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It’s Time to Earn a Tax-Free Dividend With MP2

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Written by   71
5 months ago

I am now on my second year with the Modified Pag-IBIG Program or more commonly known as MP2. I started last year and I am setting aside some amount every month because I want to build my savings portfolio. I will be using part of the amount to fund a business and another part for my retirement.

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It is said that the best time to save and invest was yesterday and the second best time is now.

I have been a member of Pag-ibig or the Home Development Mutual Fund (HDMF) more popularly known as Pag-IBIG since 2003. As an additional information, Pag-IBIG is an acronym which stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.

Just like SSS and GSIS, Pag-IBIG contribution is also mandatory to all employed individuals. For as low as Php 100.00 ($2.00) per month, we can already have a savings program that gives a good amount of dividend to its members. Not only that, as a member of Pag-IBIG, we are allowed to avail of their loan package which is equivalent to up to 80% of our TAV or the Total Accumulated Value during emergency or if we have projects which we need fund.

Suggested Reading: Why We Should Force Ourselves to Save?

Admittedly, when I entered the government service, it has been very difficult for me to save considering that I have to support my children by providing their basic needs as well as financing their education. Much as I wanted to set aside a certain amount, it seems that my take home pay was not even enough for our daily needs.

I needed to take every earning opportunity that would come my way. It’s a good thing that online earning opportunities were already available during that time.

I experienced working in a call review site, called Humanatic where I became an auditor and later on became a mediator. I also write for Bitlanders. These sites had helped me a lot financially until my children already finished their studies and started working.

It was a great relief when my children started earning on their own. I decided to start with MP2. Even before, I already believe that this is a good program though my financial situation was still shaky during that time.

Due to some queries regarding the program, I decided to write about my experience with MP2. Allow me to share with you this great savings program which I believe you should also have especially now that we are still strong and has the ability to work.

What is MP2

Image courtesy of pagibig.gov.ph

MP2 or Modified Pagibig is a special savings program of the Home Development Mutual Fund (HDMF), a government owned and controlled corporation known for its various programs that are beneficial to the working class be it on private or government offices. They also accept voluntary members and overseas Filipino Workers or OFWs.

MP2 is a 5-year savings program and offers annual dividend based on the income of the corporation. Meaning, we cannot withdraw our money anytime because it was locked for 5 years. The program has been implemented for several years and many Filipinos already experienced the benefits of joining this program.

Suggested Reading: Save More With a Small Income

Why I Decided to Join This Program

The program was launched in 2010 and much as I wanted to start during that time, my financial situation wasn’t that stable. It took me 11 years before I finally decided to create an account after I was promoted to the next position. I am already aware of the higher dividend of this program compared to the interest given by local banks in our area but I was only able to join the program last year.

What Are the Benefits We Can Get From MP2

With MP2, we can get higher annual dividend which we can either be withdrawn every year or after the 5-year term.

Who Can join the Program

The program is open to all members of Pagibig, as well as former members and retirees and even those who are working outside the country of the OFWs.

Is it safe?

Since it is a government owned and controlled corporation, we can be assured that our money is safe. The program has been in existence for 12 years and it is continuously gaining positive feedback from the members who availed of this program.

How much do I need to start with MP2

The minimum deposit is Php 500.00 ($10.00) and there is no limit on the amount we can save. We have the option to deposit on a monthly basis or a one-time lump sum amount. However if we opt to deposit and one-time payment in the amount of Php 500,000 ($10,000.00), we will be required to make such remittance via personal or manager’s check. Moreover, any deposit exceeding Php 100,000.00 ($2,000.00) shall be required to present a proof of income.

On the final thought…

MP2 is an investment program and we all know that any investment has a corresponding risk. So please be advised that before we enter into any investment program, we should read and learn about it. It is also imperative that we set aside first an emergency fund before entering in any investment program. This way, we will not waste the time and effort just in case we encounter some problems.

Disclaimer:

The content of this post is not for promotional intent rather for informational purposes only and should not be considered as a financial advice. Similarly, the opinions I have shared are of my own and does not in any way represent the organization I am currently connected with.

Special Thanks:

I would like to extend my thanks to my sponsors, namely: @Talecharm @Unity @Micontingsabit @JLoberiza . I wish you more success with read.cash as well as with other projects you currently have.

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Images courtesy of Pixabay. Lead image is from Pixabay and edited via Canva

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Written by   71
5 months ago
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Comments

Yes I like this reminder. I don't know when I will finally start doing it though. Lol.

$ 0.00
5 months ago

I hope you get what you want and be successful

$ 0.00
5 months ago

I'd like to join such investment program once I am older too :)

$ 0.00
5 months ago

It's very profitable to save because it saves the future but sometimes it becomes difficult to remove a portion of Earning to save because if cost of living and sometimes, someone's Earning is not matching.

But nevertheless, it's still better to save

$ 0.02
5 months ago

We can save smaller amount. It will add up. If saving becomes difficult, we can opt to automated savings. It may be difficult to save but it is possible. Have a great day!

$ 0.00
5 months ago

This is the first time I read and know about MP2, Malaking tulong ppo eto para sa nakararami. Maybe I will avail it also soon po. Thank you for this po.

$ 0.02
5 months ago

Being a government teacher I assumed that you already have a Pagibig account. It's easy to set up an MP2 account on their website then you can ask you payroll officer to deduct it from your salary.

$ 0.00
5 months ago

Malaki nga po talaga sa MP2 and secured pa since it's under ng government. I'm planning to have one din. I heard pwede po yata mag open ng multiple accounts for this.

$ 0.02
5 months ago

Yes, sis. Since you are also a member, it would be easier to create an account. Just go to their website and create one. You can opt to have a salary deduction or you can pay on your own. Personally, I am paying on my own via GCash or PayMaya.

$ 0.00
5 months ago

For home development this is best and powerful project no doubt sister. I was curious too see people outside of Ph can also participate in it through small amount of about 10$. I wish you best of luck now decided to get more knowledge about this.

$ 0.02
5 months ago

Hi sis! Thank you for dropping by. This program is for Filipino citizens regardless of the location.

$ 0.00
5 months ago

malalaki na pala anak mo sis.. congrats ha.. yan ung dream talaga ng mga parents.. my baby is still turning 2.. i had been thinking of this pa but my status until now is employed with my previous employer so I want to wait until this is updated before i could start with anything

$ 0.02
5 months ago

It's better to start at earlier. Though for me, I already have the regular program which is also good and continuously earning dividend. Sa MP2 mas malaki ang binibigay na dividend.

$ 0.00
5 months ago

I think MP2 is gender of stocks market or I am wrong.

$ 0.02
5 months ago

Hi!. MP2 is a special savings program.

$ 0.00
5 months ago