Category Archives: Financial Education

Protection for the Family Comes First

Life Insurance First, or Emergency Funds?

Question:
Ano ang dapat unahin ng breadwinner. life insurance o emergency funds?

Answer:
Kung ikaw ay breadwinner, ang dapat unahin ay life insurance with no investment component.

Ang tamang sequence ay

  • life protection (if you die to soon)
  • emergency fund (if you have other emergencies)
  • medium-term investment (if you have plans, e.g. children education)
  • long term investment (if you live too long, e.g. retirement)

Kaya kung uunahin ang life insurance, get pure insurance like term. Kung mayroon ka nang emergency fund, you can consider investments.

Ang emergency fund ay ideally 3 to 6 months of expenses. Kung ang expenses mo ay P15k/month, dapat P45k to P90k.

Ang term insurance ay napakamura lamang; para sa 30 year old o below, it is possible to get P1m coverage for a level premium of less than P6k annually for 18 years!

May term life insurance din na may tinatawag na premium-deposit-fund o PDF. Ang PDF ay investment na approved na investment vehicle ng Insurance Commission na may non-negative growth at withdrawable anytime, even o the first year, kaya suitable as an emergency fund. Ang investment guidelines ng IC ang naga-guarantee na non-negative growth ng PDF.

Look at magnitudes, and actual numbers.

For a breadwinner earning P15k/mo,

  • the emergency funds is probably P45k to P60k (3 to six months income or expenses).
  • the income replacement is 5 – 10 years of income or P15k x 12 x 5 to 10 years = P900k to P1.8m

If he can save 20% or P3k/month:

To get term life insurance for P1m, kung 30 and below, he needs less than P6k annual or about 2 months of savings per year.

To get to the desired emergency fund would require 15 months to 30 months. (P3k x 14 = P45k, P3k x 30 = P90k)

Kung uunahin ang life insurance, he can have P1m life insurance immediately and have the emergency funds in 18 to 36 months.

Kung uunahin ang emergency funds, he will be able to get life insurance after 15 to 36 months.

Just think about this:
HIndi ba ang pinakamasakit na emergency sa pamilya ay ang death of the breadwinner?

What if he dies too soon?
Who will take care of the family?
What will they spend?

The death of the breadwinner is the single most catastrophic emergency for a family.

It will be ironic if one prepares for minor emergencies but not prepare for that one major emergency that every family dreads?

Good advisers and practically all financial planners will recommend term insurance sa mga breadwinner na wala pang life insurance at emergency funds.

Term life insurance can be so inexpensive, it is almost criminal not to get one to protect your family, especially if you are the main breadwinner.

Term insurance is recommended especially sa walang emergency funds, sa maraming utang, sa mga hindi pa handang mag-invest.

Paano ba manalo sa Lotto?

Paano Manalo sa Lotto?

Paano nga ba manalo sa Lotto?
May tinatawag na function na expectation E(x).
Ito ay simple lang ang computation.
Magkano ang mapapanalunan i-multiply lang natin sa chance na mapanalunan.

Halimbawa sa 6-58 lotto.
You can win ₱20 if you guess 3 numbers correctly, with a probability of one out of 92.

E(3) = ₱ 20 * 1 / 92 = ₱ 0.22

You can win ₱3,800 if you guess 4 numbers correctly, with a probability of one out of 2,036.

E(4) = ₱ 3,800 * 1 / 2036 = ₱ 1.87

You can win ₱280,000 if you guess 5 numbers correctly, with a probability of one out of 129,728.

E(5) = ₱ 280,000 * 1 / 129,728 = ₱ 2.16

You can win at least ₱50m if you guess 6 numbers correctly, with a probability of one out of 40,475,358

E(6) = ₱ 50m * 1 / 40,475,358 = ₱ 1.24

Kaya sa bawat taya mo ng ₱20, ang expected winning mo ay ang total 0.22 + 1.87 + 2.16 + 1.24 = ₱ 5.48!!!

Kaya laging talo ka sa lotto.
Paano manalo sa lotto?

Hindi naman laging lugi sa bawat bola. HIndi ba ang hindi napanalunan sa isang bola, ay idinadagdag sa jackpot ng kasunod? Kaya lumalaki ang jackpot!!!

Kapag ang jackpot ay ₱637,804,291 o mas malaki, maganda na ang laban sa lotto. Kapag eksaktong ₱637,804,291, ang expected winning ay ₱20 na!
0.22 + 1.87 + 2.16 + 15.76 = ₱20

Kaya actually, maganda tumaya sa lotto na ang prize ay ₱1,026,264,340 (draw ng Oct 10) at pataas, kasi sa ganoon level, ang expected winning ay ₱29.60.
0.22 + 1.87 + 2.16 + 25.36 = ₱29.60

Kung gusto mo paminsan minsan tumaya, maari ka nang tumaya, dahil mas mataas na ang expectation kaysa sa taya!

Pero still, masyadong mababa naman ang chance na one in 40,475,358. Kung may taya ka na 10 ticket, o ₱200 araw-araw, mananalo ka ₱50m isang beses tuwing 11,000 years!!!

Paano manalo sa lotto?
HUWAG TUMAYA SA LOTTO!

Ang ipantataya mo sa lotto nna ₱200 per day o ₱6,000 per month, i-invest mo sa equity mutual funds earning 12-18% per year, at asahan mo, magkakarooon ka ng:
— ₱6m – ₱14m in 20 years
— ₱21m – ₱84m in 30 years
— ₱70m – ₱514m in 40 years

Mas maganda ang ₱70-m to ₱514m in 40 years kaysa ₱50m in 11,000 years hindi ba?

Free Seminars by Coach Bobet & Mary Ann

Why do you want to be wealthy?

Do you love God?
Do you love your family?
Do you love your friends?
Do you love your country?
Do you love yourself?

Of course we do!
We all want to be wealthy because we love God, family, friends, country, and self.

Start by learning and understanding how money works!

Start by attending our FREE Build Your Future – Controlling your Money Seminar by Coach Bobet and Mary Ann.

Bobet and Mary Ann with Bo Sanchez

“Bobet and Mary Ann are on fire! They’re on a mission: To prosper you. It’s high time to make the change!” – Bo Sanchez

This is a two part seminar; a two hour lecture/presentation followed by personal financial coaching.

The Free “Building Your Future” seminar will discuss:

  • A Challenging Future
  • Control Your Future
  • How Money Works
  • High Cost of Education
  • Protecting Your Future
  • Key Financial Concepts
    • X Curve
    • Prosperity Formula
    • Rule of 72
    • Building a solid financial foundation
  • Financial Products
    • Mutual Funds
    • Life Insurance
    • Long Term Health Care

After the seminar, you can apply for  IMG membership.

IMG members enjoy many benefits:

  • Lifetime Financial Education Workshop
  • Lifetime Financial Check-up
  • Discount on Major Real Estate
  • Asset Preservation Service
  • ZERO Load on Top Mutual Funds
  • Discounts on Car/Home Insurance
  • Access & Discounts on Life/Health Protection & Services
  • Access to Investment/Retirement Products
  • Build a Business in the Financial Industry
  • Subsidized Travel to Different Countries

Enroll to learn!

Have you ever attended seminars and workshops, and realized after the event, that you needed answers to some questions? Have you ever wished you can attend some seminar segments again, without paying for them again?

IMG members can attend our workshops any number of times, and get answers from the mentors/trainers

  1. Workshop. Increasing Cashflow. Debt Management
    • Analyzing your expenses.
    • Determining your worth.
    • Getting out of debt.
    • Becoming your own money manager.
    • Increasing your cashflow.
  2. Workshop. Building a Strong Financial Foundation. Proper Protection.
    • The X-curve. The law of increasing money and decrasing responsibility.
    • The DIME method.
    • Types of Life Insurance
    • Long term health care
  3. Workshop. Building Wealth. Asset Accumulation.
    • Wealth Formula.
    • The Hidden Cost of Waiting.
    • The Rule of 72. Understanding Interest.
    • Peso Cost Averaging.
    • Mutual Funds.
    • Passive vs. Active Management.
    • Saving for your Children’s Education.
  4. Workshop. Retirement Planning. Wealth Preservation.
    • Retirement Income
    • Estate Planning
    • Asset Preservation
  5. Workshop. Building a Business in the Financial Industry.
    • Do you know what you want?
    • Building a New Industry
    • Solution for the New Age
    • Be Part of Something Big
    • Travel the World!

Attend Seminars, Workshops and Trainings Any Number of Times
IMG members can attend advanced classes any number of times!
IMG has advanced classes for various financial concepts, products and services to enable members to better understand them.

Product Trainings
Learn financial products, industry trends and opportunities from the providers themselves!
We have regular product training for members, from our partner-providers. Learn about:

  • mutual funds, concepts, investment strategies and market trends from Rampver Financials
  • the many advantages of long term healthcare, about the differences of short-term vs long term healthcare, the differences between regular and senior-care short term health protection products from Kaiser International.
  • life insurance, the difference betweem term, endowment, whole-life and VUL, IUL insurance from Philamlife.
  • ongoing real estate projects, real estate investment strategies from SMDC, Vista Land, DMCI and Ayala Land.
  • asset preservation, setting up family corporations, maintaining corporations, from APS.
  • many other financial products and services from the other providers.

Enroll to invest and save on financial products!

Few Seats Left! Reserve Now and Take Your First Step Toward Financial Freedom!

Click here to register:

IMPORTANT:
A few minutes after you submit your registration, you will receive, in the email address you provided, a confirmation email asking you if you submitted the information to this form. This is to ensure that you (and not just someone who used your email address) knowingly registered your name.

YOU MUST CLICK on the confirmation link to complete your registration.

After you have confirmed, we will send you E-Ticket mail. If you do not receive the confirmation mail, or e-ticket, please check your spam mail in case it got over-enthusiastic and discarded our mails.

Please confirm and honor your reservation since we are allocating seats for you and not accepting others. If you plan to attend the Makati seminar on weekdays, please make allowance for the normal heavy traffic during business days, and for time to find street parking.

Thank you!

About Coach Bobet and Mary Ann

Bobet Prudente has 30+ years experience as IT professional and senior management in different IT companies.

His specialization is in business intelligence. He is considered an authority in big data and report mining technologies.

Iskolar ng bayan” all the way, studying in public elementary and high school, Bobet graduated with a degree in BS Mathematics from the University of the Philippines in Diliman Quezon City.

Two years after graduation, he became general manager of a cutting-edge IT company specializing in application generators. He later moved on to various senior positions in other software companies. He “retired” from corporate IT in 2014 from a US company, where he served as Country Manager.

Coach Bobet and Mary Ann

Coach Bobet and Mary Ann are authors, speakers and financial educators

Mary Ann Prudente was among the first graduates of BS Computer Science at the University of the Philippines in Diliman, Quezon City. She held various technical and management positions in several IT companies where she specialized in database and contact center technologies. In 2006, she decided to “retire” early from corporate IT, to be a full time mother to sons Luke and John.

While “retired,” she continued to be an IT consultant specializing in cloud computing.

Bobet at Mary Ann learned how to grow and invest their money on the stock market, mutual funds and real estate. Since they did it mostly on their own, it wasn’t that easy and sometimes stressful to do.

In 2013, they joined the TrulyRichClub of Bo Sanchez where they learned how to grow their wealth while gaining spiritual abundance and winning in all areas of their life.

In 2014, they were invited to join the IMG TrulyRichMakers, where they learned an easier way to save, set aside and invest their money, and how to help other Filipinos while growing wealthy.

They have found their mentors and a community who have similar goals as them.

They are now “retired” so they are doing what they want to do: to help more people, by teaching about financial concepts, financial products, and entrepreneurship. Realizing that there are a lot of people who needs help on how to prepare for their maturity, it is their mission to help educate and share their knowledge and experience.

While conducting financial seminars to the general public, to employees in corporate seminars, to teachers and students in schools, they are often asked for additional learning resources.  In early 2002, they published a book “TIPS (Tipid, Ipon, Palago, Saya) – Pampayaman 101” or “How to Get Wealthy Slowly But Surely,” written in conversational Taglish, for seminar attendees.

TIPS (Tipid, Ipon, Palago, Saya)

Kaya mong mag
Tipid ng P33 araw-araw?
Ipunin buwan buwan
Palaguin taon taon, mag-
Saya dahil iyo ay maaaring maging P1,000,000 sa 20 taon!

Invite Coach Bobet and Mary Ann Prudente to your corporate and institutional events, to speak about saving, investing and building a solid financial foundation.

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