HOW TO RETIRE BEFORE 50

REAL CONCEPT OF RETIREMENT

“Even if you STOP _______________, your source of _______________ will NEVER STOP.”
— Chinkee Tan

PITFALLS OF A RETIREE

1. Failing to _______________________.

2. Depending on _______________________.

3. Depending on _______________________ and pension.

4. _______________________ their money.

5. Starting something with zero _______________________.

6. _______________________ too much.

7. Using their retirement fund to pay off _______________________.

8. _______________________ more money to pay off another debt.

9. Not sticking to the _______________________.

10. Maintaining the _______________________ that you can’t afford.

11. Making bad _______________________.

12. They did not build enough _______________ ______________ or residual income.

FORMULA FOR RETIREMENT FUND

LIVING COST DOUBLES EVERY ________ YEARS multiply by

NUMBER OF YEARS YOU ARE GOING TO ___________________.
= RETIREMENT FUND

INVESTMENT 101

REMEMBER OHP
O -_______________________
H -_______________________
P -_______________________

INVESTMENT OBJECTIVES
—what is your financial goal?
___________________ of funds
___________________ in funds
___________________ cash flow

INVESTMENT HORIZON
—when do you need it?

_______________________ Term
Debt Repayment Fund/ Savings Fund/ Expense Fund/ Travel Fund/ Leisure Fund

_______________________ Term
_______________________ Term
Educational Fund/ Car Fund/ House Fund

_______________________ Term
Retirement Fund/ Medical Fund/ Inheritance Fund / Expense Replacement Fund

INVEST ACCORDING TO _______________________ PREFERENCE

1. _______________________________
2. _______________________________
3. _______________________________

AGGRESSIVE
_______% High Returns
_______% High Returns

MODERATE
_______% High Returns
_______% High Returns

CONSERVATIVE
_______% High Returns
_______% High Returns

INVEST ACCORDING TO _______________________

20’s to 30’s
_______% High Returns
_______% High Returns

40’s to 50’s
_______% High Returns
_______% High Returns

60 and ABOVE
_______% High Returns
_______% High Returns
WHERE TO INVEST?
1. SAVINGS ACCOUNT / ________________ DEPOSIT

2. _________________ FUNDS
BUY : SHARES NAVPS (Net Asset Value per Share)
OFFERED BY : INVESTMENT COMPANIES
WHO HANDLES : FUND MANAGER INVESTMENT COMPANIES
WHO SELLS : LICENSED MG AGENTS
WHO REGULATES : SEC

3. _________________ INVESTMENT TRUST FUND (UITF)

BUY : UNITS NAVPU (Net Asset Value per Unit)
OFFERED BY : BANKS
WHO HANDLES : TRUST GROUP OF BANK
WHO SELLS : AUTHORIZED BANK PERSONNELS
WHO REGULATES : BSP

COMMON DENOMINATOR

— Pooled
— Managed by Professionals
— Charges 1 to 5 Percent

ADVANTAGES:
Better _______________________

THINGS YOU SHOULD AVOID DOING IN INVESTMENT

Never Invest Out Of…

________________________
Never invest in something you don’t understand no matter how profitable it may be.

________________________
Feelings are Deceptive

________________________
The higher the interest, the higher the risk.

________________________
Never invest ONLY on the basis of TRUST.

Rule Of 72 (Doubling Your Money)

______________________ / ______________________ = _______________________

______________________ / ______________________ = _______________________

 MUTUAL FUND PERFORMANCE
3-YEAR RETURN 5-YEAR RETURN 8-YEAR RETURN
(2012 vs. 2009) (2012 vs. 2007) (2012 vs. 2004)

59.41% 48.39% 181.37%

26.09% 33.81% 82.22%
81.81% 69.29% 241.84%

19 2,000
BEN 2,240 0
D AV I D 0
20 2,000 4,749 0 0
21 2,000 7,558 0 0
22 2,000 10,706 0 0
23 2,000 14,230 0 0
24 2,000 18,178 0 0
25 2,000 22,599 0 0
26 2,000 27,551 0 0
27 0 30,857 2,000 2,240
28 0 34,560 2,000 4,749
29 0 38,708 2,000 7,558
30 0 43,352 2,000 10,706
31 0 48,554 2,000 14,230
32 0 54,381 2,000 18,178
33 0 60,907 2,000 22,599
34 0 68,216 2,000 27,551
35 0 76,802 2,000 33,097
36 0 85,570 2,000 39,309
37 0 95,383 2,000 46,266
38 0 107,339 2,000 54,058
39 0 120,220 2,000 62,785
40 0 134,646 2,000 72,559
41 0 150,804 2,000 82,506
42 0 168,900 2,000 95,767
43 0 189.168 2,000 109,499
44 0 211,869 2,000 124,879
45 0 237,293 2,000 142,104
46 0 265,768 2,000 161,396
47 0 297,660 2,000 183,004
48 0 333,379 2,000 207,204
49 0 373,385 2,000 234,308
50 0 418,191 2,000 264,665
51 0 468,374 2,000 298,665
52 0 524,579 2,000 336,745
53 0 587,528 2,000 379,394
54 0 658,032 2,000 427,161
55 0 736,995 2,000 480,660
56 0 825,435 2,000 540,579
57 0 924,487 2,000 607,688
58 0 1,035,425 2,000 682,851
59 0 1,159,676 2,000 767,033
60 0 1,298,837 2,000 861,317
61 0 1,454,698 2,000 966,915
62 0 1,629,261 2,000 1,085,185
63 0 1,824,773 2,000 1,217,647
64 0 2,043,746 2,000 1,366,005
 STOCK MARKET 101

WHAT IS STOCK MARKET?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

HOW CAN YOU EARN?

1. _______________________________
2. _______________________________

WHY STOCKS?
_______________________________ EXPONENTIALLY

JG SUMMIT
NOV. 19, 2009 PRICE PER SHARE P6.50
JAN. 30, 2015 PRICE PER SHARE P65.50

10X MULTIPLICATION OVER A PERIOD OF 5 YEARS

DMCI
JUNE 23, 2003 PRICE PER SHARE P0.23
JUNE 2, 2014 PRICE PER SHARE P74.95

325X MULTIPLICATION OVER A PERIOD OF 11 YEARS

SOURCE: MARVIN GERMO’S BOOK STOCK SMART

EXPAND & ______________________________

GOAL: BEAT _______________________________

WHAT YOU SHOULD KNOW BEFORE INVESTING IN STOCKS

HOW MUCH CAN I LOSE FROM THE STOCK MARKET?

SOLUTIONS:

1. WAIT FOR IT TO _________________ BACK

2. _________________ DOWN

WHAT YOU SHOULD KNOW BEFORE INVESTING IN STOCKS?

1. INVEST IN _____________________.

2. LEARN BEFORE YOU __________________.

“The greatest investment you are going to make is in YOURSELF.”

3. START SMALL

4. CHOOSE THE RIGHT ___________________.

- Is the business and industry ____________________?
- Is the business and industry ____________________?
- Is it being ___________________ professionally?

5. KNOW THE _________________________.

6. THINK ________________-TERM

THINGS YOU SHOULD NOT BE DOING WHEN YOU INVEST IN STOCKS:

1. NEVER PUT YOUR __________________ IN ONE BASKET

2. NEVER ___________________
- Rumors
- Based on inside info or tips

3. NEVER PLAY THE ____________________

4. NEVER INVEST YOUR ___________________ SAVINGS

 HOW TO OPEN AN ACCOUNT?
- Talk to your bank
- Talk to a stock-broker

REAL ESTATE 101

Is a house a good investment?

WHAT IS INVESTMENT?
Investment is something that is purchased with an intent to resell or profit at a higher
price.

Why _______________, If You Can Own It?

Why REAL ESTATE Is One Of The Best Ways To Make Money?

WHY PROPERTY?
1. You Can Never ______________ Land
2. Everyone ________________ It
3. Makes You _________________

Investing in challenging times

CAPITAL APPRECIATION
Year Dasmariñas Forbes Urdaneta San Lorenzo Bel-Air
Village Park Village Village Village

1962 88 88 75 55 57
1972 200 228 195 175 188
1982 1,500 1,750 1,400 1,375 1,300
1992 10,500 10,500 6,875 5,550 8,500
2002 42,000 57,500 41,470 20,428 28,758
2004 50,750 70,000 47,500 36,937 41,881
2008 60,450 72,000 50,500 42,500 43,200

SOURCE: Colliers International Research

 Hong Kong $25,551

Japan $16,322

India $15,525

Singapore $13,748

Taiwan $7,112

Philippines $3,952

Thailand $3,952 singapore: Square metre prices, premier city centre, US$.

Cambodia $2,913 Average per square metre (sq.m.) prices in US$/€ of 120-sq.m. apartments
located in the centre of the most important city of each country, either the:
Indonesia $2,889 ○ Administrative capital; and/or
○ Financial capital; and/or
Malaysia $1,827 ○ The centre of the rental market

SOURCE: https://www.globalpropertyguide.com/Asia/singapore/square-meter-prices

4. Simple _________________

HOW TO GROW YOUR MONEY IN REAL-ESTATE

4 PRACTICAL STEPS BEFORE INVESTING IN A PROPERTY
1. ______________ Flow
2. Sell or __________________
3. Identify Your __________________ Market
4. Package Your ___________________ Well

HOW TO PRICE YOUR PROPERTY

• Research the going ______________ of the area.
• Check the ______________ value.
• Check the ______________ value.
• Talk to the property ______________.
• Talk to your ______________.

WHEN IS IT THE RIGHT TIME TO BUY?

• How much is your current monthly ____________?
• How much can you afford to ________________?
Another way…
PI — ____________________ INVESTMENT
• Set aside the monthly amortization that is required and put it inside a bank account.
• Do it for _____ to ______ months.
(Check if you afford to pay it consistently, now you can withdraw and go and acquire the property.)
 PROTECTION 101

WHY DO PEOPLE DO NOT BUY _________________ MONEY?

1. NO ______________
“Hindi ko naman siya kailangan.”
“Sayang lang ‘yan, di ko naman magamit.”

2. NO ______________
“Kulang nga ang kinikita ko, magdadagdag pa ba ako ng gastos.”

3. NO ______________
“Bata pa naman ako. Tsaka na lang.”

WHY PROTECT YOURSELF?

1. Protects you from _________________ happenings in life

2. Protects your family from incurring more ________________ or pay off Debt

3. Protect your children __________________ fund

4. Protects you from paying off _________________

5. Protects you from paying off high _________________ bills

6. Protects you from paying off _____________ debt or buying off shares

7. Protects you from paying off ________________ expenses

8. Protects you from paying off ________________ taxes

9. Protects your family from losing your ___________ source of income

INCOME REPLACEMENT FUND FORMULA

MONTHLY EXPENSE x 12 MONTHS = SUM ADD ZERO AT THE END

WHEN SHOULD YOU BUY LIFE INSURANCE?

The moment you start _________________.

The earlier the __________________.

3 KINDS OF INSURANCE:

1. _______________________________
2. _______________________________
3. _______________________________

WHO SHOULD YOU INSURE?

LIFE — _____________________
NON-LIFE — ______________________ THINGS (car /house/business /paintings/jewelries)
HEALTH — ______________________

HOW TO FIX PITFALLS OF A RETIREE

1. Failing to plan.
How To Fix It?
________________ early.

2. Depending on children.
How To Fix It?
Save more than enough for yourself and ______________ — something for your kids.

3. Depending on government and pension.

How To Fix It?
Create a constant source of ________________ _________________.

4. Mismanage their money.

They do not know how to budget.
How To Fix It?
Learn money _________________

MASTER
1. ______________________________________________________

2. ______________________________________________________

3. ______________________________________________________

4. ______________________________________________________
5. Starting something with zero knowledge.
How To Fix It?
Start something based on your ___________________ and what you know.

6. Giving too much.

How To Fix It?
Set a ___________________

7. Using their retirement fund to pay off debt.

How To Fix It?
Never use up your ___________________ fund.

8. Borrowing more money to pay off another debt.

How To Fix It?

Never ___________________ to pay off.

Increase your ___________________

9. Not sticking to the plan.

How To Fix It?

Stick to the ___________________

Use ___________________

10. Maintaining  the lifestyle that you can’t afford.

How To Fix It?
Cut down your ___________________.

11. Making bad investments.

How To Fix It?

___________________ before you invest.

___________________ education.
Don’t get ___________________.

12. They did not build enough cash flow or residual income.
How To Fix it?

Build ___________________ income.

Live within your ___________________.