Financial Planning Training

1. WELCOME!
Financial Planning Seminar
A financial wellness
check during today’s
hard times

2. Financial Health Indicators
 How would you describe your current
financial health?
Level 1. EXTREMELY CONFIDENT.
Level 2. CONFIDENT.
Level 3. SOMEWHAT CONFIDENT.
Level 4. NO WORRIES.
Level 5. I’M BROKE.

3. Level 1: Extremely Confident
“I can retire anytime.”
Money not a problem.
Managed to acquire
properties and items to live
comfortably.
Future already covered.

4. Level 2: Confident
“I can go on leave for 6
to 12 months.”
Managed to save an
emergency fund.
In case of job loss, money
available may shoulder
needs for several months
(under normal
circumstances).
Risks: getting sick

5. Level 3: Somewhat Confident
“I have money to spare
for emergencies.”
Stashed some cash for
basic emergencies.
Minimal worries about the
future.
Risks: job loss and getting
sick.

6. Level 4: No Worries
“I’ll be OK until the next
payday.”
Expenses = Income.
Risks: job loss, emergency
expenses, getting sick

7. Level 5: I’m Broke
“Credit card companies
and creditors are after
me.”
Salary wiped out as it
reaches the ATM.
No savings.
Risks: future, job loss,
emergency expenses,
getting sick

9. You & your dreams...

15. Where can people put their money?
Piggy bank Savings Time Deposit Shares Bonds Business Insurance

16. Where people invest their money?
PIGGY BANK DISADVANTAGES:
Money is always available  Risk of losing money from
Very High Liquidity theft
 Decrease in purchasing
power thru inflation
effects
1

17. Where people invest their money?
BANK DISADVANTAGES:
Savings Deposit P300,000
 Inflation risk
Interest *0.5% + 1,500  Decreasing interest risk
Tax 20% - 300  Re-investment risk
(Opportunity cost)
Net Income P 1,200
“You won’t get rich if you invest your
money in the bank”

18. Where people invest their money?
BANK DISADVANTAGES:
Time Deposit P300,000
 Inflation risk
Interest *2.25% 6,750  Decreasing interest risk
Tax 20% 1,350
 Re-investment risk
Net Income P 5,400 (Opportunity cost)
Time deposit – 91 days (2.25% p.a.)
“You won’t get rich if you invest your
money in the bank”
1

19. Where people invest their money?
STOCKS DISADVANTAGES:
•Chance of bigger capital  Investment fluctuating, very
gain volatile
•High risk  Needs some time for
•Only invest a small part of monitoring
their money – couldn’t give  Needs good information access
maximum investment because stock market is very
result reactive to rumors
“You must be willing to take great risks when
investing in the stock market”
1

20. Where people invest their money?
T-BILLS/T-BONDS DISADVANTAGES:
 Low liquidity
Provides fixed
 Moderate return
income at a fixed
 Inflation risk
period
Low risk
Low capital
requirement
2

21. Where people invest their money?
BUSINESS DISADVANTAGES:
High Return  Investing in Business can
High Risk also be risky
 1 out of 10 new business
Low to High capital
start-up close after 3
requirement, years
depends on
capacity of investor
2

22. Where people invest their money?
Insurance
 Better returns than the
AXA
banks
 Pooled Fund so the
investor gets access to
better opportunities
 Your money is
managed by experts in
investments
2

23. How Investment Links
Work
Diversified pool of
Investors Investment Pool
investments
•Corporate
Debts
•T-Bills
•Blue Chips
•Fixed Treasury
Notes
GAIN
PROFIT

24. Why invest in Pooled Funds?
1. Access to diversified portfolio.
2. Expert advice from professional fund
manager
- Risk management
- Strictly follows the set risk level
- Exposure only to prime investment at all
times
- Continuous portfolio review
3. Potentially higher returns
4. Minimisation of risks

25. Why invest in Pooled Funds?
1. Diversified portfolio
2. Higher returns
3. Expert Professional Fund Manager
4.

27. Communication
messengers homing pigeons drums
pager
telegraph / morse code
fax
telephone
radio

28. Communication
analog cell phone GSM cell phone 3G cell phone

29. Banking
Before:
Savings & Loans
Now:
Savings & Loans, Credit Cards, Financial Advice,
Money Transfers, Retailer of other financial
Instruments i.e. Bonds, Mutual Funds, Insurance,
etc.

30. Insurance
Before:
Term, Whole Life, Endowment
Now:
Term, Whole Life, Endowment, Waivers, Disability
Benefits, Hospitalization, Critrical Illness Coverage,
Pension, Retirement, Education, Investment-
Linked Products etc.

31. Banking & Insurance
Term
Current Account PDF
Unitized
Investments Whole Life
Savings Account
Asset Pooling
Time Deposits Bonds Endowment
Equities Trading
Loans Riders

32. World Trends
People want simplicity
People want “all-in-one” gadgets
People want “one-stop-shop” centers

33. Financial Services Trends
People want simplicity
Saving Period Waiting Period Maturity / Availment
What are my benefits along the way?
LIVE, QUIT, DIE?

34. Financial Services Trends
People want an “all-in-one” & “one-stop-shop” services
SAVINGS PROTECTION INVESTMENT
BANK
INVESTMENT
HOUSE
INSURANCE
AXA

35. The World Is Changing
Imagine…
If you didn’t ride the wave of Communication…
If you didn’t ride the wave of Information Access…
If you didn’t ride the wave of Banking…
If you didn’t ride the wave of Insurance…
If you DON’T RIDE THE WAVE OF
TOTAL FINANCIAL PLANNING…
THERE IS NO ESCAPING CHANGE
Whether you like it or not…

36. shift
happens

37. The AXA Group
AXA is a worldwide leader in financial protection. Headquartered in Paris, AXA
operates in 64 countries across Europe, North America and Asia Pacific.
Europe Asia Pacific
Austria Australia
Belgium Middle East China
France Bahrain Hong Kong
America Germany Lebanon Indonesia
Argentina Hungary Japan
Ireland Korea
Brazil Malaysia
Italy
Canada Luxembourg New Zealand
Africa Philippines
Chile Portugal
Cameroon Singapore
Uruguay Spain
Gabon Thailand
Switzerland
USA Netherlands Guinea India
Venezuela Turkey Ivory Coast Vietnam
UK Senegal
South Africa
Togo

38. AXA is a global company
91 billion Euros
in revenue
3.9 billion Euros The AXA Group is
in underlying present in
earnings 64 countries
million
95 clients
214,000 AXA employees worldwide
and
exclusive
distributors
1 trillion Euros
in assets
under management
AXA PHILIPPINES
Marketing Department
October2011
38

39. AXA’s PERFORMANCE:
According to: Fortune Global 500
 The 9th largest corporation worldwide regardless of industry
 Largest Insurer worldwide
World Leader in Employee Benefits Package
According to:
Top 4 Biggest Earnings Insurance Company worldwide

40. Overview of AXA’s presence in Asia
AXA PHILIPPINES
Marketing Department
October 2011
40

41. Contact
AXA Head Office
Philippine AXA Life Centre Tel: (02) 885 01 01
Sen. Gil Puyat Ave., Makati City Fax: (02) 844 46 61
Our Clients Our Figures
123,368 Individual clients 15000
10000
Gross Written Premium
800
600
Operating Profit
4000
3000
Shareholders’ Equity
and 150,800 certificate holders 5000 400
2000
1000
0
0 200
of group policies
0
2008 2009 2010 2011*
Assets Under Dividends Paid -Up Capital
Our Activity 40000
Management 800
600
400
300
35000 200
(in % of 2010 Total Premium Income) % of 2010 New Business
(in 30000 400 100
25000 0
Variable Alternative Index) Agency 200
0
81% 2008 2009 2010 2011*
20% * annualized
19% III third quarter actual
5% 61% Our
14%
AXA IS STRONG
Traditional
Group
Shareholders
AXA IS STABLE
Bancassurance AXA SA
FMIC
Our People 45% 28% AXA IS PROFITABLE
350 operations and
support staff
AXA IS TRUSTED
1,450
exclusive agents
450 112
financial executives direct sales staff 25%
557
servicing
Metrobank branches
2%
Others
GT Holdings
41

42. AXA is a partnership between two financial giants
1. Recognized as Strongest Bank in the 1. Over Php30 billion of funds under
management
Philippines by the Asian Banker
2. Over 100,000 customers
2. Best Bank in the Philippines in 2010 and
3. Over Php800 million revenue in 2010
2011 awarded by Euromoney
3. Conglomerate of industry leading
businesses (First Metro Investment
Corporation, Metrobank Card
Corporation, Federal
Land, Toyota, Manila Doctors Hospital)
4. Second largest bank in the Philippines
AXA PHILIPPINES
Marketing Department
October 2011

43. AXA is a life insurance company of prestige
Number 1 in new
business of investment-
linked products
Number 3 in terms of
total premium
30% share of investment-
linked market
AXA PHILIPPINES
Marketing Department
15 April 2011

44. AXA offers both:
Traditional products
- basically provides life insurance for
income protection
Variable Life Insurance product
- an innovative product that provides best
value in life insurance protection and
long term investments
Life Insurance + Investment
Life insurance + Investments

45. AXA INVESTMENT FUNDS
Earning
Type of Fund Currency Risk Description Potential
Wealth Bond Php Low Invest your money in long- Low
Fund term Bonds issued by the
Philippine Government
Wealth Php Medium Have the best of two Medium
Balanced Fund worlds. This is a
combination of Bonds and
Equities
Wealth Equity Php High Invest your money in blue- High
Fund chip stocks listed in the
Phil. Stock Exchange Index

46. AXA Fund Performance
as of September 2012
Type of Risk Inception Cumulative Annualized
Fund Date Performance Perforrmance
since since
inception inception
Wealth Bond Low September 61.61% 6.21%
Fund 2004
Wealth Medium September 128.05% 10.90%
Balanced 2004
Fund
Wealth Equity High April 2006 181.66% 17.56%
Fund

47. Life BasiX: An illustration
Life Insurance Coverage P400,000 35-year old male, non smoker
P16,004.00 Annual Premium
End of Policy Total Projected account value
Year Premium Paid
4% 8% 10%
5 80,020 44,551 50,358 53,501
10 160,040 128,025 157,568 175,040
15 240,060 235,958 324,376 381,964
20 320,080 362,601 565,361 709,796
P1,333.68 - Monthly

48. Axelerator: An illustration
Life Insurance Coverage P 150,000 35-year old male, non smoker
P30,000 Annual Premium
End of Policy Total Projected Account Value
Year Premium Paid
4% 8% 10%
5 150,000 118,107 131,628 138,898
10 Premium Holiday 137,593 187,413 217,658
15 Premium Holiday 157,154 264,158 338,752
20 Premium Holiday 188,586 389,822 550,552

49. AmbitionX: An Illustration
Life Insurance Coverage P1,250,000 35-year old male, non smoker
P1,000,000 Single Premium
Projected account value
End of Policy
Year 4% 8% 10%
5 1,154,082 1,393,763 1,527,684
10 1,464,932 2,129,102 2,553,917
15 1,782,313 3,128,350 4,113,108
20 2,262,376 4,778,846 6,876,119

50. There is no doubt that this has happened to them.
Each person who arrives in the
with a
Emergency Room
Heart Attack Stroke
was not planning on being
or a
there.
People never get SICK at the right
time. It is always at the
WRONG time.
Yet statistics show that
ILLNESS can happen and will
happen.
How much did these
people spend on their
treatment?

51. If you had a stroke last
night, in reality you will
not be able to speak
today,
…do you agree?
Do you insure your car
before or after a car
accident?
Would you insure your
home before or after your
house is on fire?

52. Few notes from Warren Buffet
If you started saving P1,000 monthly
at age 20, ,where your investment
earns 17% interest per annum…
By the time you reach the age of
60, you would have P42M plus already

53. The Key is starting early…
And looking for a safe and
high yielding investment

54. Don’t Save what is LEFT after
SPENDING…
SPEND what is LEFT after
SAVING.

56. AXA
 You and your dreams
TODAY’S P
HILIPPINES to the
Introduction
AGENDA world of financial
planning
 Choosing the right
partner
 What it takes to be
successful