Let’s face it, the ordinary person does not believe in buying life insurance. To them, buying life insurance is like taking a step backwards because it is just an expense with no perceived immediate benefits. As some had complained to me, “Bayad ako nang bayad pero wala namang nangyayari. (I keep on paying but nothing happens.)”  I jokingly reply that, “Bakit, gusto mo bang may mangyari pagkatapos mong magbayad? (Why, do you want something to happen as soon as you pay?)”

Yet when I ask my training participants to recall how much premiums they had readily paid for their house or car, they would say in the tens of thousands of Pesos yearly. This is where I ask them why they are more ready to pay for non-life insurance than life insurance when, clearly life is the more valuable asset.

One can look at insurance premiums as part of the expense in owning and maintaining an asset, life included. But here’s a different take on the matter.

Consider a business that owns an expensive building. At the start of each year, that business will buy fire and lightning or non-life insurance to cover the building.  And because the non-life insurance premium for an expensive building will also be expensive, the business will not book the premium as an expense right away.  The initial accounting entries would be to debit prepaid insurance and credit cash (assuming the non-life insurance was paid for in cash).

In accounting, to debit prepaid insurance means to consider the insurance premium as an asset. Then typically on a monthly basis, the business will book 1/12 of the non-life insurance premium as debit insurance expense and credit the amount as prepaid insurance.  As the months of that firm’s fiscal year pass by, these repeated bookings will slowly reduce the value of the prepaid insurance until nothing is left by the time the non-life insurance expires at the end of the fiscal year and new non-life insurance is purchased for the following fiscal year.

Now let us look at life insurance itself. If we were to follow the foregoing accounting practice, when would ordinary life insurance expire? The answer, provided there are no lapses in policy premiums, is when the covered life itself expires.  This simply means that for the duration of the life insurance policy, the policy premiums can be booked as part of the asset of the insured.

And while the premiums will be booked as an expense at the end of life, they will be immediately reversed because of the proceeds from the life insurance policy.  Therefore, life insurance can hardly be considered an expense.  In fact, I look at life insurance as a gift that one acquires for his loved ones.  But while he is alive, the gift remains with him as his asset.

So next time a life insurance agent approaches you, consider what he or she is offering as a gift of an asset that you can initially own and eventually leave behind for your loved ones.  And it is a very powerful gift at that because it can help you throw away your worries about the future.

As master Oogway said in the movie Kung Fu Panda,
“There is a saying: yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the present.”

(Originally written by Efren Ll. Cruz, RFP at http://www.savingstips.com.ph)

While the word millennial as an adjective denotes a period of a thousand years, as a noun it nowadays means a person coming into young adulthood around the year 2000. The batch of 2016 college graduates is part of the millennial generation. There are many theories about the traits of this generation.

Authors William Strauss and Neil Howe wrote about the Millennials in Generations: The History of America’s Future, 1584 to 2069. Widely credited for naming the “Millennials”, Strauss and Howe coined in 1987 the phrase “around the time ’82-born children were entering preschool and the media were first identifying their prospective link to the millennial year 2000.” The two authors predicted that the Millennials would be more like the “civic-minded” G.I. Generation with a strong sense of community both local and global.
In contrast, Jean Twenge, author of “Generation Me”, talks of Millennials as having the traits of confidence and tolerance, with a sense of entitlement and narcissism.
​
The University of Michigan’s “Monitoring the Future” and the “American Freshman” survey of new college students since 1966, conducted by UCLA’s Higher Education Research Institute, found an increasing proportion of students who valued wealth (i.e. 45% for Baby Boomers, 70% for Gen Xers, 75% for Millennials). Those who felt keeping abreast of political affairs was important fell (i.e. 50% for Baby Boomers, 39% for Gen Xers, 35% for Millennials). Involvement in environmental cleanup program dropped (i.e. 33% for Baby Boomers, 21% for Millennials).

But perhaps what is telling, at least for me, are the findings of Fred Bonner in his study entitled “Diverse Millennial Students in College: Implications for Faculty and Student Affairs.” Bonner believes that commentaries on the Millennial Generation, while partially accurate, are overly general.  He believes that many of the traits used to describe Millennials apply primarily to “white, affluent teenagers who accomplish great things as they grow up in the suburbs, who confront anxiety when applying to super-selective colleges, and who multitask with ease as their helicopter parents hover reassuringly above them.”

More importantly, Bonner says, “It’s not that many parents (of diverse backgrounds) don’t want to treat their kids as special,” he says, “but they often don’t have the social and cultural capital, the time and resources, to do that.”

Bonner’s assertions are probably what best applies to Filipinos. The vast majority of Filipinos are still very much concerned with meeting their physiological needs.
Sure everybody is into mobile phones. Netizens are growing in number and influence. But technology has yet to financially uplift the greater majority.

That is why personal finance for the Millennials has more than ever become a calling to help others. A true Filipino Millennial will not be characterized by when he was born but more by his educational background and the financial opportunities he is afforded. And a true Filipino Millennial is characterized by one who is patriotic.

A patriotic Filipino Millennial is not one who, when he sees other poor Filipinos, will say to himself, “If I study and work hard, I will not be like them.” A patriotic Filipino Millennial is one who, when he sees the poor, will say to himself, “If I study and work hard, and invest my savings back into the economy, I will be able to help them.”

​(Originally written by Efren Ll. Cruz, RFP at http://www.savingstips.com.ph)

"Anung gagawin mo kapag nagkaroon ng malubhang sakit ang mga magulang mo o ang mga mahal mo sa buhay?"

Being a financial advisor/planner exposed me to different kinds of people with different background, different things they care about. But one thing is common, they have their own story. Three stories have been resonating in my heart. The story of my church mate, my mentor, and my friend that changed my perspective to many things, mainly about money, life and family. I will tell you the story of my church mate first and may be the other two in a separate post.

My church mate whom I will just call Art is only 21 years old and just starting his career as an accountant in BGC. His mother was an OFW in Saudi and worked hard just to give the best education for her children. However, come early last year, while Art's mother is working suddenly got a mild heart attack and went to ICU for treatment. After 2 months from her recovery, she decided to go back in the Philippines so she could rest and be with her family. But after a few weeks in the country, she got heart attack again, but this time it is far worse than the first one. She immediately went to ICU to get treated. Art's family just got a few savings and a few weeks after got depleted. Unfortunately, his mother will be needing a surgery in the heart that will cost more or less than a million peso, which cannot be covered by any of the health card in the country. I met Art in the church with a heavy heart for his mother and asking for prayers for his mother’s recovery.

One Sunday afternoon, we had a personal talk and shared to me his burden. He even told me that he cannot sleep at night because he is thinking of ways how to get money so that his mother can undergo the surgery. He even thought of selling his own kidney just to get money for the operation.

Art's story hit me. That night, I asked myself, what if it happens to one of my parents. Will I be able to help and support them? Am I ready for that responsibility? I care enough for my parents and like Art, I do not know what I can do just for them to recover and be well again. I started to recognize that my job as financial advisor/planner is very crucial to many families. The gift of having a health insurance that may help the cost of being critically ill in the future will help many people and their families. Immediately, I calculated my salary, deduct unnecessary expenses and saved money to get a good amount of health insurance for both of my parents. I know that there will be a need to sacrifice a little bit, but having the joy to take care of my family has its own rewards in the future.

Now, both of my parents have their own health insurance. If in any instance, something critical happens to them (which I hope will never come) in the future, with the help of GOD we will be somehow prepared for it.

Join our seminar on March 12, 2016. FINANCEPH GOES BAGUIO: Why do the rich get richer and the poor get poorer? Why do the rich people get for free what the poor people pay for? Why do rich people get to buy things much cheaper than the poor people?

The answer: they know how the financial system works and they know how to use to the system to their advantage.

Did you know that the gap between the rich and the poor is now growing wider and wider every year? Did you know that 99% of the world's wealth is controlled by the top 1% of the world population?

If you want to be rich, you should know how the financial system works and how to take advantage of it. Join us in this exciting seminar made for beginners and advanced investors alike.

FinancePH has been conducting high quality seminars since 2014. Our FB fans love us, in fact we have reached 65,000 plus followers in FB. Thank you for the love.

The following are the major topics covered in this seminar:
1. Introduction To The Financial System
2. How The Financial System Works
3. How To Take Advantage Of The Financial System
4. Basic Financial Planning Concepts
5. Basic Financial Planning Tools

Location: Venus Parkview Hotel, Burham Park, Baguio City
Date: March 12, 2016
Time: Registration Starts 1:30pm

Seminar cost is only P250. This will cover for the utilities, overhead, games prizes, certificate of attendance and seminar promotion costs. Discounted price of 400 for two instead of 500 if you come with a friend. Snacks is included courtesy of Insular Life. 

To register, kindly SMS us using the following format: Full Name/ Company name/ Occupation/ email address/ Baguio Seminar1

For example: Juan Dela Cruz/Cebu Pacific and Avida Land /Auditor and Part Time Real Estate Broker/juan@gmail.com/ Baguio Seminar1

*** if you are affiliated with many companies or doing part time job with other companies, please indicate them all.

Please send SMS details to Erika at 0906-485-9172.

Pay for the Seminar Fee at the event.

For inquiries please don't hesitate to contact us! See you!

"If you don't learn something new regularly then you are not growing, you are aging."

1)Because we are talking about your hard-earned money.
 
Years and years of sweat, tears and for the OFWs the pain of being separated from your loved ones just to earn a decent income. Imagine investing your money into something you don’t know at all just because someone said that it is a good investment. You are taking a lot of uncalculated risk by doing so, as Warren buffet said “Risk comes from not knowing what you are doing”.
 
2)Because a trustworthy financial advisor will always put your interest ahead of his.

You might think that financial advisors want your money. Somehow it is true because at the end of the day they also need to put food on the table. But noble it may seem, trustworthy financial advisors will always give financial advises that are best for you, not because they will make a huge profit out of it.

3)Because a trustworthy financial advisor walk the talk.

They practice what they preach, financial advisors are expected to lead by example not only to their clients but to the community as a whole. Those financial advises you got from him? More often than not, they are proven methods tried and tested by your very own financial advisor.

4)Because a trustworthy financial advisor is more than willing to help you when you need them.

Financial advisors know that their duty does not end when the deal has been closed, the paper works are all done. For them, it is just a start of lifelong partnership with their clients.

5)Because a trustworthy financial advisor does not promise heaven and earth just to get your approval
​
“99% guaranteed income for a low risk high return investment”.
Sounds good right? But trustworthy financial advisors don’t say those words but they level your expectations instead. We are bounded by our conscience to tell the truth. They make presentations as realistic as it could be, as accurate as it could be.
 

While others were making the most out of the extra day for this year, someone has breathed his last.

At the age of 49, Wenn V. Deramas, a Filipino TV and film director, passed away last February 29, 2016 due to cardiac arrest. Celebrities and fans mourned for his early death. He left a mark not only in the showbiz industry, but also in the hearts of the Filipino viewers. His masterpiece brought us to tears and laughter.

And one thing that his life taught us is, “We never know when God will call us home.” This is one of the uncertainties of this world. This is beyond our control. No one can ever tell how, where, or when he/s he will die. “Are we going to live too long?” or “Are we going to die soon?” are questions that are not for us to answers, but for us to prepare and plan for.

But why do we need to plan? Because this is not only for ourselves, but also for our love ones. We plan simply because we love.

If we live too long, does our retirement fund enough to sustain our lifestyle without putting the burden to our children and grandchildren? Are we prepared financially to give our children the best education they need? Do we have enough medical funds so that our love ones won’t worry anymore on how to pay our hospital bills?

If we die too soon, will our family still live comfortably for the next five to ten years after our death? Will our wealth be distributed properly to our family?

Wishful thinking is not enough to answer these questions. We need a concrete financial plan to address these uncertainties.

Stop wondering “When will we die?” and start answering “When will we start?” The best time to start planning your life is NOW.
 
Teach us to number our days that we may gain a heart of wisdom. Psalm 90:12

Everyone of us wants to leave a legacy to the next generation. This can be in the form of values or material possession like properties, jewelries and land. Unfortunately, only few people have  knowledge of what it is to leave an inheritance to their loved ones. They thought that it is enough just to accumulate as many assets as possible then transfer these to their heirs upon their death. Most often than not, these people forgot to consider the following which I believe should be taken into consideration whenever we want to leave an inheritance to our heirs:

1. Estate Tax. If you fail to set aside a portion of your asset to pay for the estate tax, your heirs might be the one suffering and paying for it out of their own money. Please take note that, all assets inherited whether it is real or personal assets cannot be used or withdrawn without the certification of BIR that the estate tax has been paid.

2. And, distribution. You may have left a lot of assets but you just forgot to assign which of which will go to whom. The crisis may now arise here. Siblings against, spouse against children. The harmonious relationship built thru years has now been tainted by one single act that was neglected. Failure to write a will. A will is a written statement by the decedent indicating who will get what.

These are just two of the many things you need to consider. Leaving an inheritance is a matter of planning. We actually call it Estate Planning. Dont allow your inheritance to be a burden rather allow it to bless the next generation.

If you dont know someone who can help you with this. Good news we have financial advisors in FinancePH who are now Certified Estate Planners Phils. (CEPP) , Registered Estate Planners (REP) and Associate Estate Planner Phils. (AEPP). Contact us to know more.