Australia: My Experience With The Stock Market - Part 4

Aside from stonks, I was also researching about ETFs (exchange traded funds). It's like mutual funds but no. Then I came across spaceship voyager  then raiz .  If you want to know more about the two, you can refer to this  article . Below is a summary: 📌Make sure you understand the product and the risks involved before investing.  Source: Update: I opened an account with Raiz and will do a review after a few months 😊 . If you want to get started, maybe you can use my referral link here  to have  $5 for me, $5 for you! Thanks!   

Will I Continue Paying My SSS or Not?

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 and above, he/she shall be allowed once in a given calendar year and by one salary bracket only from the last posted MSC. Exceptions:

b1) First time OFW
b2) New schedule of contributions and have been paying the maximum
b3) Non-working spouse shall be allowed based on the 50% of spouse's declared monthly income
Despite of that, there are still loopholes in the system. However, for me, I would still recommend that you continue paying your SSS. Why? We all know that investments have risks and what if all your investments failed, where will you get your fund? At least SSS is backed by the government so there's an assurance that you will be paid no matter what happens.
Also, for me, for those who cannot afford those insurances offered by private institutions, I greatly recommend these government backed insurances - SSS, PHIC, Pag-ibig. It should be included in your budget as fixed expenses. Minimum monthly contributions are P110 (SSS), P2400/year or P200 per month for SE/OFW (PHIC) and P100 (Pag-ibig). A total of P410 per month only. You may be receiving a small pension but at least you have something to rely on rather than depend on your children upon retirement.

I urge you to include it in your budget. It's better to have something than to have nothing at all!


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