financial literacy 1of2
TRANSCRIPT
More than 25 Years in USA/Canada &14 Years in the Philippines
Is an independent marketing company whose associates, through its affiliated companies, offer a broad array of financial services and products.
http://www.img-corp.com/
http://www.img-corp.com/
«IMG-TEAM LOGO»
Make a Difference for Families
At IMG, we can help make a difference
for families by showing them a new path
towards achieving their financial goals.
No Family Left Behind
OUR MISSION
To Build and Provide
the Best Business Opportunity in the World
Our plan is to revolutionize the financial services industry by bringing a fresh, new approach to empower
the world on how money works.
Help people who desire to help themselves. Bring life-changing financial concepts and solutions to middle income individuals and
families who are overlooked by the financial services industry.
OUR VISION
SPENDERS
Deliver the world’s financial wake-up call
Change people from:
SAVERSENTREPRENEURS
INVESTORS
OUR CRUSADE
JUNE 2008 PAGE 30-31
Joen certainly knows what he’s talking about. He is a registered financial planner and has more than 12 years of financial management
experience. He sits as the president and chairman of the board of International Marketing Group (IMG)
Joen has a mission: to change the adage that "the rich get richer and the poor get poorer." He believes that "the average person, even the poor, has an equal chance to become wealthy if given the right information."
Our Team Mentors
Benj & Fely Santiago
Common Money Mistakes• Overspending / Not Living Within One’s Means
Sale, Discounts, Promotions, 0% Interest Instalments Wants = Needs, or Wants > Needs “Materialism”
• Credit Mismanagement Personal Loans, Credit Cards, Mortgages Market Manila 2011, Southeast Asian Central Banks 2008: Philippines has 28% of total household debt in the form of credit card loans
Common Money Mistakes• Overly conservative in Investing Money
Philippine Daily Inquirer 2008: Only 3% of OFWs invest and less than 35% of OFWs save in “banks” ($15.9B 2008 OFWs’ total remittances) Consumer Expectation Survey 2010: 5.8% of OFWs invest and 43.7% save in banks ($18.76B 2010 OFWs’ total remittances) BSP: P3.7 Trillion total “bank deposits” in April 2011
• Lack of Financial Education Citibank Survey June 2011: Filipinos’ Financial IQ = 48.9 % Citibank Survey June 2011: Filipinos’ average savings in reserve = 9 weeks
IMG Offers Total Financial Solution• Financial Literacy
Learn the fundamentals of Debt Management, Insurance, & Investments Learn to plan your own Financial Strategy Learn the proper solution to achieve your goals
• Business Solution Learn the Financial Products & Services Industry Build a Proper & Solid Financial Foundation
• Direct Access to Financial Services Companies
Be informed of the latest updates Remove the middle man Earn from your own needs
• Investment and Business Opportunity Towards PASSIVE INCOME for retirement
IMG Offers Total Financial Solution
Steps& Concepts
Cashflow is the movement of money into or out of an account.
EEmployee
S
BBusiness
IInvestment
Cashflow Quadrant
• Full Time
• Employer
• Income
Self-employed
• Tax (huge)
• Full Time
• Consumer
• Income
• Tax (huge)
• Establishment
• System
• Money
• Tax (low to zero)
• Time
• Money
• More money
• Tax (low to zero)
• Time
Financial Literacy Financial IQ
How do we increase our Cash Inflow?
1. Earn additional income passive
2. Manage your expenses
• Prioritize your needs, lessen your wants
o Problem: Most people want to save but don’t know how. They know only how to spend…
Change your living formula Pay God and yourself first!
At the beginning of the month, before you pay anyone else, reserve 10% for tithes, then save 20% of your income.
Discipline yourself to live within your means
INCOME Debts
Income – Expenses = Savings
Income – Tithes – Savings = Expenses
INCOME
Poverty Formula
Prosperity Formula
Pay Yourself FirstExpenses
Savings(20%)
God(10%)
Expenses(70%)
With this, we can surely fund our “financial plans”
Live simply.
Most people are indebted.
Debt Management
Types of debt:• Bad Debt – cash flows out of
your pocket
• Good Debt – cash flows into your pocket
Live simply.
Most people are indebted.
This will help us avoid debt traps
Live simply.
Most people are indebted.
This will help us avoid debt trapsBefore we build our wealth--
We need protection for assets and life
Protection:
1. Get the maximum benefit* Healthcare* Insurance
* Short payment period
* Investment link (emergency fund)
2. Go for term insurance
Live simply.
Most people are indebted.
This will help us avoid debt trapsBefore we build our wealth--
We need protection for assets and life
Eliminate Bad Debts before you invest
Invest safely and correctly
What if… I die to soon?
Active IncomeYou work hard for the money
Food Shelter Clothing
Education Healthcare Debts/Loans
OLDER
The X-Curve Concept
RetirementSTAGE 1
2 Stages of Financial Life
Passive IncomeMoney works for you
Who will take care of my family?What if… I live too long?
Who will take care of me?
Investment
Food
Shelter
Clothing
Healthcare
Debts/LoansSTAGE 2
YOUNGERProtection
Long Term Savings / Investments
• Concentrate on acquiring ASSETS(cash inflow) Mutual Funds Real Estate
• Avoid LIABILITIES (cash outflow) Consumables(gadgets,expensive furnitures, etc) with no return of
investment
72 ÷ 4 = 18 72 ÷ 8 = 9Money doubles every 18 years Money doubles every 9 years
Age 4% Age 8%
72 ÷ 12 = 6Money doubles every 6 years
Age 12%
29
47
65
38
56
Php 100,000Php 200,000Php 400,000Php 800,000
Php 1,600,000
29
47
65
5359
3541
Php 100,000Php 200,000Php 400,000Php 800,000
Php 1,600,000Php 3,200,000Php 6,400,000
29
6547
Php 100,000Php 200,000Php 400,000
16X
Dividing the number 72 by the interest rate of your savings or investmentswill give the estimated number of years it will take for your money to double
The Rule of 72 (LXXII)
4X
The Rule of 72 (LXXII)
Albert Einstein called COMPOUND INTEREST the eighth wonder of the
world, greatest mathematical invention, and mankind’s greatest invention, because it is a force for
amassing wealth.
http://en.wikipedia.org/wiki/Inflation
oINFLATION is a rise in the general level of prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects an erosion in the purchasing power of money.
http://www.nscb.gov.ph/stats/http://www.nscb.gov.ph/secstat/d_price.asp [National Statistical Coordination Board]
Month 2011 2010 2009 2008 2007 2006 2005
Average 4.8 3.8 3.2 9.3 2.8 6.2 7.6
INFLATION RATE, PHILIPPINES 2005 – 2011
Is an Investment Interest of 5% good enough?
No! As a 20% tax will still be deducted on earned interest.
Deposit Account Account Details
Interest Rate is determined by the amount deposited in Peso over a 12 month/1 year period.
10,000 - 99,999.99 2.000%100,000 -299,999.99 2.125%300,000 - 499,999.99 2.375%500,000 - 999,999.99 2.625%1 M - 4.99 M 3.250%5 M - 9.99 M 3.375%
10 M and over 3.625%
Best Interest Rates on a 1 Year / 12 monthTime Deposit in the Philippines
as of December 2011
TOP #1
Deposit Account Account Details
Interest Rate is determined by the amount deposited in Peso over a 12 month/1 year period.
50,000.00-299,999.99 2.65%300,000.00-999,999.99 2.75%1 M - 1,999,999.99 2.85%2 M - 2,999,999.99 2.95%3 M - 4,999,999.99 3.05%
5 M and over 3.25%
Best Interest Rates on a 1 Year / 12 monthTime Deposit in the Philippines
as of December 2011
TOP #2
P 3,226,766.05P 132,520
10 YRS @ 15%
Building a Solid Financial FoundationINVESTMENT
EMERGENCY FUNDDEBT MANAGEMENT
PROTECTION: INSURANCEHEALTHCARE
« BUILD IT RIGHT. BUILD IT STRONG»
I N C R E A S E C A S H F L O W
INVESTMENTEMERGENCY FUND
DEBT MANAGEMENTLIFE INSURANCE
C A S H F L O W
HEALTHCARE
« BUILD IT RIGHT. BUILD IT STRONG»
Live simply.
Most people are indebted.
This will help us avoid debt trapsBefore we build our wealth--
We need protection for assets and life
Get out of debts before you invest
Invest safely and correctly
Transfer inheritance to our children
Proverbs 6: This chapter advises release from foolish indebtedness (vv:1–5), admonishes avoiding laziness (vv:6–11), warns of the danger of poverty (vv:9–11)
6 Take a lesson from the ants... Learn from their ways and become wise! 8 they labor hard all summer, gathering food for the winter.
Proverbs 6:6,8
“ To be born rich or poor is not a choice, but to become rich or poor, that's a choice that GOD leaves up to us.”
Bo Sanchez
1. ONE STOP SHOP of all Financial Services2. By-Pass The Middle Man (earn the commission yourself)
3. Create Your Multiple Passive Income Stream
4. Have Your Own Business Franchise5. Earn Interest Income from Investments
(invest correctly and safely with high returns)
6. Earn By Helping Others to Save and Invest
What IMG can Offer
ONE STOP SHOP OF ALL FINANCIAL SERVICES
1. ONE STOP SHOP of Financial Services2. By-Pass the Middle Man (earn the commission yourself)
3. Create Your Multiple Passive Income Stream
4. Have Your Own Business Franchise5. Earn Interest Income from Investments
(invest correctly and safely with high returns)
6. Earn By Helping Others to Save and Invest
What IMG can Offer
YOU
BROKER
INVESTMENT
YOU (BROKER)
1. ONE STOP SHOP of Financial Services2. By-Pass the Middle Man (earn the commission yourself)
3. Create Your Multiple Passive Income Stream
4. Have Your Own Business Franchise5. Earn Interest Income from Investments
(invest correctly and safely with high returns)
6. Earn By Helping Others to Save and Invest
What IMG can Offer
Healthcare&
InsuranceAlways inform your relatives of your insurance.
DID YOU KNOW THAT:1. Near 90% of Filipinos are not saving for long-term medical needs2. Medical Inflation is 3 to 4 times the economic inflation3. About 60% or more of senior citizens are still dependent on their children for medical care4. About 45% of total Filipinos are vulnerable to poverty if confronted by surprise of health problems, death and natural disasters5. Philippine Life Insurance Association: Pinoys spend more on cigarettes than Life Insurance
http://www.kaiserhealthgroup.com/
INVESTMENTEMERGENCY FUND
DEBT MANAGEMENTPROTECTION: INSURANCE
HEALTHCAREI N C R E A S E C A S H F L O W
INVESTMENTEMERGENCY FUND
DEBT MANAGEMENTPROTECTION: INSURANCE
HEALTHCAREI N C R E A S E C A S H F L O W
http://www.kaiserhealthgroup.com/
MUTUALFUNDS
Mutual Funds vs Bank Deposits
• Bank Deposits Your money is actually invested in financial instruments with higher return Interest earned is based on account agreement, regardless of how much the bank earns on your money You only own what was agreed to be given to you
• Mutual Funds Ownership: You’re a co-owner of the company Number of shares: The cost per share is secondary Long-term investment: Long-term benefits
http://www.pifa.com.ph/advantages.html
TYPES OF MUTUAL FUNDS
STOCK/EQUITY FUNDP8+$1 BALANCED FUNDP9+$4
BOND/FIXED-INCOMEP11+$8+€2 MONEY MARKET FUNDP5
PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
1. Professional management: One of the main attractions of mutual funds is that it affords its investors the services of full-time professional managers whose job is to analyze the various investment products available in the market.
2. Low capital requirement: Direct investments usually require substantial capital. In contrast, most mutual funds in the Philippines require a minimum initial investment amount of only Php5,000.00 and minimum additional investments of Php1,000.00.
http://www.pifa.com.ph/advantages.html
3. Potential Higher Returns: Very few individual investors can match the experience and skill of full-time professional fund managers who can select those that would give the best possible returns.
4. Liquidity: Liquidity is the ability to readily convert investments into cash. While the law provides that redemption proceeds must be given within seven (7) banking days from the date of the redemption request, most funds are able to pay the redemption proceeds within a day.
PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
http://www.pifa.com.ph/advantages.html
PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
5. Diversification: investing in variety of assets; here is a saying that goes, “Do not put all your eggs in one basket.” When people invest in a mutual fund, they achieve instant diversification.
http://www.pifa.com.ph/advantages.html
WHAT IS DIVERSIFICATION?
Stocks
PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
5. Diversification: investing in variety of assets; here is a saying that goes, “Do not put all your eggs in one basket.” When people invest in a mutual fund, they achieve instant diversification.
6. Safety: Mutual funds are highly regulated by the Securities and Exchange Commission under the Investment Company Act and its implementing rules.
http://www.pifa.com.ph/advantages.html
o Mutual Fund operations are governed by the Investment Company Act (RA 2629) whose implementing rules and regulations specify particular limits and constraints in the investment activities of all mutual funds.
How safe is it to invest in mutual funds?
The Securities and Exchange Commission (SEC) sees to it that all mutual funds comply with these statutory regulations. Mutual fund companies are regularly audited by an independent auditor. The assets of the mutual fund are held by a third-party custodian bank.
PRIMARY REASONS TO INVEST IN MUTUAL FUNDS
7. Convenience: The popularity of mutual funds in the Philippines is fast catching up. Investment application can now do online and additional investment/s can now deposit thru banks’ online banking fund transfer facilities.
http://www.pifa.com.ph/advantages.html
Are gains in mutual funds taxable?
oNO. Mutual fund “gains” are exempted from taxes based on the Comprehensive Tax Reform Program (CTRP), Section 32 (B) (7) (h). This was done to promote long-term savings in the country.
Why invest in MUTUAL FUNDS and not in INDIVIDUAL STOCKS?
o If you’re not a good stock picker.o If you don’t have time to follow and track your
investments actively.o If you can potentially become an emotional
investor if you handle your investments too actively.
COST - AVERAGING
http://www.investmentphilippines.com/
TOP 3 MUTUAL FUNDS IN 20111: FAMI Fixed Income Fund
12.34%2: EkklesiaBPI Mutual Fund
10.35%
3: Philequity Peso Bond Fund9.02%
http://www.fami.com.ph/
http://www.philequity.net/
http://www. philamfunds.com.ph/
REAL ESTATE
1834
1954
2007
2 BASIC TYPES OF REAL ESTATE PROJECTSHORIZONTAL DEVELOPMENTS
Socialized Housing Affordable Housing Middle / Upper Middle High End
2 BASIC TYPES OF REAL ESTATE PROJECTSVERTICAL DEVELOPMENTS
According to Market According to Height
• Low-rise, Mid-rise, High-rise
LOCATION
As per BIR's Revenue Regulations No. 16-2011 dated Oct. 27, 2011, starting January 1, 2012, sales on real properties exempt from VAT:
For lots below P 1,919,500 (prev P1.5M) and on House & Lot below P3,199,200 (prev 2.5M).
WHY INVEST IN REAL ESTATE PERSONAL USE
Family residence SAVINGS
Has the potential to offer higher than bank and/or money placement yield through the years
BUSINESS Location/Site/Place of business Can be resold or mortgaged/collateral for loan Can generate rental income
You can buy these needs as a CLIENT OR you can get it as your own BROKER and
earn the commission yourself.
Associate – 20%Field Leader – 30%
Asst. Marketing Director – 40%Marketing Director – 50%
“ You can’t cross the sea merely by standing and staring at the water.”
Rabindranath Tagore
Financial Independence is not a dream. It’s a decision!
ENDOF
SESSION
Review Card
DATE: ____|____|____
I AM INTERESTED IN…(PLEASE CHECK ONE)
STARTING A BUSINESS/CAREER IN IMG
LEARNING MORE ABOUT FINANCIAL SOLUTION FOR MY FAMILYBOTH OF THE ABOVE
APPOINTMENT: __|HOME __|IMG OFFICE (INDICATE AVAILABILITY)NUMBER __|MON __|TUE __|WED __|THU __|FRI __|SAT __|SUN DATE: ____________________ INVITED BY: ________________________________ TIME: ___________________ TRAINER: _________________________________
BPM____ S1-S2____ PPL____ FTS____ JOIN____ OWN____
NAME: SPOUSE:
ADDRESS: WORK PHONE:
EMAIL: CELLPHONE: