Am I to conservative with MP2 or It's to perfect not to go all in?

[esther2286]

I am 27yo (M) single, no family obligations. earning 65k a month. paying 30k for a condo loan

still have around 860k payable on the condo loan

I save and invest like crazy. Honestly I love seeing the numbers just grow overtime

My current portfolio is

67% mp2 ( This is my 2nd account already, 1st account matured and was reinvested again)

19% high yield savings (digital banks)

11% cash or low yield savings ( traditional banks)

1% equities (index fund)

total portfolio value is around 1.780m

Recently I had this idea when I looked at the 13 years run by mp2

6.17% ang average niya from 4.xx to the 8.11%

Now if we assume 6% flat a year

You need about 1.7m principal to guarantee 100k yearly div

(This is not adjusting to compounding interest over the years and you don't add anymore)

Now I plan to take that 19% and maybe some if not all of the 11% of my portfolio and place it in mp2 to hit 1.7m

Maybe I am bias with MP2, but for me the 0 capital gains tax and 0 fee you get is massive compared to any stocks or index fund that gives dividend and long term stock value appreciation. Looking at the common or average dividend rate they go around 4-5% after taxes.

Yes we can say reinvest the dividend back to the stocks to compound it, but we should also remember stocks can go up and down or sideways and when time to sell taxes / fees would eats some of your gains

I know MP2 is not perfect it has the 5 years locked period and the slow process of claim, unlike stocks where you can liquidate anytime.

When I compare the all in stocks vs all in MP2 it feels like they're neck in neck close at the very end of a 30 year run

 

[tmur]

@esther2286 Dahil wala akong maisip na business at takot akong mag-business din dahil wala akong alam, nilagay ko na lang lahat ng pera ko sa MP2 last year. So ayun, 5M sya lahat so expecting around 350000 this year in dividend. Para na rin akong may paupahang condo sa makati or bgc less the hassle of making singil sa tenant and upkeep and all the corresponding dues.

Hindi na rin ako nag resign, pero nagpademote ako para work from home all week. Not earning as much but not spending as much na din.

So I think kung katulad kong mahina ang loob at walang alam sa business, perfect to go all in.

 

[esther2286]

@tmur Mind me asking if ok lang, how long did it take you to hit 5m sa mp2 tapos pang ilang account mo na sa mp2 eto

 

[tmur]

@esther2286 Matagal. I had to prove that i already have this amount in my savings account and am just transferring it to mp2. I had to present ITR and bank cert.

 

[field]

@tmur Ah lump sum yung 5M. Pero nagtira ka naman ng emergency fund and cashflow mo?

 

[tmur]

@field Yup. Nasa CIMB.

 

[giraffe1]

@tmur cimb is a digital bank po diba?

 

[ap0calipso]

@giraffe1 Not OP but yes it is

 

[joylynn77]

@esther2286 tanong ko lang po, papano po ang process kapag nag mature na yung MP2? isesend sa digibank or direcho sa bank account mo? ano ano mga requirements na ipasa sa pagibig pag ganon?

 

[esther2286]

@joylynn77 Pag mature Ng mp2 you have to go to a pag ibig branch to file for claim tapos 2 option bank transfer
(alam ko traditional bank lang like bdo bpi etc..)
Or check

 

[joylynn77]

@esther2286 thanks!

 

[theemcon]

@tmur Is it difficult to withdraw MP2 after it matures? Yan lang yung worry ko… Also how do you do the lumpsum investment to your MP2?

 

[tmur]

@theemcon Based on what I read, pagibig will issue lumpsum check after maturity. Hindi ko lang alam if it is easy to rollover.

 

[esther2286]

@theemcon May experience ako getting after maturity
It's easy, the time lang is slow
Like 2 to 3 weeks of wait after filing for claim

 

[rosie1970]

@esther2286 NFA. The thing about MP2 is that it may not have the same dividend rate in the future. Like all investments naman siguro? Hindi mo talaga masasabi. MP2 is definitely good. But I think I won't be putting all of my eggs in one basket? Bata pa tayo try for more risk hangga't wala ka pang pinapadede HAHA

 

[nataliec20]

@rosie1970 I agree with adding "a lil bit more risk". Puro conservative yung pinaglagyan mo which is good naman if yan talaga risk appetite mo. Sayang lang kasi medyo maganda market now.

 

[sausagedog23]

@esther2286 You are only 27 years old. The time to grow capital gains is on your side. Sayang naman. Pag pa-retire ka na you can go back to re-allocating your portfolio to income generating instruments.

 

[lucybusmc]

@sausagedog23 Online i

 

[drez_113]

@esther2286 It depends on you, pero having MP2 is great lalo na if you have no time to think about investments much. Flatfooted sa market and risk averse. Aside from the 5 yrs lock-in wala kang talo.

Pero since you are young, probably you must increase your risk appetite. Not by much, pero always think na ~4% is breakeven if you factor in the usual inflation which varies per year. If you are in this for the long haul, the compounding works most of its "magic" early. So the more aggressive you are in the first 10 years pays off significantly; as compared to the last 10 years-- assuming, all things being equal.

So my personal take (You can chuck out your portfolio allocation as ff)

• Basic moderate risk strat/ Fire and Forget:
  • DCA ETF/ index funds > MP2 > Digital banks for liquidity
• Knows stock picking, want to ride:
  • US ETF/ index funds > US stocks > MP2 > Digital banks for liquidity
• If marunong magtrade, bullmarket, know how to ride spikes, may risk management:
  • US stocks > ETF/ index funds > MP2 > Digibanks
• Growing Old, 10 yrs. from retirement
  • Start to put in bonds to smoothen volatility, increasing % per year as you age

 

[verytired]

@esther2286 Umattend ako sa seminar abt investments & importante daw to follow your risk profile. sa evaluation, conservative daw ako tipong time deposit ganun kaya nag opt ako for MP2. At least no worries kasi totoo naman kun conservative ako then tinry ko mag invest sa stocks e mastress lang ako