This document discusses the importance of financial planning for OFWs and their families. It emphasizes the need to protect one's earnings through life insurance, and to grow one's assets through investment strategies that consider credit worthiness, performance, risk tolerance and time horizon. Specifically, it recommends allocating funds across cash, time deposits, mutual funds, equities and other instruments to maximize returns in a low interest environment and achieve financial goals like having 1 million pesos in 10 years. Overall, the document stresses the value of financial planning to prepare for different life stages and events.

1. Ang Paghahanda Para Sa Kaunlaran ng Pamilyang OFW Ma. Isabel “Mae” Elizalde Financial Planner – Elizalde Agency Philamlife

2. Story of the 3 Coins ABILITY TIME EXPERIENCE

3. Why are we here? We are here to talk about TIME Time to Protect (Pananatili) Time to Transfer (Pagpapamana) Time to Accumulate (Pagpapalago)

4. Investment Triangle Cash, S/A, C/A, T/D Mutual Funds Equities, Options, Derivatives, Real Estate Unit Investment Trust Funds; Variable Universal Life P R O T E C T I O N Basic Financial Foundation: PROTECT THE BREADWINNER

5. Life Events (Financial Goals) First Job/ Business Bigger House House Travel/ Family Vacations Children’s Education Get Married Retirement Business Car Legacy More Cars 20s 50s 60s 70s + 40s

7. Investment Triangle Cash, S/A, C/A, T/D Mutual Funds Equities, Options, Derivatives, Real Estate Unit Investment Trust Funds; Variable Universal Life P R O T E C T I O N Pananatili… Pagpapalago** Pagpapalago Pagpapalago Pagpapalago* Pagpapamana…

9. Difference: Investing Saving

14. Performance and Track Record Philamlife Fund Performance (One Year Return) * One-year return for year ended June 25, 2007 17.17% Philamlife Dollar Bond Fund 12.37% Philamlife Global Bond Fund 68.42% Philamlife Equity Fund 13.85% Philamlife Fixed Income Fund Return Fund

15. Risk Tolerance Non-Par/ Guaranteed Returns, Bank deposits Participating Products Regular VUL Equities, Mutual Funds, UITFs, Real Estate SP VUL RISK RETURN

16. Risk Tolerance vs. Time Horizon Risk Age 30 65

20. Are Filipinos saving enough compared to our neighbors? What is our SAVINGS culture?

21. Savings Habits in the Region A typical Filipino saver puts 64% of his earnings in regular savings deposits Highest level of investment of the average Filipino is in the form of time deposits *Asian Development Bank 2006 Key Indicators (using 2005 figures) 13.90% Cambodia 20.10% Philippines 26.30% Indonesia 29.10% India 29.40% Thailand 30.20% Vietnam 33.30% Rep. of Korea 43.30% Malaysia 47.00% China 48.60% Singapore Savings Rates as % of GDP*

22. The Typical Savings Mentality Income – Expenses = Savings High income does not equate to accumulated wealth Expenses may oftentimes surpass income Note! Financial Discipline Growing your assets

23. How can we achieve a higher return in a low interest rate environment?

25. Asset Allocation: 91-TBill & 5-25YrFXTN rates (1999-August 2006) Growing your assets TBill rates are average auction rates FXTN rates are average bid rates from Bloomberg less 50bps 2.885% 91-day TBill yield as of Feb 2007 10.92% 10.62% 8.61% 8.13% 7.96% 5.38% As of 8/17/06 12.02% 11.64% 11.09% 10.54% 10.05% 6.07% 2005 12.45% 12.15% 11.88% 11.47% 10.99% 7.31% 2004 12.61% 12.12% 11.59% 11.28% 10.62% 5.97% 2003 14.84% 14.18% 12.72% 12.34% 11.49% 5.50% 2002 16.02% 15.66% 15.18% 14.90% 14.43% 9.74% 2001 15.58% 14.81% 14.49% 14.11% 9.93% 2000 15.57% 14.43% 13.92% 13.28% 9.98% 1999 25Yr FXTNs 20Yr FXTNs 10Yr FXTNs 7Yr FXTNs 5Yr FXTNs 91-day TBill Year

26. How to maximize returns in low-interest rate environment? More Risk Return Investment Period

28. Financial Instruments for Different Financial Objectives Pure risk protection Ordinary Life A&H Investment & risk protection Pure investment Mutual funds Unit-linked Investment Trust Funds Time deposits Real Estate Long-Term Savings and protection

30. Thank You! Mae Elizalde Philamlife Elizalde Agency [email_address] .com 433 3421 Loc 32015