The pandemic has caused seismic shifts in the economy, forcing people to take a closer look at their financial well-being and goals for the future.
Whether you’re preparing for your children’s college tuition or making sure that your family is amply covered in case of health emergencies, the current crisis should not derail your financial planning for the long-term.
If you have additional savings on top of a healthy emergency fund, investing is an excellent next step to achieve your family’s financial goals. Here are some safe investment options that you can explore.
- Retail Treasury Bonds and Premyo Bonds
Government securities are among the safest investment instruments out there. Bonds form part of the government’s proactive financing strategy. Its proceeds will go to the government’s general fund, to be used for its various projects, including the country’s emergency, recovery, and resiliency programs.
The Bureau of the Treasury (BTr) offers Retail Treasury Bonds or RTBs for small investors. RTB holders can earn a guaranteed fixed interest on their investments while contributing to the country’s development.
The BTr also offers Premyo bonds. For a minimum investment of P500, investors get quarterly interest payments and a chance to win cash and non-cash prizes during the quarterly draws.
RTBs and Premyo Bonds are accessible through convenient online and over-the-counter channels. Many small investors prefer the Bonds.PH app because of the simple verification process and easy cash-in method via Instapay, PESONet, GCash or Paymaya. You may check out available bond offerings through the official BTr website.
The government is also pursuing reforms to make investing in legitimate opportunities easier and simpler. The Duterte administration's proposed Passive Income and Financial Intermediaries Taxation Act (PIFITA) will simplify the tax regime for bonds and stocks by reducing the number of tax rates on financial transactions from 80 to 36. Once enacted, PIFITA will make it easier for everyday Filipino investors to put their money in safe and secure investment opportunities.
- Insurance
The primary purpose of insurance is to protect you from financial losses in case of unexpected events. In the event that something goes wrong, your insurance provider will compensate you according to the terms in your policy or contract.
There are many types of insurance products available in the market depending on your family’s needs. Life insurance, health insurance, and accident insurance are some of the basic personal insurance options you can avail of that can serve as a cushion for your family in times of distress. There are also options for protecting your assets, such as home insurance and auto insurance. Variable universal life (VUL) insurance plans are also available, which offer both insurance coverage and an investment plan.
Ultimately, finding the right insurance products for you and your family is crucial for managing life’s risks. Take the time to discuss your options with qualified financial advisors and duly authorized insurance companies.
- Modified Pag-IBIG 2 (MP2) Savings
The Home Development Mutual Fund or Pag-IBIG Fund offers the Modified Pag-IBIG 2 (MP2) Savings Program, a special savings facility with a five-year maturity. Fully guaranteed by the government, this investment option allows Pag-IBIG members to save more and earn high dividends, in addition to their Pag-IBIG Fund Regular Savings. Members can save a minimum of P500 per remittance.
The program is also open to pensioners and retirees who were former Pag-IBIG members.
According to Pag-IBIG, MP2 savings earn tax-free dividends, at a rate higher than the dividend rate of the Pag-IBIG Fund Regular Savings Program. MP2 dividends are derived from no less than 70% of Pag-IBIG Fund’s annual net income.
- Personal Equity and Retirement Account (PERA)
PERA provides Filipinos a tax exempt facility to supplement their future pension benefits from the Social Security System (SSS), Government Service Insurance System (GSIS), and their own employers.
The difference between keeping your money in the bank versus taking advantage of the PERA facility is that with PERA, you can choose where your money is invested. Contributions may be invested in unit investment trust funds (UITFs), mutual funds, pension plans, stocks, government securities, and other investment products authorized for PERA purposes under the PERA law.
There are definitely more investment options available in the market that can help you reach your long-term financial goals. What’s crucial is that you carefully analyze, research, and inquire about each investment offer that comes your way.
The Securities and Exchange Commission or SEC encourages investors to remain cautious of scams and to keep expectations on financial returns realistic. For more information, you may check out the SEC’s Investment 101 guide here.
For reports of potentially fraudulent investment claims, you can contact the Enforcement and Investor Protection Department of the SEC through e-mail at [email protected] or through landline at (02) 8818-6337.
For malicious messages, lodge reports to the NBI Anti-Fraud Division at (02) 8525-4093 or e-mail at [email protected]. You may also send a message through the NBI’s website at www.nbi.gov.ph or their official Facebook account.
You may also contact the PNP Anti-Crime Group (PNP-ACG) through www.pnpacg.ph or hotline number at (02) 8723-0401 local 5313.