Mutual Funds - Thread # 4!

[mxherr5]

The dividend fund is focused on stocks with great dividend yields.

[smm_0411]

Does it mean na mas okay ang dividend yield fund to open sa Philequity?  Yung exit fees still applies kahit na more than 2 years bago kunin.  Any other differences?

[mxherr5]

Research has shown that dividend stocks do not do as well in a bull market(YEY market is going up)
conversely during bear markets(BOO market is going down) dividend stocks do better than other
stocks.

So, its really up to you. And try to think about it logically.
If one fund is "better" than the other then there's really
no reason for the other fund to exist right? 

[IronLady]

Sis ikaela, yung management/trust fees ba kapag winithdram mo na sya ibabawas? Or per year ang singil?

Napili ko lang yung alfm growth fund kasi mas madali magopen, sa bpi branch lang.. First choice ko sana FAMI, kaso nakita ko sa website magfill up ka tapos ipapadala ko pa dun sa office kaya nag bpi na lang ako.. Lol! Growth fund naman kasi long term naman objective ko so ayun..

[bluish_mommy]

are Mutual Funds subject to estate tax?

[ikaela]

^^Per year yun, sis. Pero halos 'di mo naman mararamdaman na binabawas yun. Calculated na ata yung charge na yun sa NAVPS, kasi wala naman ako natatanggap na receipt na binabawasan nila ako ng management fees. Yung sa sales load and early redemption fees lang.

^Yes, subject to estate tax. AFAIK, life insurance and estates under 200k lang ang exempted.

[PetiksPinayInvestor]

^^ From BIR:

http://www.bir.gov.ph/index.php/tax-information/estate-tax.html

Tax table on estate taxes.

For your reference

[bluish_mommy]

^ and ^^ thanks

so for example just in case mamatay yung may ari ng Mutual Funds na inopen sa bank or COL, the whole money would be subject to estate tax kahit may inindicate kang beneficiary dun? or meron ka bang ini-indicate na  beneficiaries?

so is it a wiser move to get a Mutual Fund with Sunlife with insurance para buong buo mapupunta sa beneficiary yung funds?

[PetiksPinayInvestor]

Yes. VUL = insurance + mutual fund. Isa na lang rin ang babayaran mo, flexible rin siya kasi if you want to add on your MF investment mag pay ka lang more. ang tawag dun is top up.

And you are correct, buong buo mapupunta sa beneficiary yung funds kapag nag claim sila ng insurance.

Kaya ang mga mayayaman na maraming cash (kahit pulitiko), sa insurance tinatago ang pera. Para sa tax shield

so is it a wiser move to get a Mutual Fund with Sunlife with insurance para buong buo mapupunta sa beneficiary yung funds?

[bluish_mommy]

^then I'm on the right track hehe thanks sis... just got recently VUL eh. I was contemplating to avail Mutual Funds kasi thru banks, isang worry ko lang kung may mangyari sa akin sayang yung tax na mawawala para sa anak ko, pinagtyagaan kong hulugan tapos mapupunta lang sa kung sinong kondesa hehe...

salamat sis!

[PetiksPinayInvestor]

^ Congrats Sis!

Just monitor your fund value from time to time (yearly? or if may major changes sa market) para malaman mo kung on track ka sa target amount mo po

[bluish_mommy]

^yes sis, I have the computation of my target amount kaya ang plano ko, hulog lang ng hulog... malapit na bigayan ng bonus! plan is big portion of that will go to my VUL, for my child's education in the future.

[PetiksPinayInvestor]

^ wonderful! that target amount will help you be disciplined in investing

[missyA]

Question: So its means na mas okay kumuha  ng VUL rather than directly invest your money sa stocks like COL?? Thanks

[ikaela]

^It depends on your purpose for investing, sis. Also on what kind of investor you are.

If your goal is to maximize the growth potential of your money, go with pure investment. No extra charges for insurance, agent's commission, and etc. You also have full control on where your money will be invested, like, say, Universal Robina (61.17% YTD), BDO (41.94% YTD), and DMCI (57.96% YTD), which all beat the year-to-date returns of ALL types of managed funds here in the Philippines.

If your goal is to protect your money from estate tax, open a VUL. Your money's growth will be at a turtle's pace in comparison, but again, your purpose here is to legally avoid paying death taxes. For me, this is done by people who are ill, who are 65 years old and older, or very rich that they need more diversified investments. This is NOT done by the young who, with their time, good health, and limited monetary resources, can (and should!) very much afford to be in aggressive investments.

But here comes in the second part of my statement: it also depends on what kind of investor you are. If you can manage your own money, always, always go for pure investment. If you can't, then the VUL, with its 2-1, no-brainer packaging, is more suited to you. (But I really believe that people who say that they can't manage their money should really learn how to.)

If you're concerned about your investments being frozen and taxed when you die, just get pure insurance. I also really, really think that the death taxation should be revised, but this is digressing from the topic.

[bluish_mommy]

^^for me sis, I opted for VUL of course to protect my beneficiaries as well. death doesn't come with old age, kahit sa buong akala natin healthy ang isang tao, minsan mas nauuna pa. we really never know. for me lang naman, ayaw ko lang masayang ang pinagharapan kong ipunin kung magta-taxan lang din naman in the end. masyado na akong maraming binabayaran na tax para mapunta pa sa gobyerno pati ang ipon ko.

kaya kasi naging importante sa akin yan, an uncle of mine, katatago ng pera sa bangko (not sure kung savings or MF), kinamataya na, ni singko wala ng nakuha ang family nya, ni hindi nga nila alam na may pera ang father nila sa bank. so what's the point of saving or investing kung hindi lang din maisesecure sa beneficiaries natin di ba, unless you only intend it for yourself, maybe in the future gusto mong ipangtravel or ibili ng kung anuman. for me kasi, I preferred VUL for my child's education.

[ikaela]

^Your uncle's relatives can get every cent of his money after they pay his death taxes. It is not withheld from them. The problem in that scenario is that the relatives have no money to pay for the taxes... maybe it could've been avoided if the uncle got insurance. The relatives could also pool together their money or loan money for it -- if the estate is big enough, maybe it's worth it. For example, what's 1.215M to pool together/loan to pay for the taxes if the money you're getting after paying is 10M? There are ways. The insurance way is the easiest, but still, there are ways.

Your savings/investments aren't lost when you die. Your beneficiaries just have to pay taxes on them before they can claim them. So those who don't opt for a VUL can just get insurance enough to cover those taxes.

I also have some money in a VUL, by the way, also for my child (it's money meant for no-touching and forgetting). But had I opened a VUL when I just started, wow, I cannot count all the earning opportunities I would've missed. In fact, I think the very reason why I can afford to diversify now is because I went for pure investments in the past and maximized the growth of my capital.

[bluish_mommy]

^yes they have to pay the taxes. the thing is, walang nakaka-alam sa kanila kung saang bank at magkano ang naitabi, ni-secret kasi nya eh. walang nakaka-alam ng details. nabanggit lang ng isang uncle ko sa relatives nung namatay na, kasi sa kanya lang sinabi na may pera sya sa bank, pero si uncle2 di rin alam ang details.

of course hindi naman talaga dapat mawala ang investments when someone died, nababawasan nga lang due to taxes.

[ikaela]

^Ah, ok, akala ko hindi nila ni-claim because of "ni singko wala sila nakuha". Yun pala they didn't even know that the accounts existed. So it's not even the tax they're worried about but where those darn accounts are to begin with.

Naku, yan ang hirap sa "secret" assets. Bank accounts, stock certificates, insurance, land, jewelry -- anything of value that no one knows about can be lost at the secret keeper's death. In the inheritance thread, some sisses have instructions entrusted to loved ones, pre-signed withdrawal slips, or an auto-send email in the event of death. Sayang nga yung sa uncle mo, sayang wala siya pinagkatiwalaan.

After paying estate tax, the claimants can get a dead person's savings and investments buong-buo. No more deductions. In the original question, someone who knows how to invest in stocks properly can definitely beat a VUL's performance, and make herself financially secure enough that she can self-insure. She can get cheaper term insurance in this period of investing in better-performing assets. After this point, it is avoiding estate tax that she has to worry about, and this is where the VUL is the appropriate tool.

[katniss]

Ang hassle pala talaga mag-open sa Philequity! Wasted my 2.5 hours today sa pagdayo sa eBiz branch to submit the forms. Tapos me kulang palang tatlong pirma sa photocopy ng ID ng ka-Joint ko! Di naman nakaindicate sa website nila ito. Kahit me three signs na sa signature card, kelangan pa rin pala sa photocopy ng ID me pirma din. Outside MM pa naman ang ka-joint ko. Sana next time linawin nila sa website nila ang requirements.

Never experienced this hassle and stress nung nag-open ako one year ago sa FAMI. Pinasa lang sa Metrobank oks na. Sana dagdagan pa nila branches na pwede pagpasahan ng forms or pwedeng iemail muna sa kanila para sure na pag dumayo sa iilang branch ng eBiz.

Anyway, hope this helps sa mga may balak mag-open ng Philequity next time.