PASSIVE Investors

[honey2723]

---

i don't know how you got that 99,490 per year

8,000 a month x 12 months = 96,000

and you said you get 80,000 at the 5th year and every 2 years thereafter.

Going back to my computation:

8,000/month

x 60 months (5 years)

480,000 you get 80,000 for the 5th year.

x 24 months (2 years)

192,000 you get another 80,000 on the 7th year (total amount invested 672,000)

x 24 months (2 years)

192,000 you get another 80,000 on the 9th year (total amount invested 864,000)

x12 months (1 year)

96,000 you invest

Principal money invested for 10 years = 960,000



5th year 80,000
(every 2 years)
7th year 80,000
9th year 80,000
11th year 80,000
13th year 80,000
15
17
19
21
23
25
27


What I am asking is after 10 years of giving 8,000 a month (Totals 960,000)

What happens to that 960,000?

I am not saying I will pull out before 10 years....

I am asking what happens to that 960,000 after I have completed the 10 years of contribution?

from your presentation its 80,000 every 2 years for life.

is that all? what happens to the 960,000?

lets keep it simple.


there is already 960,000 in the company.

hi cheaptech... this is the reason nganong important ang sitdown... hehe kay dili ni cya basta nga computation... anyways, i'll try to enlighten you in this virtual community of ours as best as I can...

1. Where did I get the P99,490?
As stated in the 2nd to the last paragraph of the post with table, based ni cya sa 40year old nga person... And in the first post, I posted AVERAGE MONTHLY INVESTMENT. So, dili cya fixed P8,000. It's an AVERAGE investment across different age brackets. Maybe nakuwang nako ug state sa first post nga mag-agad pud ni sa imong age... And being an insurance company, mas bata ang investor, mas barato, mas tiguwang, mas mahal... So, the total investment can be higher or lower depending on the age for the same guaranteed payout (i.e. P80,000). Similar picture ra tong table akong gihatag sa taas ug sa P8,000 nga monthly investment...

2.What happens to the total investment? (In the table I provided = P994,900)

10----99,490.00---80,000.00-------697,000.00----------409,101.00----1,106,114.00

As you can see from the table, ang P697,000 ang guaranteed cash savings nimo which was derived from your total investments. How did I come up with this? Pre-computed na ni cya nga cash savings made by the company. Now, if atong i-add ang guaranteed pay-out na imong nang na-receive, (P80,000 x 4), that's P320,000. So,

P697,000 + P320,000 = P1,017,000... MORE THAN YOUR TOTAL INVESTMENT... And wala pay labot ang interest earned ani.

So, to make things clearer. Dili lang ang guaranteed pay-out ang return nimo ani... You have the GUARANTEED CASH SAVINGS plus GUARANTEED PAY-OUT. So, kung based sa table, end of your 10th year, pwede na jud nimo mabawe imong investment... Remember, na-complete ra ang investment by the 10th year. And ang nakanindot niya kay, bisag kuha-an pa nimo tong GUARANTEED CASH SAVINGS (which is the representation of your investment), padayon ra gihapon ka ug enjoy sa P80,000. Pero dapat ang GUARANTEED CASH SAVINGS kay dili hutdon. Kay if hutdon nimo ug kuha, mura naman lang pud nimo gi-terminate imong investment... So, wala nay P80,000 for life... It's like investing in a corporation. Bale shares nimo ang imong investment. Pwede nimo kuha-an gamay in the future. Pero if ganahan na jud nimo i-sell tanan nimong shares, wala na pud kay ma-enjoy nga benefits sa company...

Clear na? Or sit down nalang ta?? Kay if diri ta sa istorya mag Q&A, basin ma-late ko sa akong date unya... hehe I welcome your questions jud...

[demonyito]

dili ni scam! interested ko ani pero gipit pa sa budget ron! hehe
very nice na plan nya Insular Life pa gyd..

[vladmire]

if my memory serves me right, your money will be invested to the top 10 companies for stocks. 10 companies will not go down at the same time. That includes ayala, sm and some other big companies.

[koykoy]

Try ko lang ug butang sa table diri...

a)End of Year
b)Annual Premium
c)Guaranteed Anticipated Payments (Not withdrawn, stayed with the company to grow)
d)Guaranteed Basic Cash Values
e)Accumulated Anticipated Endowments
f)Total Living Benefits including Dividends

a--------b-------c--------------------d------------------e----------------f
1-----99,490.00---0---------------------0-------------------0---------------0
2-----99,490.00---0----------------32,000.00----------------0----------32,001.00
3-----99,490.00---0---------------232,000.00----------------0---------232,002.00
4-----99,490.00---80,000.00-------252,000.00-----------80,000.00------332,003.00
5-----99,490.00---0---------------354,000.00-----------86,400.00------440,405.00
6-----99,490.00---80,000.00-------383,000.00----------173,312.00------556,318.00
7-----99,490.00---0---------------493,000.00----------187,177.00------680,184.00
8-----99,490.00---80,000.00-------530,000.00----------282,151.00------812,160.00
9-----99,490.00---0---------------649,000.00----------304,723.00------953,734.00
10----99,490.00---80,000.00-------697,000.00----------409,101.00----1,106,114.00
11----------------0----------------738,000.00----------441,829.00----1,179,844.00
12----------------80,000.00--------703,000.00----------557,175.00----1,260,192.00
13----------------0----------------745,000.00----------601,750.00----1,346,768.00
14----------------80,000.00--------710,000.00---------729,889.00-----1,439,911.00
15----------------0----------------752,000.00---------788,281.00-----1,540,305.00
.
.
.
30----------------80,000.00--------781,000.00--------3,666,878.00----4,447,982.00

TOTAL PAYMENT = 994,900.00
ACCUMULATED ANTICIPATED PAYMENTS / GUARANTEED PAY-OUT @ 8%/ANNUM = 3,666,878.00 TOTAL FUNDS after 30 years (GUARANTEED PAY-OUT + GUARANTEED CASH SAVINGS + INTEREST EARNED @ 8%) = 4,447,982.00

ROI of total investment vs accumulated pay-outs = 369%
ROI of total investment vs total funds = 447%

WHEW!!!! kuti jud ning mag-himo ug table diri sa forums oi! nganong dili man jud ma-apil ug paste ang columns sa tables... tsk, tsk, tsk... anyways, cheaptech and to all who would be interested, I hope I have enlightened you a little bit with this make-shift table... Kini cya nga table kay based ni cya sa 40y.o. person with the P80,000 Guaranteed Pay-out, 10 years needed to invest... So, what do you think??

Now, if for whatever reason you want to get your returns in less than 10 years time, kung pila tong corresponding LIVING BENEFITS niya, maoy possible makuha sa investor... POSSIBLE lang kay mu-depende man cya sa interest earned thru the years... So, I suggest, if you are truly interested to participate in this particular business plan, I would suggest you get in touch with me coz posting here will lead us nowhere... You (people who are interested) need to act on this before this opportunity passes up. I already did...

well-explained! so what is the effective rate of return on the 15th year?

[honey2723]

guys, thank you for all your comments... they are highly appreciated... I will get back to your posts when time permits. But for now, nag-check lang ko kung unsay progress.

As for jackdi, I think I need to see you and ask you to bring your policy contract coz I am not well-versed sa 20year-endowment sa insular. hehe I was introduced to it as an agent but wala kaau ko nag-dwell ato kay naa koy laing plan nga nakit-an mas nindot... Varied man gud ang plans with Insular Life... You can contact me thru the number in the first post. The 20Year-Endowment is not available in the market anymore, I think since 2007 pa man tingali to...

@vladmire... yup, premium payments are invested in stocks and bonds also... But as for stocks, yup, the companies that you mentioned are in the list... I'll post some company names when time permits again...

Thank you for your comments again...

dili ni scam! interested ko ani pero gipit pa sa budget ron! hehe
very nice na plan nya Insular Life pa gyd..

Thanks demonyito for the support...

[cheaptech]

hi cheaptech... this is the reason nganong important ang sitdown... hehe kay dili ni cya basta nga computation... anyways, i'll try to enlighten you in this virtual community of ours as best as I can...

1. Where did I get the P99,490?
As stated in the 2nd to the last paragraph of the post with table, based ni cya sa 40year old nga person... And in the first post, I posted AVERAGE MONTHLY INVESTMENT. So, dili cya fixed P8,000. It's an AVERAGE investment across different age brackets. Maybe nakuwang nako ug state sa first post nga mag-agad pud ni sa imong age... And being an insurance company, mas bata ang investor, mas barato, mas tiguwang, mas mahal... So, the total investment can be higher or lower depending on the age for the same guaranteed payout (i.e. P80,000). Similar picture ra tong table akong gihatag sa taas ug sa P8,000 nga monthly investment...

2.What happens to the total investment? (In the table I provided = P994,900)

10----99,490.00---80,000.00-------697,000.00----------409,101.00----1,106,114.00

As you can see from the table, ang P697,000 ang guaranteed cash savings nimo which was derived from your total investments. How did I come up with this? Pre-computed na ni cya nga cash savings made by the company. Now, if atong i-add ang guaranteed pay-out na imong nang na-receive, (P80,000 x 4), that's P320,000. So,

P697,000 + P320,000 = P1,017,000... MORE THAN YOUR TOTAL INVESTMENT... And wala pay labot ang interest earned ani.

So, to make things clearer. Dili lang ang guaranteed pay-out ang return nimo ani... You have the GUARANTEED CASH SAVINGS plus GUARANTEED PAY-OUT. So, kung based sa table, end of your 10th year, pwede na jud nimo mabawe imong investment... Remember, na-complete ra ang investment by the 10th year. And ang nakanindot niya kay, bisag kuha-an pa nimo tong GUARANTEED CASH SAVINGS (which is the representation of your investment), padayon ra gihapon ka ug enjoy sa P80,000. Pero dapat ang GUARANTEED CASH SAVINGS kay dili hutdon. Kay if hutdon nimo ug kuha, mura naman lang pud nimo gi-terminate imong investment... So, wala nay P80,000 for life... It's like investing in a corporation. Bale shares nimo ang imong investment. Pwede nimo kuha-an gamay in the future. Pero if ganahan na jud nimo i-sell tanan nimong shares, wala na pud kay ma-enjoy nga benefits sa company...

Clear na? Or sit down nalang ta?? Kay if diri ta sa istorya mag Q&A, basin ma-late ko sa akong date unya... hehe I welcome your questions jud...

10----99,490.00---80,000.00-------697,000.00----------409,101.00----1,106,114.00

In effect you are telling me

after 994,900 given to the company in 10 years. (99,490.00 x 10 years)

I get 1,106,114.00

so 1,106,114-994,900(Principal amount given to the company) = 111,214.00 (income earned from principal)

111,214/994,900 = 11.178% return for 10 years.

Thats a very bad return.

samot na kung kani:
P697,000 + P320,000 = P1,017,000... MORE THAN YOUR TOTAL INVESTMENT... And wala pay labot ang interest earned ani.

1,017,000-994,900= 22,100 income earned from principal amount (994,900)

22,100/994,900=2.22% in 10 years.

[honey2723]

WWWWWWAAAAAAAAAAAAAHHHHHHHH!!!! Lisud man jud diay ning mag-explain ka online noh?? There are tendencies nga dili jud masabtan dayon ang atong ipasabot... hehe This is the reason why it's very important for a sit-down... But anyways, I'll do my best to kutaw my brain para mapa-abot jud nako ang akong ganahan ipasabot sa mga nag-post diri...

Okay, let's take this one at a time.

First, @ jackdi, thank you for reiterating your point. Yes, I see your point here... Now, allow me to share my POV.
- Yes, you have the right to say that it's somewhat DOUBLE YOUR MONEY IN 20 YEARS. And as what I've mentioned in previous posts, TIME IS THE GREATEST ALLY of your investment. Now, if ang gipangita ninyo nga type of investment kay kanang DOUBLE YOUR MONEY IN 5 YEARS OR LESS, hala! Sige! Larga didto sa Legacy... (Or whatever company offers you ROI benefits in the shortest amount of time.) Mao na ang ilang gipang-offer... Tan-awa karon, nagka-problema... (Wala ko nasuko ha... I'm just pointing out something here... hehe )

And what's wrong with investing P8k/month for the next ten years (guaranteed 10 years lang) when it can GUARANTEE you benefits from a dependable company? Benefits that you can use to fund your children's education or your retirement or if buhi pa mo nya naa nay anak inyong mga anak, pwede pa sad pang supplement sa education sa inyong apo?? What's wrong with that? Kung akoy pangutan-on, why not?! Again, this is for long-term... Maong bug-at2x ang investment, kay LIFETIME man pud ang benefits... If you're going to look at it this way:

- Get a plan and put it under your kid's name (who has a longer life expectancy than adults). Example a 1 year old kid and P8k/month for the next ten years... Now, by the time the kid is 5/6 years old, the P80k guaranteed pay-out is now scheduled. Now, you have the option to leave it with the company to grow or kuhaon ninyo by asking the company for a check in that amount. Now, since 10 years man cya payable and if for example wala ka naka-come up sa imong yearly due, then you can use the guaranteed pay-out for your next investment. Moving forward, na-fully paid na nimo as a parent. As for the benefits, you have ALL THE RIGHTS on what you're going to do with the expected pay-out, but my suggestion is, you discipline yourself on how to spend the benefits responsibly... Maong important nga naa kay goal or purpose para sa kini nga investment para ma-appreciate nimo cya... Next, let's say gipa-retire naka ni Lord (kay buotan na kuno kaau ka), and since the plan is under your kid's name, your kid is still GUARANTEED TO RECEIVE THE PAY-OUTS even if your not around anymore... For me, that is the greatest gift I can actually give my son. Dili cya maguba, dili mawala sa uso, LASTING jud cya... And if naa nay anak ang bata, he can still use the benefits for his kid! Now, tell me, can you GUARANTEE THESE THINGS WHEN YOU DO YOUR OWN BUSINESS OR ANY OTHER INVESTMENT?! So far, sa akong mga gipang-tan-aw, wala pa koy nakit-an nga makahatag ani... As for business, you need to be ACTIVELY INVOLVEDfor more than 10 years to have an assurance nga mapasa nimo sa imong anak ang business... As for this, PASSIVELY SAVING ra gud ka... Just make sure nga ang imong kuhaon kay dili ka magba-guod ug bayad to the point nga dili naka mukaon...

@jackdi... with this picture in mind, why stop @ 20 years? When you can have a lifetime of benefits from a PASSIVE INVESTMENT you made in 10 years??

This is the problem with the majority, we only focus on the short-term man gud... What these kind of people must do, is to look at the long-term... We need to be visionaries!!! (Charing!)

As for cheaptech's claim, yes they are logical from your point of view, but do you see where I'm standing at? Pang long-term man gud akong ma-imagine... I hope nakita nimo ang akong gipa-sabot...

What else pa ba??

As for PDIC coverage, yup! It's still @ P250k per account. That means if you spread your savings or time deposit to several accounts, bisag mu-total na ug P1M, pero max of P250k each account, you still get your total of P1M....

As for your 20 year Endowment plan, the good thing that I can see that it did to you, is it created a habit of saving for you and it allowed you to learn more about investments... And I commend you for that... Don't be a saver, be an investor jud... I also appreciate that you are particular with Returns with your investments... Keep it up! You need to be vigilant when it comes to investments jud and I appreciate the opportunity for you to stir my brain and as a result, hopefully, educated others as well.

NEXT! (Hehehe )

@koykoy... hopefully dili ka mu-stop lang sa 15 years in looking at the rate of return as what I've posted for jackdi... But to answer your question, here it goes:

Total pay-out for the last 15 years kay 6 na ka P80,000 = P480,000
Guaranteed Basic Cash Values in 15 years = P752,000
Total payment = P994,900 (which was completed in 10 years time)

So,
P752,000 + P480,000 = P1,232,000

P1,232,000 / P994,900 = 1.23831541 or 123.8%

Now, the time that has passed from completion of investment has only been 5 years:

123.8% / 5 = 24.77%

So, upon completion of your investment, you have been able to enjoy 24.77% if on an annual basis kung sa guaranteed returns(guaranteed pay-out and guaranteed basic cash values), wala pay labot ang additional benefits earned from the interest. The reason nganong wala nako gi-apil ang earnings from the interest, it's because we don't guarantee interest rates. I think I already mentioned this in the previous posts that the interest rates depends on the economic status and company performance. As for now, it's at 8%/annum. So, kung imong huna-hunaon, mas mudako pa jud imong returns if i-apil na ug calculate ang dividends (earnings derived sa interest rate) sa plan.

Another good thing about this is, WALAY WITHHOLDING TAX!!! Yup! Dili taxable ang guaranteed pay-out... So, if you're the type of person nga mag-yaw2x kay gamay na gali tubo sa deposito sa banko, kuha-an pa jud sa gobyerno, then this is DEFINITELY an option for you...

Murag taas2x na ni da! To be continued lang sa next post...

[cheaptech]

WWWWWWAAAAAAAAAAAAAHHHHHHHH!!!! Lisud man jud diay ning mag-explain ka online noh?? There are tendencies nga dili jud masabtan dayon ang atong ipasabot... hehe This is the reason why it's very important for a sit-down... But anyways, I'll do my best to kutaw my brain para mapa-abot jud nako ang akong ganahan ipasabot sa mga nag-post diri...

Okay, let's take this one at a time.

First, @ jackdi, thank you for reiterating your point. Yes, I see your point here... Now, allow me to share my POV.
- Yes, you have the right to say that it's somewhat DOUBLE YOUR MONEY IN 20 YEARS. And as what I've mentioned in previous posts, TIME IS THE GREATEST ALLY of your investment. Now, if ang gipangita ninyo nga type of investment kay kanang DOUBLE YOUR MONEY IN 5 YEARS OR LESS, hala! Sige! Larga didto sa Legacy... (Or whatever company offers you ROI benefits in the shortest amount of time.) Mao na ang ilang gipang-offer... Tan-awa karon, nagka-problema... (Wala ko nasuko ha... I'm just pointing out something here... hehe )

And what's wrong with investing P8k/month for the next ten years (guaranteed 10 years lang) when it can GUARANTEE you benefits from a dependable company? Benefits that you can use to fund your children's education or your retirement or if buhi pa mo nya naa nay anak inyong mga anak, pwede pa sad pang supplement sa education sa inyong apo?? What's wrong with that? Kung akoy pangutan-on, why not?! Again, this is for long-term... Maong bug-at2x ang investment, kay LIFETIME man pud ang benefits... If you're going to look at it this way:

- Get a plan and put it under your kid's name (who has a longer life expectancy than adults). Example a 1 year old kid and P8k/month for the next ten years... Now, by the time the kid is 5/6 years old, the P80k guaranteed pay-out is now scheduled. Now, you have the option to leave it with the company to grow or kuhaon ninyo by asking the company for a check in that amount. Now, since 10 years man cya payable and if for example wala ka naka-come up sa imong yearly due, then you can use the guaranteed pay-out for your next investment. Moving forward, na-fully paid na nimo as a parent. As for the benefits, you have ALL THE RIGHTS on what you're going to do with the expected pay-out, but my suggestion is, you discipline yourself on how to spend the benefits responsibly... Maong important nga naa kay goal or purpose para sa kini nga investment para ma-appreciate nimo cya... Next, let's say gipa-retire naka ni Lord (kay buotan na kuno kaau ka), and since the plan is under your kid's name, your kid is still GUARANTEED TO RECEIVE THE PAY-OUTS even if your not around anymore... For me, that is the greatest gift I can actually give my son. Dili cya maguba, dili mawala sa uso, LASTING jud cya... And if naa nay anak ang bata, he can still use the benefits for his kid! Now, tell me, can you GUARANTEE THESE THINGS WHEN YOU DO YOUR OWN BUSINESS OR ANY OTHER INVESTMENT?! So far, sa akong mga gipang-tan-aw, wala pa koy nakit-an nga makahatag ani... As for business, you need to be ACTIVELY INVOLVEDfor more than 10 years to have an assurance nga mapasa nimo sa imong anak ang business... As for this, PASSIVELY SAVING ra gud ka... Just make sure nga ang imong kuhaon kay dili ka magba-guod ug bayad to the point nga dili naka mukaon...

@jackdi... with this picture in mind, why stop @ 20 years? When you can have a lifetime of benefits from a PASSIVE INVESTMENT you made in 10 years??

This is the problem with the majority, we only focus on the short-term man gud... What these kind of people must do, is to look at the long-term... We need to be visionaries!!! (Charing!)

As for cheaptech's claim, yes they are logical from your point of view, but do you see where I'm standing at? Pang long-term man gud akong ma-imagine... I hope nakita nimo ang akong gipa-sabot...

What else pa ba??

As for PDIC coverage, yup! It's still @ P250k per account. That means if you spread your savings or time deposit to several accounts, bisag mu-total na ug P1M, pero max of P250k each account, you still get your total of P1M....

As for your 20 year Endowment plan, the good thing that I can see that it did to you, is it created a habit of saving for you and it allowed you to learn more about investments... And I commend you for that... Don't be a saver, be an investor jud... I also appreciate that you are particular with Returns with your investments... Keep it up! You need to be vigilant when it comes to investments jud and I appreciate the opportunity for you to stir my brain and as a result, hopefully, educated others as well.

NEXT! (Hehehe )

@koykoy... hopefully dili ka mu-stop lang sa 15 years in looking at the rate of return as what I've posted for jackdi... But to answer your question, here it goes:

Total pay-out for the last 15 years kay 6 na ka P80,000 = P480,000
Guaranteed Basic Cash Values in 15 years = P752,000
Total payment = P994,900 (which was completed in 10 years time)

So,
P752,000 + P480,000 = P1,232,000

P1,232,000 / P994,900 = 1.23831541 or 123.8%

Now, the time that has passed from completion of investment has only been 5 years:

123.8% / 5 = 24.77%

So, upon completion of your investment, you have been able to enjoy 24.77% if on an annual basis kung sa guaranteed returns(guaranteed pay-out and guaranteed basic cash values), wala pay labot ang additional benefits earned from the interest. The reason nganong wala nako gi-apil ang earnings from the interest, it's because we don't guarantee interest rates. I think I already mentioned this in the previous posts that the interest rates depends on the economic status and company performance. As for now, it's at 8%/annum. So, kung imong huna-hunaon, mas mudako pa jud imong returns if i-apil na ug calculate ang dividends (earnings derived sa interest rate) sa plan.

Another good thing about this is, WALAY WITHHOLDING TAX!!! Yup! Dili taxable ang guaranteed pay-out... So, if you're the type of person nga mag-yaw2x kay gamay na gali tubo sa deposito sa banko, kuha-an pa jud sa gobyerno, then this is DEFINITELY an option for you...

Murag taas2x na ni da! To be continued lang sa next post...

P752,000 + P480,000 = P1,232,000

P1,232,000 / P994,900 = 1.23831541 or 123.8%

Diri ka nasayop sa imo math...

1,232,000 -(minus principal amount given to the companey) 994,900= 237,100 (net amount earned)

We must talk about NET amount(meaning excluding the principal money given to the company which is practically your money)

237,100/994,900 x100= 23.83%

23.83%/ 5 years = 4.766% per year

When you calculate return of investment. you will calculate the NET return...

example your 100 pesos will become 110 in 1 year.

110-100= 10

10/100(amount initially invested) x100 = 10%

you earned 10% in 1 year from your 100.

[honey2723]

Now, cheaptech's turn...

Okay... Brod! Murag lahi ta ug paagi sa pag-compute... hehe

As for me, I see it this way... Let me share to you the proper way to compute this...

Considering the supplied table:

i.e. Year 3: 3-----99,490.00---0---------------232,000.00----------------0---------232,002.00

Total payment = P99,490 x 3 = P298,470
Guaranteed Basic Cash Value = P232,000

Based on this, using the same method of computing for the ROI:

P232,000 / P298,470 = 0.77729755 or 77.73%

If you're going to look at it as is, then of course, lugi jud ka.

i.e. Year 8: 8-----99,490.00---80,000.00-------530,000.00----------282,151.00------812,160.00

Total Payment = P99,490 x 8 = P795,920
Guaranteed Basic Cash Value = P530,000
Total Guaranteed Pay-out Received = P80,000 x 3 = P240,000

Total Guaranteed Living Benefits at end of Year 8 = P530,000 + P240,000 = P770,000

P770,000 / P795,920 = 0.96743391 or 96.74%

If you're going to look at it as is, you can say nga alkansi ka during this time, but you also have to consider that wala pa na-consider ang interest earned ani. And if atong i-consider ang dividends, then I am confident to say, that you can break-even your investment at this point or a little bit more... But again, let's not compute for it kay dili guaranteed ang interest rates...

Now, let's revisit year 10:

10----99,490.00---80,000.00-------697,000.00----------409,101.00----1,106,114.00

Total Payment = P994,900
Total Guaranteed Pay-out = P80,000 x 4 = P320,000
Guaranteed Basic Cash Value = P697,000

Total Guaranteed Living Benefits at end of Year 10 = P320,000 + P697,000 = P1,017,000

P1,017,000 / P994,900 = 1.02221329 or 102.2%

P1,017,000 - P994,900 = P22,100 ==> As for this earning, you can't spread this one out over 10 years kay wala pa man ka naka-full sa imong invesment. You can only spread this earning over a 10 year time table if you invested the full payment sa first year pa lang nimo... If mao na ang situation, then agree ko nimo nga lugi jud ka...

But this is not the case. If ang investor ganahan mag-bulto ug bayad sa iyang investment, like the 2nd-10th year investment, he can do so. How? He can put it in a facility with Insular Life called a Premium Deposit Fund (PDF), which acts as a savings account wherein future investments will be taken out of. While waiting for the future investments to be taken out of the PDF, it's also growing, which is good news for the investor! By how much? Well, right now, it's at 8% but again, it's not guaranteed. What we can guarantee thou, is that it will not go down below 6%/annum. And what does this mean for the investors? Additional earnings for him! More work for his money!!! Yipee!!!

Now, to give you a picture of this...

Projection of Deposit (P99,490 x 9) @ current 8%/annum

Deposit----------Withdrawals---------Interest Earned---------Year-End Values
895,410.00-----------0------------------71,632.80-----------967,042.80
-----------------99,490.00--------------69,404.22-----------936,957.02
-----------------99,490.00--------------66,997.36-----------904,464.39
-----------------99,490.00--------------64,397.95-----------869,372.34
-----------------99,490.00--------------61,590.59-----------831,472.92
-----------------99,490.00--------------58,558.63-----------790,541.56
-----------------99,490.00--------------55,284.12-----------746,335.68
-----------------99,490.00--------------51,747.65-----------698,593.34
-----------------99,490.00--------------47,928.27-----------647,031.60
-----------------99,490.00--------------43,803.33-----------591,344.93

Now, what does the table above mean? The deposit represents the total amount needed to pay-off the 2nd-10th year sa imong investment. Why 2nd-10th year lang? Kay assumed man nga human na ug bayad ang 1st year. The withdrawals represent the amount needed on a yearly basis. So, even though nahuman na ug bayad ang imong investment dues, there's still money left from your deposit amounting to P591,344.93 (gamay ra noh?! )

So, let's revisit year 10 using the additional info:

Total Deposit: P99,490 + P895,410 = P994,900
Total Deposit - Earnings from Deposit = P895,410 - P591,344.93 = P304,065.07
With this in mind, mga P304,065.07 ra ang imong gi-cash out sa imong investment... Kay bisag nag-deposit ka ug P800k+ in the beginning, gi-ulian ra man pud ka ug P591k+.

Total Guaranteed Living Benefits at end of Year 10 = P320,000 + P697,000 = P1,017,000

P1,017,000 + P591,344.93 = 1,608,344.93
P1,608,344.93 / P994,900 = 161.66%
161.66% / 10years giving you 16.17% per annum... Not bad, right? And again, considering the fact nga wala pa ang interest sa plan itself... Thus, giving you a higher return.

Now, if you're still not comfortable with this figure, then I will leave you at peace... This particular passive investment is not for you... Not my loss... But I hope you learned something. When doing calculations, make sure you're computations are correct so that you're assessment are based on the right info. But I do appreciate your calculations. Without your calculations, dili ko mapugos ug himo ug computation diri to show to others that this is indeed a good investment...

Hahay! At last nahuman na jud akong computation! Any other queries?

P752,000 + P480,000 = P1,232,000

P1,232,000 / P994,900 = 1.23831541 or 123.8%

Diri ka nasayop sa imo math...

1,232,000 -(minus principal amount given to the companey) 994,900= 237,100 (net amount earned)

We must talk about NET amount(meaning excluding the principal money given to the company which is practically your money)

237,100/994,900 x100= 23.83%

23.83%/ 5 years = 4.766% per year

When you calculate return of investment. you will calculate the NET return...

example your 100 pesos will become 110 in 1 year.

110-100= 10

10/100(amount initially invested) x100 = 10%

you earned 10% in 1 year from your 100.

Okay, taken note imong pasabot... Lahi lang jud ta ug POV. As for your NET Return, if sa 10th year ra jud ka kutob, then again you are right! But as to what I've posted, this is a LIFETIME Return. So, kanang NET nga imong pasabot, sobra-sobra jud ang muabot nimo... To take heed of your advice, computation is as shown below:

Earnings from deposit : P591,344.93
Total pay-out received : P320,000
Guaranteed Basic Cash Value : P697,000

P320,000 + 697,000 + P591,344.93 = P1,608,344.93

P1,608,344.93 - P994,900 = P613,444.93

P613,444.93 / P994,900 = 0.61658954 or 61.66%

61.66% / 10 = 6.17% ==> Still not bad compared to putting your money in the bank. But again, your NET return will not stop during your 10th year. You need to look forward into the future... Allow your fully paid investment to work and bring in the benefits in due time. For the LIFETIME of benefits. If you still don't see this, then this is definitely not for you... This is for future-oriented people...

[cheaptech]

Now, cheaptech's turn...

Okay... Brod! Murag lahi ta ug paagi sa pag-compute... hehe

As for me, I see it this way... Let me share to you the proper way to compute this...

Considering the supplied table:

i.e. Year 3: 3-----99,490.00---0---------------232,000.00----------------0---------232,002.00

Total payment = P99,490 x 3 = P298,470
Guaranteed Basic Cash Value = P232,000

Based on this, using the same method of computing for the ROI:

P232,000 / P298,470 = 0.77729755 or 77.73%

If you're going to look at it as is, then of course, lugi jud ka.

i.e. Year 8: 8-----99,490.00---80,000.00-------530,000.00----------282,151.00------812,160.00

Total Payment = P99,490 x 8 = P795,920
Guaranteed Basic Cash Value = P530,000
Total Guaranteed Pay-out Received = P80,000 x 3 = P240,000

Total Guaranteed Living Benefits at end of Year 8 = P530,000 + P240,000 = P770,000

P770,000 / P795,920 = 0.96743391 or 96.74%

If you're going to look at it as is, you can say nga alkansi ka during this time, but you also have to consider that wala pa na-consider ang interest earned ani. And if atong i-consider ang dividends, then I am confident to say, that you can break-even your investment at this point or a little bit more... But again, let's not compute for it kay dili guaranteed ang interest rates...

Now, let's revisit year 10:

10----99,490.00---80,000.00-------697,000.00----------409,101.00----1,106,114.00

Total Payment = P994,900
Total Guaranteed Pay-out = P80,000 x 4 = P320,000
Guaranteed Basic Cash Value = P697,000

Total Guaranteed Living Benefits at end of Year 10 = P320,000 + P697,000 = P1,017,000

P1,017,000 / P994,900 = 1.02221329 or 102.2%

P1,017,000 - P994,900 = P22,100 ==> As for this earning, you can't spread this one out over 10 years kay wala pa man ka naka-full sa imong invesment. You can only spread this earning over a 10 year time table if you invested the full payment sa first year pa lang nimo... If mao na ang situation, then agree ko nimo nga lugi jud ka...

But this is not the case. If ang investor ganahan mag-bulto ug bayad sa iyang investment, like the 2nd-10th year investment, he can do so. How? He can put it in a facility with Insular Life called a Premium Deposit Fund (PDF), which acts as a savings account wherein future investments will be taken out of. While waiting for the future investments to be taken out of the PDF, it's also growing, which is good news for the investor! By how much? Well, right now, it's at 8% but again, it's not guaranteed. What we can guarantee thou, is that it will not go down below 6%/annum. And what does this mean for the investors? Additional earnings for him! More work for his money!!! Yipee!!!

Now, to give you a picture of this...

Projection of Deposit (P99,490 x 9) @ current 8%/annum

Deposit----------Withdrawals---------Interest Earned---------Year-End Values
895,410.00-----------0------------------71,632.80-----------967,042.80
-----------------99,490.00--------------69,404.22-----------936,957.02
-----------------99,490.00--------------66,997.36-----------904,464.39
-----------------99,490.00--------------64,397.95-----------869,372.34
-----------------99,490.00--------------61,590.59-----------831,472.92
-----------------99,490.00--------------58,558.63-----------790,541.56
-----------------99,490.00--------------55,284.12-----------746,335.68
-----------------99,490.00--------------51,747.65-----------698,593.34
-----------------99,490.00--------------47,928.27-----------647,031.60
-----------------99,490.00--------------43,803.33-----------591,344.93

Now, what does the table above mean? The deposit represents the total amount needed to pay-off the 2nd-10th year sa imong investment. Why 2nd-10th year lang? Kay assumed man nga human na ug bayad ang 1st year. The withdrawals represent the amount needed on a yearly basis. So, even though nahuman na ug bayad ang imong investment dues, there's still money left from your deposit amounting to P591,344.93 (gamay ra noh?! )

So, let's revisit year 10 using the additional info:

Total Deposit: P99,490 + P895,410 = P994,900
Total Deposit - Earnings from Deposit = P895,410 - P591,344.93 = P304,065.07
With this in mind, mga P304,065.07 ra ang imong gi-cash out sa imong investment... Kay bisag nag-deposit ka ug P800k+ in the beginning, gi-ulian ra man pud ka ug P591k+.

Total Guaranteed Living Benefits at end of Year 10 = P320,000 + P697,000 = P1,017,000

P1,017,000 + P591,344.93 = 1,608,344.93
P1,608,344.93 / P994,900 = 161.66%
161.66% / 10years giving you 16.17% per annum... Not bad, right? And again, considering the fact nga wala pa ang interest sa plan itself... Thus, giving you a higher return.

Now, if you're still not comfortable with this figure, then I will leave you at peace... This particular passive investment is not for you... Not my loss... But I hope you learned something. When doing calculations, make sure you're computations are correct so that you're assessment are based on the right info. But I do appreciate your calculations. Without your calculations, dili ko mapugos ug himo ug computation diri to show to others that this is indeed a good investment...

Hahay! At last nahuman na jud akong computation! Any other queries?

To Reiterate

Please do the right computation

P1,017,000 + P591,344.93 = 1,608,344.93
P1,608,344.93 / P994,900 = 161.66%
161.66% / 10years giving you 16.17% per annum... Not bad, right? And again, considering the fact nga wala pa ang interest sa plan itself... Thus, giving you a higher return.


NET RETURN should be the basis.

1,608,344.93-(minus principal amount)994,900=613,444.93 Net RETURN.

613,444.93/994,900 X100 = 61.66%

61.66% / 10 years = 6.166% per annum


you should learn about Return of Investment

Gross and net income.

In the simplest way

if you put 100 in a fund and you get 110 after 1 year

110-100(principal)=10 (net income after your principal 100)

10/100 x 100= 10% return of investment.