Easy, Affordable, Early Retirement in Paradise?

Will Internet TV, replace Cable TV?

2009-10-29T21:14:00.021+08:00

Hulu Brings TV Shows Back To Life

TV website Hulu has been going through a lot of changes and is still finding its place in the online tv landscape, but in the area of boosting flagging network tv shows it is doing a great job.

Although speculation is rife that the hit website may be taken over by Comcast and all its premium content locked out to non paying viewers, it may be a great place to revive shows that the networks no longer want.

Existing broadcast schedules have a time slot and a desired demographic, which has conspired to make broadcast networks rather tepid and even neuter good TV.

Once a show starts flagging or dropping viewer numbers, the writing is on the wall and usually the next series is axed, and the show ends its natural life, but on Hulu previously dying shows are getting a new lease of life.

Take a look at the hit show – Terminator: The Sarah Connor Chronicles. The series premiered on Fox with good figures in January 2008, its second and last season each show averaged a dissapointing 4.6 million viewers. However on Hulu usershave ranked it in position 35 out of the sites favorites.

Another show Buffy the Vampire Slayer was struggling to get over 5 million viewers. It was killed in 2003 during its seventh season, but has come back as the number 21 most watched Hulu show.

There are many more examples that show the online tv audience are a seperate breed that can revive an ailing show or even used to judge a new pilot show. If the top shows become pay per view it could be a great way to keep existing users happy.

It may be that the networks will, instead of holding the view that the web is an extension of what they offer on standard tv, the web could be used to distribute a different kind of entertainment content and thereby allow online tv to be a positive influence instead of killing there business.

Hulu Desktop Is a Peek at the Future of TV

Everytime somebody has said that Hulu killed TV, they were exaggerating. Until now maybe. Hulu Desktop sure looks a whole lot like the future of TV.

It's a media center type of application—like Front Row or Boxee or Netflix or Windows Media Center—that gives you full access to Hulu with an Apple Remote or Windows Media remote or just your keyboard and mouse. In other words, freed from the constraints of the browser, it's like real TV. The app is beautiful, fast, easy to navigate and simply amazing—everything you'd expect from Hulu, honestly.

There are thumbnail previews that pop up as you move alongside the scrubber, like Netflix's streaming app. You can queue episodes too—you need a Hulu account for this. There are bunch of different ways to find content: via search, Hulu channels, by studio alphabetically or just through suggestions.

There are ads, but that's part of it simulating TV, no? Also, all of the usual Hulu catches do apply—only a few episodes back catalog of current shows, your favorite shows could vanish at a corporate whim, that kind of thing, which keep it from totally replacing your cable subscription for some people. That said, it+Netflix have definitely helped me live without TV for the last couple of years, though I still miss being able to flop in front of the History Channel for a couple hours on weekends sometimes.

One other small gripe so far is that the onscreen keyboard looks a bit small to punch with a remote, but ideally, you won't need it very often. It's also not a light application, as you can see:

It's available for Mac and PC, though you need a relatively modern machine (2GHz processor, 2GB of RAM and 2Mbps internet connection). There are a few more goodies at Hulu Labs as well, like time-based browsing. Hulu Desktop's definitely gotten us pretty excited, but at the very least, it's worth checking out, and makes us even more hyped for that iPhone app, since it shows Hulu's not going to stop at just one screen. [Hulu Desktop]

Hey, this sounds pretty good!

I could cancel my subsciption to SkyCable if I put up an antenna, to receive the Local free TV stations that my asawa likes to watch.

We then just watch the likes of National Geographic, Discovery Channel, and Movies, etc via the Internet.

Broadband speeds are getting faster, and Service Providers like PLDT and Globe, are now bundling Landline and DSL Service in one Bill, so it getting cheaper (or higher speeds for same price as currently paying for Landline and for DSL).

PLDT already offering a Free Service over Broadband called WatchPad

PLDT Watchpad lights up DSL experience

(The Philippine Star) Updated September 10, 2009 12:00 AM

Japanese drifting champ Nob Taniguchi (third from left) with local drifting champs Alex Perez and Gio Rodriguez (second and third from right, respectively) and celebrity drifting enthusiasts (from left) Pia Boren, Ryan Agoncillo and Gabby Dela Merced, during the press briefing of the competition held over the weekend in Greenhills. With them is Taniguchi’s interpreter (center)

| Zoom

MANILA, Philippines - The country’s top broadband company PLDT MyDSL, in its continuing tradition of introducing excellent innovations to its clientele, aims to enrich and enliven DSL experience with the launch of Watchpad, a new value-added service offered free to all PLDT MyDSL subscribers.

Watch Pad, an exciting new service that allows PLDT MyDSL subscribers to watch their favorite television channels for free and in real time over the internet is the latest innovation to be launched this month.

Guaranteed to redefine the overall broadband service in the country by enriching the DSL experience, Watchpad has secured the partnership of at least 13 channels — MTV, Disney Channel, Playhouse Disney, CNBC, Solar Sports, Pinoy Box Office (PBO), Go Channel, Crime and Investigation Network, 2nd Avenue, GMA Network, History Channel, Bio Channel and ETC to be viewed on-line.

These channels are featured on top of PLDT MyDSL’s exclusive Watchpad channel called MyView where people can get the latest in celebrity news, fitness and fashion tips, and even the hottest indie music online. Another unique feature, myFlicks allows the subscriber to stream movies in this exclusive Watchpad video on demand channel. Watch it, when you want it.

Another first from PLDT, the myDSL Watchpad has made sure there is something to cater to the different members of the family.

Most recently, Watchpad has streamed the Viloria-Iribe match straight from the US and made Filipinos at home witness the glory of the Filipino boxing champ. The prestigious and the country’s biggest Professional Drifting Championship, showcased by Japanese champ Nob Taniguchi, was streamed live as well over the weekend. The competition also featured local champs Alex Perez, Gio Rodriguez, and celebrity enthusiasts Gabby Dela Merced, Ryan Agoncillo, among others.

The young and the young at heart will also enjoy the privilege of the channel’s integrated chat feature where one can do simultaneous tasks while tuned in on watchpad. Those who want to shadow friends and relatives through Twitter or upload their latest pictures on their Facebook account can “multi-task” by watching the worldwide premiere of, say, Justin Timberlake’s latest video on MTV, too.

PLDT myDSL subscribers can get their unique username and password by logging on to www.pldtwatchpad.com to avail of this value added service. With partner group Mediascape as content provider, PLDT myDSL delivers the TV shows on reliable PLDT landlines.

There has been other such offerings of TV and Movies via the Internet, in other countries.

In the UK for example, since the introduction of Digital TV broadcasting, one has been able to watch TV Programs from the BBC through iPlayer.

Radio Stations

Same with ITV, Channel 4 and Channel 5, and to some extent SKY.

The downside is of course that because of copyright issues all this content, free to UK viewers, is NOT viewable, from outside the UK! Basically they check your IP Address, and if not the UK, then they block the content.

Watch TV shows and Movies on Hulu from outside the USA.

Hulu the newly launched ‘Free on demand video’ from the most popular Studios and online networks including Fox, NBC, Bravo, Comedy Time, E! Entertainment Television, Fox Atomic, Fox Reality, FX Networks, Golf Channel, Movieola, National Geographic, Oxygen, Sci Fi Network, SPEED, Fight Network, Style Network, USA Network and many more.

The aim of Hulu is to provide viewers with the biggest, most comprehensive range of online premium shows and movies all for free and as it has the support of most major TV networks it will become a big player in the internet TV market.

The downside is of course that because of copyright issues all Hulu’s content is viewable from the USA only. Boooooo.

Again, Hula this time, will check your IP Address, and if not a USA IP Address, then they block the content.
There are some exceptions for US Bases etc mot within the USA.

Of course for viewers outside the UK and outside the USA, there are some ways and means. Generally this is done via the use of a Proxy Server or VPN. Trouble is finding a one that is not publicly listed (since if known, can be blocked). There is software that searches for new Proxy Servers, but if you find one that works, how long for and what is the performance likely to be like, if offered for free, and many using it?

I discovered a good one for the UK, that offered 48 Hour Free Trial, I am pleased to report it was very easy to install (Toolbar for Internet Explorer), and worked successfully.

UKTelly Toolbar 1.0
Watch UK Television from anywhere worldwide.

UKTelly Toolbar 1.0

Download Now (3.55MB)

Tested spyware free

Publisher's description

From UKTelly :

UkTelly toolbar.
The ultimate Internet Explorer toolbar to access UK Television anywhere in the world. Watch BBC, ITV, Channel 4, Five; and access all UK content as if you are in UK. UK TV from abroad and much more with our UK Proxy network.

CNET editors' rating: Not rated
Average user rating: 3.0 stars out of 1 votes
See all user reviews

Quick specs
Price: Free to try (48-hour trial);

Operating system: Windows XP SP 1, Windows Vista, Windows XP SP 2, Windows XP Professional, Windows Vista 32-bit, Windows Vista Home Basic, Windows XP, Windows XP 32-bit, Windows Vista Ultimate, Windows Vista Home Premium, Windows XP Home Edition, Windows Vista Business, Windows Vista Enterprise

Date added: April 30, 2009
Total Downloads: 313
Downloads last week: 5
See full specifications
Provided by: UKTelly
Web site:http://www.uktelly.tv

I was able to use the BBC iPlayer, without restriction, to download the first 3 Episodes of the 2nd Series of "By Any Means", and to watch Episode 4, shortly after it was broadcast, and subsequently download via iPlayer.

9:00 pm

Coming soon

Charley Boorman: Sydney to Tokyo By Any Means

Episode 4

Synopsis

Charley Boorman travels from Sydney to Tokyo. He reaches the Philippines, where he witnesses the national pastime of cockfighting and sees the impact of World War II first hand.

Coming today
BBC Two at 9:00 pm
BBC iPlayer soon after

Re: Charley Boorman - Philippines

Filename: ByAnyMeans2- Charley-in-Philippi..avi File description: BAM2 - CharleyInThePhilippines File size: 543.35 MB

Whilst it works well for UK Content that is normally blocked to those outside the UK, it does demand you use Internet Explorer to install the Toolbar. It is also no good for other counties like the USA, as you can see:-

We're sorry, currently our video library can only be streamed
within the United States. For more information on Hulu's
international availability, click here.
If you're inside the United States and believe you've received this
message in error, please click here.

"Of course for viewers outside the USA there are always ways and means and in the pursuit of fairness, here it is. Install the following IP changer and you will be able to view.

Download Hotspot Shield from here and after installing and running you will be able to view nott only Hulu but CBS, ABC and all other USA only content providers. I will be writing a comprehensive article on IP changing to enable viewing of all these networks in a future post"

Even if you find a FREE Anonymous Proxy, you may well find it does not work!

Based on your IP address, we noticed you are trying to access Hulu through an anonymous proxy tool. Hulu is not currently available outside the U.S. If you're in the U.S., you'll need to disable your anonymizer to access videos on Hulu.
If you think you're receiving this message in error, please submit this form.

So don't bother trying, as that Hotspot Shield from here, clearly did not work for me?
Give up on trying to watch such USA content, outside the USA, via FREE Services.

Ask yourself WHY are they offering it for FREE, if it works? Encouraged by a British friend of mine, having signed up for 6 month subscription to this IdentityCloaker he confirms it works.

So, I may well cancel our SkyCable subscription, install an Antennae for the local TV programs, and use this to watch British TV on my PC, as well as USA content from Miro and Hula feeds, hopefully.

It is the fact they have Secure Servers in several Counties (as confirmed by trialing their Software via 'Demo' login), as well as encrypted link to their Servers. They also provide VPN Service, so much better chance of working with the likes of much Miro and Hula content

How to watch internet video on your TV

by adam on July 27, 2008

This is a follow up post to my earlier post about watching internet video (Hulu and YouTube) on a TV. Since I still haven’t found a set top box that I can recommend, I thought it would be helpful to describe how to hook your PC or laptop up to your television.

If you have an older PC or laptop, and an older TV, most likely what you need is an S-video cable.
If you have a newer PC or laptop and an older TV, DVI to S-video is more likely what you need.
Lastly, if you have a new PC or laptop, and a new TV (like a flat screen LCD TV) – you probably need a DVI to HDMI cable.

Hooking up your PC to your TV can be a pain. Here is another article I found about internet set top boxes. One that looks promising that I didn’t mention before is the “vunow“. The vunow claims to offer NBC content, but I couldn’t figure out where to actually buy it – so it may not be released yet.

It seems like someone just needs to get this hardware done so we can make cable and broadcast TV obsolete.

How to watch BBC TV etc in the Philippines.

2009-10-29T15:48:00.007+08:00

The Free VHF Philippines TV Channels, only have a limited amount of English Movies.

We subscribe to 'SkyCable', which is a direct-to-home cable TV subscription service, established by the ''Lopez Group of Companies'' and ''Central CATV Group Of Companies''.

'SkyCABLE' is the leading cable TV company in the Philippines; they serve almost all major cities in Metro Manila and have affiliates almost all-around the Philippines.
SkyCable should not be confused with British Sky Broadcasting in the UK -- neither they nor its parent, News Corporation, own any interest in SkyCable even as Star TV channels are carried by the said cable company.

MoonSat was bought out by SkyCable, on 'July 1, 2005', so is now a 'monopoly', for those not able to get Unicable 'Destiny' service (Mandaue and Lapu-Lapu only).

Here in Lawa-an, Talisay City,SkyCable is provided by SunCable Cebu. which is the new name of subsidiary MoonSat, that was bought out my SkyCable.
SkyCable Cebu coverage areas include Cebu City, Mandaue City, Lapu-Lapu City, Minglanilla, City of Naga, Talisay City and Consolacion.

The product offering by SunCable Cebu is different in many ways to that of the parent SkyCable, not only in the Channels offered, the Subscription charge, but in the Channel No. also for a given program.

We can get BBC News (21), National Geographic (18), Discovery Channel (34), Star Sports (22), AXN (24), MAXXX (25), Star Movies (27), HBO (29), Cinemax (30), Hallmark (31), ESPN (32), Balls (33), Star World (38), FX (39), MYX (46), MTV (47), FoxCrime (49), CNN (50),
Bloomberg (53), Australia Network (59), Fashion TV (69 (31), ), Cartoon Network (19), Nickelodeon (5), Knowledge (16), GMA (8), ABS-CBN (10), , ANC (20), Cinema One (26),
and some others...

Compare with the Channel Line up of the main SkyCable

'DREAM' Satellite TV, is the alternative for some.

Are there any alternatives - like Internet TV?
Yes - very much so, and practical with increasing Broadband speeds becoming available at reasonable prices.

The country’s top broadband company PLDT MyDSL, in its continuing tradition of introducing excellent innovations to its clientele, aims to enrich and enliven DSL experience with the launch of Watchpad, a new value-added service offered free to all PLDT MyDSL subscribers.

The UKTelly Toolbar

The UKTelly Toolbar for IE enables you to view UK television anywhere in the world via your PC. So if you´re about to go on holiday or travel for business and you´re panicking about missing your favourite UK TV programmes, worry no more!

I can confirm that it works, and does so well, and is extremely easy to use.

My 48 Hours of FREE usage of that UKTelly Toolbar for FREE is over.

So do I now pay for this Service, or compare with others first?

The UKTelly Toolbar only available for Internet Explorer
It is only good for the UK TV Programs.

Encouraged by a British friend of mine, confirming this IdentityCloaker works, I may well cancel SkyCable subscription, install an Antennae for the local TV programs, and use this to watch British TV on my PC.

v.

The big advantage of this IdentityCloaker over UKtelly however, is the fact they have Secure Servers in several Counties, as determined by using their Software on 'Demo' login, as well as their Website stating this. It is the encryption of the Link Data, that I see of value, giving peace of mind for security, also.

This means you should be able to use the IdentityCloaker USA Server to access content from

If you can't, access such content, even using their VPN Service, then they offer a Money Back Guarantee, for the 1st 14 days, which seems a fair deal.

What is Identity Cloaker *NOT* ?

1. Identity Cloaker is not a "Free Proxy Server Service".

Identity Cloaker is not some rubbish free proxy service that hands you a huge list of so called free proxy servers, that are either overloaded, not working, or even infected by viruses and other nasty stuff. We do not rely on rubbish and neither should you! Instead, IdentityCloaker.com operates its own growing network of private servers around the world.

It's also important to note that free proxy servers are not usually free at all. In most situations the administrators of the physical server computers do not even know they are running a proxy server. They simply either misconfigured some proxy server software they intended to install for their own needs, or their server had been compromised by a hacker who then installed such a proxy server software and probably caused some more evil along the way.

There are also reports of some free proxy servers being directly owned by the bad guys. They may be owned by hackers operating on their own, and sometimes even in organized gangs. They use such free proxy servers as a lure that helps them in phishing attacks, gather your web surfing habits, steal your sensitive information sent through such servers etc. The risk is too high!

2. Identity Cloaker is not a "Web Based Proxy Service".

Web based proxy services (those websites you visit and enter the URL address you want to access into a form field provided on such a website), are usually Perl or PHP scripts that hide your IP address. To use them, you must change your surfing habits and they do not work in every situation because they have to rewrite the source html code - for example to change image paths. This very often results in problems.

Not every page is displayed, or is displayed incorrectly. SSL protected websites (those whose address in the URL bar starts with https://) and websites needing authentication, such as membership websites, work rarely. Web proxies can easily be blocked by network administrators. And even if their domain is not blocked (yet), the transferred data is unencrypted and it's easy for the network admin to recognize what you do with such a service.

Imagine a situation when you want to visit a website that's normally blocked. You use web proxy and visit the blocked web through it. However, the network administrator (or your Internet Service Provider, boss, spouse or hacker...) can see you visited the web proxy website - but they can also see what you were doing when using it! They can find out the visited websites and see the transferred data. The consequences could be dire. Web based proxy services offer a very low level of safety. They hide your IP address and allow you to access *some* websites you normally could not. But that's about it.

3. Identity Cloaker is not "volunteer dependent".

Some anonymity networks and privacy protection services, including the popular TOR, rely on volunteers which results in unpredictable quality of service, usually resulting in very low data transfer speeds and temporal malfunction. Although such services can very often offer a great level of security, they are intended mostly for transferring relatively small amount of data.

By design, such services are generally unsuitable for everyday use and for any services with high bandwidth requirements such as streaming radio or video etc. They are also mostly intended for power-users only, their complexity makes it difficult to use for the average computer user.

Take back your privacy!

How does Identity Cloaker work?

You simply download a small PC software application (no installation necessary), run it, and choose one of our private proxy servers which you would like to be connected through - or simply hit the Connect button if you want to have one selected automatically.

When you click the Connect button, a secure data tunnel encrypted with a military class encryption cipher will be created to the selected proxy server. This technique is commonly called SSH tunneling. If you use Windows Internet Explorer, there is nothing more you have to do, it will be automatically set to use the new secure tunnel for all of your web browsing.

If you use Mozilla Firefox, you install a small Extension by simply clicking an icon found in the main application window. Then when you restart Firefox, the secured connection will be chosen automatically whenever you are connected to one of the private Identity Cloaker proxy servers. Identity Cloaker works with any Internet browser you prefer, including Opera and Safari.

Enough talking, let's take a look at the most common situations in pictures:

Situation 1 - Browsing the web without Identity Cloaker:

You visit a website - let's call it something.com from your computer, your computer sends a request to something.com and retrieves the data sent back from it. This is actually an oversimplification but generally, it's how it works. The data on the whole path of the communication between you and something.com is normally unencrypted (unless secure https/ssl connection is used). Something.com can easily discover your physical location by reading your IP address. And the part of the communication between you and your Internet Service Provider is vulnerable to data eavesdropping.

Situation 2 - Browsing the web with Identity Cloaker:

You visit a website - again, let's call it something.com. The request is sent through the established encrypted secure tunnel to the chosen Identity Cloaker proxy server. This is done in the background - you do not even have to know about it. The proxy server then sends the request to something.com on your behalf, receives the answer and forwards it back to you - again through the encrypted secure tunnel. At all time, something.com was communicating with the proxy server and does not even know about you! The proxy server works as the middleman.

For more examples, please take a look at our illustrations at the How it works page.

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How large is the IdenityCloaker.com network of secured proxy servers?

Our network of secured private proxy servers is growing all the time. Currently, we have our servers located in Germany, Netherlands, France, United Kingdom, Sweden, Canada and USA. If there is interest, we may also add servers in other countries and parts of the world too. Our system is very flexible and has been designed to be able to increase its capacity easily, without sacrificing quality of the service offered to our valued customers.

At this time, there are 9 servers with 78 IPs in 7 countries in the Identity Cloaker network!

We should mention one thing. When we talk about "proxy servers" we mean our own secured private proxy servers. Those are either physical computers or Virtual Dedicated Servers we have rented in several data centers throughout the world. We pay a monthly fee for all of them. They all have 100Mbit+ ports with monthly traffic allowance usually in the terabytes.

If you have no idea what that means, it means that we have enough capacity to offer any customer more than reasonable broadband speed of data transfer. We do not rely on some low quality free proxy servers that are almost always oversaturated, overloaded, and may be even infected by malevolent software threatening - not helping, your privacy!

Another important characteristic of the IdentityCloaker.com system is that the data transmitted between you and our private proxy servers is encrypted using a military class encryption technique! This is an extremely important feature, not offered even by premium services offering access to private proxy servers.

What is necessary to be able to use Identity Cloaker?

As long as you can view this page and are using a Microsoft Windows XP or Vista computer or run MS Windows XP or Vista in a virtualized environment, you should be able to use Identity Cloaker. There are no special requirements, really.

Identity Cloaker will work even if you have to access the Internet through an "internal" or company proxy server which is a common situation in some companies and institutions. However, if Identity Cloaker does not work for you for any reason and our technical support is not able to help you solve the problem, we will refund your order without delay. Please see the "Fair Deal Guarantee" info box below. There is absolutely no risk for you!

By the way, there is one thing we should mention but it's somewhat controversial... Identity Cloaker does use an extremely powerful technique that allows you to override any web browsing restrictions set on the company firewall level by its administrator. This technique is sometimes colloquially called "punching holes in firewalls".

Identity Cloaker creates a secure tunnel connection between your PC and one of the Identity Cloaker proxy servers. Once it is established (through the company firewall), you gain the same web access rights as the Identity Cloaker proxy server itself. And since the proxy server can access just about any website, so can you...and without anyone knowing!

For more details about how this all works, please take a look at the How it works page.

Identity Cloaker is a very powerful tool, please use it responsibly and with caution!

Sign Up to IdentityCloaker.com

It all sounds a bit complicated, how easy is it to use?

Identity Cloaker is a complex and sophisticated system, no doubt about it. However, from the very beginning, it has been designed to be very easy to use even for the average computer user. You do not really need to care about what's going on in the background, you do not need to worry about the technical stuff at all. All you need to do is to download a small Windows PC application, follow a few easy to understand on-screen instructions (normally just hitting the Enter button a few times) to "install" it and click the "Connect" button. How easy is that ;)

Of course, if you do want to know what is going on in the background, or you just love the technical stuff, we have no problem with that either. Just take a look at the How it works page, the Frequently Asked Questions, or contact us through our helpdesk. We will be more than happy to answer any question you may have.

UPDATE: Mostly intended for the demanding power users, we now offer also OpenVPN access to all of our (proxy) servers beside of our standard service! The OpenVPN access is currently being offered as a part of the standard subscription service, with no additional fee.

How much is your privacy worth?

We believe that privacy and safety should not be luxury. While it would be great if we could offer our services for free, this is, unfortunately, not possible. And in fact, this is the good news for you! By charging a small fee we are able to deliver a high quality service, and we can keep improving it. Identity Cloaker is a premium service, but don't worry, our prices are not premium :)

So how much does it cost to get access to our broadband secured private proxy servers, super safe surfing through SSH tunneling and OpenVPN backed by 256-bit military class encryption, our own custom-coded Microsoft Windows XP/Vista compatible client software and our exclusive private membership website?

Just €6.66 a month! Yes, that's six Euros and sixty six Cents - you can use our currency conversion tool to see the amount in your local currency.

So again, what are the main benefits of Identity Cloaker?

Protect your sensitive data sent over the Internet
Access websites that would be normally inaccessible to you
Hide your physical location when surfing the Internet
Make it look as if you were from a different country
Make it impossible to eavesdrop your Internet communication
Unban yourself from Internet forums and discussion boards
A small PC client application - no installation necessary
The client application can run from a USB flash drive
Per user license - use on any and all computers you operate
Can be used on Windows accounts with no admin rights
Servers in 6 countries = fast access from almost anywhere
Broadband speed = good for everyday and frequent use
OpenVPN access for the demanding power users (see FAQ)
Avoid Internet censorship

But what's most important:

We will protect your privacy!

Our 100% Satisfaction, Fair Deal Guarantee:

You have nothing to lose. If at any time in the first 14 days after your initial order you feel that you do not need our services, or that the quality of our product does not meet your expectations, simply let us now and your order will be promptly refunded, no questions asked.

Was it "Too Good to be True"?

2008-12-27T10:43:00.004+08:00

Interest Rate of 20%pa on Peso Time Deposit!

I had been enjoying receiving (20/12)%pm on my Peso Time Deposit with Bank of East Asia, since March 2005. That is, until this month, December 2008!

That particular Bank was part of the Legacy Financial Group, all 13 of which have now been placed under 'Receivership' by the Monetary Board (MB).

What this means is all assets of the Bank are seized whilst they conduct inspections of the Banks records, and all Bank accounts. So we have lost the income from that Bank, and 4 others with that we also deposited with from the Legacy Group.

The good news is that all our Deposits are fully covered by the PDIC. This means if the Bank has been declared 'Closed' by the 'MB', the PDIC are then appointed as 'Liquidators' and will invite Depositors, to service 'claims'.

So far only 2 of these 13 x LFG Banks have actually been declared 'Closed'. These being Rural Bank of Paranaque Inc., and Pilipino Rural Bank. Whilst some of the others may also get declared closed, it is not 'automatic' as options such as 'rehabilitation' are normally considered (especially if this is less expensive than paying back the Insured Deposits).

Senate to probe Legacy banks’ bankruptcy

"MANILA, Philippines—The Senate will open an investigation in January into the issue of seven troubled rural banks that early this month either unilaterally declared a bank holiday or were shut down by the central bank for questionable practices.

Before adjourning for a month-long Christmas break on Wednesday, the plenary referred Senate Resolution 812 introduced by Sen. Miriam Defensor-Santiago to the Senate committee on banks, financial institutions and currencies".

.....
"The seven banks on Senator Santiago’s list are among nine believed to be affiliated with the controversial Legacy group that the BSP closed down and placed under receivership early this week.

Not included on the senator’s list are Bank of East Asia in Cebu and First Interstate Bank in Tacloban City in Leyte province."

As it is the Christmas break, it will be January before it is announced we can collect Claims Forms for PRB. Those with Deposits under Php100K, with RBPI are able to get claims forms, and schedule for submission, already given by the PDIC. Those with Deposits over Php100K @ RBPI, having to wait until the New Year also.
http://www.pdic.gov.ph/index.php?nid1=8&nid2=2&nid=294

Changes to the current RA 3591 as amended (PDIC Charter), will become effective in 2009 also.
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=3371

One of these is 'doubling' the Maximum Insured Deposit (MID) to Php50,000.00.

PDIC also got the authority to form, establish, organize and operate and engage subsidiaries or corporations whose primary purpose is to operate as bridge bank and/or manage acquired assets of the PDIC.

Bridge banks refer to a temporary bank licensed by the Bangko Sentral ng Pilipinas, established and operated to acquire assets of a failed bank to facilitate its resolution.
The measure also specifies that investment products such as bonds, securities, trust accounts and other similar instru ments and deposit accounts or transactions that are unfounded, fictitious or fraudulent will not be covered.

Furthermore, deposits that are marketed, solicited, accepted and received in violation of the law or the rules of the Bangko Sentral ng Pilipinas and deposits accounts or transactions deemed emanating from unsafe and unsound banking practices as determined by PDIC will not be covered either.

Here is the actual Senate Bill No. 2964 proposes to amend Republic Act 3591 or the Philippine Deposit Insurance Corp. (PDIC) Act.

http://www.senate.gov.ph/lisdata/96438674!.pdf

THE CORPORATION SHALL NOT PAY DEPOSIT INSURANCE FOR THE FOLLOWING ACCOUNTS OR
TRANSACTIONS, WHETHER DENOMINATED, DOCUMENTED, RECORDED OR BOOKED AS DEPOSIT BY THE BANK:

INVESTMENT PRODUCTS SUCH AS BONDS AND SECURITIES, TRUST ACCOUNTS, AND OTHER SIMILAR INSTRUMENTS;
DEPOSIT ACCOUNTS OR TRANSACTIONS WHICH ARE UNFUNDED, OR THAT ARE FICTITIOUS OR FRAUDULENT;
DEPOSITS THAT ARE MARKETED, SOLICITED,ACCEPTED, RECEIVED, EVIDENCED BY, AND/OR RECORDED, IN VIOLATION OF LAW, OR THE RULES AND REGULATIONS ISSUED BY THE BANGKO SENTRAL NG PILIPINAS(BSP);
DEPOSIT ACCOUNTS OR TRANSACTIONS CONSTITUTING, AND/OR EMANATING FROM, UNSAFE AND UNSOUND BANKING PRACTICE/S, AS DETERMINED BY THE CORPORATION, IN CONSULTATION WITH
THE BSP; AND
DEPOSITS THAT ARE DETERMINED TO BE THE PROCEEDS OF AN UNLAWFUL ACTIVITY AS DEFINED UNDER REPUBLIC ACT 9160, AS AMENDED.

PARAGRAPHS 3 AND 4 ABOVE SHALL IMMEDIATELY AND EXCLUSIVELY APPLY TO DEPOSITS MADE AFTER THE PUBLICATION OF A CEASE AND DESIST ORDER OR A WARNING ISSUED BY THE CORPORATION AGAINST SUCH DEPOSIT TRANSACTIONS.

THE ACTIONS OF THE CORPORATION TAKEN UNDER THIS SECTION SHALL BE FINAL AND EXECUTORY, AND MAY NOT BE RESTRAINED OR SET ASIDE BY THE COURT, EXCEPT ON APPROPRIATE PETITION FOR CERTIORARI ON THE GROUND THAT THE ACTION WAS TAKEN IN EXCESS OF JURISDICTION OR WITH SUCH GRAVE ABUSE OF DISCRETION AS TO AMOUNT TO A LACK OR EXCESS OF JURISDICTION. THE PETITION FOR CERTIORARI MAY ONLY BE FILED WITHIN THIRTY (30) DAYS FROM NOTICE OF DENIAL OF CLAIM FOR DEPOSIT INSURANCE.”

Whilst this sounds a bit 'daunting' - the PDIC being able to select what Bank Products are NOT to be covered by the Insurance, in practice it is just to ensure, the Banks offer Products emanating from sound Banking Practice.

So unless a particular Bank, that you want to place a Peso Time Deposit with, has received a 'Cease & Desist' Order, or a 'Warning' issued by the PDIC against a specific Deposit transaction, such Deposit will still be covered by the PDIC.

Just make sure all transactions are conducted directly with authorised Bank Officers and on Bank Premises.

If the Bank then offers a particular 'Promo', and the PDIC considers such Deposits to be fictitious, fraudulent, or unfunded, or constitute or emanate from unsound banking practice they need to issue said Bank with a WARNING or a Cease & Desist ORDER.

I would ask the Bank to sign a Statement, that they have not received any such Warning or Order to stop offering that particular Deposit Product or 'Promo', before placing such Deposit.

Alternatively contact the Depositors Assitance Bureau (DAB) or Department of Consumer Affairs, BSP and ask them if any such Warning/Order issued (this could trigger an investigation and subsequent issuance of such Warning to the Bank, but at least you should know that the product is 'legal' and PDIC covered).

NB: It only applies to Products issued AFTER the Warning issued!

All Deposit products available at the time of placing the Deposit, for which NO Warning, or C&D Order, issued, are covered by the PDIC it would appear.

Rural Banks are perfectly able/capable of offering Peso Time Deposits of 20%pa (or even as high as 33.33%pa?), if they are offering LOANS @ 3% - 5%pm (36 - 60%pa).

They just need to balance/ensure such LOANS, including provision for bad debt, covers such Deposit Interest and overheads/profits for the Bank. If a Bank has voluntarily dropped a High Reward Time Deposit Product, because they are getting 'cash rich', and need to turn off the funds coming in from that product, this is a good sign they are operating to sound Banking Practice, and unlikely to be receiving such Warnings or Notices to stop such products.

When we receive our Deposits from our PDIC 'Claims' (in January 2009 hopefully) and this new Increased PDIC Insured Deposit Limit of Php500,000 per Depositor/Bank is introduced/operational, we will be placing into the few Rural Banks still operating and offering such Peso Time Deposits.

A Family of 3 will then be able to place 3 x Single Accounts up to Php500,000.00 each, as well as Joint Account Insured Deposit 'Shares' up to Php500K. The combined Total, fully PDIC insured, should then be Php3M per Bank for a Family of 3. Persoanlly we will not place Time Deposits up to this Maximum, but leave one Joint Account as a Peso Savings Account that the Interest for the other Deposits, gets paid into. A Standing Order Instruction to transfer to a Commercial bank Account, when Balance gets to say Php250K, being set up, perhaps?

Pilipino Rural Bank, failed to pay Php16,666.67 into my LandBank Account for the Month of November.
This was before any 'Receivership Notice given by the MB. Trouble if they then took a 'Bank Holiday' before confirming they would check into the 'late' payment of Interest, and credit my account accordingly. I am concerned that the PDIC might not pay this Interest if it takes me over the PDIC insured Deposit Limit (which it will with the current limit of Php250,000). This is why I figure it might be advantageous to have a Joint Account for the Interest payments in the same Bank, even if just for the total Interest for say 2 months.

'V8 Motorcycle & Parts Dealer' - Investment

2008-11-09T15:09:00.022+08:00

"V8 MOTORCYCLE & PARTS DEALER"

Angel Investors raising funds to finance the Dealership expansion,

were rewarded with excellent Return On Investment*.

I actually put my own money into this Investment since having performed my own 'due diligence' into this company 'V8 Motorcycle & Parts Dealer' and researched into their Business Plan it certainly looked like it was capable of creating a lot of money from the import of Motorcycles direct from one of the top Motorcycle Manufacturers in China - 'Zongshen'. Buying direct, in large volumes, brings the per unit cost way down.

Yes there are Risks associated with High Rewards, and this particular Investment is no exception, and as such may not be for everyone. Having talked to the CLS Group, that ''V8 Motorcycle & Parts Dealer' is part of, we learned that they were willing to consider a Group of 'Angel Investors' pooling their funds, to leverage off the higher 'Return' of the Group total investment.

The documents comprised:-

Official Receipt

Memorandum Of Agreement (MOA)

'Certificate' of Dealership

Bank Guarantee

That's right, they gave us a Bank Guarantee, on those 13 x PDC's for the 1 Year Term
(or 25 x PDC's for the 2 Year Term).

Whilst you get signed up as a 'Dealer', the MOA, says that 'V8' will take care of the actual running of the Dealership Business, and everything connected with it. That is why it better to view it as being an an 'Angel Investor', rather than becoming a 'Motorcycle Dealer'. You get a Dealership Certificate, but that does not entitle you to buy such Motorcycles @ Dealer Prices. However, showing such 'Dealership Certificate' in the co-located V8 Appliances Showroom and you may well discover they give you 25% off the List Price, be it a Television, and Air-conditioner, or whatever they sell, that you want to buy, with such Dealers Discount.

How about 'Vespa' Scooters? Piaggio also make these Motorcycles:-

Aprilia

Gilera

Moto Guzzi

Laverda

In June 2005, the first Piaggio engine were made in Zongshen Industrial Park, and the first ZIP motorcycle jointly made by Zongshen and Piaggio were put into market Up to 2006, some 60,000 units of ZIP scooters were sold to Europe.
From 1992 to 2006, some 60,000 ZIP scooters sold.

How about 'Harley-Davidson' also Whilst the image of "I ride a Zongshen" will never be the same as "I ride a Harley Davidson", the fact that Harley Davidson have signed this 'Co-operation Memorandum', with the Zongshen Industrial Group, says a lot about their company, to even be considered,the way I read this?

Italy Piaggio and US Harley•Davidson are the top leaders in the motorcycle industry all over the world. Their technology on scooter and chopper manufacturing are definitely superior. On June 9th,2004, Zongshen Industrial Group and US Harley•Davidson signed cooperation memorandum, this is another classic cooperation between Zongshen and occident top motorcycle manufacturer, a big step forward in leading technology and customer globalization field.

Zongshen Manta 110, Chase 125 and Loadstar 150

Zongshen Manta 110	Zongshen Chase 125	Zongshen Loadstar 150

The Zongshen Manta 110 is Zongshen's offering in the step-thru or underbone commuter motorcycle market currently dominated by the Honda Wave 100. Immediately, you will notice that the Manta already has an advantage over the market leader – its 110cc motor has a bigger displacement than the Wave’s 100cc motor and produces more power. Another advantage the Manta has is that it is equipped with a front disc brake unlike the base Wave 100 which has a drum brake in front. But like the popular Wave, the Zongshen Manta 110 is equipped with an automatic clutch and a 4-speed rotary manual transmission, so riding the bike is as easy and as convenient. Power is transferred to the 17-inch wire spoke rear wheel via chain drive while a rear drum reins in the speed. A telescopic front fork and dual shocks at the rear do their parts to smoothen the road undulations. The Manta 110, which retails for P39,000 is selling very well indeed.	The new design is bolder than the ’06 version and makes the ’07 Chase 125 look more expensive and more apt for the Philippine market. Leaving well enough alone, Toro Motors also left the price of the ’07 Chase 125 at P42,000, which represents a bargain, considering the bike’s features. And as if to follow our lead, the company came out with a Chase 125 variant (B-grade) by changing the 2-stroke-styled expansion chamber-equipped exhaust system with a more appropriate megaphone-styled muffler set-up and then priced it at P44,000. Both Zongshen Chase 125 variants are available in Red or Blue and will be available at authorized Zongshen dealers by the time you read this.	The Loadstar 150 is the company’s model for the commercial market, or quite specifically the tricycle or taxi segment. This air-cooled 150cc single-cylinder standard motorcycle is quite popular in the provinces, especially in areas where high ground clearance, robust suspension and engines that produce a lot of torque are needed. The Loadstar’s popular market acceptance is partly due to its affordable price of P47,000. For that amount, buyers of the Zongshen Loadstar 150 get the aforementioned 150cc motor, a robust steel cradle frame, hefty front forks, four rear heavy-duty shock absorbers, a frame guard/extension to attach the side car; and a built-in front accessory light bar .

LZX250-5

LZX200GY-2

ZS200GS and ZS250GS

ZS125-50

ZS110-60

ZS 125YS-10

The High Rewards offered to those Angel Investors, have closed, as indeed the 1 Year Term.

However there is a NEW 2 Year Term Dealership Plan for just Php500K min. investment.

The Reward may not be as generous, as that initial 2 Year Term, requiring Php2M min. investment, but it is still very good - contact me for details.

Free iPhone 3G with 90 Day Time Deposit (10%pa)

2008-11-08T19:13:00.011+08:00

Want a FREE (unlocked)

iPhone 3G

as well as

10%pa Interest

on a

90 Day Time Deposit?

Special 'Promo'

for limited time period from certain
Philippine Rural Banks
(with PDIC cover)

I personally did not want/need an iPhone 3G (as I had already bought a Nokia N95 8GB),
so I took up the option of receiving Php25,000.00* cash alternative instead!

NB: This offer of the iPhone or Php25K cash alternative, requires Php250K min. Deposit, otherwise just the 10%pa Interest (but this in itself is very good if you compare with most, if not all, other Banks).

I was even more amazed when the Bank also 'shouldered' the Documentary Stamp Tax as well, saving me another Php1,250.00.

We were told this 10%pa Interest, would be paid on Maturity.

On a Php250K Deposit that 10%pa gives Php25K, but as the 'Term' is only 90 Days (3 months!), it will be 1/4 of that, ie, Php6,250.00. Then there is 20% Witholding Tax, that will be deducted, so expect the Nett Interest you will receive to be Php5,000.00**

The Rural Bank that I deposited Php250K with, actually credited the Php5K Nett Interest to my Banks ATM Account within about a week of placing the Deposit. The following week, the Php25K cash alternative to the iPhone, was also credited to my Account).

Since this is a genuine Bank Time Deposit Product, my Php250K deposit is protected by the Philippine Deposit Insurance Corporation.Currently this PDIC cover is limited to Php250K max, but there is a 'Bill' currently in the House, to increase the Deposit Insurance to Php500,000.00.

Since this increased PDIC limit, has not yet been passed, one needs to go to another Bank, offering such promo, to stay 'protected'.

My wife thought it was so good, she took out a Php250K Deposit to get this same Promo at the Bank as I did. If we had more funds, we could also place another Php250K into a Joint Account together. since this is 'split' as Php125K insured deposit 'share', each, we could even place another Php250K into a 2nd Joint Account, at that same Bank. But with 7 x Rural Banks, currently offering this particular limited time 'Promo', no real need to do so necessarily?

This really is an amazing offer for such short Term Peso Time Deposit

Factoring in that Php25K* cash alternative gives this calculation:-

ROI = (Total Return - Investment)/Investment = (250 + 5** +25* - 250)/250 = 3/25 = 0.12 ROI

APR = ROI/Term (Yrs) = 0.12/0.25 = 48%pa APR

This includes the 20% Witholding Tax deducted, but did not add the 0.5% DST, as the particular Rural Bank we deposited with, shouldered the cost of that (some Banks may ask you to pay the Php1,250 DST).

Sorry we were asked not to give out the name of the Rural Bank we deposited with, in public, or the names/locations of those other 6 x Rural Banks, also offering this current Promo.

I have supplied this information however, to the Members of my Private Wiki Group

http://www.ruralbanks.wetpaint.com/

You need to be sent an Invite to Join this Wiki Group however.

To get one of those, you need to fill in an Application Form

My Birthday Present to myself - Nokia N95 8GB

2008-06-14T19:05:00.004+08:00

I have usually owned Nokia phones previously.

When in the UK for my 50th Bithday (3 years ago) I bought a Sony Erricsson T610 from Virgin mobile.
This was under their "Pay as you Go" - great price and included 'Airtime'. If you also add extra load of certain amount (£10?), they will 'unlock it' for FREE.

For Example - here is one of the Virgin Mobile UK current Pay as you Go Special Offers:-

WAS £49.99, NOW £19.99

When you buy £10 airtime

PACKAGE PRICE

Offer price: £29.99

If considering something like this, this, make sure you buy a make/model actually supported where you will be using it (Philippines in our case). Clearly we were using the phone we purchased in the UK, during our 5 week stay, then wanted to use it in the Philippines after.

Sony Ericsson offers good support and offer the T610 Model, but NOKIA is #1, in the Philippines.

My Filipina wife went for 'style' over functionality, price (or 'Support' back in the Philippines). She bough some Motorola 'Razor', but not a Model sold/supported in Cebu, Philippines.

So when it went 'faulty', 2 years after purchase, it was - "throw it away", because it can't be repaired.

Checking in the UK, last year during a Visit, Virgin were 'shocked' that anyone would contemplate 'repair' (obviously with high labour costs in UK, it is cheaper to throw it away and buy a new one). Sometimes they have trade-in Promo, where you take along your old phone (don't think it has to be working, but must have the Charger) and they offer Discount on a New Phone.

My Sony Ericsson T610 still works just fine, except with a 'Touch' SIM, you don't get Web Browsing, and could never get e-mail to work.

I could have just bought a Globe SIM, but I was considering an 'upgrade to my Phone.

One that offered high speed Data with WLAN - WiFi, HSPD (3.5G), and EDGE, in addition to GPRS.

The pictures taken with my T610 were a big dissapointment, so a decent camera (with a Flash) on the Phone,would be useful (if I didn't take along my Olympus MJU).

Nokia Asia & Junrex had a 'Sales Promo' exhibition in SM Mall, (about 6 months ago).

Not only were the prices of Nokia phones being offered at good discount, but 6 Months Free Credit, purchased with Credit Card, on some models.

It was the Nokia N95 8GB that caught my attention!

I had dismissed the N95 phone when it first came out,as being far too expensive, and more features than I needed.This was the Newer Model N95 with additional 8Gb - costing US$750 - but here it was being offered @ Php29,000 (US$675?).

I didn't buy it - too expensive for me.

In the following couple of weeks, I read up some reviews on the Nokia N95 8GB. Many were saying about it's improved Battery life, the increased Memory, and the internal GPS.

I was considering buying a GPS, unit for creating Maps of Cebu, Philippines (since those offered by Google Earth etc are inadequate and inacurate). I wondered if the built in GPS on the N95 was up to the job?

I bought a Nokia N95 8GB a few days later in JUNREX, Ayala. They were still offering 6 Months Interest Free Credit, and the PRICE had dropped to just over Php26,000, so only Php4,400 a month, or there abouts x 6

(US$600 Total or US$100pm x 6 months).

It was the 6 Months Interest Free Credit that clinched it.

Well that and the fact it also had GPS and the Carl Zeiss Lens with 5 Mega Pixel Camera, with an LED Flash (one can GEO Tag your Photos with GPS position data information), It can do also record 30fps VGA Video MP4.

It uses the Symbian OS (S60 V3 Feature Pack 1) and Java.

There are also a number of 'Python' applications - some make use of the built in '3 axis sensor' and 'accelerometer'.

The latest Nokia Firmware upgrade (V.20), now incorporates some of these applications, like 'Auto Rotate' that automatically changes from 'portrait' to 'landscape', as you rotate your phone.

Another 'App' automatically turns your phone into 'silent mode' when you flip the phone upside down, and reverts when the correct way up.

The Nokia N95 has a Stereo Audio and Video Out, so you can hook up to large screen TV.

Some will like this to play games (N-Gage) and Java (with the phone responding to 'Tilt left' and 'Tilt right for 'steering' and 'Tilt down' for 'accelerate', and 'Tilt up' for braking). Driving games using the the angle/tilt of the phone instead of trying to manipulate several tiny buttons at the same time, will make it a lot easier and enjoyable, especially with big TV display

Since the Nokia N95 comes with 'QuickOffice', you can display Word, Excel, PowerPoint, Adobe Acrobat .pdf Documents, on the TV.

Or a slide show of your photos, of a DVD quality Movie you created.

There are some real FUN apps out there as well. as well as some more practical ones.

Like having a built in 'Spirit Level' (pyPoziomica) that settles the argument if the table is level or not?

Fancy a no-carb beer - amaze you friends as you down many of your favorite Beers, one after another !
(Virtual Beer by pyPiwo). You dont get drunk, or put on weight, no matter how many you 'down'.

pyPiwo - Half real, half magic, Nokia N95 as a beer bottle
From: symbianfreak

Amaze the Kids with the 'Coin Box' (pyMoneta). A recognizable coin slides around the screen when tipped. and then when shaken, down, the coin drops out, into the Kids hand!

http://uk.youtube.com/watch?v=ckKfa5VK0LU&NR=1

There are many more really useful applications that can be downloaded for free.

I will update this Blog with more details on these later.

"10 x Your Money in 6 Years"!

2008-02-23T09:16:00.001+08:00

"Too Good to be True"
- Are You Sure?

Many who read something like "Double Your Money in 5 Years" are sceptical, and will often dismiss it as "Too Good to be True".

Had I done the same, over 3 Years ago, I would be struggling to "Live in Paradise", with no job, and only £300 a month from an Annuity. As it happens, I investigated, and placed a 'Trial Deposit' into Rural Banks with 5 Year Peso Time Deposit paying 20%pa with Interest Credited Monthly. I have been receiving interest every Month for 35 Months now, so I happen to know -

"It's so Good, because it's True - Double Your Money in 5 Years, really works"!

Well if you still don't believe it, then you are the one missing out, not me!

There was a recent 'Promo' by some of these Rural Banks offering, an amazing

"Double Your Money in 3 Years!"

That's correct, a Bank product, with a Peso Time Deposit, having PDIC insurance cover paying Monthly Interest @ 33.33%pa.

Those who refuse to believe that is true, should find another website/topic, because they sure wont believe what I will say next?

"10 x Your Money in 6 Years!"

OK, this is NOT a Bank product, so no PDIC Insurance, as it is a Pre-Needs product from an SEC licencensed distributor: -

Whilst you do buy into a Pre-Needs Pension Plan, the real money from this 'Investment', comes not from the Pension Plan itself, but rather the 'Buy-Back' agreement from 'Legacy Card'.

The product is known as 'PNBB2' - Pre-Needs Buy Back - No. 2

The 'Terms and Conditions' of the "Deed of Assignment" give 10% of the Pension Plan Maturity Value (= 2 x PNBB Investment Value), as 'Initial Payment', immediately (can be used to give "Nett of Initial Payment" investment, some 125% higher than actual 'cash' investment).
The 90% Balance is repaid via 12 x 'Installments' over 36 months, commencing 1 month after signing. So for Php80,000 (minimum 'cash' - Nett of Initial Payment), one gets a 'Return' of Php180,000.00 over 36 Months.

Return On Investment (ROI) = (Gain- Investment)/Investment = (180-80)/80 = 1.25 (ROI)

Annual Percentage Rate = ROI/Period = 1.25/3 = 41.67% (APR)

STOP PRESS

Legacy Consolidated Plans Inc. have filed a petition with SEC for dissolution of their company.
This 'announcement' will appear in the newspapers soon

Subject: Confirmed Dissolution
From: jimmy lucero (VP, Legacy Finance Group, Visayas Region)
Date: 08/12/2008 8:20 pm

Please be advised that at the meeting in Manila today, Legacy Consolidated Plans, Inc. the issuer of the Pre-Need Buy Back (PNBB) product has decided to dissolve the company.

Petition will be filed with the Securities and Exchange Commission (SEC) and appoint a liquidator to pay creditors. As announced management assures our investors their investments will be given back.

Meanwhile, we wait for the announcement in the national newspaper.

We will keep you posted.

Ah well, it was "good whilst it lasted", and at least we get our Investment returned, and did make 18.75% of our Nett Investment with every Quarterly PDC that did get cashed up to that point.

Just hope there is not too much delay by the liquidator to release these funds. I would like to reinvest into some more "V8 Motorcycle Dealership' plans, whilst this particular investment, with Bank Guarantee continues to be available.

'V8 Motorcycle & Parts Dealer' - Investment

I am gettin 100%pa on the 1 Year Term, from my Php1M as part of a Group Investment of Php6M and
105%pa on the 2 Year Term, from my Php1M as part of another Group Investment of Php6M.

This V8 investment, could give even better ROI than what the PNBB2 reinvested offered:-

OK so if 41.67%pa sounds good, see what happens if you invest more, then re-invest for 36 Months, for a Return over 72 Months

Php240K PNBB Investment

Month ROI After Mnths
1 Php1,260,000 36
3 Php1,360,000 39
6 Php1,510,000 42
9 Php1,710,000 45
12 Php1,910,000 48
15 Php2,160,000 51
18 Php2,460,000 54
21 Php2,810,000 57
24 Php3,260,000 60
27 Php3,760,000 63
30 Php4,840,000 66
33 Php5,060,000 69
36 Php5,910,000 72
9.55 ROI
159% APR

See http://spreadsheets.google.com/pub?key=pwuT4qC4CgQ6IvSSP4pIcFA

The above Table shows what Return is possible on Php560K, every Quarter, with a new
re-investment, as well as the extended Period such investment is over.

If fully re-invested for 12 x quarterly periods, the Return over 72 Months will be Php5,910,000.00

That is 10.55 x Your Money in 6 Years!

I have been told that you do not need to be 'Resident' in the Philippines, for this particular Investment, as it is NOT a Bank Product.

"But how does one get to receive and spend such return from this investment, if not Resident in the Philippines?"

On the "Deed of Assisingment" Form, other than payment via Post Dated Checks (PDC), there is an option for payment of the 'Installments', via 'Pera Agad' card.

The 'PeraAgad' Card is a OneCard International* Prepaid Credit Card

OneCard International, an issuer of a globally accepted credit card being a principal member of MasterCard International, was established to provide business opportunities and alliance with varied companies and financial institutions that wishes to issue and finance credit cards with their own brand minus the usual hassles of setting up their own credit card company.

OneCard was originally owned by MBf Group Malaysia, the leading MasterCard issuer in Malaysia. It was renamed as OneCard International in the year 2001.

Where is my OneCard prepaid card accepted?
Your Onecard prepaid card is accepted both locally and internationally, there are over 32 million establishments and 900,000 Automated Teller Machines (ATM) who honor your card. Just look for the MasterCard and MasterCard Cirrus logo on any merchant establishments or designated Automated Teller Machine (ATM).

What is the use of my prepaid card?
Your OneCard prepaid card is available for use as follows:-

To make purchases for goods and services at any establishment that accepts the Mastercard as payment

To withdraw cash worldwide at Mastercard/Cirrus designated Automated Teller Machines (ATM) subject to particular ATM rules and regulations.

What is the cost of such 'Pera Agad' card?
Your Onecard prepaid card costs Php500.00. Of this Php100 is Application Fee, Php100 is a Maintaining Balance (not shown), and Php300 is credited to your 'Pera Agad' Card.

What is the cost of withdrawing cash worldwide at Mastercard/Cirrus designated ATM'?
Your Onecard prepaid card can withdraw up to Php25,000.00 equivalent, with NO CHARGE.
Succeeding withdrawals for the day, up to a maximum of Php50,000.00*, is subject to a charge of P83/withdrawal.(*Subject to limitations on the Amount Withdrawn/day, according to that particular Banks ATM machine)

Are there any other advantages to having such 'Pera Agad' card?
Your Onecard prepaid card pays Interest of 2% per quarter on the ADB (Average Daily Balance). So if using the PNBB investment to build, rather than spend, this adds an additional 8%pa.
Not a bad rate of Interest alone - better than most Commercial Banks can offer.

How does one go about placing such PNBB Investment, and this 'Pera Agad' card?
Send mailto:hi.interest.rural.banks.ph@gmail.com giving you Full Name and Address. You will be sent Application Forms, for you to complete, and return with instructions regarding payment.

How to Communicate with Family and Friends - Countries apart?

2007-12-20T23:05:00.000+08:00

Most reading this will be well aware that you can keep in touch with Family and Friends, regardless of where they are, by using E-mail for one thing?.

Many will also have discovered Yahoo Messenger, with on-line 'Chatting', but now also supports Voice over the Internet.

Google Talk is another, with a similar competative offering,
(of which, I personally prefer, compared with Yahoo Messenger/Talk)

Download Google Talk and get:

Instant messaging
PC-to-PC voice calls
Gmail notifications
File transfers

Or connect to Google Talk on the web:
Launch Google Talk Gadget (No Download Required!)

Google Talk, is somehow less 'intrusive' than Yahoo Messenger (and has a better e-mail offering) in my opinion?

SKYPE, is a little bit different, and offers a wealth of features, with a convenient, easy to use interface.

It is probably this easy, convenient,and feature rich,
'User Interface', that has led to Skype becoming so 'popular'?

(Surprisingly so considering it is 'non-VoIP 'standards' conformant, thus Skype offering a 'proprietary' solution, that won't interwork with anyone else, with 'true' VoIP system/network - CUG - Skype only! ).

It's FREE to Download the Skype Software and install on your PC

You can chat away with free Skype-to-Skype calls and never worry about cost, time or distance.

Adding friends and family to your contact list is simple – search, select, ad
Calling is easy – select the Call Phones tab, enter a number and click the green button
Free video calls - see who you’re talking to for free.
Instant Message with anyone on your contact list or even use group chat to chat with up to a hundred people
Conference Call with up to nine other people

That 'ease of use' and 'convenience' factor, is winning a lot of market share. Does not seem to matter there are potentially better VoIP systems out there, that do adhere to VoIP 'Standards' (such as SIP and/or ATA/ATA2), that are potentially capable of internetworking.

However for me, it is one thing,downloading some Skype software onto my PC for Free, but another when shelling out money to buy some VoIP 'hardware'.

I did not like the idea of being 'locked' in to using 'proprietary' Skype, if I bought some Internet Phone Adaptors (IPA). Potentially not being able to unlock the IPA, to use with another VoIP Service Provider?

But what is an Internet Phone Adaptor (IPA),
(you may well be asking yourself)?

Basically an IPA is an interface between a Telephone and the Internet (Broadband connection via Router/DSL 'Modem' usually, or sometimes built into the Router).

This is somewhat different from an Internet Phone that typically plugs into a USB port on your PC.

The difference being, with an IPA, one does need to have a PC switched ON, or even connected, (let alone the software running, and ones 'Stutus' enabled).

As long as you have power, and your Internet connection is up and running, then you can make and receive VoIP calls via a standard phone (including DECT Cordless), plugged into the IPA!

Calling to/from Philippines, is a lot more expensive than USA/UK/Hong Kong/etc?
(Because they did not implement true 'Telecom Deregulation' as in these other Countries. The Philippines just allowed new Carriers to join PLDT in a Telecom 'Club', instead!)

My wife, has a sister living in Hong Kong (married to Hong Kong Chinese).

The amount of money my asawa would spend of Mobile phone call re-loads, calling her sister in Hong Kong, was getting ridiculously expensive.

If her Sister had access to a PC in her home, and Skpe installed, that would have been one answer?

This is what I use to talk to my Brothers and Sisters in the UK, as well as my Brother, working in Bahrain - anyone with Skype installed that I add to my 'Contacts' List in fact?

I can't call my Dad for Free, as he does not have a PC/Broadband connection.

However I can call my Dad, via his UK landline telephone using 'Skype Out' where the Skype Internet Voice call passes through a 'Gateway' onto the UK dialled network, where the call is handled by the appropriate Carrier. There is a charge for this, but £10 Credit into ones Skype Account, goes a long way @ £0.012/min!

There are 2 problems here - i) her sister does not have a PC, even though there is Broadband DSL connection (her step-daughter using to her PC in her bedroom - usually locked/off!), ii) I am often on the PC and busy downloading things, or having many 'tasks' running concurrently. Whilst the amount of bandwidth is not that high, it is the low performance of my CPU, that can't cope with Skype voice call processing, and these other tasks at the same time, and tends to degarade the voice call quality?

So Which Internet Phone Adaptor, and VoIP Service Provider to select?

Having looked into and researched several VoIP Internet Phone Adaptors available, I decided aagainst going the Skype 'proprietary' solition that does not conform/interwork with SIP/ATA/ATA2.

So I decided to go VoIP Standards based Hardware - but SIP or AXA /AXA2?

This sometimes more to do with the particular VoIP provider you select, as some Hardware is compatible with both SIP and AXA. Some VoIP Network Providers (such as VoiceNet.com), support both SIP and AXA.

The Freshtel Network in Australia, is part of VoiceNet.com. Rather like Skype in terms of Free Internet to Internet Voice Calls.

One can download the 'Firefly' Softphone, register for a Free Freshtel TD
(mine is Freshtel TD: 81354400)

Those who are Australian Residents, and subscibe to a Call Plan with Freshtel, can avail of a FREE Internet Phone Adaptor

Freshtel 3010 ATA

Those who are UK Residents, will no doubt be aware of Supermarket giant, TESCO, and it's entry into the VoIP market with a range of Internet Phones and Service Contracts.

What some might not be aware of is that this TESCO VoIP Service is actually using the Freshtel/VoiceNet.com Network, and OEM Hardware.

Tesco IPA 1000 internet phone Adapter

Catalogue number: 100-9564

Was £49.97 - but not any more!
Now £19.98 - Save £29.99

Was £49.97 Then £24.98 Now £19.98 Save £29.99

One of my Cebu_BritClub (Yahoo Group) Members, Martin Brown, offered to do me a favor by bringing out a pair of these TESCO IPA 1000's, to me here in Cebu, during his December visit. Martin however, went a stage further, and found the same Tesco IPA 1000 units on E-Bay UK.

These were being sold Brand New, still in unopened box, complete with it's £5 Voucher (for Call Time).

With Tesco giving 50% off the price, the Bids on Ebay, were lower accordingly.

Total cost of winning 2 Bids for TESCO IPA 1000 (including UK postage) = £26 (for 2)

With the IPA 1000, now available from Tesco @ £20, perhaps you dont need to find units on Ebay to get a good deal?

IPA 1000 - Installation and Operation

Installation was easy, as I have an extension block off my UPS that has 'universal sockets' meaning just about all power plugs will connect, including UK 13A type.

Just connect the supplied Ethernet LAN cable to the IPA 1000 WAN port, and a spare port on my Linksys WRT54G Router. Which in turn was connected to the MyDSL supplied aDSL 'Modem' (PLDT supplied ZyZEL P600 series - with just the 1 x Ethernet port).

Connected a cordless DECT phone to the IPA 1000 Telephone jack socket, and I was ready.

Once powered on, the Indicated on the top of the IPA 1000 was initially flashing RED, then flashing ORANGE. Once the start up sequence had finished (which took 5 minutes or so?), the light turned solid GREEN, indication the IPA 1000 had connected successfully and was ready for use.

(Because Martin had opened the boxes on my request, he had given me the units Seriel No. With that I was able to go to www.tesointernetphone.com/ipa and register my account, select the Telephone No., and give the Serial No of the IPA 1000 unit I was using on that Account. You have to supply an e-mail address, then an acknowledgement is sent out, to which you click on a URL to complete the registration process).

But as my wife's sister did not have her unit installed in Hong Kong yet,
"How could I test/use it"?

,This was easy - use my PC and SKYPE-Out to dial the TESCO Phone Number (Which I had selected to be a pair of Bournemouth numbers, so my Dad and other Family Members , like my son, who is currently working in Bournemouth, and my brothers and Sisters and cousin, all living there, can just make a local phone call, and our phone rings here in CEBU).

My wife. Sha-Sha's, new Tesco Internet Phone number: is: 01202 806504

I dialled +441202806504 via Skype and the DECT phone, connected to the IPA 1000, Rang!

The configuration settings seemed to have downdloaded after connection to the Internet, and first being powered up.

Needed to test the voice call quality, next.

I first called up my Dad (Using Skype-Out ,as I normally do, SkpeOut Rate to UK is £ 0.012/min or 1.2p/min).

Compare SkpeOut Rate to the Philippines £0.113/min or 11.3p/min.

So calling our Tesco Internet Phone number: +44 1202 806504, using SkpeOut, is cheaper than calling our Philippines landline +63 32 2728694.

I could have picked up the DECT phone connected to the TESCO IPA and dialled his Bournemouth No.

Tesco Call Rates (for 'Pay as you Go') are little bit more expensive than SkypeOut @ 2p/min, but if the PC is not powered up, and/or the Skype software not running, convenience wins out over the slight cost increase.

However I wanted to compare the TESCO Internet Phone quality, against Skype that I had been using.

So having spoken to my Dad using Skype, I got him to ring a local Bournemouth No 806504 (My Tesco No.)

My DECT phone connected to the IPA 1000 Rang, I answered it and my Dad was there speaking to me - remarkably clear! My Dad commented that it was just as good as calling other Bournemouth landlines.

Certainly the Quality seemed better than Skype, according to that one test call at least

Advantages of using TESCO Internet Phone Adaptor (IPA1000)

You don't need connection to a PC, - direct to Broadband Internet Router
Interworks with VoiceNet.com network users (i.e Freshtel in Australia)
Calls to other Tesco internet phone customers are FREE
Skype Out calls to UK (Tesco internet Phone No), cheaper than calls to Philippines
It works with your existing broadband connection from any provider
You get an extra phone line with no additional line rental
TESCO voicemail service is FREE
You'll get a new standard UK landline number (select Area and Number)
It's easy to set up and use, and calls are really clear
You'll pay less for calls to mobiles and landlines in the UK and overseas
(but a little bit more than SkypeOut if using TESCO 'Pay as You Go')
You choose the TESCO Call Plan and add-ons that suit the way you make your calls
(Only needed to make calls to non-Tesco Internet Phone users - comes with £5 Credit Voucher)

New Yahoo Group - "High Interest Rural Banks - Philippines"

2007-05-09T22:01:00.000+08:00

High Interest Rural Banks - Philippines

This Group was formed for discussion, information, and promotion of certain Rural Banks within the Philippines, that are offering High Interest Time Deposit products.

Here is a good place to find FAQ's on this topic.

Reference material and Links to relevant websites.

Discover the truth and reality behind genuine banks, registered with Banko Sentral ng Pilipinas (BSP), with genuine products - deposits are insured with Philippine Deposit Insurance Corporation (PDIC).

"Don't believe it - too good to be true?" Here is where you can find out hopefully?

Whilst you can post your opinion on such Banks, and their 'products', we ask that you back up such 'viewpoints' with some sound 'argument' and 'logic', rather than voice mere 'suspicions' and 'rumours', OK?

UPDATE

http://finance.groups.yahoo.com/group/hi-interestruralbanksrp/

This Yahoo Group "High Interest Rural Banks - Philippines" is effectively closed now!

No New Message Posts, being Approved
All new Applications for Membership, being Rejected
'Messages' closed to Members
'Files' closed to Members

Blame the Blogger of this Blogspot:-

http://hi-interestruralbanksrp.blogspot.com/

BLOGGER details:-

Name: Suhir

Home: Pune, Maharashtra, India

About Me: I am a Business Man. I am from Pune. This blog is a part of my hobby.

No, he is not a business man, but a Hacker!

His Hobby is ripping off Yahoo Group Message Posts, and putting them on his Blogs, via an Atom Feed.

Sudhir has no respect for why this Yahoo Group was formed, nor why it was Members Only, who expected their Messages to be viewed only by other 'Members' of this 'Private Group

He is a thief who steals 'Private' message posts, and makes them available to the 'Public' via these 'Blogs' of his.

He is doing no work on his Blog, no creative effort - just THEFT!

Well we have had enough of this!

Google don't seem to care that this 'Sudhir' is able to set up his Blogspot.com, with the same 'name' as our Yahoo Group (with 'hi-interestruralbanksrp.blogspot.com' tacked on) and via this RSS/Atom style 'Feed' - simply steals messages from any Yahoo Group Public or Private apparently, without permission.

I dont think this 'Sudhir' joined our Yahoo Group, under false pretenses, and using some 'alias' to become a Member.

They don't seem to care, that there is this Security problem, that allows 'Sudhir' to achieve this.Well I care, that the Members expected their Message posts to be Private, and they are not, with this Yahoo Group.

The answer is simple, we just STOP using this Yahoo Group!'

'Sudhir' won't get much pleasure from stealing this MESSAGE, 2 times every day!

Owner: hi-interestruralbanksrp Yahoo Group

http://finance.groups.yahoo.com/group/

Sorry if any genuine Members, do not like receiving this Message via a DAILY 'Calander' Event, with Reminders

Suggest you unsubscribe from this Yahoo Group, and become a Member of the replacement Group - (having submitted your Application Form beforehand, and received the Invite to Join).

Anyone wanting to receive an 'Invite' to Join the replacement Group, needs to accurately complete and submit this Form - http://cebu-shhh.com/phpformgen/forms/form1.html

Hope to see you on the 'Private' Wiki http://ruralbanks.wetpaint.com/

David Whittall

PDIC Insured Deposit - reduces Risk?

2007-05-08T08:41:00.000+08:00

Depositing funds in Philippine Rural Banks is Risky?

Why - becuse some 8 x Rural Banks get closed down by the Monetary Board each year!

Having said this, deposits are insured (up to Php250,000 per depositor/per bank), by the Philippine Deposit Insurance Corporation (PDIC), which reduces/offsets, this risk somewhat?

Banko Sentral ng Pilipinas (BSP) is taking steps to improve banking practices, so there is less chance of the Monetary Board needing to close a particular bank down.

"In particular, the market and liquidity risk guidelines provide that if the BSP determines that an FI’s risk exposures are excessive relative to the FI’s capital, or that the risk assumed is not well managed, the BSP will direct the FI to reduce its exposure to an appropriate level and/or strengthen its risk management systems. "Although the guidelines are not strictly Basel 2 to conform with institutional arrangements and operating realities in the Philippines, the principles outlined are consistent with Basel 2 principles and international best practices," the BSP said".
The Bangko Sentral ng Pilipinas (BSP) has approved a further tightening of its "fit and proper" rule for directors and officials of banks and other financial institutions. The new set of guidelines expand the grounds for disqualification of bank directors and officers by adding more crimes and offenses not previously included in the existing guidelines.

The "fit and proper" rules were intended to ensure that officials in charge of banks and other financial institutions possessed the required integrity and competence for prudent and sound management. The BSP started tightening such rules in 2002 and two years later began prohibiting top officials from holding concurrent positions in different bank entities. It has also has been tying up loose-ends in the directorship and officership of banks to prevent conflicts of interest that could open loopholes for unsafe and unsound bank practices.
The 50-year-old Bank Deposits Secrecy Act has now been changed. Previously, owing to the absolute secrecy of deposits, unscrupulous, bankers have managed to manipulate financial reports to the detriment of the depositing public. This absolute confidentiality of bank deposits, over the years, has abetted unsound banking practices, which, in turn led to the collapse of a number of banks and the financial ruin of tens of thousands of depositors.

Previously it was only after the Monetary Board has already closed down an erring bank, that regulators are able to examine deposits and belatedly discover unsound banking practices. Examiners from the BIR, Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corp. (PDIC) may now scrutinize bank deposits "for supervisory and tax audit purposes". Hopefully this will allow them to now discover erring banks with unsound banking practices, and take action, before the banks needs to be closed?
Based on Section 16 of the General Banking Law, to maintain the quality of bank management and afford better protection to depositors and the public in general the MB will "prescribe, pass upon and review the qualifications and disqualifications of individuals elected or appointed bank directors or officers and disqualify those found unfit."
"After due notice to the board of directors of the bank, the Monetary Board may disqualify, suspend or remove any bank director or officer who commits or omits an act which render him unfit for the position," the BSP law said. The BSP added that in determining whether an individual is fit and proper to hold the position of a directoror officer of a bank, regard "will be given to his integrity, experience, education, training, and competence.
"The [BSP's] Supervision and Examination Sector shall make an annual assessment of the performance of external auditors and will recommend deletion from the list even prior to the three-year renewal period, if based on assessment, the external auditors' report did not comply with BSP requirements," the circular says.
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has approved tighter guidelines on dealings of banks with their Directors, Officers, Stockholders and Related Interests (DOSRI) under the provisions of the General Banking Act. "We hope these regulations would curb excessive DOSRI lending which has been a major cause of bank failure," said BSP Governor Rafael Buenaventura.

Republic Act 9302 not only increased the amount of deposit covered by insurance (to Php250,000) but also restored the Philippine Deposit and Insurance Corp.’s (PDIC) authority to implement stricter monitoring and governance standards for banks. The new law is careful to point out that it is not duplicating work being done by the Bangko Sentral ng Pilipinas. RA 9302 reverts examination powers to PDIC, a mandate curiously taken away from the agency when the General Banking Act was signed in 2000. With the restoration of examination powers, the PDIC can once again look at bank ledgers, and even conduct an investigation on a bank based on a complaint lodged against it.

http://www.philstar.com/philstar/show_content.asp?article=181336.

Tightening the screws

"Some other relevant provisions stipulated in RA 9302 worth mentioning are: continuing deposit insurance coverage for depositors even if the bank is delinquent in premium payments; stiffer criminal and civil liabilities for erring bank owners and officers; legal indemnification for acts of PDIC officials done in good faith; and enhanced regulatory and liquidation powers which includes the authority to reduce abnormally high interest rates on accounts held by closed banks. Erring bank owners found engaged in unfair and unsound banking practices will be liable to up to 12 years in prison or up to P2 million in fines. Banks that peddle in dubious bank promotions that promise "double your money" schemes in one year should beware.

Let’s just hope that the new law gives PDIC enough muscle and teeth to carry out its mandate.

Shoring depositors’ confidence

At least, the amendments on the PDIC Charter will boost the sagging morale of wary depositors who fear bank closure each time the political and economic scenario dims. With the higher insurance coverage, 96 percent of the total deposits in the banking system will now be fully backed by deposit guarantees, up from 91 percent from the previous insurable cap.

Based on 2003 banking data approximating deposits in the system at P2.4 trillion, the new insurance coverage translate to full insurance coverage for some P716 billion in deposits versus P462 billion at the previous P100,000 cover.

For now, depositors have one more good reason to leave their hard-earned money with banks rather than in the hands of pyramiding con artists."

If you read what the press and the PDIC report on Banks getting closed, such as Bank of Cebu, which was closed on August 31, 2006, you should also see, how responsive the PDIC are becoming.

"The PDIC took over THE BANK OF CEBU (A DEVELOPMENT BANK) and its branches, assets, records and affairs effective August 31, 2006".

"A week from takeover of The Bank of Cebu (A Development Bank), state insurer Philippine Deposit Insurance Corporation (PDIC) will start servicing depositors’ claims for insured deposits on September 8, 2006. This is in keeping with PDIC’s commitment to start claims servicing in single-digit turn-around-time (TAT) from bank takeover".

Now you could be thinking, it is one thing to "starting to service claims", but actually "paying out the returned deposits", could take several months?

A friend of mine posted the following message to a Forum on 11th september 2006:-

“Just a little bit of information, a Filipino friend has just received [last Friday - 8th September] a payment of Php 250,000 from the PDIC. after his account went down the Bank of Cebu, his balance at closure was 600,000, he has been informed that the remaining balance will also be refunded, However no time span was given, as the Banks assets have to be sold first.
So the PDIC payment was pretty prompt (8 Days)".

It seems the PDIC can start paying out pretty quickly, after you have submitted your claim with all the required documents, and provided the banks records are accurate and complete.

"Deposit records are subjected to an examination prior to the start of servicing/settlement of claims. As soon as the pre-settlement examination is completed, PDIC shall schedule the servicing of claims".

The length of time needed for the pre-settlement examination of deposit liabilities of a closed insured bank largely depends on the completeness and accuracy of records turned over by the Bank to PDIC and the number of deposit accounts to be examined. On the average, claims servicing for banks with problematic records starts 2-3 months after takeover by PDIC.

I don't know what you think about this PDIC insured deposit, but for me, it definately reduced the risk of me losing my money, if such bank, where I placed my deposit, were to be declared closed, by the Monetary Board (MB).

The way I see it, is investing my money, by placing funds in a Peso Time Deposit. with a registered, controlled, regulated Bank, and having such deposit insured by the PDIC, is lot less risky, than investing in Stocks & Shares and say UITF's?

"What does it cost to live/retire in the Philippines?"

2007-05-01T11:49:00.000+08:00

I have mentioned certain Rural Banks in the Philippines that offer up to 20%pa. The monthly Interest from such, was instrumental in my being able to take 'Early Retirement' and Live in Paradise (Cebu) with a 'comfortable', enjoyable, lifestyle.

Many people ask
"What does it cost to live/retire in the Philippines?"

The answer to such a question is complex, because of many variables?

Is this a single person, a married couple, or a family with Children (if so what ages)?
Are you going to consider 'Renting' somewhere to live?
If married to a Filipina, you could consider purchase of lot, and have a house built.
What about 'Transport' - use of 'Buses' and 'Taxis', or 'Purchase' a vehicle?
What sort of 'Lifestyle' do you envisage?

The cost of going out to Bars/Resteraunts, Clubs, Cinemas etc is a lot cheaper than the UK etc, However it obviously needs a higher budget, than buying food and drinks from Supermarkets, and cooking and entertaining at home. What sort of 'Sports' might you wish to follow? Golf is more affordable, but Membership to some Clubs can be costly. Sub Aqua is not that expensive to get trained up, if you dont already have dive qualifications. Buying you own gear is better long term than renting, but travelling to different parts of the Philippines to discover new Dive spots adds up, depending where and hjow often. Staying in Resort Hotels with Dive Boats for hire and Master Diver as guide, does increase the Budget you will need also.

Certainly if you have children, you need more 'income' to cover the cost of schooling. This increases, as the children get older, with High School, College, and perhaps University.

I would suggest 'Renting' a place - initially at any rate. This gives you a chance to get the feel for the selected area of the Philippines, the City/Town and the 'Banangay'.

If/when you come to considering buying a house/lot, is it best to have an individual Lot or a 'Subdivision' from a Developer? Do you choose a design from such a Developer with House/Lot purchase, or 'Lot Only' and have your own House designed and built just the way you want it.

Certainly the cost of having a custom house built here in the Philippines is a lot less that comparable properities say in the UK.

Our 3 storey (105 sq m) extension with the following:-

1st Floor: Reception, Lounge,fully fitted Kitchen and Dining room.
Garage, external entrance to Maids quarters.

2nd Floor: Master Bedroom with en-suite/common Bathroom and Terrace,
2nd Bedroom, hall, Terrace at Rear and stairs to 3rd Floor.

3rd Floor: Lounge area, Mini-Bar with Dartboard, store cupboard with access to loftspace,
Large Terrace (with impressive views of hills and land down to coast).

View a 'slideshow' of our Philippines Home
(built for just £13K, or $23.3K, 2.5 years ago)

The Bottom Line
A couple with no children, the house, and a car, already paid for, could have a 'comfortable' lifestyle on Php50-80,000 a month.

Worked Example showing what's possible.

2007-04-16T15:04:00.000+08:00

Worked Example

Showing what could be achieved using certain Rural Bank Products in the Philippines
NB: This is for illustrative purposes only, it is not suggested it is followed, without taking independent financial advice.

Suggest having a 'balanced investment Portfolio' and perhaps never invest more than you can afford to lose?

See Spreadsheet http://spreadsheets.google.com/pub?key=pEjT0DajEBAVF6rSWpzMIdA for detail.

Here we see how a Family (couple with 2 children), could invest up to Php2M, in just one Rural Bank, and stay within the PDIC insured Deposit limits (Php250K per depositor):-

Rural Bank 1

This shows the 6 Year 'Hybrid' CTD/SSD product, which not only gives 20%pa Rate, with Interest credited Monthly (Tax Free), but offers 20% Advance Interest (from months 61-72). This effectively lowers the cash investment required by 25%, but does mean no Interest in the 6th Year. However in the unlikely event of the Bank getting closed by the Philippine Monetary Board, and handed over to the PDIC for liquidation, all Interest received to that time is retained. Any future interest will be lost whilst the claim is processed by the PDIC, and ones Deposit returned.

This could be repeated at a 2nd Rural Bank if required?

This example shows potential additional Deposits at another Rural Bank, but this time using the
5 Year Time Deposit (CTD/SSD) product.

Rural Bank 3

This could be repeated at a 4th Rural Bank if required?

SUMMARY (if options for additional Rural Banks taken up for consideration):-

CASH Investment (consideration)............... Php7,200,000
DEPOSIT Total (Returned after 5 Years)..... Php4,000,000
DEPOSIT Total (Returned after 6 Years)..... Php4,000,000
Interest Received (per month) ...............................................Php133,333

Depending on your Finances, circumstances, and Investment Portfolio diversity, if having additional funds for Rural Bank Time Deposit consideration, one could consider an additional Rural Bank, but utilising it’s monthly Interest re-invested to a 6th Rural Bank, perhaps?

Additional Deposit consideration, providing re-investment to help protect Capital against Inflation:-

You will note here, only half the possible Deposits have been placed. One could double ones Investment in this Rural Bank, if funds and investment plans permit, potentially, and still remain within PDIC insured Deposit limits?

Using just the Deposits shown above in this illustration however, produces additional income of Php16,666.67 a month. If this is kept in a Savings Account, after 6 months it will be at least Php100K. This is typically the minimum Deposit for a 5 Year Time Deposit.

3 Year Time Deposits may also be available (also paying 20%pa potentially, but one has to be aware such 20% Rates might not be available at the end of the 3 Year Term?).

Rural Bank 6

The revised totals would thus become:-

CASH Investment (consideration)....................Php8,000,000
DEPOSIT Total (Returned after 5 Years)..........Php4,000,000
DEPOSIT Total (Returned after 6 Years)..........Php5,000,000
DEPOSIT Total (Returned by end of Year 10)...Php1,000,000

CAPITAL TOTALPhp10,000,000
TOTAL Interest Received pm (after Year 5) = ...........................Php166,667

SUMMARY
This is just an illustration of what a Family (couple with 2 children), could consider as an Investment, into 5 Year CTD & 6 Year 'Hybrid' Time Deposits of certain Rural Banks in the Philippines.
Anyone considering such, should conduct their own research to make sure the products, rates, minimum deposits, and PDIC insurance Deposit limits are met.

Decide if the Reward v Risk is acceptable - seek Independent Financial Advice, if required.

This illustration can be scaled down, but the PDIC insured limits have been met with this example in Rural Banks 1, 2, 3, 4.

Rural Bank 5 investments could be increased with another 4 x Deposits of Php200K, which utilising the 'Hybrid' Advance 20% Interest, increases Total Deposit by additional Php1M.
This is turn can be re-invested in Rural Bank 6, which still has scope for additional Php1M Deposit through careful selection of deposit amount and depositor to stay within PDIC limit of Php250K per Depositor (Single Account) + Php250K limit shared (Joint Account) Depositors total.

How can such Banks afford to give 20%pa on Deposits?

2007-04-14T09:47:00.001+08:00

The simple answer to "how Banks can afford to pay out 20%pa on Deposits", is "they do so, by charging high Interest Rates for 'Loans' (typically up to 36%pa)".

Now you may be thinking that 36%pa is very high Loan Rate?

Well that is 3% per month, and typical of what a Credit Card company might be charging.

In much of the Philippines, the only way villagers can borrow money is from loan sharks. They collect from their debtors every day. The most efficient private entities who are engaged in micro-lending are the "Bombays". Although they operate illegally as usurers, they have actually mastered the technique of marketing and collecting, so much so that they have flourished and grew and their simple "5-6" operation have been passed through generations.

They're known as five-sixers because they take six pesos back for every five they lend. That works out to an annual interest rate of over 1,000 percent.

Indebtedness to informal loan sharks is a huge problem in the Philippines.

Many of the Philippines poorest, who live on the edge of subsistence without a single peso's margin, have no option but to go to the local money lender for loans to buy stock for their small businesses, or to tide them over when emergencies come up.

These guys charge anywhere from 5 to 20% interest per month ( that's 60 - 240% per year! ) and can use brutal tactics on anyone who don't pay.

In the "one-day-loan" system they might charge 100% per day!

At these kind of rates, debts quickly skyrocket, and many find themselves in a swift, downward spiral, with more and more of their money going just to pay the interest, losing all hope of getting out of debt.

It seems crazy to pay this kind of interest, but to those with no other credit options, the money lender means survival, and so people keep going back.

This is why the poor stay poor.

I think this explains why many in the Philippines, are willing to borrow money from a Bank that charges as much as 36%pa, for such a loan.

How can these Banks be sure they will collect the loan repayments?

Generally such Banks typically offer such loans, only to those with proven means to repay. This might be various types of loans like micro-finance loans for entrepreneurs. Salary loans for government teachers for example, with automatic salary deduction schemes guaranteeing a 100% collection. These, among others, ensure the Banks of receiving between 24% to 36% interest income per year. OFWs, soldiers, and SMEs, are other typical borrowers of money from these Banks.

Why such a difference between these 'Rural Banks', and the 'Commercial Banks'?

As an example, I heard that BPI Family Bank have a rule of thumb for its bank: add 7% to the cost of money and you have the general cost of capital.

A 'Commercial' Bank's long-term lending rate might typically be 11% now. Deduct 7% and you have just 4%. The bank can offer its clients is 2% for saving deposits, with just 2% profit for the bank. Commercial Banks don't make their big money from savings/loans - rather from Credit Cards and the like.

A 'Rural' bank's lending rate averages 36% for short-term loans. Deduct the 7% and a Rural Bank has 29%, leaving 9% profit ,after offering clients 20%pa on Deposits.

Other banks may set aside a big percentage as provision to write-off bad loans, while a Rural Bank that has a low ratio of bad loans, would need only a smaller percentage as provision.

Of course, other factors like stakeholder expectations on ROI, and actual operating expenses all come into play. Generally you find most Rural Banks have lower overheads - smaller, less prestigious offices, a lot less 'managers', means lower salaries also.

Rural Banks have to stay 'competitive', to attract 'cash' Deposits.

Rural banks lose P500m accounts
By Eileen A. Mencias

http://www.manilastandardtoday.com/?page=business05_july13_2006

The Rural Bankers Association of the Philippines has asked the Bangko Sentral ng Pilipinas to stop the migration of deposits from rural banks to big commercial banks.

Pablo Ronquillo, a consultant of the Rural Banks Association of the Philippines and a former central bank lawyer, said deposits in the rural banking industry were “being siphoned off by the big universal and commercial banks through their high yielding unit investment trust funds.”

.....
"The good prices on the bonds and equities resulted in an improvement in the value of most trust funds, with some even reporting a net return of as much as 24 percent.

“The UITF offers as much as 24 percent net interest on deposits which is too attractive and tempting for the enterprising depositors to transfer their accounts not only from rural banks but also from other thrift and commercial banks,” Ronquillo said.

Tetangco, however, told reporters that the central bank had seen an increase in deposits in the system. He said higher deposits were also noted in thrift and rural banks".

So Rural Banks need to offer products such as 5 Year Term Deposits with 20%pa Interest Rates (with interest credited monthly), to remain attractive to Depositors, who might otherwise consider UITF's paying 24%?

Personally, I will stick to these Rural Bank Time Deposits, for the following reasons:-

Less Risky - Deposit insured by PDIC
Guaranteed Return - CTD states Interest Rate of 20%pa, paid monthly for full term
Tax Free - Interest payment gross of 20% Withholding Tax (as exempt)
Ability to Cancel, quick payout and with known costs - High net balance.
If needing urgent cash for some emergency, it is possible to cancel the Time Deposit.
This can be done quickly (1-2 days), and the penalties are fixed and known for doing so.
In most cases you will still be better off financially, for having placed than the Time Deposit, then terminated, over any other form of savings investment over the same period.

So far, I have not come across any, overriding reasons, why one should NOT consider such Deposits?

Interest Rate of 20%pa on Peso Time Deposit!

2007-04-11T09:43:00.000+08:00

When most Commercial Banks are currently offering Interest Rates of under 6%, it is good to discover some Rural Banks, in the Philippines, are offering 20%pa, with the Interest credited Monthly.

Most people's first reaction, on hearing about a Bank offering an Interest Rate of 20%pa, when most Banks are offering considerably less than this, is one of scepticism.

This is understandable -
As you rationalise that the Commercial Banks are not offering Interest Rates anywhere near as high as that, there must be a reason for it, surely? If these Rural Banks are offering such high Interest Rates as 20%, then there must be a catch to it, or it is extremely risky, or something?

First off all Banks in the Philippines come under the Control & Regulation of Banko Sentral ng Pilipinas. http://www.bsp.gov.ph/banking/overview.asp

Banking Supervision
The Bangko Sentral has supervision over the operations of banks and exercises such regulatory powers as provided in the New Central Bank Act and other pertinent laws over the operations of finance companies and non-bank financial institutions performing quasi-banking functions.

http://www.bsp.gov.ph/publications/media.asp?id=999
BSP Unveils Basel II Implementing Guidelines
08.09.2006
The Monetary Board approved on 2 June 2006 major revisions to the risk-based capital adequacy framework which will take effect on 1 July 2007, to align the existing Basel I-compliant framework with the new Basel II standards. As approved, the MB decided to maintain the present minimum overall capital adequacy ratio (CAR) of banks and quasi-banks at 10 percent. However, consistent with Basel II recommendations, the MB approved major methodological revisions to the calculation of minimum capital that universal banks, commercial banks and their subsidiary banks and quasi-banks should hold against actual credit risk exposures. This significantly amends BSP Circular No. 280 dated 29 March 2001 (for banks) and BSP Circular No. 400 dated 1 September 2003 (for quasi-banks). Stand-alone thrift banks, rural banks and quasi-banks will, however, continue to be covered by existing regulations (i.e., Circular Nos. 280 and 400) insofar as credit risk measurement is concerned.

Credit risk framework (Circular No. 280, as amended )
Risk-based capital adequacy framework for quasi-banks (Circular No. 400)

OK, so the Rural Banks, are also controlled and Regulated, but some of them still seem to fail -

"Wont I lose my savings in the Deposit, if the Bank gets closed down?".

There is a Government Financial Institution (GFI) by the name of Philippine Deposit Insurance Corporation (PDIC) www.pdic.gov.ph

PDIC is a government-owned and controlled corporation created in 1963 by virtue of Republic Act 3591 for the purpose of insuring bank deposits. The latest amendments to RA 3591 are contained in RA 9302 enacted on July 27, 2004, which provided enhanced depositor protection through increased deposit insurance coverage up to P250,000 and strengthened PDIC's risk management capabilities through the restoration of PDIC's authority to examine member banks with prior approval by the Monetary Board. The new law also enhanced PDIC's receivership and liquidation powers.

The PDI's 'Mission Statement' being:-

"We as, Deposit Insurer, Statutory Receiver and Co-Regulator of Banks, safeguard the interest of the depositing public and thereby contribute to the promotion of financial stability in the economy.

What are the functions of PDIC?

Insurance
The PDIC assesses and collects insurance assessments from member-banks to insure member-banks’ deposit accounts. In case of bank closures, the PDIC processes and services claims for insured deposits. Deposits are insured up to a maximum coverage of P250,000 per depositor.
Bank Examination
Under the new law, PDIC's authority to examine its member banks, with prior approval by the Monetary Board, has been restored.
Bank Rehabilitation
The PDIC may grant financial assistance to distressed banks if it is proven to be a less costly alternative than closure.
Receivership of closed banks
Once a bank is ordered closed by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas, the PDIC is designated as statutory receiver. The PDIC upon receipt of the MB resolution ordering the closure of a bank, immediately physically takes over the closed bank. Receivership is the stage within which the PDIC manages the affairs of the closed bank and preserves its assets for the benefit of creditors.
Liquidation of closed banks
After it is determined that the closed bank can not be rehabilitated, the PDIC shall recommend the liquidation of the assets of the closed bank. Liquidation refers to the recovery and conversion of assets into cash for distribution to all creditors in accordance with the order of creditor preference pursuant to law.

"OK, so there is this PDIC deposit insurance thing up to Php250K per depositor/bank"

"What's the point in placing a Deposit with Banks, that might get closed down? Even if such Deposits are insured, I will still have to then go through all the 'hassle' of submitting a Claim and waiting for it to be processed. Surely I will be losing interest on my Deposit, while the claim is being processed?".

Yes that is true; should a Bank get into financial problems, the 'MB' will issue the official closure of said Bank. The PDIC will then step in as statutory 'Receiver', and if such Bank can't be 'Rehabilitated', the PDIC will 'Liquidate' the assets of the closed Bank, and initiate the Claims procedure for the insured Depositors. The Depositors will not be receiving any additional Interest from the date the Bank is declared closed.

Depositors will be advised through the national and/or local media and posters at the premises of the closed insured bank and other public places within the locality on the schedule of claims servicing and the prescriptive date of filing claim. The PDIC states - "The claim for insured deposit should be settled within six (6) months from the date of filing". In practise however the PDIC has been processing claims a lot quicker than this.

It might be a pain, and some 'hassle' ,of submitting a claim with all the required documents to ensure ones claim for insured deposit is processed ASAP before ones Deposit will be returned. And yes one will have lost the Interest on such Deposit for up to 6 months.

But look at it this way - is the reward of 20%pa, not worth the Risk and the inconvenience?

Let us take a look at this a bit closer:-

If you check the PDIC website, you will see there are currently some 746 Rural Banks listed.

The PDIC records some 382 Rural Banks as having been closed (between 13 June 1961 and 19 January 2006 = 44.5 years).

This is an average of 8.58 Rural Banks getting closed per year, which is 1.15% of the Total. (assumes Total Rural Banks, over period = 746)

Suppose you placed Php100K in a Rural Bank - 5 Year Time Deposit. You picked 1 of 12 Banks, offering 20%pa to put your deposit in. That particular Bank happens to be one that fails and gets closed some 6 months after you placed your Deposit. You will only have received 6 monthly Interest payments (Php100K x 20/12 x 6), Php10K. It then takes 6 months before the PDIC returns your 100K Deposit./ So in 12 months you only received Php10K (10%).

That 1 Bank (out of 12), just 0.134% of the Total Rural Banks, just happened to be that closed, six months later. Pure mathematical odds of that happening must be pretty slim. Pick a good Bank with a long 'track record', and good Capital investment, and the odds reduce considerably more?

But provided the Bank was in business for at least 6 months, you still made 10%pa Interest, (even waiting 6 months to get your Deposit back).

Compare that with any other Bank offering Peso Time Deposit over 364 day period
(e.g. BPI Family Savings Bank Php100K, 360-364 days = 2.875%).
Php2,875, compared to Php10,000, (and you were unlucky to select a Bank from the 1.15% that fail, on average, each year)! What would you rather end up with after 12 Months?

Every month that Rural Bank stays in business, paying you 20/12% Interest, you are making more and more money over what you could get in a Commercial Bank.

After 60 Months, you will be considerably better off - anything for 2, or 3 times to 5 times better off. Your Deposit will have at least Doubled (perhaps more, if you re-invested, your Monthly income, in other Savings products).

This is fundamentally why I considered the RISK, fairly low (given the PDIC insurance, and only 1.15% Banks failing, on average. Yet the REWARD is HIGH, making it too good an investment NOT to consider seriously.

It also beats the Philippines inflation (6.2%* officially last year) , by a comfortable margin.
*Average annual Headline Inflation Rate - National level, 2006 http://www.census.gov.ph/data/pressrelease/2007/cp0612tx.html

If you are earning less than 6.2%, after Tax, your spending power is being eroded.

So do you still want to dismiss these 12 x Rural Banks?

20%pa Interest
- Credited Monthly
- Tax Free Payments (5 year minimum saving accounts, exempt the 20% Withholding Tax)
Each Deposit insured by PDIC (up Php250,000, per Deposit, per Bank)
- Joint Accounts, carry separate PDIC Insurance (up to Php250,000 also)

So perhaps they are worth looking into after all?

NB: There is also the 6 Year 'Hybrid' Time Deposit/SSD, you might care to consider?

This is essentially the same as the 5 Year Time Deposit, except having Term of 6 Years (72 Months), AND there also being an Advance 20% Interest payment *
(* Interest for months 61-72, paid up front, in lump sum - tax free).

NOTES
If terminated, for any reason, prior to the Maturity Date, there will be 'claw backs' and deduction (from the Deposit). Notably:-

Reduction in Interest Rate (applicable for length Deposit held) the
Advance 20% Interest up to month 61 (pro-rata, thereafter), 6 Year 'Hybrid Deposits only
Payment of Withholding Tax
(depends how long the deposit was held, prior to termination - e.g. 3 Years = 12% Tax rather than 20% ).

A friend of mine, needing additional funds (to complete the building of his house), and not finding cheap loans, decided to terminate his 6 Year 'Hybrid' Time Deposit. He was able to get hold of the money within 2 days, and the amount was higher than he expected?

Certainly he was pleased to have placed such Time Deposit, and happy with 'net' proceeds , and received the 'Cash' very promptly, after requesting the Termination.

He said it was still considerably more than any shorter Term savings deposit in any other Bank, would have produced.

If you would like to consider such a 6 Year Hybrid Time Deposit/SSD, or a 5 Year Time Deposit/SSD, that me and my friends invested in, contact me, via e-mail.

If you don't fully understand something that I posted, or have a question that I have not yet covered with an explanation/answer, or simply disagree with what I wrote - post a Comment (or send me an e-mail).

Cheers,

Brit in Cebu

"A New Car, and Your Money Back!"

2007-04-10T18:33:00.000+08:00

"New Car, and Your Money Back in 5 or 6 Years!"

Sounds great, doesn't it, but is it possible?

This could be achieved, using the "Double Your Money in 5 Years" Time Deposits, but in practise, would mean you covering any Deposit on such a car, and depositing funds, rather more than the cost of whatever car you want to buy?

However it is a better way to buy a car than taking money out of you Bank Deposit to buy a vehicle for CASH (IMHO) - here's why:-

Dealers don’t seem to offer discount for CASH, (well not here in Cebu, on latest models, anyway).
Once the car leaves the showroom, having been bought for CASH (and insurance sorted, and LTO fees, number plates, delivery charges etc), it has already depreciated, and quite considerably usually.
Try selling, and almost impossible, to get back what you paid for it!
Taking money from the Bank, lowers you capital held, and perhaps you ’status’ with the Bank.

So what is the Alternative?

Well it my case, it was utilising the - 6 Year ‘Hybrid’ CTD from certain Rural Banks,

Rather than withdrawing funds from a commercial bank, to buy a car, for cash, I ‘borrowed’ against the funds, I had on deposit.

I borrowed Php1M, and placed these as Php250K deposit, in my name, Php250K in my wifes name. We also opened a ‘Joint’ account with me and my wife, for another Php250K, and also with me and my 21 year old step-daughter.

So 4 x Php250K deposits placed in 6 Year Hybrid CTD, all covered by PDIC insurance.

With this ‘Hybrid’ TD, you get the interest for months 61-72, up front, in ‘advance’.
So we received Advance Interest of Php200K Cash (this being 20% of Php1M) immediately!

The vehicle I bought, was a Hyundai 1.5CRDi VGT, costing Php700K, in Cebu.

This 'Advance Interest' of Php200K covered the 20% Deposit on the Hyundai purchase, as well as the LTO Fees (3 Years worth), Delivery Charges, Fully Comprehensive Insurance, and some extras on the vehicle like extended anti-corrosion treatment, high level spoiler with LED Brake Lights, and Wireless Central Locking/ Alarm.

The 80% Balance on the car was funded via a 48 month AutoLoan of Php15,262 a month, in arrears.

Since the monthly Interest from the Php1M 6 Year ‘Hybrid’ CTD, was to be Php16,666.67 a month, this easily covered that. The balance could be used for vehicle services or saved up to cover the Comprehensive Insurance renewal.

So at the end of 6 years, I have:-

6 year old vehicle, (fully serviced, insured, and maintained)
Extras:
- Anti-Corrosion Warranty,
- Hi Level Spoiler/Brake Lights,
- Remote Central Locking & Alarm system
Php200K (interest from months 49-60),
Php1M refunded Deposit.

Seemed a better deal to me, than having withdrawn Php700K from a commercial Bank, to buy the Hyundai Matrix 1.5CRDi VGT, for cash!

The point here is that it can be done - because I am doing it.

BUT think you need the 6 Year ‘Hybrid’ TD, with the 20% ‘Advance Interest’, to cover the Deposit on a new car, You probably need to Deposit more than the purchase price, to fully cover the Auto Finance over 5 years, or less, as well as LTO Fees, insurance, service costs etc.

How to "Double Your Money in 5 or 6 Years"

2007-04-10T15:15:00.000+08:00

When you see an Advert that proclaims -

"Double Your Money in 5 Years!"

What do you think, a 'Scam', and perhaps "Too Good to be True",
or what?

Well, I too was very 'sceptical' of such claims. However, rather than just 'dismiss' it, I decided to 'investigate' to see if it could be true - I'm glad I did, because it's not a scam!

I actually found a foreigner, who had put money into such "Double your Money in 5 Years" Time Deposits, here in the Philippines. Whilst it was High Risk potentially, he did receive, Interest Payments (totalling his Deposit), together with the returned Deposit, after 60 months.

Seems some Banks only offer, "Double your Money in 6 Years", now, but this is still a lot better than most Commercial Banks were/are offering for Peso Time Deposits.

One Bank, offering such a 'product' is http://www.firstcountryfinancial.com/labels/Deposits.html

Rates:12% for P3,000,000-P4,999,999.

Bankers Club Pensionado
Yes, you can retire rich!This is a long term special savings account that will double your money in 6 years, and lets you immediately have your interest income credited to your regular savings or checking account with First Country Bank every month, tax free!
Live off the interest on your investment and enjoy your dream retirement.

For:High net-worth individuals who want a high return on their deposit, but want to enjoy regular monthly interest income.

Benefits:

Doubles investment in just 6 years
Credits interest every month
Exempt from withholding tax
Loan against deposit

Rate:12% compounded (or 16% straight)

This is not the only such 'Rural' Bank offering such good Interest Rates
I also found this one from a 'Google' search:-
http://www.carloanphils.com/contact.html

Well that Website, also promotes Auto Loans on vehicles up to 15 Years old, with an Interest Rate for such Loans as low as 7%!

Do you think 7% pa Interest on a Loan where they offer up to 50% of a vehicles value as 'collateral' for such loan, is good rate?

Well perhaps 7%pa, seems a little 'high', to those in Western countries right now?

Well, not here in the Philippines - the cost of 'borrowing' cash is HIGH.

Pawn Shops/Money Lenders, will ask 3% per month (36%pa - or higher, as APR) typically!
That is for 'secured' loans' with collateral.

I was very happy to have discovered some Rural Banks, here in Cebu (and other parts of the Philippines), that pay 20%pa, with Interest credited monthly (tax free).

This is still the 'Double your Money' in 5 Years'.

In fact you can earn an even Higher Rate, than this?
If you invest the monthly Interest payments into other, shorter term Peso Time Deposits*, and then 'Roll these over', along with subsequent interest payments. Once you deposit has accumulated sufficient, you can move up to next 'tier', and for longer period, whilst other deposits build to similar levels.
Compound Interest on those Interest Payments

*Katuparan Special Savings
http://www.firstcountryfinancial.com/labels/Deposits.html

Rates:

-- RANGE --------------- 30 Days --60 Days -- 90 Days -- 180 Days
P5,000-P19,999 ---------------5% -- 5.25% ------5.50% -----5.75%
P20,000-P49,999 -----------5.75% ----- 6% ------6.25% ---- 6.50%
P50,000-P99,999 ---------- 6.75% ----- 7% ------7.25% -----7.50%
P100,000-P499,999 ---------7.75% ----- 8% ------8.25% -----8.50%
P500,000-P999,999 ---------8.75% ----- 9% ------9.25% -----9.50%
P1,000,000-P2,999,999 -----9.75% ---- 10% -----10.25% ----10.50%
P3,000,000-P4,999,999 ----10.75% ---- 11% -----11.25% ----11.50%
P5,000,000-Up ------------- (N E G O T I A B L E)

I just used FirstCountryFinancial.com as an illustration, as they have Rates that can be checked on their website.

For example, say you were to place a 5 Year Time Deposit of say Php240K with a Rural Bank offering 20%pa.
(Not advisable to place single deposit, in any 1 Bank, higher than Php250K. - limit for the PDIC insured Deposit.
See http://www.pdic.gov.ph/faq.asp for more info).

This would earn you Php4,000 a month, tax free interest, each month, for 60 months.

You would need 2 months Interest, to start placing Deposit in First Country Rural Bank, as an example.
After 5 months, you would have 20K, plus 4 months, accumulated, compounded interest, and able to earn higher interest at next 'Tier'.

At the end of 24 months you could have accumulated Php92,995.80 in Interest in this way, using those Rates.
At the end of 60 months you could have accumulated Php289,536.65 in Interest (120.64%, or 24%pa straight).

This, together with your Deposit of Php240K, gives a Total = Php529,536.65 (220.64%).

More than Double Your Money in 5 Years!

That was just a worked example, to show the effect of Compund Interest, applied to a Time Deposit offering 20%pa.

The Rural Banks offering 5 Year Time Deposits of 20%pa, may well have 30/60/90 Day Time Deposits etc, better than those of First Country Rural Bank, perhaps?
(But they don't have Websites 'advertising' such Rates).

Anyone wanting to check if a Rural Banks is 'genuine', can check /search the following websites:-

If Rural Banks offering 20%pa via Monthly Interest payments (rather than 12%pa) has interested you, then contact me, for more information, or stay 'tuned' to My Blog, for more 'posts' on such Banks and Deposits.

Early Retirement - How to Afford it?

2007-04-10T12:44:00.000+08:00

Whilst the 'Cost of Living' in the Philippines, is considerably less than civilised Western Countries, you still do need some form of income to live off, and which beats inflation.

There has been much discussion on the Cost of Living on various Yahoo Groups and Forums that provide information on Living In The Philippines, and that of Cebu in particular.

It really comes down to what 'Life Style' you live I guess.

It also depends if you are married, or hoping to find someone to marry. Those married can buy land in their wife's name as a Foreigner cant own land in the Philippines. You can Lease Land for up to 50 Years however. You can also own the house built on Leased land or land owned by your wife.

Cost of building a house is very reasonable in the Philippines, due to relatively low cost of labour. I had a 105 sq m floor area, 3 storey 'extension' built a couple of years ago for Php1.3M.

http://www.cebuliving.com/david/spgm/index.php?spgmGal=Our_House

(In the UK, my sister spent more than that, on just a 'Conservatory' and kitchen make over).

Many just Rent a place to live in - some furnished, others buy their own furnishings. Rents in Cebu vary according to location, and size. Perhaps from as low as Php4,000 for non-furnished, away from Cebu City, to Php15,000 a month, or even as high as Php50,000, for large properties near the beach, with swimming pool perhaps?

4 BR, 2TB, located in Pacific Grand Villas subdivision, Mactan. Furnished at Php30K/mo.

Coral Point Condo: CE unit - 2 BR, 2TB, beach front, very quiet, furnished at Php50K/ mo.

Ignoring the cost of accommodation, a couple can live reasonably well from Php20,000 a month (or less) in Cebu, to Php50,000 (or more), depending on how much you like to eat/drink out , travel, socialise etc.

Many Filipinos (over 40%, 34 Million+ according to World Bank 2004 figures), live off less than US$2 a day.

Fortunately, I had some 'Private Pensions' in the UK, and under current UK law, one could convert these into an Annuity from Age 50. You can also elect to take up to 25% as a Tax Free Cash Lump Sum, which is what I did.

The 75% balance, of my Private Pensions, converted to an Annuity, pays me almost £300 a month. This is no where near enough to consider retirement on in the UK, or Europe.

Converted to Peso, however, is currently about Php28K a month.

The 25% cash, was converted to Peso, when it was about Php107 = £1.

This 'capital' was placed into a 5 Year 'Term' Deposit with HSBC. At that time, about 3 years ago, the Interest Rate on such a Deposit was 8.3%pa, with Interest paid Tax Free (no 20% Withholding Tax deductions on savings with maturity of at least 5 years) monthly, into my ATM account.

The other good thing about this 'Term Deposit' is that HSBC allow you to borrow money (up to 85% on Deposit currently , was 90%) via AssetLink, where the Interest on such loan, is never higher than the Deposit Rate +1%. I took advantage of this AssetLink Loan to pay for building my house.

My 'Ex' got to keep our house in the UK, from our Divorce. I had my Pension, some of the 'With Profit' Endowment type policies, an Apartment in Cyprus (subsequently forced to sell to pay Solicitor Fees, and Credit Card bills), and my Triumph Trident T160 motorbike.

After my 'retainer' income stopped in 2002, and was forced to sell my Triumph Trident T160 to help pay my son's University education, - how I miss that bike.

I do have another motorcycle, but it's a bit of a let down from the 750cc 3 cylinder Triumph.

It's a Chinese motorbike -
'Lonsin' T200 'Terminator'
200cc, Single cylinder, 'Cruiser' style, motorbike.

Bought this off a friend for just Php40K.

I sold up my 'With Profits' Endowment type Policies - I needed the money to live off, more than the 'Life' cover, in case I die?

NEXT: How to "Double Your Money in 5 Years?"

Permanent Residency in the Philippines

2007-04-10T10:22:00.000+08:00

Many foreigners with extended stays in the Philippines, or living/retiring there, simply keep extending their 'Tourist' Visa.

Many foreigners can avail of a 21 day 'Visa waiver'.

Visa Extension - submit application for initial extension of 38 days, followed by up to 5 repeated applications of 59 days stay. One must leave the Philippines before 12 months from date of arrival. The process can be repeated on next arrival to the Philippines.

There is now something called the ACR I-Card (Alien Certificate Registration - electronic card).

http://immigration.gov.ph//index.php?option=com_content&task=view&id=114&Itemid=61

All registered aliens, including their dependents, who have been duly issued paper-based ACRs are required to replace their ACRs with the hi-tech microchip-based ACR I-Card.

All aliens who have been duly issued immigrant or non-immigrant visa and all other aliens who are required to register under the Alien Registration Act are required to register and apply for the ACR I-Card. They are the following:

Native-Born
Permanent residents under:
a. Section 13 and its sub-sections
b. Republic Act Nos. 7919 and 8274 (Alien Social Integration Act of 1995)
c. Executive Order No. 324 (series of 1988)
d. Note Verbale No. 903730 dated Sept. 17, 1990 between Philippines and India
Temporary residents under:
a. BI Law Instruction No. 33 (Series of 1988)
b. BI Law Instruction No.13 (Series of 1988)
c. BI Law Instruction No. 48 (Series of 1988)
d. BI Memo Order No. ADD-01-038 (series of 2001)
e. BI Memo Order No. ADD-02-015 (series of 2002)
Temporary visitor under Section 9(a), PIA –one who is coming for business or pleasure or for reasons of health if his stay exceeds six (6) months
Treaty trader under Section 9(d), PIA
Temporary student under Section 9(f), PIA
Pre-arranged employee under Section 9(g), PIA
Such other aliens as may be required by law to register
For those who are required to register but exempted from immigration fees, they may opt to avail of the ACR I-Card subject to payment of the card fee.

For those not married to a Philipino spouse, there are just 2 alternatives to extending a Tourist Visa, better suited to Permanent Residence in the Philippines.

Special Resident Retirement Visa (SRRV)
Non-Immigrant Multiple-entry Visa and permanent Residency

http://www.plra.gov.ph/main/index.php?pid=6&lang=
IMMIGRANT VISA - Quota Visa
Only 50 applicants are approved annually for other categories of aliens whose countries accept Filipinos as immigrants on a reciprocal basis. The Philippine Consulate General receives the completed immigrant visa application with enclosures indicated below and, in turn, is forwarded through the Department of Foreign Affairs (DFA) for appropriate action by the concerned agencies in the Philippines. When authority from the DFA for the issuance of the visa allotting quota number is received, a personal interview with a consular officer will follow prior to the actual issuance of the immigrant visa.

http://www.gov.ph/faqs/visa.asp

For those single foreigner guys out there, getting married to a Filipina is not such a bad thing?

Apart from discovering that Filipina's have a charm, and shyness about them, they are sexy, brown, warm loving creatures. Once married, there are a couple more options open to a long term stay in the Philippines.

Balikbayan Visa
A Balikbayan is defined as:-
● Former Filipino citizens holding foreign passports, including spouses and children traveling with them;
● Filipinos who have been continuously out of the Philippines for at least one (1) year; and
● Filipino overseas contract workers
On return to the Philippines, Balikbayan privilege can be requested of the Immigration Officer.

Valid for 12 Months period.
There is no cost involved for a Balikbayan Visa (No ACR I-Card either?).

NB: It is a privilege, not a right!

IMMIGRANT VISA - Non Quota Visa (13A)
You can apply for a 13A Visa in whatever country you happen to be living in with your Filipina spouce.
There are some advantages to this, over obtaining one after living in the Philippines.
● Permanent Residence Visa immediately (no need to go through 12 Months 'Probationary')
● Exemption from customs duties on importation of personal effects worth $7,000
You have to take some simple Medical Tests and Police background clearance and send it in to a Philippine Consulate or Philippine Embassy within your country of Residence. Depending on country this can take 2-4 weeks for approval. Once approved, you will have 6 months to enter the Philippines......and live in the Philippines hassle-free for good.

There is absolutely no need to leave the country on visa runs, no need to visit the Immigration office every 2 months, but once a year you are required to check-in at Immigration for Annual Insection costing Php330.

As mentioned, obtaining a 13A Visa in the Philippines, requires a 12 Month 'Probationary' Permanent Residence Visa first. There is then a 'Conversion' Ammendment from Probationary to Permanent Resident.

This is the route I took to getting a 13A, since we were married in the Philippines, after settling here from Hong Kong.

The Cost 13A - 12 Months Probationary at that time for me - Total Application/Cert. fees just Php6,436+ Php1500 Express Lane fee (optional).

Cost - Probationary to Permanent Resident = Php3,700 + Php500 Express Lane fee (optional)

You also need (like any foreigner staying beyond 6 months) the ACR I-Card which cost US$50.

It has just been announced that those Permanent Residents, holders of ICR (Immigration Certificate Residence), only have to renew their ACR I-Card, every 5 years.

The ACR I-Card removes the need to apply for Exit Clearance, and Re-entry Permit, 2 weeks before leaving the Philippines for overseas visit and return with same Permanent Residence status.

This used to be the costs involved (but may have changed with the introduction of the ACR I-Card?):-

- 1st Departure cost = Php2,430 + optional Php500 Express Lane fee
- 2nd Departure cost = Php1,900 + optional Php500 Express Lane fee

I heard it may be possible to pay these Fees in advance, at the Bureau of Immigration and load your ACR I-Card, with the payment, before ones departure date. Doing so will avoid any long waiting lines at the ‘cashier’s booth’ at the Airport, and hopefully payment of the 'Express Lane' Fee? Not sure if BOI, Mandaue have the capability to 'load' ones ACR I-Card yet?

Anyway this is how I got to be 'Permanent Resident' in the Philippines.

NEXT: Early Retirement in the Philippines - How to Afford it?

Living in 'Paradise'

2007-04-09T21:36:00.000+08:00

It was not my first trip to the Philippines, as I had made many Business trips - Manila, mainly, but did take a few 'holidays' to Cebu to discover where 'Sha-Sha' came from.

Cebu was the Capital of the Philippines a long time ago, and they have their own dialect - 'Cebuano' or 'Visayan' (Bisayan), unlike 'Tagalog' as spoken in National Capital Region (NCR). Most Philipinos however understand Tagalog, wherever they come from, as they watch many Films and TV shows in Tagalog, as well as singing Tagalog Karaoke songs (of course?).

As 'Engineering Manager - Asia Pacific', I was on a pretty good salary, and could afford to stay in top Resorts back then.

I selected 'Plantation Bay' Resort and Spa, not because it was a bit cheaper than the 'Shangri-La', but because it was a bit different from such International 'chain' Hotels.

But, I was not on 'that' nice 'fat salary' any longer - just this 'Retainer' of US$1,000 a month.

I could no longer afford such 'upmarket' Resorts. I started by staying 1 week @ 'Cebu Marine' Resort in Mactan. After this it was just 1 week in the 'Golden Peak' Hotel (Php1,200 a night if I recall?)

'Sha-Sha' on the previous trip to Cebu we made together about 6 months earlier, had decided to use her life savings (from working abroad 10 years) to put down a Deposit on a 'House & Lot'. This was in a Subdivision, South of Cebu City and was a 120sq m lot, with just a 30sq m 2 bedroom 'bungalow'. She said it was so her daughter could live there, whilst attending San Carlos University.

Well we would all be living there now, and I offered to pay the 2/3 balance on this House/Lot purchase, offered as 24 Interest Free monthly payments of just over Php18K/month. I did not mind, as this was not not much more than renting a decent house - but after 24 months, nothing more to pay!

1st May 2001 - Relocation to Cebu, Philippines.

2007-04-09T20:52:00.000+08:00

This American company I was working for - 'Netrix'. promoted me to 'Engineering Manager - Asia Pacific', based in Hong Kong, I relocated in 1997, just before the 'handover' to China.

This was my first experience of the 'Far East', and I enjoyed it - (probably too much, as it led to me getting a divorce from my English wife). I would probably still be in Hong Kong had Netrix not decided to close their Asia Pacific office, when the Telecom recession hit towards the end of 1999. In May 2000, all in the Netrix Hong Kong office, were made redundant.

My boss got together with his ex-boss, and formed their own start-up company - 'Congruent' International Ltd. Basically we were 'outsourcing' our experience, skills, knowledge, as well as extensive contacts, formed over many years in Asia, together with the office, and communications. The Business Plan was, with 3 'clients', each saving 60% of what it was costing 'Netrix', we would be profitable. Sign up more clients,having 'complementary' product offerings, and we really start to make some good money.

Well it was looking good initially having reached profitability within 7 months. But even 60% savings was not enough for some clients, and went bust, or withdrew from the contract with Congruent. However one company, Sonoma Systems, was doing particulary well with their ATM 'migration' products. So much so that 'Nortel' Telecom bought them out. Things got worse, and was on 50% 'defered' salary for more than 6 months. I was spending more than that each month, with the high cost of living in Hong Kong.

(OK, so 9 months after the 'handover', property values slumped, and Rents fell accordingly. I was able to change from US$1,200 a month rent to US$800, and a bigger apartment, closer to central Hong Kong, where I worked).

It was look for another job, or accept 'relocation' to elsewhere in Asia with Congruent. Gone was the 50% Salary, but rather a 'Retainer' of US$1,000 a month plus full expenses, and increased 'Sales Commission'.

I guess it was down to the sexy, brown, and warm loving Filipina, whom I had met in 1998, working as an OFW (Overseas Foreign Worker) for 7 years there as a Domestic Helper. She offered to quit working in Hong Kong, and take me back to her home in Cebu, Philippines and we could live together there together.

So that's how I ended up relocating to 'Paradise', nearly 6 years ago.

My 'Divorce' was finalised in June 2001, and me and 'Sha-Sha' were married in June the following year.

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1st May 2001 - Relocation to Cebu, Philippines.

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