I dont invest in pera for several reasons: no way to claim the tax credit. No IRR from BIR till now. Too many charges. Funds have high expense ratio. Cant really compare to 401K or roth. Plus in the US most employers give a match. I will utilize MP2 instead. Tax free growth, 100% guaranteed, no expense involved.
both serve different purposes. Basically PERA is like a supplemental version of SSS/GSIS primarily aim for retirement or pension. MP2 is great for investment.
Yes. Don’t invest your hard earned money on PERA. I have BPI PERA which I initially deposited 200K to. Now the fund value is 150K. The 2% management fee eats away the funds annually as well. I don’t know fees compounded annually, I might be left with 50K peso by age 60.
Nice presentation but I’m interested to know the average rate of return from the various administrator. Roth IRA in the US 7-10%: while 401K 4-8% (60/40 investment). Let me know if you have this information on PERA. Great job for being financially literate at a very young age
this is very informative though I saw this a little late,it's not too late to get started.. just a few points in improving the video if you talk in high pitch voice, try to speak slower. The pace will compensate for the irritating pitch... not bashing... dont get me wrong. Not all auditory works the same way... it still is a good content... thank you for this video.
Is this similar to VUL? My investments are sss flexi fund, mp2 and VUL (for retirement). I think if I save 10k every month (pure savings) so in 1 yr I have 120k × 22yrs ( since 33 na ako) i can still get the 2.6M...
Just want to clarify where I can use the 5% tax credit. I'm a government employee and our income tax are automatically deducted from us. How can I apply the tax credit?
55 years old with an average life expectancy of 71.23 years for Filipinos living in the Philippines equates to 16.23 years of retirement including the aches and pains of age. I say it's not worth it and every person should at least enjoy 20 years of their lives retiring at 46-51
Good morning Ms. De Leon. I would like to ask lang po how did you get the cumulative income? For example po, if my client's total contribution is 12,000 per year then my clients age is 50. So bale 12k x 5 years = 60,000. How can I get the cumulative income if it's 1.50% p.a po? For project purposes lang po 😸.
Hi everyone and ate Charm, I just want to know. When you invest in bonds are you required to keep putting money on it? Or is it just one time big time? And where can I get an update if there are other government bonds, because I am trying to make an account but it is currently unavailable. Thank you 😊
Is the 5% credit only basrd on how much you put every year or how much your total PERA contribution is? For example I put 200,000 in the first year (their cap changed since Jan 2023), and do not put in the succeeding year, does that mean the 5% credit is only availableon the year put money on PERA or every succeeding year thereafter because I put one time payment of 200k?
May I ask if I can change my investment product aftr 10 years.like, i will go for equity fund for 10 years and then i will change it to bond bond afterwards bec i want to lower the risk? Is it possible?.Thanks.
Does anybody know if the yearly contribution room space add up? , since the program started in 2008. If we're of legal age of 18 by 2008. so 100k up to 1.6M pesos upto now? 16 years since inception. Any updates on their policy?
Sa ngayon, puro MF lang ang offering ng PERA. I don't see much benefits yet investing in PERA at malayong-malayo ang PERA sa IRAs, Roth IRA and 401k ng US. Since mostly MF's lang ang PERA offerings, not sure why withholding tax was used in the assumption computation dahil tax free naman ang Capital Gains realized upon redemption ng MF shares. Di maganda performance ng Mf's at mataas ang fees kaya wala masyadong nag-iinvest siguro dito.
Your videos are a really great help especially people like me who are already planning their retirement money at early as their 20's. One important reason why I want to plan my retirement money is that I don't want to work my whole life rather enjoy what life can offer on my early 40's.
Good to know that we have a P.E.R.A similar to Roth 401k. Been thinking of investment plans for my retirement, and I think I would consider this. I'll ask our HR/Country manager about this. Thank you for the information.
Very informative as always ms charm. I kinda miss the old background. Medyo nadidiliman ako now, parang sad ang feeling. Ako lang ba? Baka ako lang to. Hehe. Di kasi masyado kita face nyu ms charm. 😊😊
Good day po Ms. Charm, pwede pong humingi ng link ng file na ginamit nyo for the sample computation po. Would like to compute my possible retirement savings po. Salamat po.
Just want to clarify. You can only have the 5% tax credit if your accumulated contribution in a year is 100k? Or the tax credit also applicable for less than 100k contribution
Depends on your purpose. MP2 can be claimed after 5 yrs while PERA only when you reach age 55 and must have contributed for 5 yrs. PERA is basically for retirement while MP2 is just like a 5-year TD.
Very informative. I got interested. Im not a financial savy individual. Can you make a vlog on how to open an account thru banks. I tried open BPI but there are too much complicated words. Can you simply. Thank you. Kudos to you. ☺️
great video. will personally be waiting for when PERA allows for individual stock picking. most if not all of the local funds have performed poorly and the management fees are much higher than management fees of US ETFs. if i'm not mistaken, those fees are being charged yearly. imagine they are losing you money and are still charging you to manage your money.
@@CharmdeLeon according to a BSP FAQ I read before(could not find the link anymore), it should be allowed, but none of the administrators currently offer that. of course they would prioritize funds kasi they make more money from that. yes, same as local ETFs, but I mentioned that it's high vs US ETFs. for me, kakainin lang ng fees and poor performance ng funds.
@@tonytruff yeah it’s higher. But it’s hard to compare because our economy’s very different. For example, we offer much higher interest on HYSAs than the US, our Loan interests are also higher, etc. Lots of factors that might offset that high cost of management fee. I think it’s much better than the usual funds here that has 2-4% management fees. 😂 But no doubt better if it was lower.
Hi Charm, thank you for this video very informative. Question: when can the tax credit be applied? Can it be applied and deducted yearly when submitting annual ITR?
i invested on this PERA under BDO (administrator) Landbank (Custodian) Product (BDO-UITFs-) and Me (Contributor) not sure if i made the right decision. anyway i try lang of several thousands. hirap pag sa Bank daming busisi unlike sa MP2 na parang sign up then GO kana...i have both PERA and MP2. im 45 years old 10 years more to GO lets see sa PERA di ako kampante dito ewan ko company benefits kasi kaya kinuha ko.
i think the reason why not a lot of investors are that interested in PERA is because the benefits are only in paper.. I dont know if there are any new updates but I think even the tax credit is not yet being implemented. So far my PERA acct with bdo since 2017 are incurring quarterly admin fees so not sure if this is really a good investment.. This is a good investment in paper but until they implement the benefits people will lose interest and would rather invest outside of PERA.
Yep. Tax credits are just being implemented (announced last 2021 that you can get your tax certificates from your administrator). But admin fees are standard though, it’s just tax-free, not fee-free 😅
I have the same concern with PERA. The management fee eats away your fund. I have BPI PERA. The 4% annual growth minus the 1.5 to 2% management fee then factor in the inflation. I am not optimistic about that 4% annual growth. We will be left with less money probably at age 60 with PERA.
I’ve been investing in PERA since last year but until now I still don’t know how to claim the tax credit. I can’t find any guide anywhere in the Internet.
Hello! Since you mentioned it’s the Roth IRA counterpart here in the PH, are the contributions after tax as well? Or are they tax deductible? It seems like the taxation discussion was focused on the earnings part only. (Good explanation though)
@@francismatheu5166 I’m sorry, I don’t follow. Contributions made are not taxed in any form of investment. You’re only taxed on your earnings and in this case it’s tax-free.
@@CharmdeLeon For instance. When SSS contributions are deducted from one person’s salary, it is tax deductible. Which means, the entire amount was not taxed to begin with. After tax money on the other hand is the money you receive after taxes are being withheld - net pay. So my question po is “Are the the contributions that we put in PERA like the SSS money or the take home money?”
@@francismatheu5166 since these are voluntary contributions, you will be investing after tax money. If you’re an employee, your employer can use the tax credit so it’s still after taxes for the employee.
@@CharmdeLeon Is it possible as well, for example, if I will allocate around 60% of investments to the Equity Index Fund and 40% to the Bond Index Fund or can I only stick to 1 fund?
