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...
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?
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?
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 😸.
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?
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 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.
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.
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.
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.
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 😊
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. 😊😊
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.
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. ☺️
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 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.
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.
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?
![โรงเรียนดัดสันดาน นักเรียนเถื่อน..!! [โรงเรียนไดเม่]](http://i.ytimg.com/vi/vRKPeXn4Fl4/mqdefault.jpg)
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.
Amen
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.
@@antoniodungao the economy itself is not good. Determine your risk tolerance.
Also mataas nga fee nun if 2% per annum.
Sa BDO 1% lang
Actually meron na, hindi lang talaga sya applicable sa mga naka 2316 lang
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
Thank you for this. really helps. wish i could have done it earlier. now im almost 40. :(
Thank u for explaining more of this.. am always trying to find more of PERA but can't fully understand it before.. thanks a lot.💖
Can you invest in P.E.R.A if you are 58 years old right now?? or is the 55 years old the maximum?
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...
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?
Yung 300k ko sa, PERA, 12k lang tinubo after 4 years. Buti pa MP2 ko 120k tinubo ng 800k after 5 years. Di pa one time investment yun.
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?
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 😸.
Maraming Salamat po
God bless
Hi Ms. Charm. I would like to ask if PERA is perpetuity? 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?
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
Finally I was waiting for u guys to make a video about this...akala ko rin na pwede ako maka invest mismo sa stocks hindi pala
hello po, what do mean na hindi po kayo mismo maka invest sa stocks? Thanks!
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.
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.
The max is 100k per person or per account in a bank? Can I open in BDO and BPI, and contribute 100K each? Thanks po.
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 cannot sign up. I get this message "Registered failed" but there are no indications which information is incorrect or missing. Any suggestions?
Is it 100k per PERA account exempted for tax?
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.
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 😊
How to add funds on my PERA Account?
great video pero sa mp2 nalang ako
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. 😊😊
Na ubusan ako ng araw 😂😂😂
@@CharmdeLeon hahaha! Yung videos mo from 2 yrs ago ms charm, super bet. 💚
Thanks sa reply😊😊
Pero yung background lang ms charm ah, ung content mo as always very informative😊😊 super love u😊
This is very informative and detailed compared to other channels u did great. Thank you. Im ofw and its a good way to diversify my portfolio.
Yeyyy! I've been waiting for this. Thank you Ms Charm ❤️
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.
Not worth ang Baba Lang Ng life expectancy Ng mga lalakeng pinoy dito SA bansa natin halos
Thank you Ms. Charm ..klaro kaayo pagka explain as always..
Thank you :)
Been waiting for thisssss, thank you Charm!
Thank you for the video. I'm just curious if you have opened an account for PERA?
Is MP2 an asset?
Yes!
so informative. Thank you
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
It’s applicable for less but up to 100k. 10k = 500 tax credit, etc
@@CharmdeLeon how do you get the 5% tax credit? Can it be reduce from your income tax every pay period?
PERA or MP2 ? Which one is better?
Mp2 mam
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.
@@sacheajessnoynay9867 so pera is for long term. It’s good if doesn’t have expenses involved like MP1.
di ko agad napanood kanina nasa byahe. Thanks for this Charm!
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. ☺️
yeyyyyyy new videooo, thank you for this video content. 😊
Funnily enough was just reading about this! Thanks for this super helpful video. :)
Thanks for the informative vid ms.charm
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 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.
My fund from 200k 5 years ago to 150K now. 😅
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.
I’m not sure they’re open to individual stock picking. The fees of 0.5-1.5% are actually pretty similar to our ETF-FMETF at 0.5%.
@@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.
ito ba yung under SSS?
No, that’s PESO Fund.
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.
There are now IRRs and the administrator will send instructions how to use it.
need po ba 100k annually talaga? what if kung hindi mareach yung 100k/annum, like 12k/year lang?
100k is the maximum. Like I said, Minimum is 1k or 5k.
Thank you❤️
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)
Please watch 2:15 again ☺️
@@CharmdeLeon You’re referring to the earnings po. I’m referring sa cost basis if pretax ba or after tax ang contributions made. ☺️
@@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.
Me so far gsis, sss, sunlife, crypto, gonna add PERA
Thank You Charm! For this amazing and informative video! 0:)
Quick question, how is this different from a VUL? Since VUL from insurances sounds quite similar to it
This does not have an insurance component. It’s more similar to funds (mutual funds or uitf) except without taxes
@@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?
Thank you for this video. God bless always.
How do you claim the tax credit?
You can claim this from your PERA administrator
@@CharmdeLeon Meron na ba? Cause last time ai checked di pa sila nakakarelease ng tax certificate
@@katrinapineda6873 last year lang it was announce na meron na. Kaya din I didn’t make a video about it before
Baket hinde ito kaseng popular ng mp2
I think because capital and earnings are not guaranteed like MP2. But I agree that deserves more attention
Review Bitsubishi coin
I've been hearing about this. Thank you for making a content about it.
i need help with some jazz comping rhythms for piano. any tips?
matutulog na pera mo dyan, kung marami kana excess na pera ilagay mo nalang sa PERA.
right in time!
nice to know
Sorry but you have to quit rushing when speaking. Your videos are informative but you don't seem relaxed when presenting. Just my two cents. ✌️
galit ka sa letter "o" Ma'am
Elon musk is secretly investing in the Philippines
She doesn’t sound reliable lol
I dont think this is a good investment. Poor implementation, fees are still high.
PERA gets 300/year plus other fees. 🥲