It’s very sad to hear the news a couple of weeks ago about the Social Security System (SSS) possibly going bankrupt within a few months had the President not vetoed the P 2,000 monthly increase in pensioners’s income.
What’s even more sad is the fact that a lot locally employed Filipinos who are working in the private sector have allowed themselves to be brainwashed into believing that the SSS or the government will eventually bail them out when they are old and already retired.
Smart Filipino employees know that SSS pension is very unreliable and so early on they seek out for themselves alternative solutions that would prepare them for the future. They understand the phrase, “Be responsible.”
What if I tell you, there is a solution and it’s here right in front of you, would you be interested?
Get smart! Read on further.
Introducing, the FAMI Monthly Investment Program!
What Is The FAMI Monthly Investment Program or MIP?
Since Day One, the First Metro Asset Management, Incorporated ( FAMI ) has been advocating the good news of investing by coming up with mutual fund products and making them available to every Filipino who cares to listen.
To date, FAMI is managing six (6) mutual funds with varying investment objectives designed to match and cater to specific financial goals of the investors.
The Monthly Investment Program (MIP) is FAMI’s financial wellness program especially designed for the local employees in the Philippines.
More specifically, MIP is a VOLUNTARY SALARY DEDUCTION program that helps employees to easily invest in any of the First Metro Save & Learn mutual funds.
This is similar to programs run overseas like this one in Australia –
Employees can use it…
- To develop a “Pay Yourself First” habit
- To instill the value of saving and investing regularly
- To setup a Money-For-The-Future fund
Employers / Companies can utilize it
- As an Employee Retention Program
- As an Employee Incentive Program
- As a Retirement Funding Program
This program provides employees with a higher sense of security.
And companies that have availed of this program have noticed improved results in the performance of their employees, as if by magic.
This is indeed a win-win proposition for the company and their employees, without any additional expense on the part of the company. It is, after all, a VOLUNTARY salary deduction program!
The Rationale Behind the FAMI MIP Program
FAMI has identified the three fundamental reasons why many Filipinos have failed to save or invest.
- Lack of knowledge. They lack the right knowledge and education about investments. Sadly, this makes them susceptible to all sorts of hypes and scams.
- Lack of capital. And they think investing is just for the rich.
- Lack of discipline. Just look at the number of loans that they avail!
Like the rat running on the treadmill, employees are going nowhere fast.
Here at FAMI, we are committed to helping employees get past these three Financial Hurdles that have beset every hard-working Filipino.
Speaking about “lack”, one of my favorite money quote is by Mark Twain. He said, “The lack of money is the root of all evil.”
What Can You Do Now?
It’s time to take control of your finances! You owe it to yourself to have a comfortable financial future.
If you are an employee in the Philippines, you can tell your employer to take a look at this program. Even though this is a completely voluntary program, we still have to coordinate with your company on the nitty-gritty details. We will be requiring some company documents for the purpose of tagging your group’s account.
Additionally, you can share this to your co-workers, they surely would be interested. Who would want to retire without money in the first place?
If you are a part of your company’s Management Team — Company President, HR Director, General Manager, Business Proprietor, etc — and you are interested in implementing this program with your workforce, please use the Inquiry Form below to send us a few information about your company and a short message for us.
NOTE: Please allow a maximum of 2 days for me to respond to your message. I get a lot of email inquiries daily, but surely we will attend to your inquiry.
Frequently Asked Questions About The FAMI MIP Program
1. What is FAMI and what are mutual funds?
Luckily, we an article with a video presentation introducing FAMI and a brief overview of mutual funds. Please check the link below to learn more.
2. Are mutual funds a viable investment vehicle for setting up a Retirement Fund?
Mutual Funds are available in many countries around the world and are used by individuals and organizations in setting up various financial goals that they want to attain. Mutual Fund investors include Pension Fund Companies, wealthy families, businesses, and even ordinary people.
In the US and other advanced economies many Retirement and Pension Plans are tied to mutual funds. Examples of these are the following:
- IRA – Individual Retirement Accounts
- SIMPLE Plans – Savings Incentive Match Plans for Employees
- 401(k) Plans – named after the Tax Code Section that created this plan.
- 403(b) Plans – just like 401(k), but applicable to certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers.
Man, this is not Academic Theory that I am sharing to you. Mutual Funds are real investment products used by many companies.
For a long time in the Philippines, big companies are setting up their own style of Pension and Retirement Plans by having banks manage that money.
Over time, some companies have started to tap the services of Fund Management Companies and invested that pooled money into one or more types of mutual funds.
3. What are the requirements to avail of this program?
Employees who wish to enroll in this program will have to open an MIP ACCOUNT and submit the following documents:
- Account Opening Form (AOF)
- Signature Card
- Government issued ID
Their company or organization will have to submit the following documents also:
- Business Registration or Business Permit
- Articles of Incorporation or Partnership
NOTE: Company documents are used only for purposes of tagging the MIP Group Account.
4. How much is the monthly investment requirement?
Initial Investment: Normally, the initial investment per employee is only P 5,000. But for groups of at least 20 individuals, they can start with an initial investment of only P 1,000.
Monthly Investment: Every month, enrollees will have to fund their respective account with at least P 1,000. They can chose to invest more, of course.
5. You mentioned it is a voluntary program by employees. Is matching employer contribution also allowed?
Actually, it depends on how you want to setup this program. It can be setup in any of the following ways:
- Employee-Only Voluntary Program
- Employee-Employer Sharing Program
- Company Sponsored Program
Unfortunately, the Monthly Investment Program is separate from your other FAMI investment. You’ll have to fill out another account just for this purpose.
The reverse is also true. If you have already enrolled in the MIP Program, you can also open a separate Mutual Fund Investment account for yourself, or perhaps joint with your spouse or children.
7. How can we monitor our investments?
FAMI will send out a copy of the Confirmation of Receipt (COR) and mail it to your company’s business address. A quarterly Statement Of Account (SOA) will also be sent to that same address.
Again, if you are an officer in your company and you want to know how to implement this program for your company, please use the form below to send us a message.