pdic_UsapangPera_GuideBook
pdic_UsapangPera_GuideBook pdic_UsapangPera_GuideBook
Other Places to Put Your Money 1. While there are many places to put money, the wise saver should remember that the cardinal rule in investing has never been broken: the higher the potential investment return, the higher the risk. 2. Basically, any place you can put your money that allows for quick withdrawal or conversion to cash with minimal transaction cost and without loss of principal is considered as cash or near cash account. 3. In their simplest form, bonds are actually borrowings by companies and governments. Such borrowings take the form of securities sold to the public called bonds. 4. Stocks represent ownership in companies. Stock investors can earn (cash, stock) dividends from their investments as well as enjoy capital gains through price appreciation. Of course, stock prices can also decline due to factors both internal and external to companies represented by the stocks. 5. Foreign exchange or FX trading is not for the weak of heart. Since trades remain open overnight, investment positions can be magnified or lost, in the blink of an eye. Trading is done largely through FX brokers who may or may not be regulated in their home country. Regulations will vary from one country to another. There is currently no local regulatory body overseeing FX trading. 6. Derivatives are basically contracts between two parties that specify conditions under which payments are to be made between such parties. 7. FX trading and derivatives are not covered by deposit insurance. 8. PERA is a law that provides tax benefits for people who set aside and invest a maximum Php100,000 (Php200,000 for OFWs) a year towards their retirement. The tax benefits range from exemption for the 20% final withholding tax on interest income and stock transaction tax of ¼ of 1% to a 5% tax credit based on yearly savings towards retirement. 100 Other Places to Put Your Money
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- Page 94 and 95: It is just two weeks before Mang Do
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- Page 98 and 99: cash or near cash account. Such acc
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- Page 102 and 103: Ed says, “In their simplest form,
- Page 104 and 105: Stocks Mang Domeng notices a bewild
- Page 106 and 107: “You see, Nanay, although they ar
- Page 108 and 109: Financial Expert’s Corner The adv
- Page 112 and 113: It is just one more week before Man
- Page 114 and 115: Loads have a validity of one year f
- Page 116 and 117: 3. Know Your Bank’s Service Fees
- Page 118 and 119: time deposit automatically renewed
- Page 120 and 121: 6. Be Informed About PDIC Deposit I
- Page 122 and 123: “Orly, I am an OFW,” Mang Domen
- Page 124 and 125: Mang Domeng excitedly replies, “S
- Page 126 and 127: The Power of Information 1. You, as
- Page 128 and 129: Accrued interest - earned but still
- Page 130 and 131: Ponzi Scam - an illegal financial s
- Page 132 and 133: Determining If Your Expenses Are Ju
- Page 134 and 135: Annex B Regulatory Issuance No. 201
- Page 136 and 137: 3. Granting high interest rates whe
- Page 138 and 139: ANNEX A: Deposit-Related Activities
- Page 140 and 141: BSP Circular No. 640 (Activities Wh
- Page 142 and 143: Sample Claim Form (Page 1) Annex D
- Page 144 and 145: Sample Claim Status Sheet Annex E 1
- Page 146 and 147: Annex G Republic Act No. 9505 Augus
- Page 148 and 149: (g) “PERA Investment Product” r
- Page 150 and 151: Sec. 7. Separate Asset. -The PERA s
- Page 152 and 153: (d) Disclosure requirements on the
- Page 154 and 155: entitled hereto, shall be subject t
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