Saturday, December 8, 2012

How to save 10 million Pesos in 20 years for retirement in the Philippines


Getting ready for your retirement is one of the important things we should consider while our physical bodies are still strong to work. Saving for retirement takes great responsibility, discipline, and a positive attitude. For Filipinos working overseas abroad especially in North America - USA and Canada, or in other countries where extra money for savings is practical, Pinoys should take this opportunity to save (dapat samantalahin nating mag-ipon). The table and computation of savings below is very possible and realistic. If you manage to save $1000 (American or Canadian) per month consistently for 20 years, you will be able to save $240,000 Canadian or US dollars at the end of 20 years. This is approximately 10 million to 12 million Philippine Pesos depending on the exchange rate. If you are, for example 40 years old in the year 2014, based on the table below, you will have at least 10 million pesos in the year 2034, at which time you are 60 years old, ready for retirement. For an average style of livelihood and moderate cost of living, this retirement money sounds reasonable and livable when you retire in the Philippines with your loved ones. The sacrifice and hardwork is finished abroad overseas. Now, it is time to retire, relax, and enjoy your savings and your life!

Saving $1000 per month for 20 years:

1000 x 12 = 12,000 after 1 year

12,000 x 20 = 240,000 after 20 years

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$240,000 Savings at age 60 (retirement)
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#     Year    Age   Savings
01   2014    40      12,000
02   2015    41      24,000
03   2016    42      36,000
04   2017    43      48,000
05   2018    44      60,000
06   2019    45      72,000
07   2020    46      84,000
08   2021    47      96,000
09   2022    48    108,000
10   2023    49    120,000
11   2024    50    132,000
12   2025    51    144,000
13   2026    52    156,000
14   2027    53    168,000
15   2028    54    180,000
16   2029    55    192,000
17   2030    56    204,000
18   2031    57    216,000
19   2032    58    228,000
20   2033    59    240,000
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21   2034    60  $240,000

 --> 10 million to 12 million Pesos
 -->    at age  60  (year is 2034)
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Note:
This table is based on Canadian and US Dollar exchange rates monetary conversion to Philippine Pesos.

*** These figures does not take into account interest rates. This is just for simple computation. For example, a savings account interest rate of 1% for a bank in the Philippines, and based on simple interest computation of $240,000 for 20 years, would yield $242,400 which is greater.

   

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