How to make your own memorial plan
MANILA, Philippines – Those planning to invest in pre-need memorial plans can also invest on their own, said financial planning expert and co-host of ANC’s “On The Money” Salve Duplito.
Duplito said memorial plans are no more than forced savings plans, which means “you pay a company to bring an agent to your place so that you will not forget to pay."
She said a memorial plan is not an investment instrument but rather collection solutions that force you to save.
On the “Salve Says” segment of “On The Money,” Duplito gave four tips on how to make your own memorial plan.
First, she said you should check if your emergency fund is enough.
“It should be at least 3 months of your monthly expenses, including expenses for your mom and dad. Put this money in a time deposit or a money market account,” she said.
Second, check whether your Social Security System fund or Government Service Insurance System membership is updated.
“While you’re at it, find out if your parents are also covered and bring their documents together,” Duplito added.
Third, protect yourself with additional insurance. Duplito advised going for term insurance.
Lastly, start learning about unit investment trust fund or mutual fund.
“When you are comfortable enough with the knowledge, put a regular amount in there and let the earnings compound over time,” she said.
Duplito said among the benefits of a do-it-yourself plan is having control over money.
She added that being tied up in memorial plans is not advisable because, 10 to 20 years from now, the chapel may be in an area with heavy traffic and facilities may not be well maintained.