Filipinos typically ask help from their kin in times of trouble, but to move forward as a nation, people should learn to take responsibility for their decisions and their lives. Managing your finances wisely is the first step.
Funny how the lending bank is prudent when it comes to protecting its interests (in this case a house and lot) while the actual owners of a real estate property is not too keen on protecting their own assets.
Whatever course you are in right now, your skills, marketability and time are all investments. As such make sure to hone your skills and talents while still in college, such that when you graduate, you either become an sought-for asset to a company, or a young competent leader of your businesses.
In a gist, VUL asks you to commit a monthly payment whether it is for the next 5, 7, 10 or 15 years. During this time, a portion goes to protection by guaranteeing an amount in case the owner dies, suffers disability or critical illness. Further a portion is invested in instruments that work like a Mutual Fund / UITF which grows exponentially over time. This fund is withdrawable for any use, such as eventual retirement, tuition fees, home purchase etc.
Juan’s investment reached PHP6.87M, Maria’s at PHP6.25M while Jose only at PHP4.80M. Juan’s cash outlay is only PHP132K, Maria’s at PHP225K while Jose at a whopping PHP744K.
Notice that DG’s quotes provide for higher death benefit for lower annual premium given that she is much younger than RCM. Also, the projected fund value by 65 y/o is much higher, in spite of lower premium (hence lower investment amount), since DG has more invested years before reaching 65 y/o, compared to RCM. This is simply time value of money and compounding at work.
Both options above are illiquid and very long term commitments. Meaning if you change your mind, or have a need for cash beyond your emergency funds, it will be more difficult to sell these items to have cash.
Fully or partially pre-term your loans. I know this sounds so killjoy but hey, delay of gratification is always gratifying. And think about this. Imagine the interest savings you can get by pre-terminating your loans. Or the freed up money that used to be spent on amortizations.
Current times may not be the best time to trade actively and most would rather watch on the sides as the market tries to figure out where it’s headed. Can’t help but reiterate though that this is the best time to learn. Learn on your own and learn from the experts.
In 2012, I encountered some serious life-questioning and part of the answer was additional things I want to do in an ideal day. This ideal day continues to take more shape in 2013