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Financial Life Stages

Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

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Page 1: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Financial Life Stages

Page 2: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Worksheets

• Accomplish Money In, Money Out• Use estimates if exact figures are not available• Answer honestly

Page 3: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Active vs. Passive Income

Active• Income derived from labor

or work• Primary income – main

source of income such as salaries

• Additional income – income from sideline, over time pay, part time

• Should only be used to fund basic needs

Passive• Investment income you earn

even when you do not work• Income earned from assets,

investments or both• Usually from rent, dividends,

interest, pension, royalties and capital gains

• Use passive income only to fund periodic wants and further increase investments

Page 4: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

83% of SEDPI Training Participants DO NOT

have passive income

Page 5: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Financial Life Stages

Financial Life Stage

Passive Income

ExpensesSuggested Age

Start Up 0% 21-22Independence 1% to 10% 23-25

Growth 11% to 25% 26-3526% to 50% 36-45

Stabilization 51% to 75% 46-5576% to 99% 56 - 65

Freedom > 100% >65

Page 6: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Features of Financial Life Stages

• Not about age• You can regress• Measured against ability to generate passive

income to cover expenses

Page 7: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

ROAD TO FINANCIAL FREEDOM

Page 8: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Childhood

• 10 years old –Opened my first time deposit

• 12 years old – Sold ice buko

• 15 years old –Assisted in the family business

Page 9: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Start Up Stage: College Days

• 20 years old – Sold personal computers and mobile phones

• 21 years old – Tutor, Rummage sale

Page 10: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

BSManagement2000

MastersinEntrepreneurship2004

Page 11: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Financial Start Up Stage

• Experience a lot of firsts– Join the workforce– Receive salary– Pay tax

• No passive income• Financial milestone: Purchase medical insurance• Estimate age: 21-22 years old

Page 12: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

What to watch out for…

Benefits• Daily living is heavily

subsidized• Live rent-free• Free utilities• Free food

Warnings• You become oblivious of

your responsibilities• Your forget to plan for the

future• You purchase wants –

gadgets, vacations – and forget about investing

Page 13: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

What you need to do…

• Chart your financial goals• Purchase term insurance (limited pay)• Build emergency savings• Practice 5-15-20-60 budgeting

Page 14: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

SIR VINCE’S FINANCIAL INDEPENDENCE STAGE

Page 15: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

21 years old – NGO Employment

• Fields– Microfinance– Microenterprise Dev’t– Eco-enterprise Dev’t

• Acquired knowledge, skills and network through employment

Page 16: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive
Page 17: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

What you should do…

• Earn more active income and invest these to create passive income

• Harness the power of compounding interest early

Page 18: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Sir Vince’s Independence Stage

• 2000 – NGO Employment; Part-time Consulting

• 2002 – Established computer shop (closed)

• 2003 – Swine raising (closed)

Page 19: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

SIR VINCE’S FINANCIAL GROWTH STAGE

Page 20: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

provides services on

Training

ConsultingResearch

25 years old– Established SEDPI

Page 21: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

SEDPI is the Philippine’s premiere capacity builder in the fields of

Microfinance

SocialEntrepreneurship

FinancialLiteracy

Page 22: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

26 years old – Residential rental property

Page 23: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Rental PropertyYear Annual Rent Interest

ExpenseCumulativeNet Income

2006 192,000 69,533.73 122,4662007 216,000 67,238.61 271,2282008 240,000 64,840.26 446,3872009 240,000 62,333.97 624,0532010 264,000 59,714.93 828,3392011 264,000 56,977.98 1,035,3612012 288,000 54,117.89 1,269,2432013 312,000 51,129.08 1,530,1142014 336,000 48,005.79 1,818,1082015 360,000 44,741.98 2,133,3662016 384,000 41,331.23 2,476,035

Page 24: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Property Market ValueYear Market Value Loan Balance Equity

2006 2,000,000 1,548,998 451,001 2007 2,120,000 1,495,701 504,298 2008 2,247,200 1,440,005 559,994 2009 2,382,032 1,381,804 618,195 2010 2,524,954 1,320,983 679,016 2011 2,676,451 1,257,426 742,573 2012 2,837,038 1,191,008 808,991 2013 3,007,261 1,121,601 878,398 2014 3,187,696 1,049,072 950,927 2015 3,378,958 973,278 1,026,721 2016 3,581,695 894,074 1,105,925

Page 25: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Capital AppreciationYear Equity Market Value Capital

Appreciation2006 451,001 451,002 -2007 504,298 534,557 30,258 2008 559,994 629,209 69,215 2009 618,195 736,281 118,085 2010 679,016 857,242 178,226 2011 742,573 993,731 251,157 2012 808,991 1,147,570 338,578 2013 878,398 1,320,786 442,388 2014 950,927 1,515,634 564,707 2015 1,026,721 1,734,624 707,903 2016 1,105,925 1,980,545 874,619

Page 26: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Economic Value: Rental Property

Year Cumulative Net Income

Market Value EconomicValue

2006 122,466 451,002 573,468 2007 271,228 534,557 805,784 2008 446,387 629,209 1,075,597 2009 624,053 736,281 1,360,334 2010 828,339 857,242 1,685,581 2011 1,035,361 993,731 2,029,092 2012 1,269,243 1,147,570 2,416,813 2013 1,530,114 1,320,786 2,850,899 2014 1,818,108 1,515,634 3,333,742 2015 2,133,366 1,734,624 3,867,990 2016 2,476,035 1,980,545 4,456,579

Page 27: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

PSEI vs RentalYear PSEI Economic

Value2006 569,160 573,468 2007 691,131 805,784 2008 357,384 1,075,597 2009 582,536 1,360,334 2010 801,686 1,685,581 2011 834,314 2,029,092 2012 1,109,221 2,416,813 2013 1,123,973 2,850,899 2014 1,379,790 3,333,742 2015 1,326,668 3,867,990 2016 1,305,441 4,456,579

Page 28: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

PSEI vs Rental

569,160

691,131

357,384582,536

801,686834,314

1,109,2211,123,973

1,379,7901,326,668

1,305,441

573,468

805,7841,075,5971,360,334

1,685,5812,029,092

2,416,8132,850,899

3,333,7423,867,990

4,456,579

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PSEI RentalProperty

Page 29: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

SIR VINCE’S FINANCIAL STABILIZATION STAGE

Page 30: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Development Finance

Loans

SharedResourceEquity

28 years old– Established SDFI

Page 31: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Financial Resources

0.1 0.6 4.6 8.2 17.0 26.6

76.3

122.0150.0

195.0

242.0268.0

345.0

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

In‘000,000PHP

Page 32: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Invested in Cooperatives

• Abuyog Saint Francis Xavier Cooperative• Bansalan Cooperative Society• Nueva Segovia Consortium of Cooperatives• Panabo Multipurpose Cooprative• Pantukan Chess Club Cooperative• Sacred Heart Savings Cooperative• Tagum Cooperative• USPD Multipurpose Cooperative

Page 33: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

What to watch out for…

• Ignoring acquiring knowledge and skill in investing

• Planning for retirement is too late• Rate of increase in lifestyle is faster than the rate

of increase in income• No family planning

Page 34: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

SIR VINCE’S FINANCIAL FREEDOM STAGE

Page 35: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

31 years old – Billboard Business

Page 36: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

32 years old – Incubation Company

Page 37: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

33 YEARS OLD: 10TH YEAR ANNIVERSARY

Page 38: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

34 years old – Rural Bank

Page 39: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

36 years old – Commercial Properties

Page 40: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Traditional Investments Exposure

• No VUL• 2011 – Stock market (sold in 2013)• 2013 – bought bonds• 2014 – bought UITFs and Mutual

Funds (sold in 2017)

Page 41: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

PSEI vs Coop and Rural Bank

1,305,441

1,534,344

759,319

- 200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PSEI Coop RuralBank

Page 42: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

FinalistEntrepreneur of the Year 2012

Ernst and Young – Philippines

Page 43: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Special Recognition2015 Developmental Social Enterprise Awards

Isla Lipana & Co. (PwC Philippines) and BCYF

Page 44: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Sir Vince’s Financial Freedom

• 2016 – Wrote a book and started an online talk show

• Financial literacy as advocacy – Go LSE!!!

Page 45: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

CLASS PICTURE

Page 46: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive
Page 47: Financial Life Stages - Vince Rapisuravincerapisura.com/.../2017/10/2-flyp8-financial-life-stages-170421.pdf · 02/10/2017  · Financial Life Stages Financial Life Stage Passive

Websitewww.sedpi.com

Telefax+632-433-8795

Office AddressUnit 303, Loyola Heights Condominium23 Dela Rosa Street, Loyola HeightsQuezon City