Here’s a public MoneySmarts confession. I have a fully paid educational plan with College Assurance Plans, and it’s the open-ended type. Yeah, silly me. Even before CAP officially admitted to its problems, I had heard of the dangers. Some reporter friends who were covering Congress at that time had obtained documents that already indicated that the country’s largest pre-need company was in trouble. And yet I still paid every centavo under the plan.
I still remember the day I went to CAP’s Makati office to get the certificate that I thought would get my child into the best schools in the country. As I was waiting for my number to be called, I sat next to a family that opted to get their benefits way ahead of schedule. The father, obviously an overseas Filipino worker, said he knew he would get only around 60 percent or thereabouts of the maturity amount. He didn’t exactly say it, but I think he also heard the rumors.
I guess he got a better deal.
CAP and other pre-need firms that went bankrupt burned a lot of Filipinos and damaged the reputation of the industry tremendously. Does this mean all pre-need products are worthless?
Personally, I worry about writing off something based on fear, just as I worry about getting into an investment based on greed. As one of those who got burned, my first instinct is to lump all pre-need companies in a miserable little ball and consider them unfit for Filipino consumers. But to be fair, Filipino savers need to take a closer look at the industry to make a better judgment on whether all pre-need products are indeed worthless.
Philamlife Pres. Jesus G. Hofilena, in a presentation made for the Asian Institute of Management’s JBF Center for Banking and Finance, said only a fifth out of over five million plan holders are in trouble. (Excuse me while I nurse my broken pride, being one of those victims :p)
We are in trouble because we opted for traditional education plans that promised to pay the tuition fee whatever level it would be at the time of maturity. (Wouldn’t you think this was a very good deal?)
At the same time, poor management actions of these companies weakened their financial position like investing too much in real estate. The government deregulated tuition fees causing school expenses to skyrocket, adding more kindling to the fire. Investment yields were going down and cracks in the regulatory framework started to show.
However, Hofilena believes that the industry is confronting serious issues facing it, like solving trust fund deficiencies and educating and professionalizing their sales force among others. He believes the tougher regulatory rules will force the industry to consolidate. You know, survival of the fittest blah blah blah.
Speaking now in hindsight, I realize that because of my investor profile, I should never again buy an educational or pension plan because returns are too low for me. But such products also have a place in the life of many Filipinos, who need to be forced to save for such a big expense as education for their children.
Don’t be fooled into thinking you are “investing in your future” with pre-need products. You are in effect paying these companies to collect your money from you, so that you can get the same amount by the time you need the money, plus a little bit more earned in interest. But hey, if that’s how it works best for some people…better low returns than no savings at all, eh?
In its article today, Citibank answered a reader’s question on preparing for the high cost of children’s education. When considering educational plans, make sure you:
Check the stability of the company. Also, compare the plan with other plans offered by other pre-need companies. See if the monthly premiums are reasonable. Generally, the more time you have until your children go to college, the cheaper the premiums will be. If you have lesser time until your children go to college, such as when they are already in middle school or high school, consider shoring up money for your own fund and doing your own investing.”
The best tip from the article is to set up a separate account for education expenses and to add to it monthly with total commitment. Never dip into this sinking fund; consider it sacred. Just the action of setting up a separate account does wonders for discipline and commitment.
November 2nd, 2008 at 2:08 am
any updated news regarding the professional group’s traditional educational fund?i only had one more year to complete my payment but i stopped as soon as i learned their trouble…what happens to my hard earned contributions?pls help
April 25th, 2008 at 11:43 am
HI, ANYBODY HERE WITH EDUPLAN PHILS AND PRUDENTIALIFE TRADITIONAL EDUPLAN. MY EDUPLAN CAN BE USE THIS YEAR BUT WE’RE IN CANADA NOW, AYAW NAMAN UMUWI ANG ANAK KO TO STUDY, ANYBODY KNOWS IF I CAN WITHDRAW THE MONEY AT THIS TIME.
December 15th, 2007 at 6:56 pm
TO EVERYBODY:
I had resumed my research on CAP and found that it is currently under rehabilitation under the order of Makati Judge Cesar Untalan.With all due respect to this judge, I doubt the feasibility of this rehabilitation because it hinges on the resumption of CAP’s core business which is selling educational plans. Which parent in his right mind would buy a plan from CAP considering the present financial position it is in.
I believe that rehabilitation will only be sucessful if their will be huge capital infusion and change of management.The best scenario is for the government through GSIS, SSS and OWWA to invest on CAP whose paid up capital is only 157 million pesos out of the authorized 300 million pesos.Many would ask why GSIS, SSS, and OWWA? Why not? These institutions invested a lot of peoples’s money on paintings, shares in Belle Corporation and other questionable deals
where they lost money. Aren’t the future of Filipino youth worth investing for? The government should also guarantee this investments to protect the members of GSIS,SSS and OWWA. Again many will ask why? Well if the government has guaranteed behest loans in the past and are still paying for them then why can’t it guarantee investments which involves the future of our youth.
I will send this idea to Sen Mar Roxas who has always remained sympathetic to
the cause of the pre-need victims. I hope all the senators and congressmen will also consider this idea so all the pre-need victims may finally get justice.
November 29th, 2007 at 6:28 pm
To Salve and others:
I have 2 fully paid educational plans valued close to 600 thousand pesos from CAP and had accepted the fate that I may never recover even a centavo of it.Back in Dec. 2004 I digged everything I could get about CAP’s financial statements for the preceding 3 years and I was shocked to find that CAP was losing billions of pesos of planholders money and no one not even SEC and other government agencies did anything to stop it.There were Senate and Congressional investigations but nothing positive came out of it. At one point dinuro pa ni Enrique Sobrepena si Sen. Osmena.If he can do this does it mean that someone higher than a senator is behind him?For now everyone seems to be in the dark about CAP.The last news I heard is that CAP was trying to sell the MRT bonds, its only high valued asset in its book worth billions of pesos.If they were able to do it then even the smallest hopes are gone for us planholders.
In my next comments I shall outline what the SEC other government agencies should have done to help and protect the planholders of CAP and other pre-need companies.
November 24th, 2007 at 3:23 pm
I agree that CAP should honor its obligations. What they have done is really a daylight bank robbery. Unfortunately, our laws are too weak to prosecute these people. CAP just takes advantage of the system.They are supposed to be under financial rehabilitation as ordered by the court. Until now, they cant pay a single centavo even for a fixed plan. There is a group called PEP coalition but they primarily represent Pacific plan holders. Is there any organized group that handles plan holders unpaid by CAP?
November 7th, 2007 at 12:01 pm
I disagree with Dennis Ladores. We cannot move on. They entered into a contract and they ought to honor that. We counted on them as our partners in our children’s future.
If somebody defaulted in paying the installments, they fined. Now that they did, they must also be fined. If they wont give the amount equivalent to our children’s tuition,then they must return the money with its corresponding interest income. That would not be burdensome to them. How I wish they would be like Zaccheus in last Sunday’s gospel–he promised to return 4x the amount he stole from the people after meeting Jesus. Paging Jesus Christ!! Come show yourself to these present-day Zaccheus.
November 7th, 2007 at 11:50 am
If there’s one thing I can’t understand is why did PGMA not bother to take some action against CAP. Her late father was seated as Chairman Emeritus (if I recall it right) and so was the late Sen. Raul Manglapus. Had she instructed SEC to check the activities of CAP immediately after assuming presidency after EDSA2, then many others would have been spared from the financial troubles. I know I won’t coz’ I got one in 1995. During that time, I wasn’t aware of any issues against CAP then. And what about PACIFIC PLANS? O h well, Yuchengco is recently listed as the 13th billionaire in the country today. I saw the list appeared during the ZTE controversy when Enrique Razon’s name surfaced in Romulo Neri’s expose.
October 4th, 2007 at 5:52 am
If you are victimized by either one of the likes of CAP and Pacific don’t entertain the idea that you’ll have any form of return of your investment in whatever way that will only prolong your agony and hurt you more so just …well, move on. Even with the help of someone like MJ who rides the issue and help kuno the plan holders. I overheard some people talking about not trusting all the local insurers since they are more prone to collapse due sheer size and competence in management and I couldn’t agree more. If one must avail of pre-need plans chose the foreign one (affiliated) at least they are backed with bigger resources and competence.
September 19th, 2007 at 5:18 am
Until now, i haven’t received any of the payments CAP promised to pay me by staggard payments. I am truly in need of cash as my mother had a stroke. I emailed CAP several times but to no avail..they didn’t reply at all. What can i do? Pls Help !! Thanks
September 4th, 2007 at 12:21 pm
Spelling correction to my name
thank you
September 4th, 2007 at 12:18 pm
I have an unclaimed educational plan scholarship for my son from EDUPLAN PHILIPPINES, INC. This educational plan supposed to used in the year 2001 as 1st year high school. Apparently we are in abroad and my child was attending his class there in abroad and we cannot used his scholarship there as it is not applicable there. (the tuition there is $2000/school year and that’s the reason why it could not be applied).
Now I would like to claim this plan, but, I don’t know the exact address of the this EDUPLAN PHILIPPINES, INC. to where office I will go, Could you please give me the exact location, so I can just drop-in to there office.
Thank you very much to whatever help you can extend to my request.
god bless you
August 15th, 2007 at 3:30 pm
[...] Beth, if your sister paid through Equitable PCI bank account, that account number has already been replaced due to the bank’s merger with Banco de Oro. Please email me. [...]
August 15th, 2007 at 12:18 pm
hello guys..just wanna ask if Pryce Plans is still existing. My sister was paying last week and the bank teller said ” the account number is no longer existed”. I’m paying for more than 5 years now…Gosh, I need your advice guys…Thank you!
June 20th, 2007 at 9:43 pm
Need help. Could anybody direct me as to who I can talk to regarding my daughter’s educational plan. I need an advice or an action against EDUPLAN Phils Inc. You can contact me through my email richard_estrella2002@yahoo.com
June 13th, 2007 at 2:31 pm
BSP castigates RCBC for imprudent management of Pacific Plans trust funds.
http://business.inquirer.net/money/breakingnews/view_article.php?article_id=70964
Pacific claim that they’re merely illiquid due to exorbitant tuition fee hikes is such a lie. 26-fold increase in tuition don’t just make you illiquid. It also makes you INSOLVENT!
June 5th, 2007 at 7:23 pm
I had invested 2 Plans for CAP for both of my daughters’s college education and when the problems had happened, the plans were already paid to the last centavo.
I am still hopeful that I can recoup some money or had some hopes that CAP who is now under some rehab plan will be able to pay me or even return some of my hard earned money…
Is there any way anybody can offer some help? Or is the rehab plans really under way…i am desperate
June 4th, 2007 at 7:08 pm
hi salve, pakilagay naman dito yung info re planholders organizing to get some money out of CAP.
my dad paid P15k for the whole plan of my bro. It was supposed to be their second most expensive plan and he would constantly say that it would enable my bro to even get into Ateneo. Sadly, my bro has to study in a provincial university and my dad who is retirement age still has to work to afford the tuition.
Thanks!
June 3rd, 2007 at 9:56 pm
Salve–
SVP pala nasulat ko, sori ha…Mr. Hofi is EVP.
June 3rd, 2007 at 9:54 pm
Hi Jeff! Ah oo nga ano! Hehe:) That was a very gud illustration…gagamitin ko yan! Galing mo talaga sa mga ganyang klaseng illustration. I remember another 1 u gave to us (RFP batch 3) about 2 banks…1 offering 18% & the other 8%…turns out, it dpends on the stability of the issuer. I’m just so glad that u pitch in a post once in a while here in salve’s blog. I always look forward to it.
(Btw, how’s ur consultancy firm… nagtake-off na ba? Wish u all the best! God bless always!)
June 3rd, 2007 at 7:59 pm
Salve, reading these made me appreciate even more my P 300T TV earnings turned mutual fund now worth P 1.48-M (it’s on a roll daw sabi ni Gloria ). That loot’s a true 90’s survivor, all the traps and pitfalls I had to go thru: solicitation letters, Asian Financial Crisis forcing our sponsors into financial distress, overvalued property from real estate agent, car agent, pyramid agents of all sorts, CAP and other pre-need agents…
A single false move all these years would have made me a million poorer today… little wonder I’m so eager to help others here - avoid the pitfalls, warn each other on the “CAPs” so we can get rich together!
Pinoy investor’s got investments for 16 yrs (judging from his “first house” post), so he’s been avoiding investment pitfalls longer than me, e.g. Cory, ‘89 coup d’etat, Gulf Crisis ‘91… must have lots of people to thank also, eh?
June 3rd, 2007 at 7:18 am
hi angie,
i am trying to illustrate that sometimes people have to be “forced” to save money to ensure funding for a future need. thus a can that pays 0% but cannot be opened might turn out to have more money as compared to a can with 20% which can be assessed anytime because of lack of discipline to stick to an investment plan.
thanks and regards,
June 2nd, 2007 at 9:34 pm
Hi Jeff!
Nabobo yata ako…d ko kc nagets yung anecdote mo & d ko ma-relate sa CAP issue…hehe
D kaya baliktad? Baka dapat…the can that has 20% return can only be opened on the 10th year while the can that pays 0% can be accessed anytime? Sori ha, pls explain further.
Salve–
Mr. Hofilena is SVP. The President is Mr. Jose Cuisia.
Pryce Plans is pre-need.
June 2nd, 2007 at 9:11 am
hi wastedbrain, what is Pryce Plans? This is a life insurance company?
June 2nd, 2007 at 9:11 am
Rod, we will have a series on UITFs as well. For now, you may want to read this article on UITFs vs. mutual funds:
http://business.inquirer.net/money/advice/view_article.php?article_id=61061
June 2nd, 2007 at 9:07 am
Cris, you need to follow up with the main office in Makati, or in your province. Dont wait for it in the mail.
malou, please look at the latest info in the CAP website. I heard that there is a group of planholders somewhere doing exactly what pinoy investor suggested we do. I will try to get in touch with them.
June 2nd, 2007 at 9:04 am
flexy, i totally agree.
g, thanks.
hachiko, funny ka hahaha.
jeff, thanks for sharing. great analogy. i realize we keep saying that future buyers of educational plans or pension plans should first know more about the company, the board of directors, capitalization etc. let’s be honest, that’s a lotta work, right? where do we get the information? how reliable are these information? it really takes a lot of effort…but it cant be helped. Our people need to know this level of confidence is very very important.
June 2nd, 2007 at 8:58 am
mistersam, the latest news for CAP planholders can be seen in this link:
http://www.cap.com.ph/news.htm. I checked before sending you this link but the website is currently down. Try it again later. There may still be hope to get back some of the money we paid.
June 2nd, 2007 at 8:53 am
mikoy, thanks for sharing your story. i know that there have been many students that were able to finish schooling because of CAP, thats precisely why i was encouraged to take the plan. sadly though, past returns do not guarantee future performance and I learned that the hard way. Due diligence is really very important and, because this world is not perfect and many things can happen in the snap of a finger, having option B, C and so on are also needed in a realistic financial plan.
June 2nd, 2007 at 2:17 am
margie, im wary whenever judgments are made unilaterally. you need to research on the stability of prudential plans as a company, you need to read up on its investment philosophy, you need to know their track record, and you need to read up everyday on latest developments on them. as i said, pre-need plans still have a purpose in this world, if only it is to make sure that people who need to be forced to save dont spend all their money in videoke bars and chocolate. Question is, are you one of those?
May 31st, 2007 at 7:21 pm
speaking of the *****. i myself had troubles with my college education - i was supposed to be covered by PEP and had CAP as well. i ended up being forced to stop because my parents had to re-route some funds for my education and it was really a bugger then.
investing in these type of companies, for me, will be nothing more of a blunder.
i say, dont waste your money on these companies.
the best way to prepare for the future is to manage your own cash flow efficiently.
same goes to a so-called Pryce Plans - this company is supposedly reliable but their people - those in CDO specifically - are shrewed. I am running out of patience in getting the benefits from my dads insurance because when i make a request,they would send me a blank form to sign.
these people are pathetic. i hope someone from Pryc Plans see this message and could give action over the matter as well.
May 31st, 2007 at 4:43 pm
Does anybody here know UITF’s or Unit Investment Trust Funds? UITF’s are basically the same as mutual funds. The only difference is that uitf’s are governed by the BSP and are marketed/managed by banks while mutual funds are governed by the SEC, marketed by authorized/licensed agents and managed by a fund management company. My money is currently invested in UITF’s, i feel my money is safer since it is being managed by reputable banks. Its hard to imagine that big banks like PNB, Metrobank, BPI and BDO will renege on their promise and ruin their reputation.
May 31st, 2007 at 3:17 pm
I have four fully paid CAP educational funds for my youngest sister, 2 nephew and a niece who are now all in college. One nephew was able to use it in his first year but after that no more. I do not know where can I seek help. please advice
May 31st, 2007 at 2:38 pm
i am still here in saudi instead of retiring n resting by now - because of cap!
maybe in heaven, i will get justice!
May 31st, 2007 at 9:51 am
SEC released a list of companies with open-ended educational plans. The list has predicted insolvency correctly, so far: CAP, Pacific Plans, TPG Professional Plans, Platinum Plans, PET Plans.
So watch out for the rest on the list: Eduplans, Eternal Plans, Legacy Consolidated Plans, Prudentialife Plans, Trusteeship Plans.
Well don’t be surprised. These firms will be paying 26 times amount invested for the educational plans they wrote. SEC is allowing this issue to fester, so buyer beware!
May 31st, 2007 at 7:53 am
I paid the last installment of my CAP education plan for my son last year. I chose the policy with fixed benefit. Until now I did not receive a copy of my plan as basis for my claim in the future. I need your advice.
May 31st, 2007 at 5:37 am
Some thoughts.
The nature of pre-need products as implied by its general benefit positioning are as investment vehicles that seek to address specific future needs such as education/pension. The math is simple and straightforward, invest one peso now and the product will return one peso in the future plus some modest returns-GUARANTEED!
The difficulties experienced by some pre-companies emanates from their inability to make good on these guarantees for a number of reasons, first and foremost would be on the issue of liquidity.
Pre-need companies much like any other financial intermediaries make their money through ‘investment spreads”- this is the difference of the promised returns and actual investment performance. When tuition fees was deregulated a few years back, it created a situation wherein the promised return outpaced actual investment performance, in an effort to catch up with these deficiencies, some pre-need companies opted to invest in higher yielding but not so marketable outlets such as property development etc. This created a “liquidity crunch” as some pre-need companies are unable to “sell” these vehicles to service the payment of benefits.
Pre-need products (a unique Philippine invention) would continue to proliferate for as long as the typical Filipino savers opt to transfer the responsibility of investment decisions to another party and as Salve has pointed out-“some savers have to be forced to set aside money”.
This brings to mind an anecdote I usually share in my talks-the anecdote of the two cans. Let us say you have two investment choices represented by two cans, one promising 0% return while the other promising 20%. The can that has 0% return can only be opened on the 10th year while the can that pays 20% can be assessed anytime. Supposing we put one peso each day to each can starting today till the 10th year. At the end, which can do you think would have more money? The can that has zero returns or the can that pays 20%?
Are all pre-need products worthless? Maybe yes? Maybe not? They may be worthless now in the context of not being “paid” on the “promised time” because of liquidity constraints, but there can still be of value sometime in the future. Maybe the key is to entrust the responsibility of your investment decision to an institution that is known for promises kept?
Thanks
May 30th, 2007 at 9:29 pm
salve je suis desole pour l’entendre (i’m sorry to hear that), i guess you and everyone else are entitled to ur share of angst w/ CAP and doubt w/ preneeds. Ur “blah blah blah” ’s a bit sarcastic
not necessarily true that ALL pre-need products are WORTHLESS! maybe SOME, those open-endeds, and maybe WORTH A FRACTION of what was promised. man, i know this doesn’t help
May 30th, 2007 at 6:15 pm
hey salve, don’t feel too bad. my parents are also victims of this CAP fiasco. they bought a plan for my youngest bro so they won’t suffer in their old age. Too bad, i do pity my father.
the CAP fiasco is one of the reasons why i got interested in the whole financial scene anyway. i kept following the news on that. one good thing that came out of it, anyway.
i wouldn’t necessarily categorize all pre-need plans as worthless since many people were able to use the plans they got (not just the ones from CAP). just a combination of circumstances that made some companies go belly-up.
and as far as i can remember (when CAP was part of the financial headlines), the company is illiquid. They invested in real estate and could not unload their assets fast enough to cover their rising need in cash (thanks to TFI). Just look at their buildings they have in almost every capital city. Also bad investment decisions and well the owners are still rich, just the company that went poor.
anyway, my 2 cents…
May 30th, 2007 at 5:28 pm
uhmmm…here’s my insight on this
Preneed companies have different product designs…as mentioned, it’s open-ended and fixed-benefit. By open ended, this means that the company will pay the actual amount. Fixed benefit will…well, pay you a fixed benefit.
Those who got burned were the ones selling open-ended. Why? Because, no company (whether bank, mutual fund, pre-need, insurance, stock brokers, etc.) can predict inflation. The design of their products was flawed. (How would you know what rate you should get to be able to repay your obligation and still earn if you don’t know how much your obligation?) No one can guarantee inflation (especially tuition fee inflation). If they can…then it’s too good to be true.
The more prudently managed companies or those with foresight only came out with fixed-benefit plans.
although pre-need products in general are more for the ultra-conservative people who values forced savings more than those who are after returns.
May 30th, 2007 at 3:50 pm
CAP is insolvent by P 17B as of last count: P 25B in tuition fee liabilities vs P 8B in overvalued properties in trust fund. Not surprising for their claims to bloat: One CAP plan costing P 15,000 last 1983 will now deliver P 50,000 a semester at Ateneo (P 400,000 for the entire term - 26 times your investment). CAP should have admitted insolvency just after tuition fees deregulated. Instead they pyramided - you know, today’s CAP clients paying for old clients. RE: president GMA - a Macapagal sits in the CAP Board of Directors, you know! And all other pre-need firms with sky-is-the-limit educational plans are immediately suspect. Caveat emptor for pre-need.
May 30th, 2007 at 1:59 pm
I do believe the that we must learned from our past mistakes and be guided by the people of integrity before investing in the said business activity.
god bless those who are affected by the preneed scandals and shame on those who gain from their misery.
May 30th, 2007 at 1:28 pm
going back to your question is a CAP instrument worthless?
can we go back and get cash even if its 60 cents to a peso?
May 30th, 2007 at 1:12 pm
hmnn,, I think preneed companies had a very bad business in the Philippines. But product offerings from pre-need companies are very much currently offered by other companies such as insurance and banking. Are they in trouble too? hmnn,…I suggest we opt to keep our eyes open and hopefully find what we are really looking for.
But just keeping your savings in the bank? That’s a straight no no for me! They are paying you just 0.75% of your money for them to make business with? hmnn…I think we should opt to look somewhere else.
May 30th, 2007 at 12:51 pm
Salve:
I’m not a CAP planholder so I don’t know the details. Is CAP insolvent or illiquid? If it has positive net worth and merely illiquid (not enough cash to settle obligations), the planholders should be kept whole.
If the company walks away from its obligations, organize the planholders, get a good lawyer, go to court and petition for the company’s liquidation. If the company is under rehab, get the receiver and the judge on your side. Throw in a senator and the media to support your cause.
It’s a pity why small planholders get the empty bag while big vulture capitalists make money in bankrupt companies. There’s money even in bankruptcy.
May 30th, 2007 at 11:20 am
caveat emptor pre-need for now. stick with good old banks and mutual funds for savings.
In the event of loss, at least mutual funds spread the loss to all its members in a neat equitable way. walang sisihan ika nga.
When pre-need firms lose they throw the poor customer to the courts for your claims to fester for years.
May 30th, 2007 at 11:20 am
Many people comment why Pres.GMA has no say with CAP’s miseries? And that this shortage of funds was actually used by GMA last 2004 election? GMA or her nearest kins?
May 30th, 2007 at 10:15 am
Me and my brother owe are college education to CAP. I guess we can be counted as very lucky since my family got to take full advantage of the open-ended plan. Tuition fees were never an issue from the start. My parents have every reason to be proud of their investment. Nasulit talaga. We got to finish college just before the problem went full-scale. I was even surprised that there was a problem.
Now I appreciate my college education a lot more. I’m counting my blessings. I really feel very sorry for those who got their college hopes and dreams burned. Specially for the parents. I hope the incident with pre-need plans will not happen again.
May 30th, 2007 at 8:19 am
Pre-need plans are worthless, Period!
May 30th, 2007 at 3:20 am
are pension plans bad investments? too good to be true like educational plans? i have a fully paid pension plan with prudential. it will mature in a few years. should i withdraw the lumpsum upon maturity or choose to receive as monthly pension?
May 30th, 2007 at 12:54 am
Good Day! Long time ago I asked myself on how to save for my child’s education, lucky for me I chose not the open ended type coz I believe that ‘when an offer is too good to be true chances are greater for the negative side’. We should rely on our economics rather than instinct when deciding on how to invest. Also the board of directors of the investing company should be scrutinized first. I am still keeping my fingers cross coz I invested in PETplans which lately was converted to PETlinks, a mutual fund. I am hoping that they wont dilute the fund with ghost shares, anyway as I see it the management of PETplans can be relied and trust upon.
May 29th, 2007 at 11:45 pm
[...] Money Smarts: Are all pre-need products worthless? [...]