In my previous post, I have shared how Nanay manage her funds through jar system. All her cash and coins are orderly distributed per use. Yesterday when I visited her and Tatay, she told me to "invest" (she used this term) her allotted savings of my son for his education. I asked her to where? I just want to clarify if she's referring to a specific bank or an investment vehicle she knows. She then answered mutual fund. Wow! Si Nanay alam ang mutual fund. Honestly, I was surprised. I asked her how did she know about investing in mutual fund. Whenever I share to her about it before, she just say "ok". She didn't even care to ask what was it all about or even said something in contrast. " Nabasa ko un Sun Life ni Piolo at naikwento ng Auntie mo maganda ito." So, thank you Papa P for opening Nanay's mind about investing. My aunt is her eldest sister living in the US whom I mentioned sending her monetary gifts. Auntie has insurance and mutual funds with Sunlife in the US. She had explained most probably to Nanay how investing goes when she called a few days ago.
When Nanay told me to start preparing, I told her that a minimum of Php5k is required. " Ok na ba ito?" She handed me a container named " for XXX". You know how much it contained? Php10,500. Grabe! If you can just see, some of the paper bills were already powdery. It only means that her cash just stayed there for centuries.
Our target period is 10 to 14 years from now for my son's education. We chose equity fund. However since Nanay is already 70+ years old, she instructed to name the account under my name. Sun life Prosperity Funds offers two purchase options. First option is to pay an up-front sales charge, depending on the amount invested or upon investing and is used to cover expenses related to the distribution of the funds. The second option is the back-end load which allows the investor to pay the sales charge upon redemption (selling shares to the fund), or even avoid paying the sales charge altogether as long as the fund remains invested for at least five years. The deferred sales charge is on a decreasing annual basis, and reaches zero after five years. We chose the second option. I have an account with FAMI which has a 1% exit fee if you redeem your fund on the first 6 months and with Philequity as well with 2% exit fee if redemption is less than 2 years. You may check FAMI's and Philequity's sales load and exit fees for reference and comparison. Both FAMI and Philequity are good and aggressive MF companies. But if we are to consider the fees alone, Sun Life's better. With a target period of more than 5 years in Sun Life equity fund, there are no charges at all and all amount paid will all go to the fund. In choosing the right MF for you, you also have to consider the fees. Of course, the performance of the fund is another thing. There is always a disclaimer that past performance is not a guarantee of future performance. However, Sun Life is not left behind.
So glad that Nanay already thought of investing (I'm not saying this out of personal interest). It has always been a cliche that the best time to invest is NOW. Actually, don't be like Nanay who is already old when she started to invest. Start when you are young. Time is the greatest ally in investment. Use time at your advantage.
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Congratulations! It's true that the best time to invest is now, but better late than never! I'm so proud of your mother for thinking of investing! I actually lecture my mother on the perks of having investments, but she thinks it's all a scam of sorts. (She and a couple of people were tricked into buying some education plan that didn't really work out well in the end. I guess the experience made her wary of placing her money outside of banks and "all this investing nonsense".)
ReplyDeleteMy dream is to open a mutual fund in a few years. I'm saving for it first! :-)
Wow, impressive talaga ang nanay mo at nag-level up na rin ha. Buti na lang si Papa piolo ko ang endorser ng sun life, hahahah :) Thumbs up ako ulit sa nanay mo, galing!!!!
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