FP presentation 2012 (simplified)

Php10

Php 10,000,000

1. It is not the obligation of the employer to make its employees rich.

2. At any income level, each one can become financially independent.

3. Our ability to save has nothing to do with the size of our income. It has to do with our discipline to save.

Points to Ponder…

FIRST and OLDEST life insurance company in the Philippines

• in existence since 1895 • subsidiary operations in the areas of mutual funds

One of the biggest in Canada • with approx CDN$ 571 billion assets under management as of end March

2013

Impressive Financial Strength

• A.M.Best A+1 (Superior –2nd of 16 rating levels)• Moody’s Aa32 (Excellent –4th of 21 rating levels) • Standard & Poor AA- (Very Strong–4th of 20 rating levels)

Who is Sun Life Financial?

“To be an international

leader in protection and

wealth management.”

Our Vision

Our Mission

“To help customers achieve lifetime

financial security.”HELP PEOPLE DEFINE THEIR

FINANCIAL GOALS IN LIFE AND MAKE IT INTO A REALITY!

FINANCIAL INDEPENDENCE…

is simply having the means to maintain the lifestyle

you choose without having to actively work…

It is a state of economic well-being…

…where your personal investments or savings are

generating investment income sufficient to cover

your expenses… and type of lifestyle you want.

3 STAGES in one’s Financial Life

MONEY AT WORK

MAN & MONEY AT WORK

MAN AT WORK1

2

3

The sad fact is…

…40 years later…

4 Independent

1 Rich

54 Dependent36 died

Out of 100 young men at age 25…

5 Working

* Source: SSS 2009

WHAT IF…

a couple retires at the age of 65 and expects to live 15 more years. On food expenses alone, how much will they spend?

Sample Computation … 365 daysX 2 personsX 15 yearsX 3 meals = 32,850 meals

X 50.00/meal

TOTAL = Php 1,642,500.00

Here’s a scenario for you to consider…

Year Amount

2010 1,000.00

2011 1,060.00

2012 1,134.20

2013 1,202.25

2014 1,286.40

2015 1,363.59

2016 1,459.04

2017 1,546.58

Today’s P1,000 bill is the equivalent of ...

* Average of 6% inflation

Inflation

12 yrs. after

24yrs. from

now

36yrs. From

now

Only 1 out of 10 children finishes

college1 in every 4 youth is out of school due to

the high cost of education

* Source: SSS 2009

Tuition Fee Projections Per Year

SCHOOLSCHOOL YEAR 2008

SCHOOL YEAR 2012

SCHOOL YEAR 2018

SCHOOL YEAR 2024

UST 45,06271,54

0143,1

11286,2

79

MIRIAM 62,41299,08

7198,2

13396,5

06

ASSUMPTION 84,315133,8

60267,7

74535,6

56

SAN BEDA 64,152101.8

49203,7

39407,5

60

DLSU110,44

8175,3

49350,7

38701,6

79

ADMU 90,614143,8

59287,7

76575,6

69

* Source: CHED in Q4 2008, as quoted in PDI: Tuition fee Increasing by 12.25%/year

Projected Cost of a Four-Year

Course Starting SY 2024

P 1,373,249

P 1,901,985

P 2,569,471

P 1,955,011

P 3,365,866

P 2,761,431

INCOME

LESS

SAVINGS

EQUALS

EXPENSE

BEHAVIOR

3

EXPENSE

LESS

INCOME

EQUALS

DEBT

BEHAVIOR

2

INCOME

LESS

EXPENSE

EQUALS

SAVINGS

BEHAVIOR

1

Which one are YOU?

People’s Behavior on Money

…BECAUSE THEY DON’T WANT TO BE RICH

…BECAUSE THEY ARE FINANCIALLY IGNORANT

…BECAUSE THEY DON’T RIDE THE VEHICLES TO WEALTH

3 Reasons Why People Are Poor

The secret…

“THE POOR AND MIDDLE CLASS WORK FOR

THE MONEY.

…THE RICH HAVE MONEY WORK

FOR THEM.”

INTEREST RATE

YEARS

0% NEVER!

3% in 468 years

5% in 284 years

10% in 145 years

15% in 99 years

Php 10 can grow into Php 10 MILLION

SAVINGS at 15%

at 10%

Php 10 56 40

Php 25 47 35

Php 50 40 29

Php 75 36 27Php 100 34 25

How various amounts per day can grow into Php 10

MILLION!

THE VALUE OF STARTING EARLY

A 40 y/o saving 2,000 monthly for 10 yrs will accumulate 864K at age 60

A 30 y/o saving 2,000 monthly for 10 yrs will accumulate 2.2M at age 60

A 25 y/o saving 2,000 monthly for 10 yrs will accumulate 3.7M at age 60

40 y/o based on Sun Life Prosperity Fund (10% growth)30 y/o & 25 y/o based on Sun Maxi Link Prime, min. FA + TDB, fund growth at 10%

Time: Save as early as you can

Money: Save as much and as regular as you can

Interest rate: Find better than inflation interest rate

Lessons Learned

…the secrets to building your

passive income

DIVERSE RANGE OF FINANCIAL INSTRUMENTS

FINANCIAL “BASKETS” YOU CAN CHOOSE FROM

LIFE MUTUAL

FUNDS

VUL

How to get there…

STEP 1: Know what you want

STEP 2: Know how much you need

STEP 3: Know where you are now and the

options you have

STEP 4: Prepare and implement a plan … NOW!

STEP 5: Evaluate your plan

5 STEPS To Meet Personal Goals

STILL PROCRASTINATING?

If you’re 25, may 40 years ka pa When you’re 30, you have a house and car to

pay, and maybe a family to feed When you’re 40, you make more money but

your kids are in college When you’re 50, you want to assist your older

kids in setting up, and you are helping your aging parents

And then you hit 65 .... and you wished you started 40 years ago!

There is never an ideal time for retirement planning, much more to secure your

protection and while you can always find a reason to put it off,

DON’T

It’s Time!