February 1, 2020
Hi Sir Vince,
Thank you for doing what you do. You are opening the minds of many Filipinos and making us aware about money management.
I will go straight to my query. I am turning 50 this year and hopefully, want to retire by 55. Currently, Nandito po ako sa Abu Dhabi. I am single and only giving to my mother (She is a strong & independent 83yrs old ️). I am targeting for 50k pesos monthly income, for living expenses and health insurance.
I just want to ask where and what is your recommendation to save up for retirement. Yung May matatanggap ako to replace my monthly income when I retire. I am single and my priority when I retire is health insurance and my monthly allowance to live (A comfortable life lang po and nothing lavish).
God bless you more.
February 28, 2020
Just a quick note.
If we use Pag-IBIG MP2’s 7% return, to retire with 50K monthly passive income, You would need a portfolio amounting to approximately PhP8.5M. You have five years to your target retirement age. This means you need to save an average of approximately PhP143K monthly. This is the safest investment retirement you have since it’s 100% guaranteed by the government and provides annual dividend. Risk factor is whether Pag-IBIG could sustain giving this dividend rate in the coming years.
Another way is to invest in real estate so you can have rental income in five years. In my estimate a good rental property produces PhP10,000 monthly rental income for every million of investment. So for PhP50,000, you roughly need PhP5M in capital. This is lower than our Pag-IBIG example above but carries with it more time and effort. You also bear construction risk and deal with occupancy rates. For the real property, you need to save PhP84K a month and allow for 6-12 months for construction and marketing.
These two are my favorites for retirement. There are definitely other strategies. For more information and resources:
- Read this on Pag-IBIG MP2: https://vincerapisura.com/mp2-dividend-beats-inflation-past-five-years/
- Read this on rental properties: https://vincerapisura.com/real-estate-101/
- Watch this about Pag-IBIG MP2: http://bit.ly/mp2-playlist
- Watch this about real estate investing: http://bit.ly/real-estate-playlist
Sources of information and practical tips on money management
Mga bagay na dapat mong malaman sa insurance
Mga iba pang babasahin tungkol sa insurance:
- Iba’t-ibang klase ng insurance
- Must-have insurance for people in their 30s
- Ang pinakamatatag na insurance company sa Pilipinas (Part 1)
- Ang pinakamatatag na insurance company sa Pilipinas (Part 2)
- Anong insurance dapat mayroon ang mga bata?
- Gusto kong paghandaan ang future ng anak ko, tama bang investment-linked insurance ang kinuha ko?
- Paano gumagana ang ibinabayad na premium sa insurance para mabigyan tayo ng proteksyon sa panahon ng emergency
- Kung akala mo insurance ang education plan, basahin mo ito
- Insurance para sa mahirap
- Bakit mahal ang VUL o investment-linked insurance
Mga bagay na dapat mong iwasan sa insurance
Ito ang listahan ng mga articles na isinulat ko at videos na nagawa ko tungkol sa VUL para makakuha tayo ng mas sulit at mas epektibong insurance coverage.
- Bakit mahal ang VUL?
- Bakit mas maganda ang BTID kaysa VUL?
- Epektibong paggawa ng BTID upang masulit ang pinaghirapang pera sa insurance at investment
- Paanong mas maliit ang fund value sa VUL kaysa sa BTID?
- Ok ba talaga ang VUL kasi protected ka nito beyond 65 years old compared to term?
- Ok ba talaga ang VUL para sa estate taxes?
- Why Not VUL?
- Anong gagawin ko kung may VUL na ako? Paano ko ito ititigil?
- Pagkakaiba ng savings sa VUL
- Mga terms and conditions na kailangang hanapin kung bibili ng VUL
- Paano pumili ng mabuting insurance agent
Different kinds of investments
Preparing for retirement
How are articles on retirement
- 10 Commandments of retirement
- Mga kinakatakutan ng retirees at paano ito paghahandaan
- Magkano ang matatanggap mong SSS pension upon retirement
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