Category: Personal Finance

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The estate tax amnesty has been extended by two years. Here’s why you should take advantage.

Last June 30, 2021, President Duterte signed Republic Act (R.A.) No. 11569, extending the estate tax amnesty (RA 11213) by another two years till June 14, 2023. The news was received with a collective sigh of relief. Many who had been working on their amnesty application but were affected by the pandemic were given a new opportunity to do so.

The original deadline based on the Tax Amnesty Act (RA 11213) was June 14, 2021 but the pandemic resulted in a low turnout of people availing of the amnesty. Rep. Joey Salceda, chairman of the House Ways & Means Committee, noted that out of the targeted PhP 6 billion in taxes from the amnesty program, only about PhP 1.362 billion was collected.

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Filipino investors can now invest in Retail Treasury Bonds using PayMaya

PayMaya has widened its financial inclusion. Now, Filipinos can invest in government Retail Treasury Bonds (RTBs) using PayMaya.

What are RTBs?

RTBs are medium- to long-term investments or securities offered by the government specifically to small investors. Unlike other bond offerings where the minimum placement is usually in the tens or hundreds of thousands of pesos, RTBs can be purchased for as low as PhP 5,000 during a bond offering. They are also low-risk because it is the government behind its issuance. Of course, no investment is zero risk but in the case of RTBs, it is considered low since the only time one risks losing one’s investment is if the government defaults on its obligations.

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Preserve your legacy for your heirs through SUN Smarter Life

Most people who invest in financial products and buy insurance are in any of three stages in life: 1) starting to build a financial nest at the start of one’s career 2) growing wealth as one moves up in his career and has a family by then, and 3) preparing ahead for one’s senior years when the propensity to grow wealth starts diminishing and health-related expenses go up.

The three life stages and their needs

If you are one of these types of investors, you are in a good place. But…did you know that there is still a fourth life stage and yet, so many Filipinos miss out on preparing amply for it and it has a huge tax impact on the heirs? Here’s something to think about…

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How to buy IPO shares with only PhP 25,000 or less

When there are popular Initial Public Offerings (IPOs), many times the shares are over-subscribed and small investors can be left out of it because stocks are usually taken by large investors through their stockbrokers. This is now addressed by the Philippine Stock Exchange‘s Local Small Investor (LSI) Shares program where investors who are just testing the waters of stock investing or who may not have that much money to buy stocks can still participate in a company IPO.

Under the LSI program, 10% of all IPOs have to be allocated for the LSIs. Any individual (local or foreign) or corporate investor can buy up to PhP 25,000 worth of IPO shares through a Trading Participant (TP), a licensed stockbroker.

Here’s an infographic provided by the PSE.

LSI

Let’s tackle some more questions that may be on your mind.

How many shares can I buy in an IPO?

It depends on the price per share for the IPO. The maximum value of your subscription is PhP 25,000. So to determine the maximum number of shares you, as an LSI, can subscribe to, PhP 25,000 is divided by the cost per share. Also, LSI subscriptions must be at least equivalent to one (1) board lot.

What if there is more than one IPO happening at the same time? Can I subscribe to both?

Yes! You can buy up to a maximum of PhP 25,000 for EACH IPO.

If I already have a broker, can I use him to buy LSI shares?

LSI Application to Purchase forms should be signed by the investor’s stock brokerage firm. So yes, your existing broker can be used to buy LSI shares.

What if I want to buy more than PhP 25,000 worth of shares for an IPO?

Unfortunately, PhP 25,000 is the maximum allowed under the LSI program. To buy more than that, you will have to go through the regular IPO purchase process. However, if you were already able to get offer shares through your broker (via the allocation per brokerage firm) but you want more, you can still subscribe to LSI.

I don’t have a checking account. Is there any other way to pay for LSI share subscriptions?

You may also pay via Manager’s Cheque.

Got more questions? Just leave me a comment below and I will hound my friends at the PSE for an answer. 🙂

Good luck and happy stock investing!

 

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iCon 2016: Investing is for Everyone

The biggest annual investment conference is back and is now on its 4th year with a brand new roster of speakers known in the Philippine financial industry. Among them are my good friends Randell Tiongson (the organizer of iCON) and Marvin Germo, an expert in stock investing.

icon 2016

Last year, I was able to bring two of my kids and a friend’s kids to the conference. Usually kids get impatient with long conferences but my kids listened till the end. Now, they are more confident and manage their own savings with increased knowledge.

To read about our iCON 2015 experience, click here.

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