There’s one great news that I’m sure all of us overseas workers will be very happy to hear about. It’s all about PERA.
If you’re an overseas pinoy worker based in the United States, PERA (known as the Personal Equity and Retirement Account (PERA), is remarkably similar to our 401-k program here. There are other variations of the 401-k, especially in government corporations and agencies, but essentially, the basics are the same.
In private corporations, majority of them would put a certain percentage of contribution on top of what you are contributing. Kaya mabilis lumaki ang 401-k investments mo here. It’s more like a double-whammy for income stream dahil me kinikita ka na sa employer based dun sa contribution nila on top of your contributions, me kita ka pa also sa investments mo.
Now, here are the features nang PERA mga kunichiwa:
- A contributor or any person with a tax identification number, may make a maximum contribution of P100,000, or its equivalent in any convertible foreign currency to his PERA annually.
- If the contributor is married, each of the spouses shall be entitled to make a maximum contribution of P100,000 or its equivalent in any currency at the prevailing exchange rates.
- Overseas Filipino workers are allowed to a maximum contribution of P200,000 a year.
- It gives the contributor an income tax credit equivalent to five percent of his total PERA contribution, provided he does not withdraw the funds before age 55. However, if the PERA contribution exceeds the amount prescribed by law, it shall no longer be entitled to a tax credit of five percent.
- All income earned from the investments and reinvestments of PERA contributions are tax exempt and all distribution of PERA benefits upon maturity shall also be tax exempt.
- Contributors can open up to five accounts but with only one administrator, which can be a bank or a financial company. There will be separate custodians of funds and a designated investment manager. Administrators can be investment managers.
- The contributions can be invested in mutual or unit investment trust funds, stocks, and other financial products.
- Employers can contribute to their employees’ accounts, as long as they pay the required SSS premiums.
- Payments may be made when the contributor reaches the age of 55. This can be either in lump sum, a pension for a definite period, or for a lifetime.
- The account owner may choose to continue his PERA even beyond the age of 55, but complete distribution will be made upon the death of the contributor regardless of age.
- Early withdrawals will be subject to a penalty, except in cases when the contributor is totally disabled for more than a month due to an accident or hospitalization.
Ang aim nitong PERA mga kunichiwa is to encourage workers, especially those not covered by the Social Security System (SSS), Government Service Insurance System (GSIS), and overseas Filipino workers (OFWs), to save for their retirement. Maganda sya di ba?
But in an overall scheme of things mga kabisyo, all these monies, if managed prudently wise and intelligently without any halong kurapness, can be used for more investments in the country na pwedeng mag-generate nang additional jobs and more perks sa economy. Overall, wagi ang bansa naten. Again, I hope wag sumemplang ang execution nito anoh? Doon naman parati pumapalpak eh. It’s always in the execution. But the underlying objectives mga kunichiwa is good. I could tell you rightly so because, we’ve all experienced 401-k sa United States and it helped us a lot here.
That’s why I am really excited with this news and I will tell you that I will more than likely open my own investment account because this is a boylet incentive di ba? hehehe, that is, barring na walang mga gagong gumawa nang mga kademonyohan again ano?!
Ang biggest winner nang Act na to mga kunichiwa, is the Philippine Financial Market. Lalabas na dito ang mga sandamakmak na mga Financial Advisors. Lalabas na rin dito ang sangkatutak na Investment Houses. I hope these people and agencies will be properly regulated by the Securities and Exchange Commission and I hope they have already learned sa mga corporate greediness that’s been plastered on the news dito sa US because I’m sure hindi lang ako, but you must have read that in the United States these investment people could go berserk and come up with some ridiculous investment plans and imaginations and before you know it, nag-evaporate nang lahat nang investments mo.
Now, if you’re an overseas pinoy worker, based anywhere else in the world, mag-usap nga tayo nang masinsinan kunichiwa dahil I don’t want you to just dive in no matter how good this news is. Why?
Understand that there are risks in investing. Risks na pag pumalpak ka, chugi ang pera mo. Ke summa summa laude ever ever pa ang administrator mo, ikaw at ikaw ang responsible nang investments mo at wala nang iba. I hope nagkakaintindihan tayo dyan.
If you invest in PERA, these funds will be managed by Administrators. Hindi ibig sabihin na responsibility nila ang investment strategies mo. The sole investing responsibility is still with you amigo y amiga. Kahit saan lupalop ka pa man. If you live and work in Manila, ok lang because you can monitor your investments. Pag bumagsak ang stocks, you can call your administrator and tell them to move them to money market immediately. That’s the beauty kung malapit ka sa investments mo.
The problem will come kung nasa gitna ka nang gyera in Georgia or nagpapala ka pa nang snow sa Alberta, Canada. How will you be able to manage your investments? Are you willing to surrender your capacity to manage your investments sa administrator mo? That’s my question to you. For WORLD PEACE, yan ang isipin mo.
More articles:
1.) rep02mar.pdf
2.) PERA bill becomes law
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{ 28 comments… read them below or add one }
kung sana meron silang online account managment gaya ng e*trade and the likes kasi through online pwede mong i change ang stock options or pwede buy/sell anytime. gaya ng sa fidelity pwede mo naman ilipat ang investment to a more profitable stocks pwera lang yung stocks ng company na nagbigay ng match sa contribution mo. I’ll wait and see kung anong scheme nila saka ako jump kaagad para bigay ko ang milyones ni Imelda sa kanila! hahahahah
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naku mukhang ewan ko ba kung kelan darating ang online banking sa pinas ano? as in haller, ako nga hirap na hirap ako sa bwisit na PNB banking na yan noh? ilang beses nang nag-talbugan ang mga checke ko dahil wez ko knowin kung ilan na ang balanse, hocus pocus ako parati! nakuuu!!!!
reynz’s last blog post..PERA could be one great investment retirement vehicle
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momita wag sumakit ang ulo lipat ka BPI online banking sila as in real time talga the downside is hindi ka makapagtransfer ng funds sa ibang bank BPI account lang talaga pro atleast di ka magmamagaling memorize magkano ang balance mo and knowing ko pa naman magkano ang pag nag overdraft. maryosep!
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that sounds good. kabisyo gusto kong matuto nyang investment na yan. sayang ang limpak limpak kong salapi eh hahahhahhhahaha
hoy teka ano yung password dun sa previous entry. email mo daliiii or else ibabalandra ko yung scandalous picture mo sa baguio wearing RED BRIEFS hahahhahahha
chuvaness’s last blog post..Progress, Social Justice, Freedom and Democracy
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AY NAKU! kelangang mag-usap tayo ORAMISMU! hahaha! as in grabe ang fee pag nag-bounce anoh? Php2500 ata or Php3k, basta ewan, magiging estapadora ang reyna pag di ako nakalipat nang matinong bangko nito! hahhaa
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pucha! dinadaan sa harassment! hahaha! hoy! dapat lang na mag-put up ka na nang retirement kahit papano ano? tigil tigilan ang mga bagong selfon na yan! hmpt!
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ano ba hinde naman cellphone ang hilig ko teka yung password nga
chuvaness’s last blog post..Progress, Social Justice, Freedom and Democracy
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hoy! tineks ko na! inemail ko na! anobeeehhh!!! grrr!
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que barbaridad!!!
nabasa ko na…grabeh! akala ko porn…horror pala hahahahah
tccic!
chuvaness’s last blog post..Progress, Social Justice, Freedom and Democracy
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You are definitely righ Reynz na napakaganda ng layunin nito (PERA) para sa atin, ang maipapayo ko lang,dapat konting due dilligence to monitor and learn from any of your investments, alang ibang tutulong or mag mamalasakit sa investments mo kung hindi ikaw mismo. Dapat alisin yong ugaling bahala na si administrator basta nag pondo na ako ng investments ko.
Yap hindi lang sa Pinas nangyayari ang mga Corporate Scandals kaya lang yoko maging negative pero naisip ko lang, hindi kaya mas malaki ang chance na mis-manage lalo na pag Gobyernong Pinas ang mag handle ng PERA haha.
As of now, monitor muna,although supportado ko program na ito siguro maganda advice wag muna lalarga or full blast.Observe muna din ng gagawin nilang pamamalakad, pag sablay eh pullout haha (this is just base on my personal opinion ha).
Better put your eggs in different baskets, hindi lang sa PERA, at least may fallback ka ba.Try mo din maginvest sa ibang local Mutual Funds sa Pinas, kahit minimal investments lang, then try to study each and every eggs you invest kung alin ang mag perform well.
Froilan’s last blog post..“Buloy” – American Version
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I bank with BPI, HSBC and BDO. All of them have very good internet banking facility. Tama si Maxi, sa BPI hindi ka makakapag transfer sa ibang bank pero sa HSBC pwede. Saka sa HSBC multi-currency yong account, madali mag-transfer from dollar to peso from your own account. Yong BDO naman kaya may account ako doon – old Equitable account ko yon na BDO na ngayon. Pinakamabilis kasi magpadala ng pera sa BDO from here saka yong mga pinapadalhan ko sa Pinas naka-BDO para madali mag-transfer pag kailangan agad ng pera, transfer lang ako sa internet banking nila.
nina’s last blog post..31st Birthday Dinner at Sharq Village and Spa
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Ako titingnan ko muna ang tax implications. Kasi di ba tax free ang OFW. Tapos yong PERA eh tax free lang kung di mo i-withdraw ang contribution before age 55. So baka mamaya mas lugi pa ako. Mas maganda siguro na diretso na lang sa investmwent company yong pera. Although sabi nga doon sa forum – pati yong earnings hindi ita-tax kaya it’s better put your money in your PERA account. Basta wait and see muna ako.
nina’s last blog post..31st Birthday Dinner at Sharq Village and Spa
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hmm, pwede ba ako sa ganyang PERA na yan? kahit na wiz akong pera
kengkay’s last blog post..Rated PG Espanya Pechurs
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thanks for the info nina. i think merong BPI sa New York and I’ll call them and ask for more information. walang silbi naman kasi ang banking ko sa PNB, irita ako dahil yong Online Banking nila na nag-open a few years back, pucha, ibang account ang nailagay sa account ko. Sino kaya yon? hahaha and then basta di ko na lang na-access and i have written their help desk and i did not get any response whatsoever. yong kebigan ko sa PNB wala ring nagawa eh. what i do is actually call her and ask for the balance at nakakapagod talaga!!! kaya, yes many times nagmukhang rubber ang mga checks ko hahahaha buti na lang napopondohan naman hehehe
reynz’s last blog post..PERA could be one great investment retirement vehicle
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wait and see den ako at the moment until na ma-plantsa nila ang program na to.
yong PERA funds actually is going to different financial institutions (bangko, investment houses) and i’m not sure kung talagang dederetso sa govt financial institutions kasi nga parehas nang drama nang 401-k dito sa US. so, in essence, pag ikaw ang investor, dun ka sa bangko lalapit at mag-oopen nang account and deposit the funds. so i believe, kung mismanagement ang pag-uusapan, ang first na gagawa nang katarantaduhan and i hope this does not happen, will be from the financial institution.
ang di pa naten alam is that, are these investments insured nang PDIC just like bank deposits?
me isang feature na you can open 5 accounts and i believe kinover na nila to diversify your portfolio which is good dahil you can open 5 accounts from 5 different financial institutions para kung sakaling sumemplang ang isa, at least hindi lahat nang portfolio madadale.
one thing though, because this is new to most Pinoys, at alam mo naman saten no? me mga ugaling get rich quick, bat kaya malakas ang kutob kong me mga lalabas na mga kung ano anong financial investments na mga kagaguhan again? hahaha sana mali ako! hehehe
reynz’s last blog post..PERA could be one great investment retirement vehicle
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well, at least 55 hahaha, medyo makakahada pa ako nyan kesa naman sa amerika na 67 ata hahaha, yong retirement mo eh pambili na lang nang viagra hahaha
anyway hehe, i would guess na they would allow investment companies na mag-offer nang PERA and they would be considered as financial institutions, im not sure, intay natin ang details
from it’s face, maganda nga dahil, tax-free pag winit-dro mo pag 55 ka na or over and including the interest are going to be tax free
reynz’s last blog post..PERA could be one great investment retirement vehicle
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PERA ka dun ang tawag dyan hahaha! Pero, yong next Mallorca trip ilagak mo na lang sa PERA ateng para pag-uwi naten sa Barrio Siete eh di mag-oktoberfest tayo sa Gubat Sorsogon! hahaha!
reynz’s last blog post..PERA could be one great investment retirement vehicle
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meron akong update dun! hehehe! wait at edit ko ang entry hehehe! pucha! nag-mukha na syang diary of one slut pretty gurl hahahah
reynz’s last blog post..PERA could be one great investment retirement vehicle
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oo nga merong BPI sa NY. So far, sa mga local banks, BPI pinaka gusto ko. It’s not perfect but a lot better than other banks – mas konti kasi ang aanga-anga dun saka pag nag e-mail ka sa customer service may sagot within 24 hours. Pag tumawag ka naman okay din yong phone banking. Pag nalimutan mo password sa internet banking – 24 hrs a day pwede i-reset ng phone banking officer. Baka pwede ka dyan mag-open ng account sa states or pag-uwi mo na lang. But be prepared – duduguin ka rin sa requirements.
Last year, humulas ang beauty ko sa pag-oopen ng current account kaya I ended up sa HSBC. Malaki lang ang maintaining balance pero wala ng masyadong rekusitos basta may pang-open ka ng account.
Hay manay – ang dami kong expereince sa mga bangko na yan. Kailangan ko magbukas ng isa pang blog kung sakali. Nosebleed ka na – rereglahin ka pa kahit wala kang matres.
nina’s last blog post..31st Birthday Dinner at Sharq Village and Spa
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nina, tinawagan no New York, ayun nag-apply na ako online and wait ko na lang daw email instructions nila on the next step.
anong klase ba ang online nila? kasi yong PNB, online nga, balances lang. sa States kasi, i can pay anyone and i can see all the transactions. paki-explain nga kung ano ang laman at nakikita mo sa online chuva nang BPI? Indi naman kasi inexplain nung gurl. Sabi nya, oo daw parang states. Really???
reynz’s last blog post..PERA could be one great investment retirement vehicle
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Maganda ang layunin ng PERA huwag lang pagkakaperahan ng iba, mga legitimate members lang, di ba?
Colegiala girl’s last blog post..Nang Mag-cosplay sina Banong at Kimuchi (for peace, economy, and good governance)
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korak ateng! sa execution lang naman nang program consistent ang mga yan na sumesemplang! but you know what, as is usual saten mga tira tira, nangangarap na sana tunay na talaga to you know!
reynz’s last blog post..Was the Philippine media disrespectful?
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kahit tagalog na hindi ko parin naintindihan yung sa investment management part. hahaha.
PKIGWMENGRCXNPPRPLZ.TNX! nyahahaha
Puma Leyar’s last blog post..G.I. Joe: The Movie
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hahaha! alin?! alin ang wez understanding? tanungin ako! dali at kinakati akong sumagot! let me know kung aling part ang indi naintindihan! hahaha
reynz’s last blog post..Was the Philippine media disrespectful?
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bakit may password ang nasa baba? mami, ano po ang ibig sabihin ng hada?
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i emailed it already anak hehehehe, sa dami nang nag-re-request, baka tuluyang buksan ko na ang mga karumal dumal kong pinag-gagawa hahaha
reynz’s last blog post..The Journey Concert in Camden
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wala naman po akong nareceive. ok lang po. masyado pa akong bata para malaman ang tungkol sa bagay na yan bwahahahaha!
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sya sya hehehe bubuksan ko na lang mamaya hahaha pucha! sobrang kahihiya toooo! dami kasing gustong malaman ang mga kaokrayan nang reyna hahaha ano ba yannnn hehehe
reynz’s last blog post..The Journey Concert in Camden
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