HOW TO INVEST IN PAG-IBIG MP2: COMPLETE GUIDE

Pag-IBIG MP2 or the Modified Pag-IBIG II is an optional financial savings system for participants that wish to conserve even more and make higher rewards in addition to their normal Pag-IBIG cost savings.

So if your objective is to enhance your funds or financial savings, one good alternative is to invest it to Pag-IBIG MP2 with an excellent 7% reward price for your money.

WHAT IS PAG-IBIG MP2 SAVINGS PROGRAM?

The Pag-IBIG MP2 Savings Program is a volunteer financial savings policy for Pag-IBIG Fund members who select to conserve more and earn high returns, in addition to their Pag-IBIG Fund Routine Financial Savings.

WHO CAN SAVE UNDER PAG-IBIG MP2?

You can open a Pag-IBIG MP2 account if you belong to any of the adhering to groups:

All active Pag-IBIG participants, despite just how much your regular monthly income is.
Previous pensioners, despite age, that contend least pay 24 monthly payments prior to retirement.

If you're not a Pag-IBIG participant yet, you must sign up first as well as pay your monthly payments to be taken into consideration a main member.

REASONS WHY YOU SHOULD OPEN A PAG-IBIG MP2

Pag-IBIG MP2 enrollment is not needed for Pag-IBIG participants, yet doing so will certainly be useful for you in the long run.

Here are five good reason to start saving under the Pag-IBIG MP2:

1. Above-market dividend rates.

One of the most remarkable factor to conserve under MP2 is its above-market annual returns prices.

In the past few years, MP2 dividend rates have actually grown securely, balancing at 6.96% from 2015 to 2017.

In 2018, the Pag-IBIG Fund declared the MP2 returns price at 7.41%. While the proclaimed MP2 dividend price in 2019 is 7.23%.

Simply put, the MP2 is a lot more cost-effective compare to the regular Pag-IBIG savings program. MP2 reward prices also go beyond the typical rate of interest of investment items from industrial banks in the Philippines.

With the HDMF's unmatched financial efficiency time after time, it's anticipated to proceed the MP2 program's amazing reward prices.

HOW PAG-IBIG MP2 IS COMPUTED?

Dividend profits are tax-free, which means you'll obtain the full amount without needing to pay the 20% last holding back tax.

To compute your MP2 reward, increase the dividend rate for the ideal year by your typical monthly equilibrium.

Here's the formula for MP2 dividend calculation:

Dividend = Dividend rate x Average monthly balance

Determining the MP2 returns is not as simple as it looks, however.

Before proceeding with the computation, it is very important to understand initially what the dividend price and also the ordinary regular monthly equilibrium mean.

The reward price is the rate of interest based upon the Pag-IBIG Fund's yearly earnings. The Fund usually reveals the reward price for a certain year in the initial or 2nd quarter of the list below year with a press release on the Pag-IBIG web site.

For example, the reward price for 2018 is 7.41%, which the Pag-IBIG Fund specified in April 2019.

On the other hand, the average monthly balance refers to the average of the MP2 financial savings you've gained by the year-end. To identify your typical month-to-month balance, you have to understand your complete advancing cost savings for the year initially and then divide it by 12 (months).

For easier calculation, paper your regular monthly MP2 savings via Excel documents or Google Spread sheet and afterwards compute the standard.

As an example, you're conserving Php 500 monthly from January to December 2020. Plotted on a spread sheet, your cumulative savings appear like this:

PERIOD CUMULATIVE SAVINGS (PHP)

January 2020 500

February 2020 1,000

March 2020 1,500

April 2020 2,000

May 2020 2,500

June 2020 3,000

July 2020 3,500

August 2020 4,000

September 2020 4,500

October 2020 5,000

November 2020 5,500

December 2020 6,000

Typical Month-to-month Balance 3,250

The sum of the collective financial savings for 2020 is Php 39,000. Split that by 12, and also you'll get a quotient of Php 3,250. That's your average regular monthly equilibrium.

A less complicated means to calculate the typical month-to-month equilibrium is to use the AVERAGE feature in Excel or Google Spread sheet, which produces the same quantity: Php 3,250.

Right now, you can already determine the dividend for the year 2020 based on a dividend price of 7.5% (the price the Pag-IBIG Fund constantly utilizes in its example returns computations).

0.075 (dividend rate) x Php 3,250 (your average monthly balance) = Php 243.75 (total dividend for 2020).

To calculate your returns for the next 4 years, merely repeat all the actions over.

If you avail of the compounded financial savings choice, do not fail to remember to include the returns quantity from the previous year to the cumulative financial savings in January of the list below year.

But if you avail of the yearly dividend payment option, don't include the reward quantity from the previous year to the present year because it's paid out to you each year.

For your fast reference, the table below from the Pag-IBIG Fund shows the annual dividend payment over a five-year duration if you pay Php 500 month-to-month to your MP2 account (based on a 7.5% dividend rate).

WHY IS THAT THE DIVIDEND RATE OF PAG-IBIG MP2 HUGE?

MP2 dividentdrate have actually been on an ascending trend. The prices have never ever gone down listed below 7% considering that 2016 as much as today.

While these figures seem too great to be true, there's no reason to stress or doubt as to why the Pag-IBIG MP2 returns prices are "expensive.".

The Pag-IBIG Fund's active economic efficiency throughout the years has actually sped up the MP2 prices. The federal government agency attributes its solid monetary standing to its functional effectiveness and also solid real estate finance payment collections.

Because the Pag-IBIG Fund invests 70% of its funds in its real estate car loan program, individuals buying MP2 gain from the rate of interest payments of real estate car loan customers.

Also, MP2 returns originate from a minimum of 70% of the Pag-IBIG Fund's annual net income, which has actually seen stable growth for the past 6 years. In 2019, the Fund documented a net income of Php 34.37 billion-- it is the highest ever.

An amazing annual monetary performance converts to greater reward profits for MP2 account owners.

HOW TO ENROLL IN THE PAG-IBIG MP2 PROGRAM?

There are two techniques on just how to open an MP2 savings account, its either using straight at any kind of Pag-IBIG office or making use of the on-line MP2 Enrollment System.

PAG-IBIG MP2 WALK-IN REGISTRATION.

STEP 1: Send a fully-accomplished Customized Pag-IBIG II Enrollment Form at the local Pag-IBIG branch.

STEP 2: After encoding your info, the policeman will certainly release an account number for each and every of your MP2 accounts. You'll use this account number to pay your savings.

STEP 3: If you intend to pay your first month-to-month MP2 cost savings right now, educate the Pag-IBIG policeman. You'll be given a stub for your queue number for the payment.

STEP 4: When your number is called, proceed to the cashier and pay the quantity you showed on your MP2 enrollment form. Obtain your official receipt.

PAG-IBIG MP2 ONLINE REGISTRATION.

On-line registration for MP2 is quicker than registering manually, as you will not have to fill in the type at the Pag-IBIG office. Nevertheless, you still need to visit the nearby branch literally to complete your MP2 enrollment.

Here's how to register in the Pag-IBIG MP2 program online:

STEP 1: Go to the Changed Pag-IBIG 2 Registration System.

STEP 2: Kind your Pag-IBIG MID number, last name, given name, and birthdate in MM/DD/YYYY format. Then enter the code as it appears on your screen. Click the Submit button.

STEP 3: Fill out the online kind. The fields for Pag-IBIG MID no., Name, Date of Birth, Existing House Address, and E-mail Address are currently pre-filled, so no requirement to load them out (On the screenshot below, the personal details are concealed for personal privacy functions). Don't fail to remember to enter your Regular monthly Income and also Preferred Regular Monthly Payment-- these are called for areas.

STEP 4: Review the terms and conditions below the online registration kind. Then enter the code you see. Ultimately, click the Submit My Application switch.

STEP 5: A web page confirming your effective Pag-IBIG MP2 enrollment will appear. Take note and also don't neglect your MP2 account number found on the upper right corner. The web page also includes your achieved registration kind (Once more, individual details are concealed on the screenshot listed below).

STEP 6: Read the terms and conditions. Compose your name and sign at the bottom of the web page. List the date also. Click the link at the bottom part of the web page to print your MP2 enrollment form. You might save it first as a PDF apply for printing later on. If you're a worker, print an additional copy and also send it to your HR personnel or company, so you can pay your MP2 cost savings through wage reduction.

STEP 7: Optional: If you wish to open up an additional MP2 account, repeat steps 1 to 6.

STEP 8: Check out the closest Pag-IBIG office as well as submit the printed duplicate of your MP2 enrollment form/s.

STEP 9: If you intend to pay your first monthly MP2 savings today, inform the Pag-IBIG officer. You'll be provided a line number for the payment of your application.

STEP 10: When your number is called, continue to the cashier and pay the quantity you suggested on your MP2 registration form. Get your official receipt.

HOW MAXIMIZE YOUR PAG-IBIG MP2 INVESTMENT TO ACHIEVE IMPORTANT LIFE GOALS?

Here are the different methods to expand your Pag-IBIG MP2 financial investment based upon your purposes.

1. For long- term investment (10+ years).

If you're in your 20s or 30s, you have greater than one decade to spend your cash for any kind of long-term financial goal, like constructing your retired life fund or getting your dream residence.

For this, your goal needs to be to expand your money gradually. Bellow's just how to accomplish it via Pag-IBIG MP2 financial savings:.

Develop Pag-IBIG MP2 interest-bearing account with the compounded dividend choice.
Provide a single MP2 contribution (preferably not less than Php 30,000).
Withdraw your revenues at the end of the five-year maturation duration.
Re-establish your profits by opening up a new MP2 account.
Repeat the process for an additional five years and so on.
Withdraw your overall advancing savings and also rewards when you have actually reached your target earnings.

2. For capital preservation.

If you remain in your retirement age (or approaching it), you can not take financial investment dangers anymore. So as opposed to investing in the long-lasting, your objective is to preserve your capital to ensure that your cash does not shed its worth to rising cost of living.

Pag-IBIG MP2 can aid you achieve that goal through the annual reward payment alternative, which permits you to obtain returns per year while keeping the value of your financial investment. Right here's exactly how to do it:.

Produce a Pag-IBIG MP2 account with the annual returns payout choice.
Offer an one-time MP2 contribution (The higher the amount, the greater return you'll obtain).
Get your returns every year via your Pag-IBIG Loyalty Card And also or the checking account you signed up in your MP2 account opening.
Withdraw your collective revenues when your MP2 account gets to the five-year maturation duration.
Re-establish/invest your profits by opening up a brand-new MP2 account.
Repeat the process for another 5 years and more, as long as you need a steady stream of income.

3. For multiple medium-term investment goals.

The Pag-IBIG Fund grants opening up as lots of Pag-IBIG MP2 accounts as feasible. Make use of this attribute if you have several goals to achieve for the following five years or so.

The maximum variety of accounts will certainly depend upon the expenditures you're preparing for. Each account will be established for a certain purpose, such as travel fund, tuition fund, wedding fund, home/vehicle purchase, and so on

For more info like this click here: Pag-IBIG Calamity Loan Application: How to Apply?

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