 yearly.. It is like you are supporting them, even if you are no longer around.. That is love for your family..

Ayy...wala na bank na may 10% interest, not even rural banks can offer that rate

(kahit sample computation lang siya)...Honestly dun ako nadali, sa sample computation, years back when I got my insurance. They always give the best case scenario....

[kithe]

Ayy...wala na bank na may 10% interest, not even rural banks can offer that rate

(kahit sample computation lang siya)...Honestly dun ako nadali, sa sample computation, years back when I got my insurance. They always give the best case scenario....

@GS, actually hesitant talaga ako to type the 10%, sample nga lang, baka kasi malula if gagawin kong 3%.. Haha..
Pero eto, 1,200,000 / 3% is 40,000,000 insurance coverage.

[VetDocMLL]

@kithe,

Thank you for your reply.

Any suggestions for other insurance compaies or products I should look at?

[kithe]

@vetdocmll,
Bias po with Sunlife, I am with Sun Life po kasi..

You can check our plans that can help you achieve your financial planning needs..

[BatmanBeyond]

@kithe,

Thank you for your reply.

Any suggestions for other insurance compaies or products I should look at?

Financial advisors will do financial needs analysis first. I believe all insurance companies have products that will be tailored-fit for your financial priorities. In choosing the right insurance company, there are lot of factors that you should look at.

1. Stability - This is choosing the right company that will fulfill its promise. But in the Philippines, no insurance company declared bankruptcy yet. It's better as well to choose those that are in the Top 3 or Top 5.
2. After-Sales Service - This is really important as others may overlook this one. A better financial advisor should monitor and assess you if your still on track towards your goals.
3. Features and Benefits of the Policy - Financial advisors should give you the tailored-fit plan which suits your needs. They should give you all the necessary information that you need and disclose all charges as well.

[george88]

You and your wife combine Salary Net Worth is Php 275,000
Family Monthly expenses is Php 100,000
Your Family Total MONTHLY ACTIVE INCOME 175,000 if your wife retire it will turn to 150,000
Emergency fund for 6 months 150,000 x 6 months = 900,000 I think you should increase it pa since your an OFW you. Recession and illnesses is unexpected going back in PH and seeking same salary as what you getting now is IMPOSSIBLE unless you are in multinational company with high position. If you have huge savinge already diversify it in 2 banks since PDIC only guaranteed 500k and  make it a joint account or allocate some savings to your children

I suggest before you invest fulfill your target emergency fund. After that get an insurance its up to you,  WHOLE life(pwedeng pamana), term(renewable) or VUL(cash value + insurance) die soon money goes to family live long enjoy your cash =) kung saang company mamili ka sa top 5 co. or an agent that can take care of your financial not commission =)

In investment its up to you. you can invest your 20% monthly income in mutual funds and stock market using peso cost averaging. Buy more asset thru real estate that produce money not IDLE asset, small business that making profit kahit maliit lang like 10-30k a month basta nagpapasok ng income...

compute your children college fund needed
Current tuition fee of the school you want your children to study + 10% annual increase = Your children tuition fee
Ex. UST 5 years course 30k per sem that's 60k per annum, your eldest will turn college after 8 years
You can compute it na lang sir. But im sure the cost of tuition fee when your children are in college is almost double today.

There will be a drastic change in education in the near future most of the parents will adopt home school or virtual...

About your retirement fund it will depend on your retirement age and how much do you want when you retire....

[kithe]

^nice one.. Sir..

About the computation of college fund..
Dagdagan mo naman for miscellaneous expenses, baon, project, etc..
Let's say 50,000 x 2 sem = 100,000 x 5 years
500,000.00 total cost of tuition fee, present value..

consider the tuition fee increase of 12% per year..
500,000 x 1.12^8 = 1,237,981.58.. Future value 8 years from now.
Or 247,566.31 every year..

That is for his 7 year old daughter only, how about the other two..??

[BatmanBeyond]

^nice one.. Sir..

About the computation of college fund..
Dagdagan mo naman for miscellaneous expenses, baon, project, etc..
Let's say 50,000 x 2 sem = 100,000 x 5 years
500,000.00 total cost of tuition fee, present value..

consider the tuition fee increase of 12% per year..
500,000 x 1.12^8 = 1,237,981.58.. Future value 8 years from now.
Or 247,566.31 every year..

That is for his 7 year old daughter only, how about the other two..??

I agree with that. Then, there is medical and retirement. You have to consider the rising cost of medicine and the fund that you need upon retirement.

In LIFE, L is Living with disability and E is Expiring too early. There's a big IF in the middle which means that life is really uncertain and you don't want to leave it through chances.

[george88]

mamamatay na ang mga minimum wage earner sa pagpapaaral that time baka kahit state university 20k na ang tuition fee TUP tuition fee wayback 2002 is 900 today 8,000 per sem trisem pa...=p