Pacific Plans, now APIC, Pre-need Claims

It's one of those days when I went to Makati with passengers I took to Peak Tower on L.P. Leviste St. (formerly Alfaro) that made my daily drive lively. They instantly thought of me for they don't know how to get to Makati.

It was only now that I've learned that Pacific Plans was acquired by the former owner of Asian Spirit (now ZestAir) and renamed it Abundance Providers and Investments Corp. (APIC) with offices at the 19th and 21st floors of PEAK Tower at 107 Leviste St., Salcedo Village, Makati.

One of my passengers went to APIC office to terminate her educational plan for her daughter, something I advised her not to do since her plan is still honored by APIC.
She just wanted to be sure so she went for it. She's actually on her third time to visit the APIC office and claim her plan. She also said she'll be able to get the full amount plus interest some later time.

With the current mess of the pre-need industry, I remember the time when I got offers left and right from CAP agents and other pre-need firms, ten years ago about the wisdom of investing in a zero-age educational plan was well worth it. My risk-averse attitude got the better of me as well as my low salary back then.

I just have a program of preparing for my child's education in the future this early. I just hope he'll grow up to be a responsible son.

Slowdown, Recession, Depression and St. John's Wort

Recent news about the Philippine economy to experience recession next year but the government quickly announced a slowdown, not a recession next year.

Slowdown is defined as a smaller growth rate of GDP (gross domestic product) while recession is already there when GDP shrinks for two consecutive quarters.

to further add to the definition, here's how to define recession and depression, according to a friend of mine: "Recession is when your wife loses here job; depression is when you lose your job."

'Til then I don't know if St. Johns Wort can cure your depression, much more the economic depression.

Cheep up, people! a little sense of humor to lighten up these gloomy days.

Chinabank High Interest Deposit Certificate Offering

Two weeks ago, I received a text message from a Chinabank insider informing me of a special product offering with much higher interest rates than their regular time deposits.

The message said "Good day, chinabank will be launching a new product called the Long-term Negotiable Certificates of Deposit (LTNCD). Minimum amount is P50t. PDIC insured. Term is 5 years. NO withholding tax. Indicative rate projected at 8% to 8.5%..an account opening fee (1 time charge) at P75 per cert will be charged and account maintenance fee of 0.025% per annum based on face value whichever is higher deducted from the gross interest due on the LTNCD on interest dates. Quarterly interest payment...offering period starts on July 28 to August 8, 2008. Please reply ASAP if interested cause it is 1st come 1st served..."

I replied immediately upon receipt of the message to express my intention to invest part of my savings. But as fate would have it, I forgot my passbook the following Monday and decided to bring it the following day. The morrow, I was able to bring my passbook but totally forgot about going to the bank when my friend from Chinabank dropped by the office and asked me if I was able to open an account to which I replied no. She just told me that it's already closed the day before due to the high turnout and already reached P5B.

Oh well, the planned early morning trip to the bank didn't materialize and thus missed an excellent investment opportunity.

Better luck and be ready next time, Paetechie!

Is There Such a Thing as Cheap Car Insurance?

I just renewed the auto insurance of my Toyota Vios 2006 model at a cost of P16578.99. Note that half of my insurance premium is shouldered by my company which makes it quite affordable. I don't know which is the best motor vehicle insurance but it's convenient to just talk to my office's admin staff who renewed it for me; same staff I speak to if I need to claim accidents or damage to my car.

My car insurance Deductible/Participation fee went P2950.00/incident from last years P3250.00/incident since it's already two years old. Last year's premium was about P19000 so there's a P1,700.00 drop in annual premium and P300 deduction in deductible/participation fee.

Next year, I will really look for another insurance company to get a better and cheaper auto insurance to replace my insurance broker who's really making me broke.

Quiapo Frugal Food Finds and Shopping Tips

My humble contribution to Money Smart's Frugality week:

Last Monday, I went to Quiapo particularly on Hidalgo St. not to splurge once again on cameras, lenses, expired films for lomography or other photography equipment but to buy vegetables and other stuff. My ways of being frugal:

1. Didn't use my car, instead rode a jeep to Quiapo. It's hard to drive there due to lack of parking space.

2. Bought lettuce, apples, onions, broccoli, cauliflower at prices half or at least cheaper than SM on Hidalgo and P. Gomez St.

3. Withdrew cash from my own bank's ATM to avoid ATM charges/transaction fees

3. Didn't buy oranges though, I can buy them at 20% discount from my suki and stalls there don't have my favorite Valencia oranges or at least Navel.

4. For frugal food find, went again to Globe Lumpia House on Gonzalo Puyat St (formerly Raon) to sample their delectably good and surprising cheap lumpiang sariwa for only P16/pc washed down with Sarsi. The place, newly renovated, already got featured on several TV programs like Kay Susan Tayo. This is a place i've known for years whenever I go there to buy electronic stuffs.

Other Quiapo tips:

Quiapo Church where vendors sell herbal medicines including abortifacients called "pamparegla."

Quiapo's side streets are lined with traders selling pirated DVD movies and CDs.

Under Quezon bridge and Quinta market you can find handicrafts at prices you never knew existed in the big city.

On Globo de Oro St, near the Golden Mosque, waits halal restaurants like Moud's whose halal chicken is unknown to most Metro Manilans.

The other side of Hidalgo St, where the jeepney terminals are, you can find supplies for cross stitching needs.

For your electronic spare parts, DIY kits, appliances, head off to the various stores on Raon. You can also find tools and hardware stuff, trophies, guitars, and other musical instruments (reminds me of V. Mapa, Sta. Mesa)

On Paterno St, optometry shops abound where you can find cheap yet quality eyeglasses and contact lenses at a fraction of their prices in malls.

On Evangelista St, industrial pumps and generators are on sale while further north lies QP and other printing presses for wedding invitations and other events. (This is also near the so-called "Recto University" where almost every thing on paper can be faked e.g. school diplomas, drivers license)

If you feel like walking, nearby Sta. Cruz, you can see art supply shops and further down Avenida are medical supplies near Bambang. Nearby Arranque also have industrial tools and supplies at low prices.

This is getting longer, I know, and this post is more like a regular post on my budget travel blog so I'll just leave this as is and post a more comprehensive guide there one of these days. :P

The Downside of Low Interest Rates on Banking and Insurance

Almost everybody's talking about the good side of low interest rates in the Philippines as the time to buy a new house, avail of an auto loan or just borrow money. I don't need to be told of buying my own house since I've been paying for one more than a year already, at the lowest interest rate of zero for three years, that's been draining my bank account every month.

A casualty of the falling interest rate is my BPI Platinum account that used to enjoy 7% per annum but now earning very low interest due to small remaining balance and low interest rate. Been thinking of closing it after almost eight years but the weak sentimental side of me is holding on to it.

The biggest setback in the interest rate game is the effect on my Insular Life insurance I thought will self-liquidate after nine annual payments but, again, due to low interest rates, my insurance agent informed me i still have to pay the tenth installment, one or more than the original target of nine years.

Lesson learned: low interest rates, like the strong peso, is a two-edged sword. It's a blessing to some, and a curse to others!