Inflation is shooting up. The pandemic is far from over. At this time, investors are looking for stable investments. It’s not all about the return, after all. We must also protect our capital. It is why we have seen tremendous growth in the number of investors in MP2.
READ:5 Strategies to Maximize Profit in Pag-IBIG MP2
Aside from the strategies for maximizing profit in MP2, many investors have several questions.
One of them is, “What is the best month to invest in MP2?”
I watched several videos about this. Most of them are telling their viewers to start in January.
The explanation is simple. When you start investing in January, you earn dividends for the whole year. Make sense.
If you start in February, you only earn 11/12 of your dividends. It’s only 10/12 if you started in March, and so on.
If you start at the end of the year, then you’ll only get a small fraction.
Set Your Expectations
Investing is such a fun way to grow your money. But you have to study where you are placing your bet. For example, a handful of those who invested in MP2 doesn’t know how Pag-IBIG grows their investment. Somehow, that’s okay because the investment is government-backed. Most just jumped on the bandwagon.
However, many were very disappointed when they got their dividends.
They keep commenting across my socials, “Why is it small?” I asked them, “When did they start?” They said, “Uhmm, it was December of last year.” All the while, they thought they would get the 7% dividend rate.
Hey, I am not shaming them. I want to highlight the importance of doing your homework.
If you do not know how to compute it, here’s a step-by-step guide. Just click here.
We also have a Pag-IBIG MP2 calculator. Click the link if you are interested.
Let’s go back.
So why are the dividends so small?
In reality, Pag-IBIG computes the dividends daily. Time and time again, you will not earn from something you haven’t invested in. If you started, let’s say, on December 20, you only have 11 days out of 365 days in a year.
Thus, it is small.
January is NOT the Best Month to Invest in Pag-IBIG MP2
The best time to invest is now. January is only one of the best months, just like February, March, April, etc.
Yes, it is true that if you start in January, you will get the entire dividend rate for that year. But what if you want to start now? Would you wait for January? It’s only April now. That’s eight months of waiting.
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Should we say that’s eight months wasted?
In investing, time is of the essence. Lost time is equal to lost opportunity.
The thing with MP2 is that whatever you lose this year, you will recover at the end of five years. Remember, MP2 matures after five years or 60 months. Hence, regardless of which month you started, all of you will get the same 60 months’ worth of dividends.
Thus, it doesn’t matter when you started in Pag-IBIG MP2. The important thing is that you started.
Hence, the best month to invest in Pag-IBIG MP2 is now.
Federico is an electronics engineer, financial blogger, insurance agent, and a certified investment solicitor. A multi-awarded financial advisor with clients ranging from lawyers, doctors, engineers, accountants, business owners, company directors, and OFWs to minimum wage earners had sought advice from him in achieving lifetime financial freedom.