Investing is easy nowadays. There are a lot of investment portfolios in the market—stocks, bonds, mutual funds, and so on. Everything is within your reach now. I’ve been talking a lot about the PAG-IBIG MP2 Program which is used by most Filipino investors. I’ve shared with you how to do it and the reasons why you need to open your account now. Today, I want to focus on its possible downside to give you another perspective on this investment. I hope this will help you decide to push through with your account opening or not.
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The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Stock Smarts Taiwan – February 15, 2020
Stock Smarts Manila: March 14, 15, 21, 22 & 28, 2020
Stock Smarts Singapore: May 16 – 17, 2020
Stock Smarts New Zealand: June 6 – 7, 2020
Stock Smarts Sydney: July 11 – 12, 2020
Stock Smarts London: April 18 – 19, 2020
This can be a good indication but some investors will find it troublesome to receive yearly earnings from PAG-IBIG. One of the possible downsides of investing in MP2 is its ability to give out earning annually. Why do I think that this is a downside? Again, it depends on your preference as an investor. If you want earnings that you can receive per month, this is not for you. There’s also an option when you open your account to receive the dividends at the end of its maturity date. Basically, you have to wait for 5 years before you can handle your money.
If you are looking for fixed-income investments, this is not for you. The MP2 program’s dividends are not fixed. Anything can change within a year. Every year, there is a recorded rate of dividend and it can be different from the past and future rates. So, if you want a fixed rate, you should not rely on what MP2 can give you. On the other side of it, it can go up and higher than the previous rate. It can also get lower but the exact same percentage that you received in the past.
It can happen—MP2 Program not giving dividends for a year. Again, there is no guarantee that you will receive higher or lower dividends. It all depends on the profit generated by PAG-IBIG for the year. If there are losses, the best value you can get is the original amount of your accumulated investment. That’s the worst risk you have to face when you invest in this program. If it happens in the future, you should still expect that PAG-IBIG can incur losses or zero income in the future.