Philippines Now Investment Grade, Given by Fitch Rating

PSEIAll who are in Financial sector as well as investor is now rejoicing after Fitch Rating upgraded Philippines to Investment Grade. The immediate effect is that blue chips stocks rose before the closing time of today’s stock market.

27 March 2013: Fitch Ratings upgraded the Philippines’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BBB-‘ from ‘BB+’. The Long-Term Local-Currency IDR has been upgraded to ‘BBB’ from ‘BBB-‘. The Outlooks on both ratings are Stable. The agency has also upgraded the Country Ceiling to ‘BBB‘ from ‘BBB-‘ and the Short-Term Foreign-Currency IDR to ‘F3’ from ‘B’.

After the red week, Philippine stock market bounce with a 5 day green (positive) day.

According to Fitch Rating, here are their assumptions :

The agency assumes the Aquino administration will persist with its fiscal, governance and social reform agenda.

Fitch estimates trend GDP growth for the Philippines in a range of 5%-5.5%.

The ratings incorporate an assumption that the Philippines is not hit by a severe economic or financial shock sufficient to cause a significant contraction in GDP and trigger stress in the financial system. Fitch assumes that there is no materialisation of severe risks to global financial stability that could impact emerging market economies, such as a breakup of the euro zone or a severe economic crisis in China.

And the following items should be taken care by Philippine government since this could lead to a negative rating:

The main factors that could lead to a negative rating action, individually or collectively, are:
-A reversal of reform measures and deterioration in governance standards.
-Sustained fiscal slippage, leading to a higher fiscal debt burden.
-Deterioration in monetary policy management that allows the economy to overheat.
-Instability in the banking sector, leading to a crystallisation of contingent liabilities on the sovereign balance sheet.

As long as the above assumption will be maintained by Philippines, we will be seing a good economic growth of the Philippines. Again I believe that it’s time to invest. Filipinos should start being financially literate.

Red Market Last Week, Is Your Investment Affected?


It’s Sunday, and no trading day, a day that was agreed by many in the Philippines as the day of worship and is the time to contemplate with our Lord. Remember that we are just a steward of his blessing and whatever the Philippines is experiencing about its great economy is God’s plan for Filipinos.

Last week Philippine stock market have experienced a “Red” mark. (Just for information “Green” means gain and “Red” means lost). According to the news , it was due to the weak banking sector that makes the market “Red” last week. Many have taken their profit due to non-availability of good news as cited in the news. Remember that I have told you that news could affect the price of the stock. So what was your strategy last week?

Many might ask, is this the start of the so called “bear market“? Do I have to sell my MBT? BDO? or other stocks? As always it is still the decision of the stocks holders. Nobody is responsible for your stock but the owner.  Let me also remind all of our readers that stock market is the riskiest investment in the market but also an investment instrument that could give the highest gain. More risk means more possibility of gain. Below is my take in those question.

50% of my portfolio is in banking sector so, my portfolio was affected. But did I sell last week? My answer is “NO”. I believe it is just a correction in the market. But this also reminds me of “diversification”. My portfolio should be diversified so that when 1 sector like banking is affected, my whole portfolio will not be affected.

I also believe in Long Term Investment that is why I am not affected with the ups and down of the market. It’s all about mind setting.

If I had more funds, I would be buying more since I believe that the majority of the blue chips stocks are now on sale. This is a very good opportunity to buy since an investor could buy more stocks with the same amount that he could be spending about 2 weeks ago.

We will see if the market will still have its correction tomorrow.

To those OFW who have not yet started investing, you need to think again and always remember that we need to be prepared for our family future. But first of all you need to have Emergency Fund before investing and control your expenditures buy knowing about Good Debt and Bad Debt. Increase your financial literacy.

God provides, and this is 100% true and God will give His provision to those who have vision.

Proverbs 22:3

The prudent see danger and take refuge, but the simple keep going and pay the penalty.

To those who have just visited this site, I would recommend you watching the full session of the Pesos and Sense and know how to start investing in the stock market

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How to Stay Updated With Your Portfolio News & Events?

We all know that one of the indicators of the stock market price is the NEWS that is being discussed on a particular day. A good news might make the stock market price higher while the bad NEWS might make the stock price lower.

An investors increases his investment as long as he found out that the company is in a good position because he is increasing his trust in the company.

As an example, a news about an accident happened in a Mining area will definitely affect the stock price of a particular mining company.

A change in the Board of Director also affects the price of a stock market either positive or negative.

Today, I will teach on how to be updated on the news that floats around the internet about your chosen company. As an example if you want to be updated on what is going on at Century Properties Group (CPG), you may create a Google Alert for all the news that is being posted in the internet.

How to Stay Updated With Your Portfolio News & Events?Here are the procedure to start tracking news information using Google Alert:

1.) Go at the Google Alert site ( ) and fill up the required data where you want to be updated.

2.) At the search Query Space , you may put the word: Century Properties Group

3.) At the result type you may choose to be informed from News, Blogs, Videos, Discussions and Book. Most of the time I choose News, You may also create additional alert from Blogs.

4.) In the How Often Space: You may choose from as it happen, once a day or once a week. Most of the time I choose “As it Happen”, so that I am informed of any choose or blogs being posted in the internet.

5.) At How Many, You have the option to choose All results and Best Results

6.) Then place your email in the space provided

7.) The press create alert

In addition you might want to be part of different Facebook Group, where information is always updated from different helpful members.How to Stay Updated With Your Portfolio News & Events?

This might not be important for long term investors, but I do believe that it is always nice to be informed about the things happening at your stocks portfolio.

If you found it useful you might want to share to your friends and FB groups.

How to Add Funds to Your Stock Broker?

First of all, stock broker is the agency who buys stock for us, investor. I have an account with COL Financial and therefore the instruction mentioned herein is based on my experience with COL Financial.

I have told you before that I am an OFW, in Saudi Arabia whenever we send money to Philippines in a single account we have to pay SAR 18 (Approximately Php 200) so if we are not wise enough and we will send our funding through this method we will already loose some of our capital.

So how do I send funds to my COL Financial account? It’s easy I use online banking from my bank in the Philippines. In my case I am using Metrobank as my financial hub. I send money to my Philippine Bank Account (Metrobank) and from there I will distribute my remittances, credit card payment, including funding to ColFinancial. So in this case I am only paying once in sending money from Saudi Arabia to Philippines. But there is a catch, In Saudi Arabia, there is a certain limitation on the amount of money that we can send to Philippines depending on our work permit. In my case I don’t have problem since my visa category have high limitation.

We have also checked the BPI Pinoy online banking and I can confirm that they have the capability of sending funds to COL Financial.

For COL Financial users, you just have to get your user id and place it in the space provided by Metrobank (Subscriber/Account No.) . After your first transaction it will now be located in your banks dashboard and all you have to do Is just to choose this in the option.

So here is the guide:

1.) Press Pay Bills

2.) Go To Special Bills

3.) Look for Col Financial Group Inc. and Enter your account number

4.) Enter your desired amount

5.) Put your phone number and then wait until it will appear in your Col Financial Dashboard (Better expect the transfer to be done within one day)

It would be faster if you will inform Col Financial and send them a screen copy of your payment.

You may also want to check my post in my other blog: How Online Banking System Can help OFW


Metrobank Screen Capture

I have been doing Internet banking for more than 9 years and I could say that I did not face any problem with Metrobank. They are strict when it comes to adding beneficiary since you have to do it on your local branch. But in funding your COL Financial you don’t have to go to the branch in order to add them in you bills payment.

For those asking about bank charges, I have not seen any deduction in any of my transfer to COL Financial.

COL Financial’s Claim Procedure in Case of Stock Holder’s Death

TaxYesterday I sent clarification to COL Financial regarding the procedure on how will the heir can get stock proceeds in case of Stock Holder’s Death and here is their reply:

In the unfortunate event of an account holder’s demise, the following are the documents to be submitted by the surviving spouse/heir:

  1. Death Certificate
  2. Either one of the following:
    1. If with testate or intestate proceedings, a court order appointing the executor/administrator and authorizing him to close the account and collect the proceeds;
    2. If without testate or intestate proceedings:
      1. If there is only 1 heir – Affidavit of Self-Adjudication
      2. If there is more than 1 heir – Deed of Extra-judicial Settlement of Estate
      3. In either (i) and (ii), submit also proof of filing of the Affidavit or Deed, as the case may be, with the office of the register of deeds
  1. Release, waiver, and quitclaim, holding COL free and clear from any action, claim or liability brought by third parties in relation to the closing of the account and release of the proceeds thereof.
  2. Proof of payment of estate tax or BIR Certification that the same is exempt from estate tax
  3. Identification documents of surviving heirs (photocopy of 1 government issued ID, with picture and signature)

Surviving heirs may then open an account with us to transfer all stock and cash positions from the deceased client’s account to the surviving heirs’ account.  Surviving heirs will have to submit identification documents and POB and accomplish account opening forms.

So it is clear based on COL Financial’s response that a proof of payment for the estate tax is necessary before a heir can claim the stocks. To all those who have account with COL Financial better share this post to your love ones so they know what to do just in case.

What is Estate Tax? | The Importance of Insurance

TaxIn my continued learning about Personal Finance, I came to know that there is Estate Tax in the Philippines. Estate Tax is the tax being charged to any heir of a deceased person.

Did you know that all property under your name as shown below is subjected to Estate Tax in case of your death?

a)   Real or immovable property, wherever located

b)   Tangible personal property, wherever located

c)   Intangible personal property, wherever located

All mentioned property would be subjected to Estate Tax equivalent to almost 20% of the Net property. Property includes Real State, Money in the Bank, Mutual Funds, Stocks in the Stock Market and more.

According to BIR the following items will be deducted from the Gross Asset to get the net value of the Net value to be taxed.

  • GSIS proceeds/ benefits
  • Accruals from SSS
  • Proceeds of life insurance where the beneficiary is irrevocably appointed
  • Proceeds of life insurance under a group insurance taken by employer (not taken out upon his life)
  • War damage payments
  • Transfer by way of bona fide sales
  • Transfer of property to the National Government or to any of its political subdivisions
  • Separate property of the surviving spouse
  • Merger of usufruct in the owner of the naked title
  • Properties held in trust by the decedent
  • Acquisition and/or transfer expressly declared as not taxable

It was also a discussion in the TGFI Facebook group that if the owner of the stocks became deceased, stocks will not be withdrawn or liquidated as along as the real estate is cleared and paid. Joint account can’t also protect the account since if either one of the account holder died, the account will be frozen and will be subjected to Estate Tax.

There is a deadline in paying the Estate Tax as shown in the BIR page as follows:

File the return within six (6) months from decedent’s death. However, the Commissioner may, in meritorious cases, grant extension not exceeding thirty (30) days.

The Estate Tax imposed shall be paid at the time the return is filed by the executor or administrator or the heirs. However, when the Commissioner finds that payment on the due date of the Estate Tax or of any part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the courts or two (2) years in case the estate is settled extra-judicially.

According to experts, in order for us to be protected we need to make sure that we have Term Insurance or any other Insurance. Term Insurance is the Insurance with the lowest premium but there is no Return of Investment for any payment. So it is just like paying insurance for your car. But instead of paying for your car you are protecting yourself for anything that might happen in the future.

So it is very important that if we have an asset, we need to make sure that our family is prepared in paying the estate tax in case of death.

For further reference about the Estate Tax please proceed to BIR Page here. Be informed that nobody is excused due to the ignorance of the law.

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