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Educational Fund for your Kids

Educational Fund for your Kids

college fund

Familiar ba kayo sa company na CAP o College Assurance Plan? Malamang siguro kumuha ka nito or isa ka sa mga beneficiary nito dapat. Masaklap ang nangyari dito diba. Hinulugan mo ng ilang taon para sa edukasyon ng anak mo, tapos nung gagamitin mo, wala na.

Pano na ngayon ang pang-college ng anak mo kung ganito ang mangyayari sa yo.

But wait, matagal na panahon na ang CAP. Have you heard about Prudentialife Plans Inc. (PPI)? Sila lang naman yong recently bankrupt pre-need plan sa Pilipinas. Leaving more around 300,000 people who invested their money for their pre need plans. Ngayon, it’s uncertain kung may makukuha pa sila or wala.

Kaya dapat, aaralin din kung saan ilalagay ang pera para sa pagpapa-aral ng inyong anak.

I’m not a fan of PRE NEED companies especially when it is for my baby’s education fund.

Kung hindi ako financially literate and wala akong alam sa mga bagay bagay patungkol dyan, malamang mapakuha mo ko. Magagaling magsalita ang mga agent eh. Kaya kung di mo nga alam at wala kang kaalam-alam, ma-a-amaze ka sa mga sasabihin nila. (Ooopps….sorry guys #labyu)

Let me share with you how we plan for our baby’s education fund, 18 years from now 3 months old pa lang kase sya ngayon.

Take note that the tuition fees in the Philippines grows at a rate between 8% to 12%. Kung ang yearly tuition ngayon sa school mo ay P100K per year, after 10 years at 10% growth, nasa P260K na ang tuition fee.

Grabe ano, ang mahal na magpaaral ngayon. 10% growth, samantalang pag nag time deposit ka baka less 1% lang ang interest ng pera mo. Eh di baka magkayod kalabaw ka nyan kung gusto mo talagang mapapag-aral sa magandang school ang anak mo.

So how am I going to prepare for my baby’s college fund? Thru EQUITY MUTUAL FUND.

Kung hindi mo alam kung ano ang mutual fund, basahin mo muna dito. Baka mamaya magkaibang channel tayo, maguluhan ka lang.

http://pinoyinvestorsgroup.blogspot.sg/2013/11/mutual-fund.html

Gaya nga ng nasabi ko sa blog, may apat na uri ang mutual fund. Equity Fund yong pinaka RISKY but, sya rin yong may HIGHEST gains potential.

Alam nyo kase, ang risk ay proportional to the number of years you will keep your money invested. Ibig sabihin, kung mag iinvest kayo 5 years and above, risk is minimized. The higher the better and your money will surely grow more

And because its equity mutual fund, hindi ko wino-worry na magsara yan or ma ZERO ang investment ko. Bakit? Since tinanong mo kung bakit, ibig sabihin hindi mo binasa yong post ko about mutual fund. Sige basahin mo muna.

Sa equity mutual fund kase, naka invest ang pera mo sa marami at malalaking companies sa Pilipinas. Gaya ng SM, PLDT, GLOBE, BDO, MBT at iba pa. Ibig sabihin, mawa-wipe out lang ang investment mo kung sabay sabay nagsara yong mga company na yon. Kelan nga ba sila magsasara sabay sabay?

Suppose mayroong 30 company na pinag-iinvestan ang mutual fund nyo at magsara ang isa. OK lang, may 29 companies pa

Alma Mater ng misis ko ang UST. Ang current annual tuition fee nila eh nasa P120K na. So by the time mag college ang baby namin 18 years from now, nasa mahigit P600K na ang annual average tuition fee….and growing! Kung papasok sya ng 5 years course, mahigit P4 million ang total tuition fees nya. Imagine kung hindi mo paghahandaan, san mo yon pupulutin? Malamang magkandakuba-kuba ka na sa pagtra-trabaho.

If you will research the past performances of equity mutual funds in the country for the past 5 years, they are earning between 15% to 30%. Meron ako alam nag equity fund sa Pinas who earns average 20% in the past 19 years. Take note, maraming equity mutual fund sa Pinas kaya dapat alamin mo muna yong mga yon para makapag compare ka. And take note uli, walang guarantee and returns ng mutual fund. It can be higher or lower next year or in future. But taking considerations of their past performances is a good start in choosing them. I know investments have RISK, but it’s a RISK I am willing to take. Kesa naman ilagay ko sa PRENEED plans.

Kung mag mutual funds kayo, there are ways to get your education fund ready by the time gagamitin na ng anak nyo: lumpsum, monthly top up or both.

We choose to invest both ways. We started opening mutual fund account for him bago pa sya lumabas, with initial lumpsum investment account of P200K. Oy, I don’t mean to brag. I just want to educate you or give real life example.

Kung mag grow yan at average 10% per year, after 18 years that would be around P1.1 million.

Kung mag grow yan at average 15% per year, after 18 years that would be around P2.5 million.

Kung mag grow yan at average 20% per year, after 18 years that would be around P5.3 million.

And still compounding kase di mo naman agad kukunin on the 18th year.

Eh sir pano pag hindi enough yon? Don na papasok sina ninong at ninang…hahaha

Siguro naman darating yong panahon halimbawa pasko or birthday, may magbibigay sa kanya ng pera. Imbes na ibili ng mga toys, ilalagay namin sya sa mutual fund account nya as top up investments. Kung magkano man yon, magkakaiba na tyo. Kaya do your own computation.

Kung wala ka naman pang lumpsum, start small Open an account for P5K initial investment. Then save and put money every month.

If you will save and invest P2K per month and mag grow ang mutual fund mo ng average 10%, after 18 years that would be around P1.5 million.

If you will save and invest P2K per month and mag grow ang mutual fund mo ng average 15%, after 18 years that would be around P2.5 million.

If you will save and invest P2K per month and mag grow ang mutual fund mo ng average 20%, after 18 years that would be around P4 million.

And still compounding kase di mo naman agad kukunin on the 18th year lahat.

Kung mas malaki pa dito ang kaya nyo i-save, eh di mas maganda. Save and invest more!

Pag ginawa mo to, may kasiguruhan ang future ng anak mo Take note, baka mali ang computation ko. Computin nyo rin. Baka mamaya ako pa sisihin nyo…ia-unfriend ko kayo pramis!

Again, investing is RISKY. Aral muna bago invest. I don’t want you to open mutual fund account or any investment account base sa mga sinabi ko. I could be wrong malay nyo. Or baka niloloko ko lang kayo. Do your own research. Attend seminars and talks about financial literacy.

About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at)yahoo.com or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

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