I went to a seminar at a Local City Hall (Quezon City Hall), and it tackled about employee’s benefit that includes some of the Government’s way to help its citizens which of course includes, Social Security and Health Benefits or as well call it PhilHealth (Philippine Health Insurance). But what caught my attention is the new offer that the Home Development Mutual Fund (HDMF or commonly called as Pag-IBIG) offered to us.
The institution call it the “The Modified Pag-IBIG II (MP2)”
It is like, an insurance system that you are going to deposit your money with them and you can only get it at said time. And they also pointed out some of the major advantages to promote the program to Pag-IBIG fund members.
1.) Earn 4 – 5x Higher than most banks
I still need to check this one out, but to my current knowledge, and the information that I hear from other people it is really relatively higher than most banks that it makes it sound too good to be true. But if that is the case, then I wouldn't mind investing my money on the program when my yield after five years or ten years would be higher than four time than the normal investing schemes.
2.) Contribution per Month is only at 500 per month
Yes, it’s only five hundred per month! That is the minimum rate at which you can contribute at the program. If I am going to compare it at the other investment programs that I asked a week prior and after the seminar, most insurance companies needed you to invest 5,000 pesos at a minimum. But what if you are a minimum wage earner and cannot afford to pay the minimum fee for that insurance company just like me? What if you are trying to budget yourself by going with the people with the same income? I think this will be a good one.
3.) Its okay to miss a contribution.
Yes, it is okay to miss out your monthly contribution if in any case you forgot to pay the contribution for the month. Unlike most insurance company at an overview, if you missed three months of monthly contributions, then kiss your investment good bye.
4.) Its Government Guaranteed.
I’m a little skeptical about this one, despite the good offers as well as the good computation table, when the speaker said that it was Government Guaranteed, my thoughts went to a complete defensive mode. Because of what is happening on the country about its taxes and the money that government has, you can’t blame me. But investing has its own risks and sometimes, the higher the risk, the higher the yield. Right?
5.) You can only withdraw it after Five or Ten Years.
Yes, if you truly want to save money, then this is a good option for you. You cannot withdraw the money no matter what happened if you only just started. Well, of course, only if you died, got insane or incurred a total permanent disability, then you can withdraw your money as a whole. And you can have an excuse to say to your relatives who always ask for money to you. It can a good thing right?
Overall, I am planning to save my money using this program since I am already a member of the Pag-IBIG fund together with my friends. And the money that I could save will definitely be useful after five years or even ten years.
Disclaimer: Images are from the presentation that the Institution (Pag-IBIG) gave on us for references about the program that they discussed.