HOW TO INVEST IN PAG-IBIG MP2: COMPLETE GUIDE | guideph

 Pag-IBIG MP2 or the Modified Pag-IBIG II is a discretionary reserve funds plot for individuals who need to spare more and acquire higher profits on head of their ordinary Pag-IBIG investment funds. 

So if you will probably build your assets or reserve funds, one great alternative is to contribute it to Pag-IBIG MP2 with an amazing 7% profit rate for your cash. 

WHAT IS PAG-IBIG MP2 SAVINGS PROGRAM? 

The  Pag-IBIG MP2 Savings Program is a deliberate reserve funds strategy for Pag-IBIG Fund individuals who decide to spare more and gain high profits, alongside their Pag-IBIG Fund Regular Savings. 

WHO CAN SAVE UNDER PAG-IBIG MP2? 

You can open a Pag-IBIG MP2 account on the off chance that you have a place with any of the accompanying gatherings: 

All dynamic Pag-IBIG individuals, regardless of how much your month to month salary is. 

Previous beneficiaries, paying little mind to age, who have in any event pay 24 month to month commitments before retirement. 

In case you're not a Pag-IBIG part yet, you should enroll first and pay your month to month commitments to be viewed as an official part. 

REASONS WHY YOU SHOULD OPEN A PAG-IBIG MP2 

Pag-IBIG MP2 enlistment isn't required for Pag-IBIG individuals, yet doing so will be helpful for you over the long haul. 

Here are five valid justifications to begin sparing under the Pag-IBIG MP2: 

• Above-advertise profit rates. 
• The most intriguing motivation to spare under MP2 is its above-showcase yearly profit rates. 

In the previous barely any years, MP2 profit rates have developed solidly, averaging at 6.96% from 2015 to 2017. 

In 2018, the Pag-IBIG Fund proclaimed the MP2 profit rate at 7.41%. While the proclaimed MP2 profit rate in 2019 is 7.23%. 

So, the MP2 is more financially savvy contrast with the ordinary Pag-IBIG reserve funds program. MP2 profit rates even surpass the normal loan fees of speculation items from business banks in the Philippines. 

With the HDMF's unrivaled budgetary exhibition quite a long time after year, it's relied upon to proceed with the MP2 program's exceptional profit rates. 

HOW PAG-IBIG MP2 IS COMPUTED? 

Profit income are tax-exempt, which implies you'll get everything without paying the 20% last retention charge. 

To compute your MP2 profit, increase the profit rate for the fitting year by your normal month to month balance. 

Here's the equation for MP2 profit calculation: 

Profit = Dividend rate x Average month to month balance 

Computing the MP2 profit isn't as straightforward as it looks, however. 

Prior to continuing with the calculation, it's critical to see first what the profit rate and the normal month to month balance mean. 

The profit rate is the financing cost dependent on the Pag-IBIG Fund's yearly net gain. The Fund normally reports the profit rate for a specific year in the first or second quarter of the next year through a news discharge on the Pag-IBIG site. 

For instance, the profit rate for 2018 is 7.41%, which the Pag-IBIG Fund expressed in April 2019. 

In the interim, the normal month to month balance alludes to the normal of the MP2 investment funds you've earned continuously end. To make sense of your normal month to month balance, you need to know your complete combined reserve funds for the year first and afterward isolate it by (a year). 

For simpler computation, report your month to month MP2 investment funds through Excel document or Google Spreadsheet and afterward process the normal. 

For example, you're sparing Php 500 every month from January to December 2020. Plotted on a spreadsheet, your aggregate investment funds resemble this: 

PERIOD CUMULATIVE SAVINGS (PHP) 

The total of the total investment funds for 2020 is Php 39,000. Gap that by 12, and you'll get a  remainder of Php 3,250. That is your normal month to month balance. 

A simpler method to process the normal month to month balance is to utilize the AVERAGE capacity in Excel or Google Spreadsheet, which yields a similar sum: Php 3,250. 

At the present time, you would already be able to ascertain the profit for the year 2020 dependent on a profit pace of 7.5% (the rate the Pag-IBIG Fund consistently utilizes in its example profit calculations). 

0.075 (profit rate) x Php 3,250 (your normal month to month balance) = Php 243.75 (complete profit for 2020) 

To register your profits for the following four years, basically rehash all the means above. 

On the off chance that you benefit of the intensified reserve funds choice, remember to include the profit sum from the earlier year to the total investment funds in January of the next year. 

Be that as it may, in the event that you profit of the yearly profit payout alternative, don't include the profit sum from the earlier year to the current year since it's paid out to you consistently. 

For your brisk reference, the table underneath from the Pag-IBIG Fund shows the yearly profit payout over a five-year time frame in the event that you pay Php 500 month to month to your MP2 account (in view of a 7.5% profit rate). 

Why would that be THE DIVIDEND RATE OF PAG-IBIG MP2 HUGE? 

MP2 profit rates have been on a rising pattern. The rates have never gone down underneath 7% since 2016 up to the present. 

While these figures appear to be unrealistic, there's no motivation to stress or uncertainty with respect to why the Pag-IBIG MP2 profit rates are "excessively high." 

The Pag-IBIG Fund's dynamic budgetary exhibition throughout the years has quickened the MP2 rates. The administration office characteristics its strong monetary remaining to its operational efficiencies and solid lodging advance installment assortments. 

Since the Pag-IBIG Fund puts 70% of its assets in its lodging credit program, individuals putting resources into MP2 win from the intrigue installments of lodging advance borrowers. 

Additionally, MP2 profits originate from in any event 70% of the Pag-IBIG Fund's yearly net gain, which has seen consistent development for as far back as six years. In 2019, the Fund recorded an overall gain of Php 34.37 billion—it is the most noteworthy ever. 

An exceptional yearly monetary execution changes over to higher profit income for MP2 account holders. 

HOW TO ENROLL IN THE PAG-IBIG MP2 PROGRAM? 

There are two methodologies on the most proficient method to open a MP2 investment account, its either applying straightforwardly at any Pag-IBIG office or utilizing the online MP2 Enrollment System. 

PAG-IBIG MP2 WALK-IN REGISTRATION 

Stage 1: Submit a completely cultivated Modified Pag-IBIG II Enrollment Form at the closest Pag-IBIG branch. 

Stage 2: After encoding your data, the official will give a record number for every one of your MP2 accounts. You'll utilize this record number to transmit your investment funds. 

Stage 3: If you need to pay your first month to month MP2 investment funds immediately, educate the Pag-IBIG official. You'll be given a stub for your line number for the installment. 

Stage 4: When your number is called, continue to the clerk and pay the sum you demonstrated on your MP2 enlistment structure. Get your official receipt. 

PAG-IBIG MP2 ONLINE REGISTRATION 

Online enlistment for MP2 is speedier than selecting physically, as you won't need to round out the structure at the Pag-IBIG office. In any case, you despite everything need to go to the closest branch truly to finish your MP2 enlistment. 

Here's the way to enroll in the Pag-IBIG MP2 program on the web: 

Stage 1: Go to the Modified Pag-IBIG 2 Enrollment System. 

Stage 2: Type your Pag-IBIG MID number, family name, first name, and birthdate in MM/DD/YYYY design. At that point enter the code as it shows up on your screen. Snap the Submit button. 

Stage 3: Fill out the online structure. The fields for Pag-IBIG MID no., Name, Date of Birth, Present Home Address, and E-mail Address are now pre-filled, so no compelling reason to round them out (On the screen capture beneath, the individual subtleties are disguised for security purposes).  Don't neglect to enter your Monthly Income and Desired Monthly Contribution—these are required fields. 

Stage 4: Read the terms and conditions beneath the online enlistment structure. At that point enter the code you see. At last, click the Submit My Application button. 

Stage 5: A page affirming your fruitful Pag-IBIG MP2 enlistment will show up. Observe and remember your MP2 account number situated on the upper right corner. The page additionally contains your practiced enlistment structure (Again, individual subtleties are disguised on the screen capture beneath). 

Stage 6: Read the terms and conditions. Compose your name and sign at the base of the page. Record the date as well.  Click the connection at the base piece of the page to print your MP2 enlistment structure. You may spare it first as a PDF document for printing later. In case you're a representative, print an extra duplicate and submit it to your HR staff or boss, so you can transmit your MP2 reserve funds by means of compensation conclusion. 

Stage 7: Optional: If you need to open another MP2 account, rehash stages 1 to 6. 

Stage 8: Visit the closest Pag-IBIG office and present the printed duplicate of your MP2 enlistment structure/s. 

Stage 9: If you need to pay your first month to month MP2 reserve funds immediately, educate the Pag-IBIG official. You'll be given a line number for the installment of your application. 

Stage 10: When your number is called, continue to the clerk and pay the sum you demonstrated on your MP2 enlistment structure. Get your official receipt. 

HOW MAXIMIZE YOUR PAG-IBIG MP2 INVESTMENT TO ACHIEVE IMPORTANT LIFE GOALS? 

Here are the various approaches to grow your Pag-IBIG MP2 venture dependent on your destinations. 

For long haul speculation (10+ years). 

In case you're in your 20s or 30s, you have over 10 years to put away your cash for any drawn out money related objective, such as building your retirement reserve or purchasing your fantasy home. 

For this, your goal ought to be to develop your cash after some time. Here's the manner by which to accomplish it through Pag-IBIG MP2 reserve funds: 

Make Pag-IBIG MP2 investment account with the exacerbated profit alternative. 

Give a one-time MP2 commitment (preferably at least Php 30,000). 

Pull back your income toward the finish of the five-year development period. 

Restore your