Continue reading if you are interested in learning how to invest in Pag-IBIG MP2 and earn money. This comprehensive guide to the Modified Pag-IBIG II savings program will assist you in establishing your Pag-IBIG MP2 account.
This article does not constitute investment advice and is only intended for informational purposes. ,'_com-medrectangle-3','ezslot_5',191,,_('div-gpt-ad-_com-medrectangle-3-0');
How to Enroll in Pag-IBIG MP2Pag-IBIG MP2 Online Enrollment ProcessHow to Pay Your Pag-IBIG MP2 ContributionsHow Much Should You Invest?How Often Should You Save?When Will You Receive the Dividends?Is It Possible to Withdraw Your Savings Before Maturity?How Much Will You Earn From Pag-IBIG MP2?Annual Dividends (1,000/Month Savings)Compounded Dividends
You may have recently read about Pag-IBIG MP2's staggering dividend rate of 7.23 percent for 2019, which piqued the interest of many potential investors. What exactly is Pag-IBIG MP2 and how can one use it to make money?
The Home Development Mutual Fund (HDMF), more commonly referred to as the Pag-IBIG Fund, offers a voluntary savings program known as the Modified Pag-IBIG II Savings Program (Pag-IBIG MP2). It is open to current and former Pag-IBIG Fund members as well as pensioners.
The Pag-IBIG MP2 savings program has a higher dividend rate than the regular savings program, which is required of all Pag-IBIG members. The average dividend rate for Pag-IBIG MP2 over the past five years has been 7.10 percent, while the average dividend rate for Pag-IBIG regular savings has been 6.60 percent. 300,250],'_com-medrectangle-4','ezslot_6',192,,_('div-gpt-ad-_com-medrectangle-4-0');
The maturity period for Pag-IBIG MP2 is 5 years, whereas the maturity period for Pag-IBIG regular savings is 20 years. You have the option of receiving dividends each year or at the end of the maturity period. You can even take money out of your savings at any time before the maturity date, but you won't get all of the dividends.
You do not need to study financial investing or perform technical analysis, unlike the stock market and other types of investments. You simply relax and sit back as your money grows. Dividends from the Pag-IBIG Fund are exempt from tax, so you won't have to worry about taxes being withheld from your profits.
Your money can be invested in a variety of assets and investments through the Pag-IBIG Fund, including time deposits, government securities, corporate bonds, short-term loans, and housing loans. 70% of Pag-IBIG MP2 funds are invested in housing loan programs as mandated by law.
One of the safest investments is the Pag-IBIG MP2 savings program, which is fully guaranteed by the Philippine government. Obviously, there are risks with any investment, but because Pag-IBIG MP2 is guaranteed by the government, even if the fund loses money, you will still get your money back. '_com-box-4','ezslot_7',193,,_('div-gpt-ad-_com-box-4-0');
The fact that Pag-IBIG MP2 gives you flexibility with your savings is its greatest feature. You can save any amount in your Pag-IBIG MP2 account, in contrast to other investment vehicles like variable universal life insurance (VUL), which require you to pay a fixed amount throughout the contract's duration. You could, for instance, save $1,000 this month, $2,000 the following month, and then $500 the month after that. There is no limit to the amount you can save for the month. If you don't have enough money to save, you can even skip months.
The Advantages and Drawbacks of Pag-IBIG MP2 Before investing your hard-earned money, it is important to understand the advantages of Pag-IBIG MP2. Is it the best vehicle for your investment? You will be able to determine whether Pag-IBIG MP2 is the best investment program for growing your money if you are familiar with its advantages and disadvantages.
Benefits of Pag-IBIG MP2 It has a low entry barrier. As long as they are members of Pag-IBIG, anyone can join. Through the Internet, opening an account is simple. Only a completed application form and a bank account are required. Because the fund is guaranteed by the Philippine government, there are few risks. You will still receive your investment back even if the fund loses money. Because you can save as little as 500 yen, it's ideal for first-time investors. You can put in as much money as you want. If you want, you can put up millions. Two or more Pag-IBIG MP2 accounts can be created. There is no need to study investing; Everything is handled for you by the Pag-IBIG Fund. You get paid passively. Save money is the only reason you need to work. There are no hidden fees or taxes on your dividends or earnings. When compared to regular Pag-IBIG savings, bank savings, and time deposits, dividends are higher. You can save whenever you want because it is voluntary savings. You can save regularly, annually, or once. You are free to skip your monthly contributions because it is flexible. Your money can be withdrawn at any time for any reason. However, unless your reason is valid and approved by the Pag-IBIG Fund, you will lose half or all of your dividends. Pag-IBIG offices, accredited collecting partners, and online payment facilities all offer a variety of payment options. Your Virtual Pag-IBIG account makes it easy to check your MP2 savings online.
The maturity period for Pag-IBIG MP2 is five years. You won't get all of the dividends if you take money out before the maturity date. Your money will earn the same dividends as regular Pag-IBIG savings after the maturity date. Your money will earn nothing for a period of two years after the maturity date. If you want to keep earning after five years, you need to open a new Pag-IBIG MP2 account.
Who Qualifies to Participate in Pag-IBIG MP2?
The Pag-IBIG MP2 savings program is open to the following individuals:
Pag-IBIG Fund members who actively contribute. With a source of income, former Pag-IBIG members prior to retirement, pensioners who made at least 24 monthly contributions.
How to Enroll in Pag-IBIG MP2 You can enroll in Pag-IBIG MP2 in one of two ways:
Through the Pag-IBIG website, enroll online. At the Pag-IBIG office, the application form must be submitted.
Because it is more convenient, we recommend enrolling through the Pag-IBIG website. Any computer or mobile device with an Internet connection is sufficient. You will receive your individual Pag-IBIG MP2 account number as soon as you enroll in the savings program (300,250], ""_com-banner-1,"");
The enrollment form can be downloaded from this location if you'd rather enroll at the Pag-IBIG office.
Procedure for Online Enrollment in Pag-IBIG MP2 Visit the Pag-IBIG MP2 Online Enrollment Website on this link.
In the format MM/DD/YYYY, enter your Pag-IBIG membership ID or MID number, first and last name, and date of birth. Click the SUBMIT button after entering the captcha code.
Check the details of your enrollment. Select one of the required fields to fill out:
Minimum desired monthly contribution of 500 yenPreferential dividend payout: Five-year annual payment plan: Over-the-counter, through accredited Pag-IBIG collecting partners, and salary deductions Income from employment, savings, deposits, property sales, sales of shares or other investments, loans, company sales, profits, dividends, gifts, maturity or surrender of life insurance, and other sources of income are all acceptable options.
You are now enrolled in the savings program Pag-IBIG MP2. For your reference, copy or save your Pag-IBIG MP2 account number. '_com-large-leaderboard-2',_('div-gpt-ad-_com-large-leaderboard-2-0');
Print the enrollment form, sign it, and bring it to the Pag-IBIG Fund branch closest to you. The ATM card or passbook for your designated bank account, which is where your dividends will be deposited, and a valid identification are required.
After that, you can begin contributing to MP2 at the Pag-IBIG office or any collecting partner that is accredited.
How to Make Payments for Your Pag-IBIG MP2 Contributions You can send your savings to the Pag-IBIG office closest to you or to Pag-IBIG-accredited collection partners like SM Business Center, Bayad Center, M Lhuillier, or ECPay. Collecting agents and overseas remittance partners like CashPinas, I-Remit, Ventaja, and the Philippine National Bank (PNB) can be used by members abroad to make contributions.
Your Pag-IBIG MP2 savings contributions can also be paid online. Learn how to pay your Pag-IBIG contributions online using GCash, PayMaya, Coins.ph, and other online payment methods by reading this article. ,'_com-leader-1','ezslot_12',196,,_('div-gpt-ad-_com-leader-1-0');
The Virtual Pag-IBIG website allows you to check your contributions online after they have been paid. Learn how to check your Pag-IBIG contributions online by clicking this link.
Individuals who are employed may also choose to have their MP2 savings deducted from their wages. On the application form, the member must provide the business name and address of their employer.
How much ought to you put into it?
You can put as much money into Pag-IBIG MP2 as you want. You can put in as little as 500 yen (the minimum) or as much as 1 million yen (or more).
For sums greater than 500,000, a personal or manager's check is required instead of cash. '_com-large-mobile-banner-1','ezslot_14',197,,_('div-gpt-ad-_com-large-mobile-banner-1-0');
Keep in mind that the more you save, the more money you could make.
How frequently ought you to save?
Regarding the frequency of your Pag-IBIG MP2 savings, there are two schools of thought. Investing on a monthly basis is suggested by some, while saving annually is preferred by others.
Pesolab says that saving annually has better returns than saving monthly. Based on a 5-year average dividend rate of 7.10 percent, if you save 500 yen per month, your five-year savings total will be 35,614 yen. However, if you save 6,000 yen per year, your five-year savings total will be 36,479.
Additionally, dividends from one-time investments will be higher than those from ongoing investments. After five years, a one-time investment of 30,000 yen will result in a total savings of 41,277 yen. This is significantly more than your monthly or annual savings will bring in. '_com-large-mobile-banner-2','ezslot_15',198,,_('div-gpt-ad-_com-large-mobile-banner-2-0');
Choosing a ""strategy"" is entirely up to you. If you have a lot of money lying around, it's best to invest once or every year to get better dividends. However, if not, you can't go wrong with regular contributions every month. It is unquestionably superior to depositing money in a bank.
Again, the information in this article should not be construed as financial advice. Before investing your hard-earned money, consult a licensed investment professional.
When will the dividends be paid to you?
You can choose to get your dividends every year or after the 5-year maturity period has ended.
Your savings or checking account at a Pag-IBIG-accredited bank, such as the Land Bank of the Philippines or the Development Bank of the Philippines, will receive annual dividends. Pag-IBIG MP2 dividends will be paid out by check to those who do not have a bank account in the Philippines, such as overseas Filipino workers.
After the five-year maturity period, combined dividends can be claimed at any time. Based on the Pag-IBIG regular savings rates, unclaimed MP2 savings will continue to yield dividends for two more years. Your savings must be claimed as soon as possible because they will no longer earn dividends after the additional two years have passed.580,400],'_com-leader-2','ezslot_16',199,,_('div-gpt-ad-_com-leader-2-0');
Once your current MP2 savings account reaches maturity, you are free to reapply for a Pag-IBIG MP2 savings account. Keep in mind that you are able to open and run multiple savings accounts.
Can you withdraw your savings before they reach maturity?
Yes, you can take money out of your Pag-IBIG MP2 savings at any time during the lock-in period of five years. However, you will only receive half (50%) of the dividends earned in addition to your total savings. Members who selected annual payouts will not receive dividends but rather only their entire savings.
The Pag-IBIG Fund has approved exceptions for total disability, insanity, death, health-related work separation, retirement, critical illness, permanent departure from the country, OFW repatriation, and other circumstances. Members who make a withdrawal from their savings for any of the aforementioned reasons will get all of their dividends and savings up to the point at which they made the withdrawal.
How much will Pag-IBIG MP2 pay you?
The performance of the fund will determine how much you can earn from Pag-IBIG MP2. A sample calculation of your dividends based on the average rate of 7.10 percent over the past five years can be found in the tables below. Keep in mind that past performance is not necessarily indicative of future outcomes.
Annual Dividends (1,000/Month Savings) Year Accumulated Savings Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual Dividends Annual
The following is the formula for calculating your Pag-IBIG MP2 dividends:
Note that the dividend rate in this formula must be in decimal form. Cumulative Savings x Dividend Rate 12 = Monthly Dividend For instance, 0.0710 is 7.10 percent.
Your monthly dividend will be 5.92 yen (rounded) if you save 1,000 yen at a dividend rate of 7.10 percent. The math is as follows: 5.92 is the result of multiplying 1,000 by 0.0710 and dividing by 12.
If you save $1,000 the following month, your total savings are now 2,000 (1,000 minus 1,000). Your monthly dividend, calculated using the formula, is 19.28. The formula is as follows: 2,000 x 0.0710 12 = 11.83.300,250], ""_com-leader-4,"" ""ezslot_18,"" 601,,_(""div-gpt-ad-_com-leader-4-0"")
If you consistently save $1,000 per month at a dividend rate of 7.10 percent, a sample calculation is provided in the table below:
Month Monthly Savings Accumulated Savings Monthly Dividend January $1,000.001,000.005.92 February $1,000.002,000.0011.83 March $1,000.003,000.0017.75 April $1,000.004,000.0023.67 May $1,000.005,000.0029.58 June $1,000.006,000.0035.50 July $1,000.007,000.0041.42 August $1,000.008,000.0047.33 September $1,000.009,000.0053.25 October $1,000.0010,000.0059.17 November $1,000.001,000.0065.08 December $1,000.001,000.0071.00 TOTAL $1,000.002,000.0046
However, if you select the compounded dividend option, the annual dividend will be added to your accumulated or cumulative savings at the conclusion of the year. The total amount—savings plus dividend—will then roll over into the following year and begin to generate dividends.
For instance, if your year's savings total is 12,000 yen and your dividend is 461.50 yen, then the total of 12,461.50 yen will roll over to the following year. This amount can then be used to calculate your dividends for the following year.
Final Thoughts The Pag-IBIG MP2 savings program is a great way to save money while also letting it grow. It may be appealing to conservative investors who aren't afraid of risk, and ordinary Filipinos can use it to grow their money faster than in a low-interest bank account. You will also receive your initial investment back regardless of the circumstances because it is guaranteed by the Philippine government.300,250],'_com-mobile-leaderboard-1','ezslot_19',602,,_('div-gpt-ad-_com-mobile-leaderboard-1-0');
Send an email to contactus@pagibigfund.gov.ph or call the Pag-IBIG Fund's 24/7 hotline at (02) 724-4244 if you have any questions or concerns about Pag-IBIG MP2.
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