Poll

What must be on priority?

Insurance
Invesment (MF,Stocks, Bonds etc)

Author Topic: What must be the priority? Insurance or Invesment (MF,Stocks, Bonds etc)  (Read 2873 times)

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ZuvelCompany

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Hi to all,
Just want to know your thoughts which is to be prioritized, some said dapat insurance muna before investing, others say na investment para kumita ang pera.

How about you, what is your idea?

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GreenMoney

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Re: What must be the priority? Insurance or Invesment (MF,Stocks, Bonds etc)
« Reply #1 on: September 02, 2012, 04:28:57 PM »
I would say sa insurance. Kasi sa insurance it get higher premium when time passes by in relation to your birth date, lalo na pag life insurance kinuha mo.

Although both have time as the element of pricing/rates, sa insurance kasi long term ang effect.

MoneySensePH

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Re: What must be the priority? Insurance or Invesment (MF,Stocks, Bonds etc)
« Reply #2 on: September 02, 2012, 04:30:40 PM »
In terms of cost-benefit, investments such as mutual funds, time deposits and VULs can get you the more "tangible" returns as you'll most likely see the returns sooner and liquidate it for your own consumption.

Insurance has a certain niche in one's portfolio as the benefits can be felt years down the line. Some insurance packages will only make itself useful when one dies, while some insurance packages these days add an "investment" component wherein money goes back to you say like 5 or 20 years. Some insurance packages like VULs (or variable unit life) incorporates investments in the package.

Personally, i started investing simply because it was something lighter on the pocket when i started working. Setting aside 2,000 to 5,000 a month was something affordable for me. However, when the cash flow started improving, I immediately bought an insurance package with a premium of 15,000 a year (i was 21 years old then).

Fundamentally speaking, insurance is better because you are protecting yourself first before risking your money on investments. If and when you die, insurance pays your beneficiaries cash that can cover your estate tax and any potential income loss you are contributing to your household. Investments, on the other hand, usually form part of your estate. Therefore when you die, it's not something your next of kin can get access to right away.

VUL is something i would recommend to first-time investors who want to cover both bases right away. I feel, though, that since VUL invests in term insurance (as far as i know), it may not be optimal for someone looking for a self-sustaining insurance package for the future. It's a good start, no doubt, but i still feel that purchasing both products separately -- insurance and investment -- is still the more flexible way of calibrating your portfolio to your own needs.

Hope this helps

BusinessManPH

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Re: What must be the priority? Insurance or Invesment (MF,Stocks, Bonds etc)
« Reply #3 on: September 02, 2012, 04:32:24 PM »
siguro depende...

Kung may asawa ka siguro maganda Insurance for protection.

Kung single ka naman stock market

Kung nagpaplan ka na magsettle down, maganda siguro mutual funds, bonds.


befinanciallyfree

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Re: What must be the priority? Insurance or Invesment (MF,Stocks, Bonds etc)
« Reply #4 on: October 23, 2012, 02:54:57 PM »
The very foundation of financial planning is insurance. Ask every successful businessman around, all of them are insured. Why? you need protection before involving yourself with risks.There are no investment that does not have risks. Investments will be a part of your estate and your beneficiaries do not have access so easily.

Whether you're single, settling down or whatever, having protection first is the best way. Anyway there are lots of products available where they offer both at the same time (VUL) you get protection and at the same time part of it goes to investment and grow your money at the same time. so it's a win-win for you.

For more questions don't hesitate to pm me or email me at markjeromesaytono.com would be glad to be of help.

Remember, Knowing is only half the battle.

Be financially free!

Technopreneur101

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Re: What must be the priority? Insurance or Invesment (MF,Stocks, Bonds etc)
« Reply #5 on: October 23, 2012, 05:13:15 PM »
if you would ask me siguro depende sa timing ng market at depende din sa age mo.

Siguro Insurance kung bata ka pa. Kung medyo nasa early 30's ka na maganda mag stocks/ mf ka na.


NeoGemini

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Re: What must be the priority? Insurance or Invesment (MF,Stocks, Bonds etc)
« Reply #6 on: November 06, 2012, 02:12:44 PM »
Guys, i have a question...
Has anyone here been offered by Sunlife or Manulife regarding Investment Variable Insurance? you know those Insurance with some links investments with mutual funds? Ano tingin nyo po dito? Ok ba syang kunin?


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Re: What must be the priority? Insurance or Invesment (MF,Stocks, Bonds etc)
« Reply #6 on: November 06, 2012, 02:12:44 PM »

 

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