State-owned Landbank of the Philippines’s sweet deal for OFWs launched yesterday is described in this article.
An annual interest of 7.0% and a maturity of 5.5 years is not bad for anyone’s portfolio. Experts always tout diversification and to do that properly, the risky part should not overshadow the secure and boring part. How to cut the cake exactly depends on personal risk appetites, of course.
It is a fact of life that stocks are sexy and deposits and bonds are boring. ☺ Most of the times, boring is good.
I have an OFW’s sister. You think I qualify?
Numbers to remember:
P2 billion – volume of securities being offered, technically called long-term negotiable certificates of deposit (LTNCDs). (there’s your tongue-twister for the day)
5.5 years – maturity of the securities. No pre-termination is allowed, but the securities can be used as collateral for loans or sold to another investor
May 16 – end of the offering period.
7.0% - annual yield of Landbank’s LTNCDs (practice rolling your tongue!)
5.5% - current annual yield of traditional time deposits of the same maturity
P13,699 – what an OFW needs to get P20,000 in 5.5 years
P250,000 – maximum investment per OFW
20% tax – will not be imposed on the offering
Read the article here.
March 9th, 2009 at 10:05 pm
all ROP’s are tax free if maturity is 5 yrs + 1 day.
even Long term commercial paper if im not mistaken is also tax free if tenure is over 5 years.
March 3rd, 2009 at 1:44 pm
dinarman, alam ko maraming nagpapagawa ng diploma, certififcates at kung anu-ano pa sa recto pero pati pala OEC pinepeke na ngayon? wow… i don’t even have one kahit OFW ako. I keep my dependent status kasi abala pa ang OEC. Nagbabayad na lang ako ng mga fees refundable naman sa company.
I remember one of our colleagues sa pinas na dating OFW, pinadala sa France for training. Tapos pagdating sa immigration - tinanong sya bakit pupunta ka sa France eh OFW ka lang? How rude di ba?
March 2nd, 2009 at 8:17 pm
It will genuinely help the OFW’s and jack up these LTNCD’s if they have at least outlets abroad. Ang mangyayari lang nito makikinabang lang nito ang mga nasa Pinas pa rin na mayayaman na or mga sindikato sa Pinas na magpagawa lang ng mga fake oec’s sa recto.
February 3rd, 2009 at 10:40 am
HERE IS HOW THEY COMPUTE CORRECT ME IF IM WRONG, 20000/13699=1.45996 MULTIPLY MO SA PRINCIPAL LALABAS PO E FUTURE VALUE FOR 5.5 YARS. BASE ON THE INFO THAT I READ. TNX
May 6th, 2008 at 8:06 am
[...] find many examples of those concerns from MoneySmart readers in my previous posts on the LTNCDs here and [...]