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Showing posts from 2016

Merry Christmas & A Happy New Year!!

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A Guide To Registering Your Business

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Source: DTI Pamphlet (You can download the picture to clearly view the requirements)






Five Things To Know In Creating A Business

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When I read the Millionaire Fastlane book, I came across the five fastlane commandments in creating a business - NECST. I remembered Michael Porter's five forces analysis. It is somewhat similar however, the former is easier to understand and I think it is worth sharing. Why? Because having a business is not about you; it is about the people surrounding you. So before you take that leap, make sure your business have satisfied the NECST.

(N) Need

Businesses that provide value win. Businesses that solve problems win profits. People care about what your business can do for them. How will it help them. Will it solve their problem? The correct foundation is externally based on needs in the marketplace.

Beware of the "Do what you love" phrase. Your love must solve a need and you must be exceptional at it. Think about what you love and then think will someone pay for it? Is it going to solve a need? Are you good enough to make money doing it?

(E) Entry

Have you ever wondered wh…

Stock Market 101 in Tag-lish - Part 2

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Bago ka mag-open ng account sa isang stock broker, alamin muna ang mga basics. Alam mo din kung ano ang risk profile mo. Mataas ang risk sa stock market pero kung kaya mo naman ihandle ito at pinag-aralan mo ito, ok lang na ito'y iyong pasukin.
Anu-ano nga ba ang mga dapat nating alamin pag pumasok tayo sa stock market?
1) Risks involved 
Ang pag-invest sa stock market ay hindi siguradong kikita ka dito kaya kelangan ang mga sumasali dito ay updated sa mga news na pwedeng maka-apekto sa merkado or sa company na binili natin. 
2) Kelangan ko bang imonitor ang aking investment?

Depende kung anong klaseng investor ka. Short-term ba, medium or long-term investor. Hindi naman kelangan araw-araw except for day traders pero kelangan paminsan-minsan e silipin din natin yung stock price at kung anu-ano ang mga developments ng company sa pamamagitan ng mga disclosures sa PSE website at yung mga balita sa news, tv or radio para alam natin kung ok pa ba o hindi yung company.

3) Anu-ano ang m…

Financial Planning: How to Begin? - Part 2

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After knowing your financial standing, you need to set your financial goals clearly but before that, you need to understand the basic financial terms such as compounding interest, time value of money, inflation, types of income, types of debt, leverage etc. Also, I would like you to understand the financial planning pyramid. This will be the basis of your goals.



As you can see, before you start accumulating your wealth, one has to protect itself first from unforeseen events such as death, illness, disability, job loss or accidents especially if you are the breadwinner of the family by getting insured as soon as possible. Because as you grow older, premium payments for insurances will be more expensive. This will also actually help you upon wealth distribution.
For those who cannot afford insurances provided by private institutions, I would recommend that you at least pay those government backed insurances such as SSS, Pag-ibig for retirement and Philhealth as health insurance.
Have a…

Will I Continue Paying My SSS or Not?

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I have encountered in some forums people asking whether they will continue paying their contribution or not upon reaching the minimum required contributions; and some comments would suggest that they stop paying and invest to maximize the return. Yes, it can be done. It's like BTID (buy term insurance and invest the difference).

Also, another reason why people discontinue paying their SSS contributions is because of the pension computation. They said that if you have been paying the minimum and instantly increased your payment to the maximum 5 years before retirement, you will get the same pension with the one paying the maximum. However, according to SSS, this is not true. One is not allowed to instantly increase it's contribution to the maximum 5 years prior to retirement. To understand more, SSS issued circular no. 2015-007.

  A) If below 55 years old , he/she can change without limit in frequency and in number of salary brackets in a given calendar year.

B) If 55 years an…

Stock Market 101 in Tag-lish - Part 1

Ano nga ba ang stock market? Market in tagalog is palengke so in short ito ay isang palengke. Palengke ng mga kumpanya na naka-rehistro sa SEC (Securities and Exchange Commission) at sa PSE (Philippine Stock Exchange). Ano daw? Para mas maintindihan natin, alamin muna natin pano nagiging publicly-listed ang isang company.
Kung magpapatayo ka ng isang business, pwedeng sole proprietorship, partnership or corporation. Ang mga nagpaparehistro sa SEC ay mga corporation. Pwedeng non-stock** or stock* corporation. Ang mga stock corporations lang ang allowed sa palengke. 
*Stocks or shares - ito ay isang patunay na isa ka sa may-ari ng kumpanya
**Non-stock corporations - ang mga owners ay hindi nag-iisue ng stocks. Parang cooperative, ang tawag sa mga owners ay members. Example: charitable institutions
Ngayon, kung napaka-successful ng iyong business at kelangan ng malaki-laking capital para mag-expand, naisip mo na sa public ka na lang magpapa-pondo kesa umutang ka sa banko. At para mangyar…

How to Manually Compute Your SSS Pension?

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Knowing how much pension you will be getting upon retirement will help you plan whether it is enough or not. If not, then you need to find other retirement investment vehicles.

According to SSS, there are two types of retirement benefits:

1) Lump sum amount - pensioners who were not able to meet the required total 120 monthly contributions or 10 year contribution.

2) Monthly pension - lifetime cash benefit for those who paid at least 120 monthly contributions.

To know how much is your monthly pension, 3 formulas are provided in their website and SSS quotes, "The monthly pension depends on the member’s paid contributions, his credited years of service (CYS), and the number of his dependent minor children that must not exceed five. The monthly pension will be the highest amount resulting from either one of the three pension formulae."
1) Total pension = 300 + (AMSC* x 20%) + (AMSC x 2% x excess of 10 years) 2) Total pension = 40% x AMSC 3) Total pension = P1,200 if CYS is at…

Checking Your Estimated SSS Pension Online

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To be able to check your estimated pension online, you need to register first online with SSS.

1) Log-in to your account.
2) Select E-services then Inquiry. An advisory box will appear. Just click ok.


3) Select Eligibility then DDR - funeral
4) Enter your earliest retirement date (date when you turn 60. Date of birth + 60) then click Submit.



5) A list of available benefits will be provided. Click Retirement - pension**.



**it will change as you continue paying your SSS contributions. For those who have not yet accumulated the minimum 120 contributions, you will see that your benefit claim is lump sum.

Update
SSS had an update on their website but still the same procedure as above. Just go to E-Services then click Simulated Retirement Calculator and it will automatically compute how much would be the retirement amount. Below is their new beta website. I think it is more user friendly unlike before.







Financial Planning: How to Begin? - Part 1

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Let me first tell you the story of the wise man and the foolish man.

There were once two men, and each needed to build a house. The first man was foolish, and chose to build on sandy soil where it was easy to access and easy to dig the foundations. In a few short weeks he was almost finished. The second man was wise, and chose to build his house on a rocky hill, where it was very hard to access and to dig the foundation. He spent many months building his house. As time passed a huge storm broke upon the houses of these men. After much rain, a flood swept through the valley and the man's house that was built on the sand was swept away. But the second man who had built on the rocky hill was safe. No matter how hard it rained or how fierce the floods were his house remained solid and immovable.
The story above is from the bible Matthew 7:24-27. Most of us are like the foolish man. Have you heard stories about rich people becoming poor due to unforeseen events or due to wrong investm…

Benefits and Programs of PAG-IBIG/HDMF

A) Multi-purpose Loan - is a cash loan that aims to provide financial assistance to qualified members for house repair, minor home improvement, home enhancement, tuition/educational expenses, health and wellness, livelihood and other purposes. Qualifying conditions:  has made at least 24 monthly mandatory savings (MS) has 5 MS for the last 6 months prior to date of loan application if with an existing Housing Loan and/or MPL and/or Calamity Loan, the account/s must not be in default prior to loan application. Amount: the borrower's loan value shall be a percentage of his Total Accumulated Value (TAV) Interest rate: 10.75% per annum, paid equally for the duration of the loan Repayment period: 24 months with a grace period of 2 months B) Affordable Housing Program - may be used to finance any one of the following: purchase of a fully developed residential lot or adjoining lots not exceeding 1,000 square meters, purchase of a residential house and lot, townhouse, or condominium unit; co…

OWWA (Overseas Workers Welfare Administration)

The Overseas Workers Welfare Administration (OWWA) is an attached agency of the Department of Labor and Employment (DOLE) and a membership institution. OWWA focuses on the welfare of the OFWs and their families.  It is present in all three stages of migration: pre-departure, on-site, and upon arrival. Before the first-time workers leave, OWWA educates them on the realities of overseas work.  They also undergo basic language training.  Abroad, OWWA assists the OFWs whenever they encounter concerns with their employers .  Finally, when the OFW is back, OWWA is ready with its livelihood trainings and programs for the OFWs’ reintegration. OWWA membership, either through the compulsory or voluntary coverages, shall be effective upon payment of membership contribution up until expiration of the employment contract.  The member is covered for a maximum of two years after which the membership has to be renewed. Benefits Death Benefit An active member is covered for the duration of his employm…

All You Need To Know About SSS

We all know that SSS is not only for those working in the private sector but also those self-employed, OFWs and separated members (voluntary). The monthly contributions are based on the compensation of members (please check SSS for the schedule of contributions table).

Once you become a covered SSS member, you become a member for life. The contributions that you remit become savings for the future that will serve as basis for the granting of social security benefits in times of contingencies. Membership cannot be withdrawn and contributions paid cannot refunded.

What are the benefits and conditions? A) Sickness Qualifying conditions: unable to work due to sickness or injury and confined either in a hospital or at home for at least four (4) days has paid at least three (3) months of contributions within the 12-month period immediately before the semester of sickness or injury; has used up all current company sick leaves with pay; and has notified the employer regarding hi…

Why Is Financial Literacy Important?

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Many of us really don’t know what personal finance is. We thought that having savings is already enough, however, if we are going to look at the definition of personal finance, it is more than that. According to Wikipedia, personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events or to better understand it, personal finance defines all financial decisions and activities of an individual or household including budgeting, insurance, mortgage planning, savings and retirement planning (Investopedia).

Personal finance is about proper money management in all aspects that will lead you to financial freedom or being financially stable. And to be able to understand this further, one needs to be financially literate. Financial literacy is having the knowledge of understanding financial matters and making proper decisions pertaining to c…

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