Do you have extra money and are wondering where should you put it? Consider Modified Pag-IBIG II or MP2 and here is why.
Pag-IBIG MP2 is an optional savings scheme for PAG-Ibig members only. If you are not a member yet, you need to register first and pay your monthly contribution. You might be wondering, is this safe? Is it better? What are the risks of losing my money? Is it better to just keep my cash with me?
Even during the pandemic where most investment’s earnings have dropped, Pag-IBIG MP2 performed well with a dividend rate of 6.12%.
MP2 is fully guaranteed by the government so there is no risk of losing your savings unlike other investment instruments and it is tax free. The worst thing that can happen to your MP2 is not earning but you can never lose part of your capital (amount deposited).
Another good thing about MP2 is there is no penalty for not depositing the next month and you can open several MP2 accounts. To start investing, you only need P500 as initial deposit and you can decide when and how much you should deposit month on month. You also have the option to deposit in lump sum and leave it there for 5 years. Once invested, you have the option to receive your annual dividend or just leave it there to compound and earn dividends.
Why is the dividend high and sounds too good to be true? MP2 earns from interest payments of Pag-IBIG housing loan borrowers, where 70% of it’s investible fund is being invested. Borrowers will surely pay their housing loan if not, it will be sold to another person or it will be auctioned.
To check your MP2 transactions and earnings, just create your virtual Pag- IBIG account by going here: https://www.pagibigfundservices.com/virtualpagibig/, you can also visit any Pag -IBIG office or call their hotline via 724-4244.
Excited to start investing? Be a responsible investor. Please keep in mind that BEFORE investing, it is smart and wise to make sure you have enough insurance coverage first, especially nowadays. Better be insured while you are still insurable. Talk to a financial advisor today, there are so many financial instruments out there that can help you achieve your goals.
Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect that of the Insurance Company that the author is representing. The content shared here should also not be construed as advice. Please talk to a Financial Advisor/Planner.