My Investment Portfolio for 2019 That You Can Try Too

     The beginning of the year 2019 was full of dreams and goals for me. One of which is to make sure that this year would be a year of investment for me. I always have this thinking that I should take advantage of my time, me being single and full of energy. Though I still have a long way to go, I am still glad for my progress this year.

     So, before this year ends, I would like to share my investment portfolio for 2019:

1. Variable Life Insurance / VUL. Life and health insurance is something you want to invest as young as you can as this gives a more affordable premium. At the age of 23, I got my life insurance-linked with an investment with Sunlife Grepa Financial (Power Builder 5) in collaboration with my bank RCBC. In general, VUL is a type of life insurance wherein part of the premium is invested by the fund managers in different kinds of investment fund (depending on your assessed risk appetite*) that has a projected value for a certain amount of time (depending on the performance of stocks in the market; potential yields are not guaranteed). Meaning, it is a 2-in-1 product; insurance and investment. Though there is a never-ending debate about whether which is better between traditional life insurance** and VUL, I suggest that you educate yourself about these products before you get one. It is important to take note that you determine first your goal and if it suits your lifestyle. 

Purpose: Insurance / Protection

2. Money Market Fund. MMF is a kind of Unit Investment Trust Fund (UITF) usually giving 4%-6% interest per annum (subject to withholding tax). It is a low-risk investment offered by banks. Though it is low-yield, it is much better than a .25% p.a. interest of a savings bank account. What I do is I place some of my Emergency Fund to my bank's MMF. Instead of my EF "sleeping" in my savings account, why not put it in something that can give a higher yield. Liquidity might be an issue but MMF usually has only 3 days to withdraw.

Purpose: Capital Preservation (if not to beat, at least to keep up with inflation) See http://www.uitf.com.ph/

    

Photo by Lukas from Pexels

3. Retail Treasury Bond (RTB). RTB is a fixed-income instrument issued by the government and can be availed thru banks such as Landbank. This is a limited-time offer only. Like in my case, the issuance of the offering was from February to March 2019 only. The time I made my placement, the dividend/interest rate is 6.25% p.a. (subject to withholding tax). It has a 5-year maturity and proceeds will be deposited in your Landbank account quarterly. This is a great investment if you have extra cash (other than your EF) that you are willing to invest for at least 5 years. Unlike other investment vehicles, earnings/interest is fixed and guaranteed. 

Purpose: Capital preservation and minimum earnings

        

4. Pag-IBIG MP2. If you're an active member of Pag-IBIG, you can apply for Pag-IBIG MP2. It is a savings program by a government agency Home Development Mutual Fund a.k.a Pag-IBIG with 5-year maturity but unlike other investment vehicles it has fixed/guaranteed earnings (around 7% p.a.) and is TAX-FREE. Proceeds can be claimed annually or after the maturity date. Though it is recommended that you withdraw it after maturity since it is compounding, meaning, the earnings/interest will be reinvested on top of the capital, gaining higher yield. To avail, go to the nearest Pag-IBIG branch or apply online. You may check their website Modified Pag-IBIG 2 for more details.

Purpose: Capital preservation and minimum earnings

 The Modified Pag-IBIG 2 Savings is a special savings facility with a 5-year maturity, designed for Pag-IBIG Fund members who wish to save more and earn even higher dividends, in addition to their Pag-IBIG Regular Savings. The program is also open to pensioners and retirees who were former Pag-IBIG Fund members. 

     

     That is all for 2019. Looking back, I used to think that it is not enough to secure my future, I still lack something like health insurance, retirement account, income-generating assets, etc. Well, this may be true but overall it is not that bad. I am still glad for my progress. It is indeed a fruitful year. 

     How's your 2019? :)

*Risk appetite - pertains to the investor's level of tolerance when faced with different kinds of risks in his investments. An investor can be passive (low-risk appetite), moderately aggressive or aggressive (high-risk appetite). 

**Traditional Life Insurance -aka Whole Life Insurance "is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life." (see Investopedia)

Disclaimer: I am no professional financial advisor. I only give advice or share my thoughts base on my personal experience.