With HSBC saying inflation could go up to 8% this year, you lost interest for 2008 already…(-1%)

The first rule of investing in government issued zero coupon bopnds is this — Do not trust what government tells you. if they tell you it is good for you they are lying.

Frist thing to check is your own inflation ravaged personal/family basket of goods. Not the representative basket that the government uses for its own purposes to detrmine headline inflation rate that it tells you the country is going through. (malabo yun)

If you invest in a zero coupon bond you do not get interest payments during the tenure of the bond. You are tarpped in the bond that would pay you the effective rate of 7% for the tenure of the bond compounded.

Now if your personal inflation rate will be at the 7-15% level you are actually loosing money and you do not know it yet. Please note that our personal ionflation rate also compounds.

Always think of yourself and not the government because what you don’t know doesn’t hurt you and they would like you to think they are giving you a break.

There is only one animal that is responsible for inflation and that is government. That way you pay taxes even if you think you don’t. The higher prices go the more taxes they collect. It’s is the greatest scam yet invented by corrupt governments.

hi there, this article is very helpful on my part, since im woking here abroad. I would like to ask if this is available to all landbank branches? thanks!

can you please tell me how P13,699 was arrived at to buy 1 unit of LTNCD? Are there any charges, as per my computation, @ 7% for 5.5 years, we have to shell out only P12,300 for the P20k investment.
So following your computation, I have to invest P171,237.50 to avail of the maximum investment, instead of just P153,750 as per my computation.

how can an OFW participate in this LTNCDs if he is outside the country rigth now?

As an OFW, obviously I’m out of the country. I attempted to invest in LTNCD through my brother, who’s in Manila, but Landbank informed him that in order to open the account I need to provide a SPA.

The turnaround to produce the SPA may not make the May 16 end of offer.

Is there other way around (i.e. providing copy of passport, employment certificate, etc).

Please advise. Thanks!

I have been waiting for this since the news came out in Jan/Feb. But it is not mentioned whether LBP has an affiliate bank/agent overseas. How can OFWs avail of this public offering if they’re not in Phils?

And also, I called LBP Phonebanking 3 times yesterday to inquire on this, but I don’t know where my calls went after I pressed 0 in the menu, coz I just heard silence after that. And to think it’s an overseas call! It’s a bit frustrating.

Assuming this is compounded annually, your P13699 invested for 5.5 yrs at 7% will yield P19874.66. To come up with P20000 at the end of 5.5 yrs at 7% interest, you need to invest P13785.4. The formula is : Total = Principal × ( 1 + Rate )raise to #years … sorry i could not get the right character for inverted v, so i use “raise to”. I don’t know what formula you use lance….

I like this product.

If you don’t buy now, what are you going to do with your money (in the bank)? This is a better alternative for bank products (except for those double your money in 7 years or 5 years?)

I’m presently in Riyadh. Where can I avail this LTNCD here?

if you just want to park your extra cash virtually risk free, then this offer is okay. the erap bond which is had 13.625% coupon rate was redeemed even erap was in jail. as long as inflation is below the yeild you still make money easily. unless inflation goes skyrocketing, then it would be better use the money to buy basic commodities for use or sell as price goes up.

[...] find many examples of those concerns from MoneySmart readers in my previous posts on the LTNCDs here and [...]

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

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.

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?

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.