Philippine UITF and Mutual Fund Performance July 2016



How much do you really earn?

A lot of people mistake their net take home pay as the amount they are actually earning. Most don't take into account the job related expenses they make. Your real earnings can be determined by deducting the job related expenses to your net take home pay. Transportation and meals are the typical expenses you spend every time you report to work. Other jobs might require you to spend regularly on clothes or require you to make several cellphone calls in a month.

Deducting these expenses from your net take home pay will provide you with a more realistic figure on your actual earnings. This figure is known as your net spendable income. After computing your monthly net spendable income we need to convert it to annual net spendable income in order to add your thirteenth month and all bonuses you received for the whole year.

Gross Salary= Basic Salary + Allowance
Net Salary= Gross Salary - Standard Deductions
= Gross Salary - Tax - SSS - Philhealth - Pagibig
Net Monthly Spendable Income= Net Salary - Job Related Expenses
Net Annual Spendable Income= (Net Monthly Spendable Income x 12) + 13th Month + Bonuses

Philippine Inflation Rate (1957-2014)



Note:
1. Price Increase Per Administration - How much has the prices of goods change within a specific administration. We use a  base price of Php 100 at the beginning of each administration. We then compute how much the prices of  goods has increased at the end of each administration.
2.Purchasing Power - This determines how much the purchasing power of money has reduced each administration. If the purchasing power of money has  reduced to 50% after 10 years, then Php 100 worth of goods purchased 10 years earlier can only purchase Php 50 worth of goods today.

Source: http://data.worldbank.org/


Vista Land & Lifescapes Inc. (VLL)

SYMBOL VLL

PRICE 6.80

ANALYST CONSENSUS BUFFETT BOOKS CALCULATOR
FAIR VALUE 7.20 Intrinsic Value 17.76




FINANCIAL TIMES GURU FOCUS
Low 6.15 Graham Number 9.41
Median 7.15 DCF Calculator 9.59
High 7.50




PER SHARE
RATIOS
Earnings Per Share 0.65 P/E 10.46
Sales Per Share 2.56 P/S 2.66
Book Value Per Share 6.06 P/B 1.12
Free Cash Flow Per Share 0.2 P/FCF 34.00

Three Stage Retirement Plan

Achieving financial freedom begins with establishing a specific GOAL with a deadline. After reading The Millionaire Next Door (TMND) By Thomas J. Stanley, I decided to incorporate the formula provided in the book in my Retirement Plan. Instead of having one goal with a very long duration, I decided to divide it into three short stages. Smaller goals will make it easier for me to achieve and will motivate me each time I complete it.


Goal Setting

The FIRST STAGE of my retirement plan is to become an Average Accumulator of Wealth before I turn 40. The book states that a person needs to have a net worth his/her age multiplied by his/her annual household income then divide it by ten to be considered an Average Accumulator of Wealth.

Age x Annual Income / 10

This formula provides an exact figure serves as my first goal. Although it is prone to changes, since future income is unpredictable, I used the inflation rate to establish a conservative estimate of my future income.