1. PROMOTING THE DISCIPLINE OF SAVING AND INVESTING

2. Accumulation StageSpending/Gifting StageConsolidation Stage Age Accumulating assets to satisfy fairly immediate and future needs Earnings exceed expenses, excess can be invested for future retirement & estate planning Living expenses are covered by pension income & income from prior investments Single/ Couple w/out Children Young Family Mature Family Preparing for Retirement Retirees Investor Life Stages

3. Start saving only at the age of 25? START NOW!!!

4. Investor’s Status → About to graduate (excited, nervous, sad…) Financial Goals → To start saving Risk Tolerance → Conservative Investment Objectives → Develop habit/discipline of saving “Baon” Stage

5. IInvestor’s Status WWhat you are now FFinancial Goals WWhere will you use the funds RRisk Tolerance CConservative MModerate AAggressive IInvestment Objectives CCapital preservation IIncome CCapital Growth Definition of Terms

6. Graduation Time! More money to spend? MORE MONEY TO SAVE & INVEST!!!

7. Investor’s Status → Start of career Financial Goals → To be financially independent Risk Tolerance → Conservative to Moderate Investment Objectives → Capital Preservation & Income Welcome to the Real World

8.  Savings Account  While putting up your capital for investment  Time Deposit  Fixed income instrument  Pays fixed interest for a specified tenor  Borrowing of the bank  Insured by the PDIC for up to P500,000.00 Investment Options

9. HannahJohn Started at18 years old30 years old Investment per year P10,000P20,000 Investment yield per year 5.00% Total funds at age 60?? Who has more money by age 60? Power of Compounding

10. HannahJohn Started at18 years old30 years old Investment per year P10,000P20,000 Investment yield per year 5.00% Total funds at age 60P1,550,508.48P1,518,877.77 Power of Compounding Who has more money by age 60?

11. Accumulation StageSpending/Gifting StageConsolidation Stage Age Accumulating assets to satisfy fairly immediate and future needs Earnings exceed expenses, excess can be invested for future retirement & estate planning Living expenses are covered by pension income & income from prior investments Single/ Couple w/out Children Young Family Mature Family Preparing for Retirement Retirees Investor Life Stages

12. Investor’s Status → Single → Couple w/o children → Young Family Financial Goals → Further studies → Recreation → Purchase of house & car → Children’s education Risk Tolerance → Moderate to Aggressive Investment Objectives → Income to exceed inflation → Higher income from growth → Maximized income from aggressive growth Accumulation Stage

13. GGovernment Securities CCorporate Papers SStocks Investment Options

14.  Fixed income instrument  Pays fixed interest  Borrowing of the government (direct, unconditional and fully guaranteed)  Risk Free (if held until maturity)  Scripless – ROSS-CIS  Confirmation of Sale Government Securities

15. INSTRUMENTTERM INTEREST PAYMENT TAXATION Treasury Bills91, 182, 364 days Non- Interest bearing 20% Final withholding taxes Retail Treasury Bonds 3, 5, 7, 10, 15, 20 and 25 Coupon-bearing; payable quarterly 20% Final withholding taxes unless specified Fixed Rate Treasury Notes 2, 3, 5, 7, 10, 20 and 25 years Coupon-bearing; payable semi- annually 20% Final withholding taxes Zero Coupon Bonds 5, 7 and 10 years Non-coupon bearing 20% Final withholding taxes Republic of the Philippines Dollar Denominated Bonds (ROPs) 2, 3, 5, 7, 10, 20 and 25 years Coupon-bearing; payable semi- annually Not subject to Final withholding taxes Types of Phil. Government Securities

16.  Fixed Income  Usually pays fixed interest  Higher than government securities  Borrowing of private corporations Corporate Debt Instruments

17.  Represents share in the ownership of a company  Bought through IPO or the Phil. Stock Exchange  Long term investment  No definite term  No income expectation  Higher risk than fixed income instruments Stocks

18. Investor Life Stages Accumulation StageSpending/Gifting StageConsolidation Stage Age Accumulating assets to satisfy fairly immediate and future needs Earnings exceed expenses, excess can be invested for future retirement & estate planning Living expenses are covered by pension income & income from prior investments Single/ Couple w/out Children Young Family Mature Family Preparing for Retirement Retirees

19. Investor’s Status → Mature Family → Preparing for Retirement Financial Goals → Children’s college education → Improvement of house → Purchase of 2 nd car/house → Vacation → Retirement Risk Tolerance → Conservative to Moderate Investment Objectives → Stable income to keep pace with price increases Consolidation Stage

20. GGovernment Securities CCorporate Papers SStocks (in a lesser degree) Investment Options

21. Accumulation StageSpending/Gifting StageConsolidation Stage Age Accumulating assets to satisfy fairly immediate and future needs Earnings exceed expenses, excess can be invested for future retirement & estate planning Living expenses are covered by pension income & income from prior investments Single/ Couple w/out Children Young Family Mature Family Preparing for Retirement Retirees Investor Life Stages

22. Investor’s Status → Retirees Financial Goals → Maintain lifestyle → Estate planning Risk Tolerance → Risk-averse to Conservative Investment Objectives → Guaranteed income Spending/Gifting Stage

23. TTime Deposit FFor everyday needs (i.e. electricity, medicine) GGovernment Securities CCorporate Papers Investment Options

24.  Start now!  Invest with a purpose  Determine your risk tolerance  Do not put all your eggs in one basket (Diversify)  Stay informed and educate yourself  Be aware of possible investment scams Investment Tips

25. Thank You!