the Stage of Independence (part 3 of 3)

Mutual Funds, Stocks, Bonds, UITFs, VULs, Time Deposits.... we'll talk all about the different kinds of investments in this video!

Training Information

Video Duration: 24:14

Mutual Funds, UITF's and VULs are all "pooled-type" of investments wherein the money is managed by a professional called a "Fund Manager".

And depending on the Mutual Fund, UITF or VUL you get, the funds are invested in different asset classes.

  • Equity funds invest in the stock market. The investing horizon is more than 10 years.
  • Balanced funds invest in both bonds and the stock market. The investing horizon for this should be 6-9 years.
  • Bond funds invest in bonds (duh). The investing horizon for this is 3-5 years.
  • Fixed Income funds invest in short-term deposits. The investing horizon here is 1-2 years.

When it comes to choosing where to invest, it should NOT be based on your risk appetite. Rather it should be based on what your financial goals are. The longer your investing horizon is, the more risk you can take on, and the more returns your money will earn.

Got Comments or Questions?

11 Comments

  • Darwin

    Reply Reply 19 December 2015

    Hi j3
    Sad to say naka kuha na aq ng vul I did it before I purchase your seminars 5k in axa and 1800 cocolife bale 70k every year ang babayaran ko naka 2yrs na aq sa axa at 3yrs naman sa cocolife anyway I decided to continue na lng kc nasimulan ko na now I’m going to build my emergency fund and take insurance of critical illness rider thanks for this lesson…

  • Jonap

    Reply Reply 2 December 2016

    What will happened to your equity investment when you die? Can this be cashed out by the immediate dependents?

    • J3 Patino

      Reply Reply 4 December 2016

      Hi Jonap, all your assets (house, deposits, investments) will legally be part of your “estate”. Now the ownership of this estate will only be transferred to dependents/beneficiaries if the estate taxes are settled. (This is further answered in one of the Q&A Sessions – regarding estate taxes).

  • Eli

    Reply Reply 20 December 2016

    Hi J3,

    Would you recommend ecomparemo.com and moneymax.ph as good financial comparison sites (ex. for Loans, Credit cards, etc.)? I’ve checked some Bank Offerings for UITF’s and there’s a lot of kind of it which made me confused 😀 I’m planning to get married 3-5 years from now and a house as well, UITF’s are best for this?

    Thanks a lot for your insights J3! 🙂

    Regards,
    Eli

  • Jhonson

    Reply Reply 31 January 2017

    Hi, J3! Can you explain further about term insurance. How does it work compare to life insurance? Nakakuha na kasi ako ng VUL sa sunlife pero ngayon ko lang nalaman na medyo hndi maganda pala sa goal ko.
    Thanks.

    • J3 Patino

      Reply Reply 3 February 2017

      Hi Jhonson, okay so TERM insurance is a type of life insurance.
      VUL is also another type of life insurance. (So pareho silang life insurance.)

      Term insurance is basically pure insurance na if something happens to you. Your beneficiaries get a payout. Plain and simple. So typically for a P1 million coverage, the cost of term insurance will be around 5k to 8k per year (Depending on age, smoker, non smoker, etc…).

      Pero VUL kasi includes an investment component. Kaya medyo mahal siya. So the same coverage na P1 million, can cost you up to 30k to even 50k.

  • Jhonson

    Reply Reply 7 February 2017

    Thanks, J3, for your clear explanation. Problema ko ngayon kasi mahigit 1 year na ako nagbabayad ng VUL, 15k quarterly(so, 60k in 1 yr). Gusto ko sanang kumalas but I won’t get same amount that I have paid for more than a 1 yr.
    J3, What should I do? Should I continue this? Or sakripisyo ko nalang yung part ng pera na binayad ko kaysa magbayad ako ng ganito kalaki for 10 yrs?
    Please, enlighten me.
    Thanks.

    • J3 Patino

      Reply Reply 11 February 2017

      Hi Jhonson,

      Yep stop the investment in VUL na. Habang maaga pa. 🙂 (And yes, I know masakit talaga na malaking % nung 60k di mo na makukuha – just charge it to experience – better nang 60k lang ang nawala kesa 600k diba? hehe)
      Just get term insurance, then invest the rest in a good performing mutual fund.

      All the best,
      J3

  • Jhonson

    Reply Reply 16 February 2017

    Thank you so much,J3. You are a great help. Ang problema ko lang ngayon kung paano ko ipaliwanag sa sunlife insurance agent kasi 1st cousin ko sya baka magkasamaan kami ng loob,close ko pa nman sya. But anyway, thank you.

    Best,
    Jhonson

    • J3 Patino

      Reply Reply 17 February 2017

      Hi Jhonson, pwede talagang mangyari na mainis/magalit siya. Pero mali yung investment eh. Will you let someone ‘rob’ you of 600k+’ just for the sake of ‘relationship’? Hindi naman diba? So if mainis siya, I think that would be his fault. Just make sure na hindi ‘aggressive’ yung pag request mo to cancel your investment with him. 🙂

  • Rhia

    Reply Reply 24 March 2017

    Hi J3,

    I purchased life insurance with critical illness rider and at the same time with investment din siya, ok lang ba yun? I hava a dependent kaya ako kumuha ng life insurance.

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