How to Open a Mutual Fund Account for your Child

sample of a Mutual Fund Kit
from Sun Life Financial

So, you are sure your kid is getting a lot of “angpao” or Christmas money this season from his/her godparents?  Why not open an IN-TRUST FUND for your child?  You just need Php5,000 to get one!

If you want to know how to do this, just follow these instructions:

1.  Choose the Mutual Fund company / Financial company you want to invest in.    There are so many Mutual Fund companies available in the market, and each one have their information on the internet.  The ones I know are Sun Life Financial, Philam, First Metro (Metrobank), Philequity and ATR Kim Eng.  Just do your own research and where you think you can trust your child’s ‘hard-earned money’.

2.  Contact your Mutual Fund Representative (if you know someone) or contact your chosen Mutual Fund company so they can provide you with a Mutual Fund representative.  I think you cannot invest in a Mutual Fund, unless you talk to a Mutual Fund rep (they need a license to sell this investment).  Be sure to set up an appointment on a place and time you are comfortable and have a lot of time to spare to listen and discuss this investment with your Mutual Fund rep.  He/She has to explain the investment you are getting, the funds you can choose from and process all your papers.

3.  Let the Mutual Fund Rep explain the whole product to you and listen intently.  The explanation might be long and very hard to understand, but try to digest it and how it will work specifically for your child’s money.  He/She will introduce to you different funds to choose from and analyze your risk appetite (if you are conservative or aggressive when it comes to investment), then explain the management fee (or charges) about the fund you may choose.

4.  Ask a lot of questions.  Ask questions that may help you understand the investment better.  Ask questions to clarify things you don’t understand and things you think you understand.  Ask questions that will touch present and future transactions too, like how to withdraw from the fund, how long to process subscribing and getting out of the fund and charges to your fund.

5.  Fill up the Risk Profile Questionnaire.  This form is like a survey that will help the company and your mutual fund rep analyze what kind of investor you are, what you look for an investment and how long (more or less) you intend to stay invested.  This survey is for you, and although this is your child’s money your kid needs you to answer this for him/her.

6.  Fill up the Application Form.  This will contain information about you and of course, your child.  Don’t forget to mention to your mutual fund rep that this fund is specifically opened for that purpose.  In this application form, they will ask you basic information about your child.

7.  Provide your Tax Identification Number (TIN).  From what I know, all Mutual Fund companies require a TIN from a parent opening the account.  So, make sure you have a copy or just a record of your TIN.

8.  Provide a photocopy of your government I.D. and a photocopy of the child’s NSO issued birth certificate.  Mutual fund companies usually requires photocopies of two (2) ID’s from the parent, and one (1) ID has to be government issued.  For your child’s record, they may also require a photocopy of your child’s NSO issued birth certificate. 

9.  Give specimen signatures on the Application Form.  This will seal the deal and give the mutual fund rep a go signal to process your subscription or purchase of a fund.  This will also serve as their record to check on signatories, in case you need to do a partial withdrawal or completely withdraw from the fund.

10.  Pay Php5,000.  Really it is that cheap!  If you want to add little by little, you can also do so for as low as Php1,000.

11.  And finally, ask for an Acknowledgment Receipt or Receipt of Purchased/Subscribed Fund.  This is the proof of your investment and payment.  You may ask for a Certificate of Investment after they process your application.

Congratulations!  Your child is now a young investor!  Just don’t forget to add up to your child’s fund every now and then and I’m sure he will be assured of his future. 

I hope you find this simple and easy to follow.  And I hope you find it useful too that you can apply it to your child’s application.

If you want to start this for your child, let me know and I can refer you to a Mutual Fund Representative. Just email financialfredomblueprintPH@gmail.com or text 0905-2382277

If you want to get more financial tips and ideas, please like the Facebook page of FinancialFreedomBlueprintPH.

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JOB POST: Unit Manager & Financial Advisors

Retirement Planning Explained in Gay Lingo

Hey there gorgeous!  Yes you sis!  I am here writing something you avoid in our conversation, hoping it will reach you soon.  

Sis, not that pinag-iintersan ko ang 'anda' mo, at hindi mo din naman igi-givesung yan for nothing.  But hey, you have a lot than others and you ought to have it until the last gray hair falls. You are considered as one of the target market of anything fabulous and expensive because you are a fast growing consumer market. Isa ka sa mga 'GOLDEN SINGLES' na tinatawag nila. Young, powerful, fierce, fabulous and maraming 'ades'!  

But dear, everything fades. Everyone gets old. And retirement is inevitable. And when you stop working, salary stops.  I refuse to see you na 'cryola' and walang ma-'lapz', and transform from Golden Single to 'Purita'. I would want to bump into you and still say with much gusto "Gondah, ang taray!" because you maintained your 'fabulousness'.  Hindi kasi bagay sayo ang 'Luz Valdez' ang peg.

After seeing you with your expensive 'bagelya' and clothes, at 'gumora' sa iba't-ibang parte ng mundo, in your older years baka hindi na.  Have you asked yourself how much is your MONTHLY NEED and LIFESTYLE when you grow old?  Ilang 'kiaw' ba naisip mo?  Let's think about 'lafang', 'balay', bills, 'nomu' at kung gusto at kaya mo pang um-'aura'.  50 kiaw?  100 kiaw?  200 kiaw?  'Wit' naman kasya ang SSS pension at company retirement benefit mo sa lifestyle na bet mo.

If you want to compute for your monthly SSS pension, please see http://mamaravesph.blogspot.com/2013/12/how-to-compute-for-your-sss-monthly.html and if you want to know how much retirement benefit you will receive from you company please see http://mamaravesph.blogspot.com/2014/10/how-much-retirement-pay-should-i-get.html.  

O, ano sis knows mo na how much?  Wag ka ma-'imbey' at wala naman tayong magagawa na diyan.  Government rules and laws yan  The only answer here is to save a portion of your monthly income.  10% is a good start, until it becomes a HABIT.

After saving, you should consider investing.  Sis, 'jutay' ang interest ng banks.  Study some investment vehicles where you can put your hard-earned savings to earn better.  You can opt for mutual funds, UITF, bonds and stocks among others.  But you have to do some research and study before investing.  Mas 'dako' ang interest with those investments.  If you want to know more and you are ready to listen to me, you know where to contact me.  

And in our twilight years, I still want to see you my old friend na 'havey na havey' pa din.  Walang 'Hagardo Versoza' at 'chika' ng 'anik-anik' just like the old days.  

O, share mo to. Wag na 'yamey', NOW na!

See you again, my friend!

**I have a lot of gay friends and I call them sis or ateh, as they call me that too. But friend, sorry naman kung di ko masyado na-keri ang gay lingo, although I tried.  I love you fabulous peeps!

*Special thanks and shout-out to my friend from miles away and from childhood, ALLAN JAY REYES, for helping me out on this blog entry and for the friendship through all these years!  Thanks, too, to BRUCE AMOROTO, for helping me out to edit the file and for being a good critic.  Much love from me, my dears.

If you want to know more about Financial planning tips, ideas and free seminar, please go to www.facebook.com/FinancialFreedomBlueprintPH.

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Why Do I Need A "LEISURE FUND"?

JOB POST: Unit Manager & Financial Advisors

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Join me and my team as we look for potential UNIT MANAGERS and FINANCIAL ADVISORS in the #1 Life Insurer in the Philippines!

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We accept PART-TIME or FULL-TIME.  Just send us a text or call us at 0905-2382277, or like us on facebook http://www.facebook.com/FinancialFreedomBlueprintPH and send us a Private Message there!  See you soon!

Why Do I Need an "Emergency Fund"?

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Why Do I Need A "LEISURE FUND"?

Image courtesy of 

http://www.splitcoaststampers.com/gallery/photo/1398183

Do you love travelling a lot?  Do you have a lot of money until the next promo flight comes along?

Are you so techie that every new iPad, iPhone or Samsung phone is a thrill?  Are your hobbies eating up your savings account?

Then you need to put up a LEISURE FUND.  

But what is leisure fund anyway?  That crossed your mind?  Well, let me introduce to you the fund I came up with for me and my family.  This keeps me and my husband sane from all the stress and hardwork we do.

First, I assume you have already started or built your Emergency Fund.  You cannot in any way start your leisure fund without having prioritized your Emergency fund.  If you would like to know more about Emergency fund, please go to http://mamaravesph.blogspot.com/2014/10/why-do-i-need-emergency-fund.html

Leisure Fund is a stash of money you keep for fun and your own mental health.  This is the money you pull out for expenses outside your monthly needs, savings for retirement fund, education fund and your emergency needs.  You build this fund in your bank account as savings account, passbook account or time-deposits to access in case you need to replace an old gadget, an old PC or laptop, to buy or replace hobby equipment/tools, shopping for new clothes and shoes or simply to take a vacation.  This fund I believe should be a separated fund from all the rest to keep you from overspending when you are way too much having fun.

So HOW MUCH do you need as Leisure Fund? 

There are no exact figures.  I, myself just keeps a modest amount to it.  I keep an amount we usually spend on one vacation (airfare + hotel + food + recreational fees).  But I don’t indulge on very frequent vacations.  Once a year, maybe.  With so many promo flights, I also have a hard time saying no to click and tap that iPad and book.  But I have a strong will not to do it frequently.

My leisure fund has RULES also.  And these I keep in mind.  You may also do your own house rules, it's your fund anyway. So far,  these are my rules for my leisure fund:

1.       You cannot buy a new gadget if your gadget can still keep up with your tasks.  If I get a gadget for free for keeping my mobile plan, that’s okay;

2.       You cannot take a trip just because there is a promo fare;

3.       You cannot take a trip more than once a year;

4.       On shopping: If it’s not on sale, don’t panic buy and take time to think if it’s worth it;

5.       Bend some rules every now and then and enjoy life (take note, I said every now and then);

6.       You save back whatever you spent from that fund.

Do I deserve to have a LEISURE FUND?

I believe anyone who works hard deserves this fund.  Anyone who doesn’t will have a hard time keeping his sanity intact.  With all the toxic and stress you get from working to keep up with your expenses and savings, you deserve a break or some good things in life.  So, just plan ahead, YOLO!

If you want more Financial Planning tips, ideas and seminar, please like http://www.facebook.com/FinancialFreedomBlueprintPH.

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Why Do I Need an "Emergency Fund"?

How to Compute for Your SSS Monthly Pension (UPDATED)

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