Financial IQ Philippines

Why is Financial IQ important in Philippines? Financial IQ is extremely important not only in the Philippines, but in the entire world. With solid Financial IQ, better financial choices are made. With good Financial IQ, money works for us. With excellent Financial IQ, we can easily find business opportunities in Philippines. With excellent Financial IQ, we can ride the growth of Philippines stock market. With great Financial IQ, we can gain Financial Independence.

Saturday, June 30, 2012

Financial IQ: Tom Cruise and Katie Holmes parting ways

English: Cropped image of Tom Cruise and Katie Holmes. Photo taken at the White House Correspondents Dinner. (Photo credit: Wikipedia)
Financial IQ Philippines Quick Hit(s):

With the apparent divorce of Tom Cruise and Katie Holmes, they can quickly settle this if they have a pre-nuptial agreement prior to marriage. If not, this might drag on for a little bit...

It always seemed more than a little weird, didn't it? The whirlwind romance of Tom Cruise and Katie Holmes with its very public, very emphatic proclamations of love. It all occurred too quickly and too loudly to seem real.

Now, after nearly six years of marriage, Holmes is divorcing Cruise. She filed the papers on Thursday, said Cruise's lawyer Bert Fields. The two share a daughter, 6-year-old Suri, who's been featured in celebrity media nearly as frequently as her parents.

But it's telling that even in addressing their split in the typically vague fashion of famous people, Cruise still refers to Holmes by the name he called her: Kate, as if to distance her from the adorable Katie audiences came to know and love from the teen soap "Dawson's Creek."

"Kate has filed for divorce and Tom is deeply saddened and is concentrating on his three children," Cruise's representative, Amanda Lundberg, told The Associated Press. "Please allow them their privacy to work this out."

Holmes' attorney, Jonathan Wolfe, made a similar plea Friday: "This is a personal and private matter for Katie and her family. Katie's primary concern remains, as it always has been, her daughter's best interest."

But we've never been able to leave them alone — and even if we tried, they probably wouldn't let us.

Theirs was a bond that never really made sense on paper, despite Cruise's famously euphoric couch-jumping on "The Oprah Winfrey" show and Holmes' starry-eyed confession that she'd had a crush on the "Top Gun" star when she was a girl. Cruise turns 50 on Tuesday, Holmes is 33.

They'd kiss passionately for the benefit of photographers on red carpets and were all-too happy to share the romantic details of their engagement: He popped the question at the Eiffel Tower in Paris early one morning in June 2005. The wedding itself in November 2006 was a fairy-tale, A-list extravaganza at a 15th century Italian castle before a Church of Scientology minister.

So why didn't we believe them? Maybe because it always felt like they were trying so hard to prove to the world they were in love.

"I can't be cool. I can't be laid-back," Cruise said during his notorious "Oprah" appearance. "Something happened and I want to celebrate it."

Cruise has two children with his previous wife, Nicole Kidman. The actor was also previously married to Mimi Rogers. This was Holmes' first marriage.

Cruise showed up alone at recent premieres of the musical film "Rock of Ages," in which he's earning strong reviews for his performance as an Axl Rose-style lead singer. Holmes also was absent earlier this month when Cruise received the fourth-ever Friars Club Entertainment Icon Award. He said at the time that Holmes was overseas and the family would reunite in Iceland for Father's Day.

Yet a year ago, in receiving an award from Women in Film, Holmes thanked Cruise in the audience, saying his "commitment to his work and family inspires me daily."

Before the relationship, Holmes had drawn acclaim for her work in films like "Wonder Boys" and "Pieces of April." And Cruise was ... well, he was Cruise, one of the biggest stars on the planet. But the marriage, and the general speculation about its legitimacy, seemed to hurt both their images.

It was around the time of the "Oprah" appearance that Sumner Redstone and Paramount broke ties with Cruise after their long relationship. Cruise's company, Cruise/Wagner Productions, then signed a deal with First & Goal LLC.

Redstone was recently quoted by The Hollywood Reporter as saying that he "actually fired Tom. His behavior was terrible ... He was jumping on the couch on the Oprah show. Women hated him. A lot of people said they would never come back and see Tom Cruise."

Kelly Lynch, editor of the pop-culture website Socialite Life, noted Friday the August 2005 W Magazine cover story on Holmes in which a woman described as Holmes' "Scientology chaperone" sat in on the interview and chimed in on her responses, even though Holmes herself was consistently ebullient about Cruise.

The chaperone also deflected particularly pointed or uncomfortable questions about rumors that this love might not be real.

"She wasn't Joey from 'Dawson's Creek' anymore," Lynch said. "It was almost like the life had been sucked out of her when she started dating him."

Her first film back, the 2008 heist comedy "Mad Money," was a critical and commercial failure. That same year, Cruise came out as the eyepatch-wearing star of the Nazi thriller "Valkyrie," which drew mixed reviews but still made $200 million worldwide.

Holmes' recent films include Adam Sandler's "Jack and Jill" and the Emmy-winning mini-series "The Kennedys," in which she played Jackie Kennedy. Cruise, meanwhile, starred in the fourth film in the "Mission: Impossible" series, "Mission: Impossible — Ghost Protocol," which has made more than $690 million worldwide.

Lynch said she was surprised by the demise of the duo dubbed "TomKat" because she figured that, no matter what, Cruise and Holmes would always try to maintain the meticulously crafted image that they were the perfect couple.

"Despite some of my reservations about the relationship, I thought they were happy to kind of swim along as man and wife, despite reports in every sort of magazine that they weren't getting along, that Katie is trapped in the marriage," Lynch said. "But I never truly believed that they were truly in love. It felt very arranged."

How the divorce impacts either of their images or careers remains to be seen, said veteran celebrity publicist Howard Bragman.

"They're both going to be defined by their choices. Tom was never really defined by the marriage. Tom was defined by Tom. He's such a force of nature," he said. "A single Tom Cruise is an interesting phenomenon. I think we'll be hearing about him dating.

"Katie will be fine. I think this raises her to a new level. I think she'll get more active in her career," Bragman added. "She's got talent, beauty, a good family, a good support system, good Midwestern values — these things are all going to serve her. I think mostly she's a good mother. That's what I respect her most for."

http://www.philstar.com/Article.aspx?articleId=822617&publicationSubCategoryId=200

Wednesday, June 27, 2012

Financial IQ: SMIC bonds

SM Investments Corporation (Photo credit: Wikipedia)
Financial IQ Philippines Quick Hit(s):

Here is another bond offering with 6% coupon rate.

SM Investments Corp. (SMIC), the holding firm for the various businesses of retail magnate Henry Sy, launched yesterday its P10-billion retail bond offering, with an option to raise the issue size up to P15 billion.

In a statement, SMIC said the fixed-rate bonds will be issued in two tranches – Series C and Series D – which will mature in seven-years and 10 years, respectively. Series C will have a coupon rate of six percent while Series D will have a maturity rate of 6.94 percent.

The offer period will run until July 6, 2012, SMIC said.

SMIC intends to use proceeds from the issue to partly fund its capital expenditure requirements and for general corporate purposes.

The bond issue was assigned the highest corporate rating of PRS AAA by Philippine Ratings Services Corp.

BDO Capital & Investment Corp., BPI Capital Corp., China Banking Corp., and First Metro Investment Corp. are the joint lead underwriters for the issue.

http://www.philstar.com/Article.aspx?articleId=821646&publicationSubCategoryId=66

Tuesday, June 26, 2012

Financial IQ: Medical expenses during retirement years

English: Dolphy, Filipino actor (Photo credit: Wikipedia)
Financial IQ Philippines Quick Hit(s):

Dolphy's medical expenses in Makati Medical Center is sure to be very expensive. This is the reason why having a long-term healthcare is a necessity for our retirement years.

Comedy King Dolphy (Rodolfo Vera Quizon) is reportedly now on a “do not resuscitate” (DNR) status at the intensive care unit of the Makati Medical Center.

According to a source inside the hospital, the 83-year-old veteran comedian has been placed under DNR status since Saturday night and that actress Zsa Zsa Padilla and the comedian’s children have reportedly agreed not to have him revived should he register a zero heart rate.

As of yesterday, Dolphy remains in critical but stable condition due to a number of medical complications.

Eric Quizon, one of Dolphy’s celebrity sons, said that his father’s lungs are very weak. He said that his father’s hemoglobin count remains low, which is why they need more blood for transfusion.

Dolphy is suffering from chronic obstructive pulmonary disease, a common lung disease, which has two forms - chronic bronchitis defined by a long-term cough with mucus, and emphysema defined by destruction of the lungs over time.

Meanwhile, Malacañang and several key government officials joined the world of showbiz and the nation in praying for Dolphy’s speedy recovery.

“We enjoin the Filipino people to pray for Dolphy. We are united in our intentions for our revered icon of the Philippine entertainment industry,” presidential spokesman Edwin Lacierda said.

According to Lacierda, President Aquino’s thoughts were with Quizon and his loved ones in these trying times.

Before leaving for Saudi Arabia, Vice President Jejomar Binay also asked the people to pray for Dolphy’s family and loved ones.

“My family and I join the entire Filipino nation in praying for the immediate recovery of Dolphy Quizon and for guidance and strength for his family and loved ones in this hour of need,” Binay said.

“He has given the people so much happiness in his sterling career as an actor, and has spoken to and for the Filipino. For this, he deserves our fervent prayers,” he added.

Senators Manny Villar and Pia Cayetano, who ran under the Nacionalista Party in 2010 when Dolphy campaigned for them, were among the first who expressed concern for the comedy king.

http://www.philstar.com/Article.aspx?articleId=819729&publicationSubCategoryId=68

Monday, June 25, 2012

Financial IQ: Highest paid world athletes

English: Rep. Manny Pacquiao at a speaking engagement in Silliman University, Dumaguete City, Negros Oriental, Philippines. (Photo credit: Wikipedia)

English: Floyd Mayweather, Jr. at the DeWalt event on June 29, 2011. (Photo credit: Wikipedia)
Financial IQ Philippines Quick Hit(s):

Manny Pacquiao impressively earned more than other popular athletes like Tiger Woods and Lebron James. Only Floyd Mayweather earns more than Pacquiao. Two thumbs up!

The world's highest-paid athlete is in jail. The guy in second place just lost a title fight, and the man who held the distinction for a decade is now third.

Forbes has released its list of the 100 highest paid athletes, and boxer Floyd Mayweather Jr., nicknamed "Money," is No. 1.

Mayweather, who made $85 million for two fights last year, is currently serving a three-month jail sentence in Las Vegas for domestic battery.

Boxer Manny Pacquiao is second on the magazine's list at $62 million from earnings and endorsements. Pacquiao lost his WBO welterweight title to Timothy Bradley earlier this month.

Tiger Woods, No. 1 on the list since 2001, made $59.4 million to place third.

LeBron James of the Miami Heat is fourth ($53 million). He is one of 13 basketball players on the list.

Tennis star Roger Federer is fifth at $52.7 million.

Thirty football players made the top 100, with Peyton Manning tops among them at No. 10. The Denver Broncos' new quarterback made $42.4 million during his last season with the Indianapolis Colts, even though he sat out the entire season while recovering from a neck injury.

David Beckham of the Los Angeles Galaxy was No. 8 overall and the highest ranked soccer player at $46 million.

New York Yankees third baseman Alex Rodriguez was tops among baseball players and No. 18 overall with $33 million.

Two women, both tennis players, made the list. Maria Sharapova ($27.9 million) comes in at No. 26, and Li Na ($18.4 million).

http://espn.go.com/boxing/story/_/id/8069874/floyd-mayweather-jr-tops-forbes-list-money-makers

Sunday, June 24, 2012

Financial IQ: Are blue chip companies 100% safe?

Financial IQ Philippines Quick Hit(s):

The Enron incident in United States in the early 2000 is a reminder that even blue chip company may falter due to improper management and lack of transparency.

The Enron scandal – one of the largest corporate bankruptcy in US history, and the biggest audit failure. The executive staff of the American energy company in Houston, Texas, hid billions in company debt for many years, until October 21, when the scandal came to light. The damage was extensive. Their accounting firm, Arthur Andersen, formerly one of the five largest audit and accountancy partnerships in the world, collapsed because of their compromise on integrity. And the world knew about it seconds after news broke out.

Ladies and gentlemen, welcome to the 21st century – a 24-hour reality show where good things and bad can be tweeted/blogged/spread against business organizations no matter how big or powerful.

Everyone, everywhere, everyday is Reality TV. You’re naked. You’re in a goldfish bowl. You’re in The Truman Show. Your every move is watched and analyzed. You can’t hide anything. Everything is see-through (a term made popular in the ’60s, for the kiddos out there). Especially when it comes to leadership.

People cry out for authenticity and for authentic leadership. That’s why organizations need to be True. You need to be True. The only way people will give you the permission to lead them is when you’ve built a trust relationship with them. That’s why business ethics is not just an afterthought. It should be the norm, in every level of every shape of corporate structure.

Inspired leaders are comfortable naked. They’ve nothing to hide. Sir John Hoskyns, founder of Hoskyns Systems, says, “Strategic leadership requires a readiness to look personally foolish … and total honesty; a readiness to admit you got it wrong.”

I don’t sing well, and I definitely don’t dance, but as a leader, I’m always on stage – physically (I speak on stage almost every day of my life… Ok, so maybe not every day, but something like 333 times last year, and currently running at 160..) and figuratively. And whether you like it or not, you are too, if you’re a leader. But, you’re not faced with an adoring, flower-throwing public. Your employees, your investors, your customers, your suppliers, the press – your public – are generally wised-up, and they see with X-ray vision. You can’t fool them. To win their attention, respect, trust and their following, you have to be real.

Keep in mind leaders and organizations: In this world of amazing connectivity, the distance from hero to zero is remarkably short. And the extent of the disparity of your claims and of your real make is directly proportional to the collapse of your share price as soon as this disparity becomes public knowledge. And it will become public knowledge. Estimates on how fast range only from seconds to minutes. These ethics and integrity requirements also apply – more so – to religious and especially government institutions.

http://www.philstar.com/Article.aspx?articleId=820277&publicationSubCategoryId=66

Friday, June 22, 2012

Financial IQ: Forbes Philippines Richest

NEW YORK - JANUARY 08: The Forbes building is seen on Fifth Avenue in Manhattan January 8, 2010 in New York City. New York University has purchased the 122500-square-foot, eight-story building and will remain a tenant in the building through a five-year lease. (Image credit: Getty Images via @daylife)
Financial IQ Philippines Quick Hit(s):

Can you guess Forbes-ranked top tycoon in Philippines? It is no surprise that SM's Henry Sy is the richest man in Philippines. I am surprised by the 3rd richest man in Philippines. Enrique Razon was able to jump over several well-known tycoons.

Mall, property, and banking tycoon Henry Sy is still the country’s richest man, according to Forbes magazine’s annual ranking of the Philippines’ 40 richest men.

The fortunes of Filipino billionaires have also risen as the country’s resilient economy appears to have weathered global economic woes, particularly in the eurozone.

The net worth of Henry Sy and his family, according to Forbes, surged by more than a quarter to $9.1 billion from $7.2 billion a year ago.

Tobacco and airline magnate Lucio Tan maintained the second spot with a net worth of $4.5 billion, or 60 percent more than last year’s $2.8 billion.

Enrique Razon Jr., principal owner of port operator International Container Terminal Services Inc. and newly listed casino complex builder and operator Bloomberry Resorts Corp., jumped to third spot. His net worth more than doubled to $3.6 billion from $1.6 billion last year.

John Gokongwei Jr. and family settled at fourth place with net worth of $3.2 billion from $2.4 billion, while fifth placer David Consunji and family recorded a net worth of $2.7 billion, up from $1.9 billion a year ago.

“Despite European woes, the Philippines’ remittance-driven economy outperformed most of its neighbors,” Forbes said.

The economy grew 6.4 percent in the last quarter driven by consumer boom as well as tourism and outsourcing.

“The stock market index gained 17 percent in the past year. The 40 richest on this nation of islands saw their fortunes rise even faster,” Forbes said.

The other super rich Filipinos were Alliance Global Group Inc.’s Andrew Tan ($2.3 billion), Ayala Corp.’s Jaime Zobel de Ayala & family ($2.2 billion), Metrobank Group’s George Ty and family ($1.7 billion), former trade minister Roberto Ongpin ($1.5 billion) and San Miguel Corp.’s Eduardo Cojuangco Jr. ($1.4 billion).

“Overall, 34 of the 37 returnees to the list are richer,” Forbes said. There were three newcomers in the list.

The husband-and-wife team of Lucio and Susan Co ($1.2 billion) joined the list following the listing of their supermarket chain Puregold Price Club Inc. in the local bourse last September.

Civil engineer Michael Cosiquien ($150 million) debuted in the list after a surge in the stock price of construction firm Megawide Construction Corp.

Edgar “Injap” Sia, 35, is the youngest in the list with a net worth of $140 million. Sia is the founder of fastfood chain Mang Inasal, whose majority stake was acquired by fastfood giant Jollibee Foods Corp. for $65 million in 2010.

http://www.philstar.com/Article.aspx?articleId=819698&publicationSubCategoryId=63

Thursday, June 21, 2012

Financial IQ: Do you have big utility bills?

English: Hydro-Quebec electric meter (Photo credit: Wikipedia)
Financial IQ Philippines Quick Hit(s):

If your gut feel tells you that your utility bill is unreal, it may be worth your time to get confirmation with the utility companies. You may just end up saving a lot, similar to the story of the Texas lady. :)

We all dread opening an electric bill, especially when air-conditioning drives up costs and maxes out a family budget.

But Kristin Harriger's recent electric bill was beyond shocking. Rather than a bill for $100 or so that the single mom from Abilene, Texas, was expecting, she was billed for $1,381,783.92, according to the Business Insider.

"I opened it. I read it. Then just went, 'Oh, my gosh. That's a lot of money," Harriger told the Abilene Reporter News.

She thought it was a joke at first, and even shared photos of the bill with her friends.

After contacting her utility company, Potentia Energy, she discovered it wasn't a joke, but a computing error. Rather than charging her the normal 9 cents per-kilowatt-hour rate, the utility charged her $1,000 per kilowatt hour.

The $1,000 per-kilowatt-hour rate is far above the best offer available to her. The Public Utility Commission of Texas website PowerToChoose.org shows that Abilene residents can get 8.2 to 12.1 cents per kilowatt hour, notes the Abilene newspaper.

"I'm glad I didn't have autopayments," Harriger told the Business Insider.

The utility company acknowledged the mistake and has told Harriger that a corrected bill would be sent to her.

http://news.yahoo.com/blogs/sideshow/texas-woman-hit-1-3-million-electric-bill-165517099.html

Sunday, June 17, 2012

Financial IQ: Can you guess who are the wealthiest in the Philippines?

jesus_saves (Photo credit: airship)
Financial IQ Philippines Quick Hit(s):

This is a good story of amassing wealth through goal setting and discipline.

Self-made fortunes all begin the same way: with a good idea and some startup cash. Steal these savings tips from three millionaires who made a little into a lot.

Winning the lottery is everyone's fantasy, but the better bet is on a plan that relies more on pluck than luck. "You can become wealthy if you're disciplined, consistent and patient," says Andrew Hallam, who pulled it off on a teacher's salary. These qualities are especially important when you're starting out and trying to save the money needed to get your business idea (or investment strategy) off the ground.

To help you take the first steps, we asked three millionaires-none of whom were born that way-to share how they saved the money that launched their fortune. As you'll see, it's not only the rich who get richer.

Super-Saver Tips: Andrew Hallam

High school teacher and author of Millionaire Teacher

SAVED: $100-$300 a month throughout college

WHAT HE DID WITH IT: Invested in mutual index funds and some individual stocks, eventually amassing $1.5 million. Photo credit: Daemon Baizan

"When I was in college, I remember wanting to save $4,000 a year. That was huge-and what I actually started out saving was $1,200 per year. But having a goal, writing it down and keeping the piece of paper where you can see it every day are key. It keeps you committed and accountable, so you're more likely to stick with your program. When I was coming up short, I'd take extra jobs I wouldn't normally have been motivated to take, like washing buses and mowing lawns. Seeing that number in black and white increased my commitment and spurred me to stick with the program. When I reached my goal, it felt awesome.

"Even now, my wife, who is also a teacher, and I write down a savings goal every year. We aim to save 50% of our salaries, post-tax. Besides things like skipping cable TV and not buying the latest tech gadgets, we save a ton by being mindful of how we socialize. For example, we have certain friends who always like to eat out. If we tried to keep pace with them, we wouldn't save nearly as much money. So when getting together with those friends, we ask them to come to our house for dinner instead. Similarly, when we go on vacation with friends, we avoid the big spenders and travel with frugal people."

http://shine.yahoo.com/financially-fit/rich-222400499.html

Saturday, June 16, 2012

Financial IQ: When losing is more like winning

LOS ANGELES, CA - NOVEMBER 15: Boxer Manny Pacquiao arrives for the Manny Pacquiao Post Fight Party and Launch of his Signature Bracelet by CIE AURA held at Hollywood Supper Club on November 15, 2011 in Los Angeles, California. (Image credit: Getty Images via @daylife)
Financial IQ Philippines Quick Hit(s):

Though I did not like the Manny Pacquiao split decision loss handed by the judges, you cannot help but admire how Manny Pacquiao admirably accepted the decision. Maybe there are bigger things in store for him in the future...

No one likes to see a popular champion go down, more so in the case of Manny Pacquiao who has become the modern day icon of the little guy making it big, an underdog becoming world champion and more recently, the icon of redemption.

Unfortunately we can all analyze the controversial decision of the “3 blind mice” to death but it won’t change a thing. But being the humans that we are, we all need to make sense of the “unbelievable,” or justify the unacceptable. What I noticed is that most people have focused on the controversy, or the small picture, rather than on the “Big picture.”

Right after the split decision was announced a heckler-friend of mine quipped that Pacquiao lost because he had become born-again. In fact prior to the fight, practically all local newscasters and commentators had mused or speculated that Manny Pacquiao’s redemption or embrace of God and Bible might soften him as fighter.

As I watched the newscasts and endless replays, I also needed to make sense of Pacquiao’s loss. I was initially tempted to go the way of most critics and focus on the fight, but my heckler-friend led me to ponder about Pacquiao’s loss in the big picture. What sort of impression will the world get seeing Pacquiao lose in spite of his new found faith?

Considering Pacman’s recent redemption and embrace of God and the Bible, the proverbial question: “Why do bad things happen to good people?” comes to mind. Because of our religious culture based on reward or punishment, most people would assume that Pacman should have won because he had already turned from naughty to nice, from sinner to saint. So how could such a bum deal go the Pacman’s way?

To see the big picture, we should recall how a string of victories and 8 division titles turned Manny Pacquiao into the poster boy of materialism, promiscuity, and self-indulgence. Even when he was being more than naughty, he was the people’s champ and as far as everyone was concerned, he earned the right to live the life he chose. Yes, Manny Pacquiao “gained the whole world but (was about) to lose his soul.” Not only did he almost lose his soul, he nearly lost what was most important in his life, his wife and children.

In that tumultuous season, Pacquiao also almost, or may have in fact lost his last fight against Juan Manuel Marquez, but he won by way of a controversial decision. Yes he won, but it was what we would call an empty victory. Back then in the midst of doubt, and the threat of a serious marital separation, winning must have felt more like losing.

By God’s grace, Manny Pacquiao encountered people who were used by God to shed light on the Pacman’s real state of affairs and draw him towards the Bible. What people scoffed at as the desperate struggles of a man drowning in his success, turned out to be the true repentance of a sinner. Unfortunately the world and media at large are uncomfortable talking about God and living by the Bible especially in America.

The big picture is about how God gets into the picture.

After Manny Pacquiao’s redemption, both local and international media was suddenly full of Biblical sound bytes that could not be edited out, because a world champion and an ex-champion sinner was talking and all he wanted to talk about was God and the Bible. Pacman sang words of praise and the cameras could not edit it out. He had become an official spokesperson for God and an icon of unification between Catholics and Christians. Suddenly Manny Pacquiao was living out what the apostle John spoke of when he said, “He (God) must be greater and I must be less” (John 3:30).

So why did Manny get such a “raw” deal? I surmise that in God’s divine plan, people had to see just how far or how deep Manny Pacquiao had changed. If Manny simply won as many expected, people would have taken his redemption for granted. Without any challenge to his character and his faith, how would people fully realize that the people’s Champ had truly changed? It would have been all about boxing and not about faith.

Manny Pacquiao’s unceremonious and unexpected defeat had put him to the test not only as a warrior in the ring, or a world champion for that matter. In that defining moment, he stood before the eyes of millions eager to see and hear his reaction. His loss and his response revealed exactly where he was with the Lord. If Pacquiao’s redemption were momentary and planted on shallow soil, he would have buckled, perhaps howled in protest and raised up a storm in anger.

Instead he humbly accepted the decision and dismissed any suggestion of filing a protest. Manny Pacquiao’s PDA or Public Display of Affection for God moments after such a stinging defeat was the best preaching any priest or pastor could have made that day. Watching Manny Pacquiao

With $25 million in the bank, your loving family at your side praising God and hundreds of global celebrities on your side, I’m sure that this was one time when losing felt a lot like winning.

http://www.philstar.com/Article.aspx?articleId=816657&publicationSubCategoryId=64

Friday, June 15, 2012

Financial IQ: Brazil hit by Asia, Europe crisis

English: The President of Brazil, Dilma Rousseff, is awarded the Woodrow Wilson Award in New York City. September 21, 2011. (Photo credit: Wikipedia)
Financial IQ Philippines Quick Hit(s):

Other emerging countries such as Brazil are also experiencing some economic slowdown this past few years. If you are a long-term investor, Brazil still has a strong outlook for the next 5 years.

For more than a decade, Brazil has been one of the developing world’s great hopes, outpacing the growth of Western Europe and the US Many even predicted it would soon become an economic superpower.

Now, as the world economy teeters, Brazil is looking less like a global golden child and more like a Latin American laggard.

Prices for exported commodities such as iron ore and soybeans are drooping due to concerns over Chinese growth. Economic turmoil in Europe is cutting into demand for manufactured goods such as aircraft. Meanwhile, Brazil’s still-strong currency makes its exports less competitive. Investors are pulling billions of dollars out of Brazil and other developing countries.

Similar pressures are starting to hurt most of the so-called BRICS countries - including Russia, India, China and South Africa - whose fast growth has been turning them into this century’s top players. Now Brazil is instead looking more like neighboring Argentina, which is frantically trying to protect its economy from runaway inflation and dollar flight.

For Brazilians, government measures to halt the slowdown are bringing momentary perks such as cheaper credit and lower taxes, but analysts generally believe the big boom is past.

Projections by the International Monetary Fund indicate that every major Latin American economy, save Paraguay, is likely to outpace Brazil this year.

“The model that served so well in the last few years has started to unravel,” said Neil Shearing, chief emerging markets economist with Capital Economics LTD, a London-based consultancy. “The days when the economy could grow five to six percent a year forever more ... that was a bit of a stretch, and might be behind us.”

Shearing said Brazil’s economy is growing slower than its neighbors for a number of reasons, but that in general the country historically has been “more sensitive to global economic gyrations” due to structural factors such as a stronger dependence on money flowing in from foreign investors to finance spending, flows that quickly reverse in times of uncertainty.

Brazil’s economy, Shearing added, also is more broadly linked to China’s than other Latin American nations, so the slowdown in Chinese growth and that nation’s demand for commodities hits Brazil harder than its neighbors.

Analysts do believe the country will continue to grow, albeit at lower levels.

“This is a cyclical response,” said William R. Cline, senior fellow at the Peterson Institute for International Economics in Washington. “The general expectation is that growth will begin to revive and will be at reasonable levels for the next few years.”

Brazilian President Dilma Rousseff is ramping up bullish rhetoric. The straight-talking technocrat recently stepped out of character to do a little cheerleading about Brazil’s ability to weather the global crisis.

“I can assure you, Brazil is 100 percent, 200 percent, 300 percent ready,” Rousseff said.

In 2010, Brazil’s economy expanded by 7.5 percent, but it only managed 2.7 percent growth in 2011, out of league with fellow BRICS nations, which managed to grow by 4.3 percent to 9 percent that year.

Brazil’s target of 4.5 percent growth this year looks unlikely to analysts, who are betting expansion will end up closer to 3 percent. On top of that, the outflow of $2.59 billion in foreign investment in May was the biggest since the outbreak of the 2008 global crisis, reversing an inflow of $5.99 billion just the month before.

Brazil’s success before the current crisis had inspired imitation by Latin American countries such as Peru and Mexico, which adopted a more conservative fiscal approach and amassed enough foreign reserves and flexibility to likely ride out the storm, Shearing said. Brazil’s international reserves ballooned from $38 billion in 2002 to $240 billion by the end of the 2009, helping the country survive the 2008 global credit crunch without much damage. Now, Brazil is even better prepared than it was in 2008, Rousseff said, with some $370 billion in international reserves.

Oil reserves have helped some countries resist global headwinds, as crude prices remain high despite financial woes. But most of Brazil’s vast, recently discovered oil reserves are still years from production.

Countries that have built much of their economies around exporting commodities to China are vulnerable, and several of them have prepared themselves for the eventual commodities downturn.

Strong sales of metals and private investment helped Peru grow at China-like rates in past years, and foreign companies have pledged another $15 billion in investment since President Ollanta Humala took office almost a year ago. In spite of lower commodity prices, Humala said this week that Peru’s relatively low debt levels and high international reserves would help the country ride out the crisis. Economists project growth of 5.5 percent this year, down from 6.9 percent last year.

So far, Brazil has responded to the slowdown with measures such as reducing its benchmark interest rate and taking measures to weaken the Brazilian real, which helps exporters.

Finance Minister Guido Mantega has also announced measures to boost domestic consumption: targeted tax cuts on Brazil-made products, interest rate reductions and an extension in the time allowed to pay back loans. The measures will make local cars about 10 percent cheaper, and reduce taxes on financial transactions. These measures have had some immediate impact.

Car dealerships such as Euro Barra in Rio de Janeiro

Their enthusiasm didn’t last long, said Euro Barra general manager Antonio Carlos Maciel Junior.

Within two weeks, movement in the dealership was back to normal. That’s because it’s still hard to qualify for a car loan in Brazil, he said. Buyers have to put down half a new car’s total cost to benefit from the lower rates. Others still pay 10 percent to 12 percent interest a year, he said.

“The government is going in the right direction, stimulating sales,” said Maciel Junior. “But the banks are still hesitant. The government took steps on this that the banks haven’t followed. They need to relax rules around lending as well, make it easier for people to borrow.”

Taking advantage of her high approval ratings, Rousseff is also pushing through public pension reforms that had been unpalatable to her predecessors, said Joao Augusto Castro Neves, an analyst with the Eurasia Group consultancy

Even as the world warily watches Brazil and the rest of Latin America, Rousseff says her country has indeed turned a corner and is not about to go back to the bad old days of hyperinflation and economic meltdowns.

http://www.philstar.com/Article.aspx?articleId=817234&publicationSubCategoryId=66

Monday, June 11, 2012

Financial IQ: Are we entering the bearish market?

English: Phillippine stock market board (Photo credit: Wikipedia)
Financial IQ Philippines Quick Hit(s):

If you are a long-term investor, it is a good to continually invest via cost averaging (i.e. a certain amount every certain number of days/weeks/months). If indeed we are in the bear market, you can buy more shares with the same contribution amount.

Local stocks are seen to move into bear territory as jittery investors keep tabs on global markets and react to growth concerns in Europe and the United States.

“The market will continue to take its cue from movements in overseas markets, even as it tests the 5,080-5,120 resistance band, as well as validating the 4,930-35 support range,” said Accord Capital Equities Inc.’s Jun Calaycay.

The Philippine Stock Exchange index (PSEi) fell by 28.88 points or 0.57 percent to close at 4,994.07 after Fitch Ratings cut Spain’s long-term credit rating.

“Caution is still our principal stance, while gradually increasing equity exposure on select counters,” Calaycay added.

Attention will be centered on Spain as it asks the euro zone for help with recapitalizing banks. Several of Spain’s banks need around $50 billion of capital to meet core Tier 1 requirements under the Basel III standards.

Greece will return to the polling place on June 17, a second round of voting after an earlier election failed to give rise to a new government.

http://www.philstar.com/Article.aspx?articleId=815942&publicationSubCategoryId=66

Sunday, June 3, 2012

Financial IQ: Save on Philhealth contribution

Financial IQ Philippines Quick Hit(s):

For individual paying members of Philhealth, rate will increase from P100 to P200 effective July 1, 2012. To easily save, you can still pay until June 30, 2012 at the rate of P100 per month. For bigger savings, you can pay at P100 per month until Dec. 31, 2013 (which will be treated as advance payment).

PHILHEALTH CIRCULAR
No. 0202012
SUBJECT :Implementation of the New Premium Contributions and
Requirement of Policy Contracts for the Individually Paying
Program (H'P)
I.RATIONALE AND OBJECTIVES
In response to the thrust of the Aquino Administration for Knltisugtwg Ptmgkalahatan
(KP) to provide universal health care to all Filipinos and in line with the attainment of
the 2015 health targets under the Millenium Development Goals (MDGs), the Philippine
Health Insurance Corporation (PhilHealrh) shall provide enhanced benefits to improve
financial risk protection of its members. Further, PhilHealth shall also provide all
Filipinos with Primary Care Benefit (PCB) Package and an option to avail of the No
Balance Billing (NBB) policy on health care services.
To efficiently implement product improvements and sustain the provision of National
Health Insurance Program (NHIP) benefit packages, increasing investment in health
care through the adjustment of current premium contribution rates for all members is
essential. Thus, through PhilHealth Board Resolution No. 1571, series of 2011, the
PhilHealth Board and Management approved the increase in premium contributions of
those enrolled or to be enrolled under the Individually Paying Program to Two
Thousand Four Hundred Pesos (PhP 2,400) per year effective July t, 2012.
Further, to ensure continuous coverage of members in the Informal Sector, PhilHealth
shall issue a policy contract which provides financial risk protection to the members and
their dependents.
II.COVERAGE
This Circular covers those enrolled or to be enrolled under the Individually-paying
Program (IPP) of PhilHealth such as the following:
a.Self-employed individuals - those who work for themselves and are therefore
both the employer and employee.
b.Separated from employment - those who have been previously employed (with
employer-employee relationship) and are currently without means of income.
c.Employees of international organizations and foreign governments based in the
Philippines who have no prior agreement with PhilHealth for the coverage of
their Filipino employees.
d.Unemployed individuals who are not qualified as indigents.
e.All other individuals not covered under the previous categories mentioned,
including but not limited to the following:
i. Parents who are not qualified as legal dependents, indigents or
retirees/ pensioners;
ii. Retirees who did not meet the minimum of 120 monthly premium
contributions to qualify as non-paying members; and
iii. Children who are not qualified as legal dependents
f.Organized Groups - such as the following:
i. i^isting members under the KaSAPI Program and Group Enrollment
schemes of PhilHealth
ii. Members under the new iGroup Program
III. IMPLEMENTING GUIDELINES
To ensure the proper implementation of the new premium rates for the Individually-
Paying Program, the following guidelines shall be applied:
1. For Individually-Paying Members (IPMs)
a.The annual premium contribution for IPMs earning an average gross monthly
income of Twenty Five Thousand Pesos (PhP 25,000) and below shall be One
Thousand Two Hundred Pesos (PhP 1,200), if paid before July 1, 2012. If paid on
or after July 1, 2012, the annual premium contribution shall be Two Thousand
Four Hundred Pesos (PhP 2,400) per year.
b.IPMs including Self-employed Professionals earning an average gross monthly
income above PhP 25,000.00 shall continue to pay their annual premium
contribution of Three Thousand Six Hundred Pesos (PhP 3,600.00) per year
beginning CY 2012, as provided in PhilHealth Circular No. 24 and Office Order
No. 65, series of 2010.
Those would like to avail the current annual premium rate of One Thousand
Two Hundred Pesos (PhP 1,200), shall be required to perform the following for
the period May 1 to June 30, 2012:
i. Sign an Individually Policy Contract (IPC) with PhilHealth for a lock-in
period of two years; and
ii. Pay in advance the first year premium requirement equivalent to One
Thousand Two Hundred Pesos (PhP 1,200) with the balance to be settled on
a quarterly, semi-armual or annual basis as agreed in the IPC.
d.IPMs who have made advance payments prior to said date shall not be required
to sign a Policy Contract until their next payment.
e.All Contracts shall be effective on the date of initial payment.
f.The separate Circular with implementing guidelines for the issuance of the I PCs
shall be released.
2. For Organized Groups (OGs)
a.Premium rates for OG members enrolled starting July 1, 2012 shall be Two
Thousand Four Hundred Pesos (PhP 2,400) per year.
b.OGs who would like to avail the current annual premium rate of PhP 1,200 per
year shall be required to perform the following for the period May 1 to June 30,
2012:
i. Sign a Memorandum of Agreement (MOA) and Group Policy Contract
(GPC) with PhilHealth with a lock-in period of two years; and
ii. Pay in advance the first year premium requirement equivalent to One
Thousand Two Hundred Pesos (PhP 1,200) for each enrollee with the

the GPC.

done by the OG and shall be remitted directly to the nearest LHIO. The OG shall
periodically inform its members about the remittance of their premiums to
PhilTT, alth.
d.Premium incentives for OGs shall be based on the attached iGroup Premium
Schedule.
e.The Circular and Office Order for the implementation of the iGroup Program
and issuance of GPCs shall be released separately.IV. EFFECTIVITY
This Circular shall take effect immediately after due publication in any newspaper of
general circulation and deposited with the National Administrative Register at the
University of the Philippines Law Center.
All issuances that are inconsistent with the provisions of this Circular are deemed
superseded.

http://www.philhealth.gov.ph/circulars/2012/circ20_2012.pdf