Living in the Philippines -Semi-Retirement ?

30 Responses to “Living in the Philippines -Semi-Retirement ?”

1. on August 16th, 2007 7:13 pm
   

   “He told me a similar story, that he spends 9 months of the year at sea, and his wife and family are back home at the house, he told me, you have to sacrifice sometimes for the life you want, I could identify with him as you have to earn a living.”

   I would never consider semi-retirement without my spouse because that would be worse than not being retired. I would rather work full time WITH my spouse than to do this commute thing. What’s the rationale in that??

   But my post is actually about your seaman comment. There is a common saying among the seamen community (both seamen themselves, and their wives). That seamen have families in all the ports of call. Yes, they may send money home that would be more than local wages, but in terms of love life and monogamous relationship, forget it. If I were a woman, I couldn’t imagine being in a relationship where I know my husband is having sex outside the marriage. Perhaps there are many who are more open minded than I am, but I am not…
2. on August 16th, 2007 8:00 pm
   

   Jae,

   I’m not advocating this but I’ll just comment here… One does not have to be a seaman to stray. Many men (or even women, too) stray right in their own backyard. That’s even worse!!

   On the other hand, committed people will commit to a monogamous relationship even if away from their spouses for long periods of time.

   As to this semi-retirement, it’s a good idea, to be able to have equitable time in a year for work and relaxation. Although it’s preferrable if one can be semi-retired w/o having to leave the “home front” but if there is no alternative but to make the money in another land, then that’s the next best thing.

   I consider myself a “serial retiree.” When I feel the need to stop working, I just do so and I set off on whatever interest I might have at the time. This strategy works for me because I don’t have kids so there has never been any stressful obligations to tie me down. I only needed to financially secure myself as I’m obligated to no one else. (Though I tend to “informally adopt” others’ kids & other “adults” but that’s not a topic to be discussed in this post.)

   I’m a firm proponent of balanced living so I can enjoy the things I want to enjoy while at the prime of my life. If I wait till the classical retirement years, who knows if I’ll get there? I can only enjoy *now* since that’s all I can be certain of.

   “Don’t die with the music still in you.” –Dr. Wayne Dyer
3. on August 16th, 2007 8:09 pm
   

   Jae, Pete meant to say 6 semi-retirement in Philippines because his wife is in Pinas and he works back in England (correct me if I forgot the country your workin’ Pete). I think that is why he is asking anyone to give him an advice. On living half year in a pinas and half year in England. The seaman he mentioned is not even thinking about retirement it is a full time Job and when the contract ended or time to have a vacation then they go back home to Philippines to be with their families. About your views on the seamans having an affair in every port. I don’t know if that applies to the all seamen totally (I mean Totally, since your sentence sound like a total and absolute statement). I remember one of my uncle who mentioned to us before that in seamens’ life when they dock on a port there will be two distinguished group you can immediately notice. One group are those you mentioned sex mongers (pardon if its’ a wrong choice of word, maybe I should say sex addicts).These group are the ones that only goes out from the ship and ended up in prostitute houses or like you said dock wife (an exclusive sex partner, which they call it wife, just for that time being when that certain seman is there and when he is gone another seaman take his place). The second group are the ones who tour the scenic or historical sites and views that the place can offer. this are the ones who goes out from the ship and ended up touring other country. I hope this helps people to defferentiate. Since there are really some people that can practice chastity with in a marriage ( I meant to say no sex outside the marriage) even how far each others are.
4. on August 16th, 2007 8:10 pm
   

   I like that concept. Serial Retiree. I guess as long as you keep yourself very healthy, this would be a great way to live your life.
5. on August 16th, 2007 8:13 pm
   

   Hi, Mahdy,
   Yes, I did not mean totally all seamen. I would never generalize like that. Not all chocolates are sweet, but people say sweet like chocolate. I meant it in this light. Sorry to those seamen who enjoy the historical sites overseas!
6. on August 16th, 2007 8:26 pm
   

   Hey I didn’t forget to reply on Pete’s’ article . My take on your questions Pete about semi-retirement is that I don’t think that is bad at all. The 6 months working outside US and 6 months back in Pinas. Since a lot of people do it that way, I heard. As long as one manages their money very, very, very well (notice three word of very). You should check Wayne Derbys’ comment back in “Your Experience might not be what you think” article it is number 16. It is the life story of someone he knew who have to come back to US because of money matters. This is just so you will anticipate everything and foresee things. Although, this friend of Wayne really settles full time in Pinas and money runs out which will not be the case with you since you will work half of the year. But just in case, this reply of mine is just things to ponder.
7. on August 16th, 2007 8:47 pm
   

   Hi Pete
   The way my wife and I want to do the semi retirement bit is that we both spend 6 months of the year in The Phills, usually Oct to April, and then both return home to work in UK for 6 months, that is the ideal solution.
   Best Regards
   Malcolm
8. on August 16th, 2007 8:59 pm
   

   My only question would be could you by doing semi retirement , still down the road fully retire? Heres some food for thought. We have a pinoy couple as friends, both work in USA, both originate from Bohol..Tagbilauren, they have built 2 small apartment buildings ( i belive they are 6 units each) and rent them out aprx. cost per building is around 80K usd so i was told. One more building and they will retire in the PI on the income generatred by the buildings. I ran the numbers on his income and his return is about 8%, not fantastic but he has not had any vacancies to speak of, he also has family members run the apartments when he is in USA.
9. on August 16th, 2007 9:12 pm
   

   I forgot, Pete, you were asking for tips. Since this all boils down to money management, I think the strategy might slightly differ for your situation as tax laws are different in the Philippines and the UK (which is the primary source of your income).

   I am able to live my chosen lifestyle because I studied furiously how I can maximize my earning capacity (in the US) while minimizing ny tax liabilities, legally. While keeping myself educated, I also always engage the services of a good financial planner.

   Then I diversify my investments to protect from any catastrophic slide in any of the financial sectors. (No eggs-in-one basket for me.) Of course I listen carefully to the advise of my planner, first, though I can always insist on modifying the mix slightly, if necessary.

   The planning has included looking at potential lifestyle when I have really stopped all money-making activities, never to go to work again, ever; ie, what others call retirement. We have projected how much money I would need at the time to live the lifestyle that I want. Inflation factored in. Then we worked from there to find the mix of investments for the desired rate of return. Of course, my risk tolerance was considered here.

   Then… There are key people in my life that I maintain good relationships with, besides my family/friends, of course. These are, just in random order, a spiritual adviser, an accountant, a financial planner, an insurance broker, health advisers (which include my regular doctor trained in Western medicine; and one who has a more holistic approach).

   Why did I bring this up? Because I think it’s important that I have an inner circle of professionals that I can trust and look up to for advice. These people are helping shape my financial destiny and my quality of life, in one way or another.

   I maintain them because relationship-building takes time. I don’t like to replace my “core” group unless extremely necessary.

   Finally, I think a gem of a book, a classic is a must-read — “The Richest Man in Babylon.” It’s an old book with a lot of wisdom.
10. on August 16th, 2007 11:56 pm
    

    Hi Angie - Make sure “minimizing taxes” doesn’t take priority over other more important strategies. Afterall, I’d rather pay 40% tax on $1,000,000 income than pay 8% tax on $100,000.
    As a tax accountant, I see the misery caused by the mistaken idea of charting personal finances based on minimizing tax liabilities. So many, shoulda, coulda, woulda’s at year end accompanying the minimum tax liabilities (and decreased net income)!
11. on August 17th, 2007 12:30 am
    

    I think being able to go back and forth would be great. I to would like to be able to do that. We live in Alaska, have a small piece of property in PI and would like to put a house there. Being in Alaska we would like to do what they call here “the snow bird thing” live here during the summer (it’s beautiful) but leave during the winter. I’m looking forward to all the comments and advise you will be getting here.
12. on August 17th, 2007 12:49 am
    

    Oh hi, Paul. Thumbs up, I agree with you. My priority is on income generation first; otherwise taxes would not be a problem if it’s not worth worrying over. However, I am not opposed to using all the tax loopholes at my (legal) disposal to minimize taxes.

    For instance, I’d hate to be taxed heavily just because I mistakenly disposed of an asset prematurely when holding on to it a while longer could have saved me a bundle. Basic things like that, I consult first with my acct. to ensure the most favorable tax treatment. I can’t keep up with all the changes in the law so I rely on these experts to tell me
    Even then, I’m still paying too much taxes, I think. But I’ve made peace it.

    I don’t think people living there (in RP) worry too much about taxation. Or at least it’s not high on their radar so the tax laws are probably simpler there.
13. on August 17th, 2007 12:53 am
    

    I think splitting your time between two countries is an excellent idea. It is something I process on a regular basis. I teach school and returning to the U.S. for a month or two at a time and substitute teaching is a possibility. My wife is an RN and she could return with me and do PRN work during the same time frame. My desire though is based on just coming back to the U.S. than for financial reasons. I am by no means wealthy but when I make this move I will have sufficient monthly income to provide all that I need there without working. An example is football. I am a G.B. Packer fan and returning to Wisconsin during October and returning to the Philippines early January sounds appealing. The fall and its transition to winter, a little snow skiing, Thanksgiving, Christmas, New Years and of course football season through the bowl games appeasl to me. I feel that life is meant to be lived to live it the best you can. I am disappointed that your thoughts on semi-retirement had to turn into a sex topic. I do not think that is your topic. To finish I have also met individuals flying back and forth that do contract work in the U.S. and when not working return home to the family in the Philippines Look at yourself as an over seas worker.
14. on August 17th, 2007 6:30 am
    

    Pete,

    I’ve considered this option, but more so on a reducing scale until full retirement.
15. on August 17th, 2007 1:50 pm
    

    Hi Guys and Girls, thank you for your considered replies, I have read them all, actually whilst in between my client calls yesterday in central London I read carefully all your observations, certainly I have done a little investigation into the possibilties of this, in my own case, my business tends to be very lucrative from 1st January right through to Mid June, normally after this time, it declines steadily over the summer holidays, (schools break up for 6 weeks at present) and then there is a slight spike during september october, and then its as though someone switches off the tap at end of October, November and December you might as well not be bothering at all.

    Its not a final solution for retirement, but it could be what I would term a wind down solution, but I discussed it with my wife first, and her general thoughts were ” If you go back to UK I would come with you” I think this is very important, lets face it, I have been back on my own since I left Philippines for exactly 1 week today, and suprise suprise its been a lonely old time when you consider we spend everyd day together.

    What I did some weeks ago, is to have a meeting with the Managing DIrector of my company and I put my plans for the future to him, he was very supportive, telling me, that there would not be a problem with it, saying “There is always a place for you if you decide to do that” interstingly, as they all do, he said, you will come back wont you ? of course, what may suit me, may not suit him or the company, the less time you are working for them, the less money they make.

    Thanks Malcolm and Ron for your support, and Jae, Angie, Ed, Mahdy, and if I forgot anyone else, you as well hahaha, your comments have been enligtening, when I looked at what savings I made during the first 3 months of the year, it would have quite easily kept us in a good life in the Philippines for the last 6 months of the year, but I think if we do it the right way, Gina and I will come back together, because I cant work for 6 months on my own in UK without my wife being with me.

    Some of you have alluded to men straying with other women during periods of being alone, I know your not suggesting that would be me, although some do do it, as I am not a sea farer, there isnt a girl in every port, but a man being a man, you have to face up to the fact that temptations will always be there, in the words of Mr Miyagi (Karate Kid movie) “Best way to avoid punch is not be there” so best way to avoid temptations is have wife with you, so that you can serve together.

    Thanks everyone enjoyed your comments.
16. on August 26th, 2007 2:15 am
    

    I was an American Merchant Seaman for 7 years. Not all of us played around in Foreign ports but I can honestly say about 98% of us did.
17. on August 26th, 2007 8:22 am
    

    Hi Pete,

    I do hope that Im not too late with this reply? For some reason, I have missed looking at your post….heheh

    We have thought about this, long and hard, and decided against doing the semi retirement thing. It seems that if you have say £100,000 ( approx 9,000,000 pesos,or $200,000), you can have a pleasant life there, in the Philippines.

    We would like to put say £50,000 in a bank here, with as high an interest as possible, and put the rest into time deposits with various banks there.

    Some banks, in the Phils are offering 9% + interest, and we have heard of 20%, and this should be enough to give us a nice income, while the money we will leave here, in England, will earn a little extra income for us, just in case.

    We have not included anything else, in our calculations, such as, pensions etc.

    It might be worth looking into, for you, to help make your decision.

    Bye

    Ian
18. on August 26th, 2007 3:37 pm
    

    Hey Ian good to hear from you again, you mentioned about saving £100,000, thats around ( 9 Million pesos at current exchange rates), its interesting you came up with this figure.

    My wife and I often sit down and talk for hours about this very subject, as you probably know at present, we have spent just about every penny we ever had on the house, and sometimes I am mindful about the cautions I have received that we should have rented first.

    With all of those cautions in mind, I chose not to do that, i have very good reasons for doing it, yes I have bucked the trend, but my research into the real estate situation in the Philippines led me to do it now whilst I CAN !!

    The figure we came up was also putting a £100,000 to time deposit savings, in actual fact, if you do the maths on it, 9 million pesos, should yield an interest of about 800,000 pesos per annum less any government taxation on interest, which is something perhaps we could both check out.

    You may have noticed that savers rates seem to be better in the Philippines, but then again mortgage rates are also higher to pay for it.

    I have also heard of 20 per cent interest being offered in the Philippines, however, may I caution you, as you would me, that those banks offering 20 per cent are often the less stable banks, and more prone to risk of going bust.

    But on those calculations give or take some adjustments, in exchange rates, taxation and so forth, there is no reason why you cannot generate yourself a nice little income from savings, when I speak to Filipinos about it, they are quick to say, put it into business that generate cash quickly, i.e. constant cash turn around, this is always more risk, since your capital needs to be used up to acquire something that will generate cash for you.

    If we both have a savings eventually of around £100,000, I would stick that straight on long term time deposit, i.e. 1 year revolving and I am sure you could generate an income of around 80,000 pesos, even if it generated only 60,000 or 50,000 who cares, thats more than enough to enjoy a reasobable standard of living, all one has to do is save enough to have the capital in the first place to put in savings.

    A good subject Ian, one that we should discuss more in the future, I did meet a Brit who has his house in the same city as mine, he works on a budget of about P1500.00 per day.

    And has a Maid and a driver, not bad is it.
19. on August 30th, 2007 10:29 am
    

    Hi Pete,

    Hows your back now? You may want to try some ” pokey drill “, it worked for me, honest it did.

    I was’nt sure you got the post.

    We worked on a figure of recieving 5% interest, on all our cash, but all the time knowing that we could get more.

    The thing is, you would only get covered by the banks insurance for 250,000 pesos, per person or transaction, I am not sure which it is, should the bank go bust, so we would need to split our cash between them. I personally, would stick with the better banks, for the bulk of our cash, just putting 250,000 pesos with each of the dodgy banks, and like you say, going for the 1 year term, though we would go for the 5 year term with the better ones.
    Most of the banks in the Phils pay interest at quarterly intervals, though there are some who pay monthly. About the taxes, I will have to look into it.

    The British bank we have chosen to put our contingency money into, is HSBC, we have savings ” though small ” there too.

    HSBC have branches all over the Phils, so we can have the interest transferred into HSBC, and our interest from HSBC ” savings ” ie; £50,000 + whatever, should mean that we are ” comfortable “and our cash would be as safe as possible.

    What happened with us, was that Myrna fell in love with the farm lot we are now buying, the price was very, very low, only 1.5 million pesos, and if you think, it has on it, 100 sq mtr, fully furnished resthouse, a nipa hut, and the foundations of a 100 sq mtr house ” now confirmed “, which will take up to 3 storeys, fruit trees, a green house, a vegetable plot, and lovely flowers everywhere, it has its own deepwell, electricity,readily available cable TV, good cellphone signal, well, it is worth every penny, I think.

    It is on the outskirts of a reasonably sized town, some 30 to 40 kilometers from Manila, good schools are nearby, both private and state, the shopping in the town is Mall less, though there are good malls within 15 to 30 minutes drive.

    With regard to business investment, personally, I dont think its wise. Although, we intend opening a small business, ” though only so that we have something to do every day”, we are thinking about a water refilling station, or maybe a franchise, but this can wait until we are there, and have time to see the lay of the land.

    I was in a conversation with a contact, in Lagune who says that we too, should work on an income of 1,500 to 2,000 pesos a day. If you bear in mind that he has 3 children, all of which go to private school, and 2 maids, ” one, lives in, and one lives out “, plus, he and his wife live fairly well on this much, it is possible. Of course, we, as westerners, would need to eat pretty much a Filipino diet, and live a Filipino lifestyle, though a middle class + lifestyle, or it would be, in this country, I think we could do it, dont you?

    Whenever we talk to our Filipino friends about our plans, they are amazed at how much we will have, at our disposal, when we sell the house. I have asked them, ” what would you do with so much cash? “, and they have mainly replied that, they would put it in a bank, on ordinary deposit, and live off the interest, say 5%. When I tell them about how much they could get, if they put it on time deposits, they are amazed. Only one has said, ” put it into business “, so I think that the time deposits are, or were, outside of their normal lives, in the Phils.

    Speaking of Filipino’s who are here, we have some friends here, the guy was brought over by a British company, when he recieved his ” unlimited leave to remain “, he applied for, and recieved his wife and son here too.

    Both he and his wife work here, earn good salaries, ( more than Myrna and I did ), yet they cannot find a house to buy! They are living in rented accomodation, which is costing them a fortune, they dont send money home etc. They just cant get a mortgage, or if they can, it isnt enough!
    And the interest rates are too high here now, arent they? They went after a house ( ex council ), recently, and there repayments were around £800, and that was after they had put a £25,000 deposit down, so they decided not to buy it.

    I feel sorry for them, I really do.

    Anyway, to cut a long story short, they now want to go home, and who can blame them?

    Ian
20. on August 31st, 2007 6:11 pm
    

    Hi Pete,

    I have found what you and I were looking for.

    The Banco de Oro, they dont charge tax on their time deposits,
    ” Premium flexi earner “, which pays 6.5%, interest payable monthly,however, they also do a ” long term, negotiable, certificate of time deposit “, quite a mouthful, which pays an interest of 9.73% pa, interest payable at quarterly intervals, both of the above are 5 years and one day terms, this is the only bank Ive found, so far, but I dare say, that some others will do the same.

    Going with this bank, would mean that our £100,000 would equate to 598,000 pesos, at the lower rate, and 895,160 pesos, with the higher, and I am sure we can do better than that.

    Ian
21. on September 19th, 2007 2:13 pm
    

    Pete and Ian..
    Being an interest rate tart,I thought I would butt in and give my view..Hope that’s OK???
    IMO,It all depends on how much you think you will need on a monthly basis to live on here..Obviously!!
    It also depends upon your attitude to risk although you will need to increase that risk attitude depending on the amount you have to invest…
    Lots of guy come here and put everything they have into starting a local business..I should know as I have done exactly the same..Many times.
    Now that is a very very VERY high risk attitude IMO!! The 20% Rural bank deals are IMO far less risky if as Ian says you limit each account to no more than PHP250,000..
    This is because the Gov`s PDIC insure your deposits for up to this amount,so if the bank goes down you will get your money back.
    Also make sure that your interest is paid into your HSBC acc so that your balance does not exceed 250,000.
    £10,000 should produce around PHP18,000 paid monthly..and that’s tax free.
    Any money deposited in a Filipino 5 yr or more time deposit will receive interest TAX FREE.
    For much larger amounts (£100,000++) I personally have used Anglo Irish bank IOM..Their interest rate is the best that I can find (1 year fixed) and I can withdraw up to 20% of the capital without charge..They pay the interest annually gross of tax which suits me even more and they guarantee the lot 100%.
    Now if I had my way most of my cash would be in the rural banks..But her indoors doesn`t agree I’m afraid..To think..I could be considered rich here!!Ah well.. I can dream.
    In regards to the semi retirement thing..I have done this since I was 24..(on and off)
    Its OK but I always found it too depressing having to go back and face reality each year. Come March/April they would have to drag me off the beach and put throw me on the plane.
    I admit it..I hated going back.
22. on September 20th, 2007 7:02 am
    

    Hi Fred,

    Thanks for your reply, very informative.

    We are intending living on a 1,500 to 2,000 pesos budget PER DAY, so, yours, Pete’s and my ideas seem to be on the right track, dont you think?

    I think it would suit having its own post too, what do you, and Pete thnk? After all, its something that we can all relate to.

    Ian
23. on September 20th, 2007 10:02 am
    

    Hi Pete, Fred & Ian,

    Am I reading this right? There ARE banks in the Philippines that pay 20% interest on deposits, tax free? Wow! That’s a no-brainer!

    Can you please confirm? I just can’t believe that banks there can pay this much. Here in the States, the best we can get on CD’s is 5.5%. The risk in the Philippines is devaluation of the peso, of course.
24. on September 20th, 2007 10:12 am
    

    Hi Tina - Although I have not looked into this myself, I have heard from so many sources about rural banks that pay 20% interest that I do believe that it is authentic.

    These days, you have to worry more about US Dollar devaluation than Peso devaluation! The dollar is really in the toilet!
25. on September 20th, 2007 10:16 am
    

    “1,500 to 2,000 pesos budget PER DAY”
    Ian..
    So lets say 60,000 a month.. £100,000 placed in a 1 year Anglo Irish bond will produce PHP 52,000 per month.. The only problem is that this is paid annually..
    If like me you became a local resident in the R.P you would receive this amount gross of UK taxes. If not then please make the necessary deductions.
    £50.000 placed in lots of different rural bank accounts for at least 5 yrs would provide PHP77.500 a month.. if you had the balls to invest that amount in R.P banks!!
    Here is a Yahoo group that was set up by a Brit that has the most knowledge in regards these 20% acc`s. Well worth joining if you are interested..
    He can also help you open an account as well as provide after care service..The bank group pay him a commission I believe.
    http://finance.groups.yahoo.com/group/hi-interestruralbanksrp/
    Cheers..
    Fred.
26. on September 20th, 2007 10:35 am
    

    Hi Bob,

    I agree on the dollar DEvaluation. As the saying goes “Don’t put all your eggs in one basket”. Number one rule of investing: Diversify, diversify, diversify! Am I brainwashed or what?
27. on September 22nd, 2007 11:27 am
    

    Living in the Philippines -Semi-Retirement ?
    A Discussion about Semi-retirement and its implications for moving to the Philippines

    “I would like to enlist the help of many of the readers on this blog to help me with something I am really interested in, and that is as the title suggests Semi-Retirement, I would really welcome your views on this”.

    Pete,

    I moved to Cebu in May 2001, from Hong Kong, and have been living here ever since. Initially I was receiving US$1,000 a month ‘retainer’, but this stopped after about 12 months.

    I was living off savings pretty much, until I sold some ‘With Profits’ Life Assurance policies. I invested the money from these into Peso 5 Year Time Deposits (HSBC paying 8.3%pa, with interest credited monthly tax free).

    At age 50, I returned to UK for my Birthday celebration with my Family there. I decided to take ‘Early Retirement’ using my ‘Private Pensions’ with max 25% as tax free cash lump sum, and the balance into Legal & General Annuity. At that time could not touch the ‘Protected Rights’ element, but a change in UK Law a year later, let me have that also.

    You can read more detail on this in my Blog.
    http://www.hi-interest.blogspot.com/

    As a Brit, you are welcome to join my Yahoo Group - Cebu_BritClub.
    http://groups.yahoo.com/group/cebu_britclub/

    Pete, the turning point for me, that enabled me to retire ‘comfortably’, rather than merely ‘existing’, was the discovery of certain Philippine Rural Banks offering 20%pa, with interest credited monthly, tax free.

    You dont need to consider ‘Semi-retirement’, since you can then afford to be fully retired, like me?

    Read my Blog to learn more.

    Cheers,

    David
28. on September 24th, 2007 6:04 am
    

    hi dave, i have read your blogs and you certainly seem to have a handle on this bank thing, so much so, that we may become members, ( if thats ok with you? ).

    ian
29. on September 24th, 2007 6:13 am
    

    hi fred,
    i know how you feel re; coming back here, i honestly dont think i will be coming back!
    we intend putting some cash into a british bank, and investing the rest in philippine banks, and just using HSBC to gather all our interest in one place.

    its hard to know if you are doing the right thing, everything has to be done by e-mail etc, and the philippine banks are not very accomodating, however, the website you told us about does seem to have a handle on things.

    ian
30. on September 24th, 2007 9:33 am
    

    Hi Fred,
    Glad you liked my Yahoo Group “High Interest Rural Banks - Philippines”, thanks for the mention.

    In 2004, I placed some funds into a 5 Year Peso Term Deposit with HSBC, paying 8.3%pa with interest credited monthly, tax free.

    In March 2005, having discovered these Rural Banks, offering an even better return 20%pa, I placed a ‘trial’ deposit of just Php100K. I have received Php1,666.67 every month for over 30 months now. That’s 50% of my Deposit paid in interest. Half way there - another 30 months and I get my deposit back (and start over again?).

    Provided you keep to Php250K, the PDIC insure your Deposit fully. Joint accounts carry separate PDIC insurance, so a ‘couple’ can deposit Php750K, or even Php1M in just one Bank.

    Repeat this at 5 other Banks, so you have Php6M deposited, and you do indeed receive Php100,000 a month (Tax Free), assuming 20%pa is still available* (talk of Interest Rates reducing to 18% or even 16%pa, but date not given yet?).

    I know of at least 14 Banks currently offering 20%pa*, and a few others, not quite as good (”Double Your Money in Five Years” but compounding the interest - no monthly payments, or lower Interest Rate).

    A good source of information is Pinoy Money Talk - PMT Forum:
    “The Philippines’ Online Resource on Money Matters”.
    http://www.pinoymoneytalk.com/forum/index.php
    Here mainly Pinoy investors discuss many money issues and topics, and under ‘Banking, Insurance and Remittance’ board, a 4 Part Message Thread “Rural banks under the Legacy Financial Group offering 20% p.a.”
    http://www.pinoymoneytalk.com/forum/index.php?topic=4621.0

    There is an awful lot of Message Post there on that one Topic, but I learnt a fair amount from those Members, as well as contributing myself.

    Hopefully I have condensed much of that information into my Yahoo Group, dedicated to that one Topic.

    It is true my wife is an ‘Agent’ for Legacy Group, and these Banks do pay her commission, if someone quotes her code number. We do however offer spreadsheet illustration on different investments, answer quiestions, provide information, as well as assist with placing the deposits and after sales service in case of any problems. I think it only fair we have the chance to get some financial reward from the time and effort put into this.

    Again this is another way to make some ‘pocket money’ here in the Philippines.

    Anyone who might have read my BLOG will know I tried a business making British ‘Bangers’ (sausages), here in the Philippines.

    To be honest it is a lot easier, and safer, just to place one’s capital in these Rural Banks, and live off the Interest. If I had done that instead of spending money on airconditioned sausage kitchen, stainless workbench, deepfreeze, grinder, chiller cabinet, and imported ‘rusk’, casings, seasonings etc, I woul;d be generating another Php25K a month from just the Interest. That’s an awful lot of sausages to make that Net Profit.

    David

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