Entrepreneurial Traits to Start and Run a Business

Entrepreneurial Traits to Start and Run a Business

By Dean Pax Lapid 

I had the opportunity to do a workshop called “Planning for Early Retirement” last week that was attended by 30 faculty and administration staff from an established university in Manila. It was difficult to encourage these ‘retirees’ to pump all their hard-earned money into a business. During the workshop, I was confronted with two interesting questions: 

1.) How much should one invest in business? and

2.) Are there essential traits to start and run a business?

Hardware

On the first question, I cautioned the retirees to only invest “business” money based on a personal formula (age you want to die minus current age). The basic principle here is that the younger you are, the more risks you can take. The closer you are to “kicking the bucket” (72 years old is the Filipino average) the more cautious you should be.

In my case, 90 (age I want to die happily) - 55 (current age) = 35 percent, meaning I can only invest one third of my liquid assets in any of my new venture. When I retired, I got a hefty retirement (22 years of work) that I invested in an IT company (US private limited corporation) doing SAP (ERP package) projects in North America. I lost 500,000 only with the consolation that it was shared with my Fil-American partner.

The bad thing was that it was in US dollars! Life is good and God is good that I have recovered from that big loss and even got more eventually! On the second question about entrepreneurial traits, I shared the story of a mentee – Carline who was my graduate of 2006. These were interview notes done by Dr. Leah Macatangay, also former dean of ESA. Let me share the story of Carline that I gave to the retirees…

Woman’s Opportunity in a Man’s Business

Carline believed that it was more of destiny and duty that made her pursue a hardware business. She did not exactly choose it but rather received it from her family. Being the eldest child, she had been singled out to eventually manage the hardware store located in Valenzuela City.

Carline’s father had set it up many years back to cater to the residences and buildings in that area. After Carline’s graduation in 2006, her father handed the business over to her and decided to retire. Carline asserts, “I believe that even if I am a woman, I can manage the business the way that men manage it, with the infusion of hard work, the things that I have learned from school, the advice of my father, and my own experiences.

Nowadays gender is not an issue anymore in the choice of job. Our capabilities cannot be measured by gender. I believe that we can do a lot of things if we believe in ourselves and of course, with hard work and prayers.

When I learned that I was tasked to manage our family business, I did not find it easy to accept because I had different plans for myself. But it was my responsibility to take the managing position since my father wanted to retire already. It was a tough decision to make but eventually, I learned to appreciate and even love the hardware business.

Sometimes you cannot choose the opportunity that knocks on your door. If the opportunity does not correspond to your passion, are you going to let it pass? I grabbed the opportunity and learned the business with hard work. I was able to manage it because I kept an open mind and made the best of the situation. I’m glad that I had accepted it. I can say that it had been the right choice to pursue the hardware business because I have realized this is where I want to be.

Preparedness and Mentoring

Carline recalled that she learned a lot from school in terms of running a business. “Managing a business is not an easy task; one has to be fully dedicated to it. I learned that one has to consider several things: capital, vision for the near and long-term, target market, location, price, customer satisfaction, the market, the industry.

I observed that people previously used advertisements like TV and radio ads to promote their products. But I believe that today, satisfying customers is what marketing is all about. If we are able to satisfy customers, it means that our business is doing alright. The main goal in putting up a business aside from earning is to be able to satisfy customers.

Something that I treasured most from school were the lessons of Dean Pax Lapid. He was my professor from Venture Planning to Venture Initiation, during my senior year from Venture Management to finally Venture Assessment. It wasn’t easy to be a student of Dean Pax but it really was worth it because of the invaluable knowledge I obtained in managing a business. 

Managing with Her Team

It was a bit difficult to be young and female and running the business, especially in the Chinese culture, as well as dealing with suppliers and customers who were male, much older, and more experienced than her. She had to try to mature quickly and be serious and responsible enough in order to be taken seriously. 

Hardware

As for her employees, she tried to deal with them as a team. They were older than her and had been working in the business for almost 20 years. She respected them and they respected her because she was proving herself to them that she could run the business competently, with their cooperation. 

She had been managing the business the way she thought that it should be managed. She acknowledged that problems will always be present but she believed that in every problem there is always a solution. With respect to decision-making, Carline learned of the importance of weighing things before making a decision. She learned to deliberate on the advantages and disadvantages and to consider the consequences of an action before making a decision. 

In 2008, Carline was able to put up a second branch of the hardware store. She set up the branch in Meycauayan, Bulacan. Because of the proximity of her warehouse, she was able to offer lower “city” prices even if her competitors were offering higher prices due to the provincial location. The branch is doing well and is establishing itself in the area. Carline’s vision for her business is to expand to more branches and to create new concepts such as additional products offerings. 

At her steady pace, Carline is headed straight for that destination. 

Here’s My Summary on Why Carline Has Been Successful: 

* She knew what I’ve been harping all along that “Luck is the ability to recognize an opportunity and take advantage of it”. Luck is preparedness + opportunity. 

* She had the belief in her capabilities to organize and execute the courses of action required to manage prospective situations especially with customers and her employees. 

* Finally, Carline had the ambition and persistence to be a woman entrepreneur in a man’s business and carry on the family legacy out of duty. I’d say it was more out of love and respect for her parents. 

Lessons of entrepreneurial success can be shared but the ability to implement these lessons in each individual situation is something else. I feel proud as her mentor that Carline has cemented and nailed our lessons on entrepreneurial traits and has painted her success now and in the near future! 

I pray that you may have the PASSION, PERSISTENCE and POTENTIAL to PROSPER your dreams. God bless you all! 

About Dean Pax Lapid 

Dean Pax

Dean Pax Lapid is the former Dean of Entrepreneur School of Asia. He is also a Professor of Entrepreneurship at Asian Institute of Management, one of the most prestigious business schools in Asia. He is a prolific entrepreneur, creating one new business a year.

A New Baskets System For People Who Can’t Budget

A New Baskets System For People Who Can’t Budget


Why Bro. Bo Sanchez don't use budget to his personal life? Here's why.

Basket System

If you’ve been a TrulyRichClub member for quite some time, you’ll know that I don’t use budgets for my personal life. I know that’s a mortal sin for some financial planners, but I gave up making budgets years ago. I’m one of those individuals who doesn’t like to sit down and write down a budget—like how much I’ll spend this month for grocery, for clothes, for haircuts, for snacks, etc…

I don’t know why, but when I see a page with numbers, I zonk out. My mind gets fried. If I keep reading the page with numbers for more than 10 minutes, I get a nervous breakdown.

I’ve learned that budgets work for some people. Like my friend Wilma. She’s got her monthly budgets in an Excel program, complete with colors and categorized in folders with nice labels around them. She’s so organized, her room is like a museum. Goodness, her clothes in her closet are numbered. Even her toothbrush has two dates written on its side—when she first used it and when she’ll throw it (exactly three months).

But early on, I learned that I’m not Wilma. Budgets didn’t work for me. Through the years, as I talked to lots of people, I know that budgeting doesn’t work for many others too. Instead of a complicated BUDGET system, I use a simple BASKETS system. And that has worked for me splendidly.

Here’s what I did… 

Three Baskets Following the 30/70 System 

Years ago, when I received new money, I’d divide my money into three baskets: my tithes (10 percent) and my investments (20 percent) and lived on the rest (70 percent). Note: Actually, these aren’t my percentages anymore. I tithe and invest much more now.

That, in gist, is my 30/70 Basket System. This simple fund allocation system is one of the biggest reasons why I’m a millionaire now. Years ago, I remember days when the 70 percent was gone before my needs were all met. How did I cope? I gritted my teeth, tightened my belt, and postponed purchases until new money came in. Difficult to do but that was how I did it.

It worked. And I know it worked for a lot of people too. Because of my simple Basket System, my retirement fund has grown tremendously. Investing 20 percent of my income over the past years has compounded and multiplied my money beyond my wildest imagination.

If you’re like me who can’t make a budget or follow one, just use my Basket System: The moment you receive income—any kind of income—just set aside your Tithes and Retirement. And live on whatever is left.

That’s it! But here’s something I found out. After helping a lot of people organize their finances, I realize that some people may need a more nuanced Basket System. So I developed a new Basket System for your money. Here it is (drum roll please)… 

The 5W Basket System 

I know it has more Baskets, but bear with me. I’ve checked with other financial teachers and they teach similar categories. Let me explain the 5W Baskets...

First, 10 percent is your Worship Fund(Tithes).
Second, 20 percent is your Wealth Fund(Long-Term Investments).
Third, 10 percent is your Want Fund (Yes, Splurge!).
Fourth, 10 percent is your Wellness Fund(Short-Term Savings).
Fifth, 50 percent is your Wallet Fund (Regular Expenses).
Let me explain the two new Baskets: Want Fund and Wellness Fund. 

10 Percent for Your Want Fund 

There are needs and there are wants. This specific fund is for your wants. They’re not necessities. You can live without them. Why this Fund? You see, there are two extremes you want to avoid. First is the Spender.

Want Fund

The impulsive buyer. The shopaholic. The one-day millionaire. The person with the latest gizmos and gadgets, but who has six credit cards, all maxed out. The person with the Louis Vuitton bags, but has zero savings. You don’t want to be this person.

The other extreme is the Scrooge. The miser. The penny pincher. The person who hasn’t bought a new shirt since President Marcos declared Martial Law. The person who eats crackers every day from a large tin can—bought in Divisoria—for breakfast, lunch, and dinner.

The person who is so addicted to saving and investing because of crazy fears, he doesn’t spend anything for himself. You don’t want to be this person too. I honestly believe you should spend a portion of what you earn as your way of loving yourself, honoring yourself, and celebrating yourself.

Every time you earn something, set aside 10 percent and buy what will make you happy. (Note: I suggest you start doing this when your finances are no longer in crisis mode. For example, when all your major debts have been paid.) It could be eating in a favorite restaurant. Or watching a movie. Or having a massage.

Or going on a vacation. Or buying a new shirt. Or getting a new watch. If you’re saving for a big vacation to Boracay or Batanes or Bohol—you could save this 10 percent for a few months—until you reach your goal. And then splurge!

But splurging that amount each month is great too. Rewarding yourself regularly is fantastic motivation to earn more.

Next… 

10 Percent for Your Wellness Fund 

This is for Short-Term Savings for specific projects. Perhaps you’re saving for your new house. Or your new car. Or the college fund for little Pamela and 5-year-old Julius. Or a Holy Land pilgrimage that you want to take five years from now.

If you have various projects, then you can divide this 10 percent according to each specific project. Or increase the 10 percent to 15 percent or 20 percent, depending on your income.

Will the project happen before five years? (For example, Pamela enters college in four years.) If so, the stock market may not be the place for your Wellness Fund. Put it in a Retail Treasury Bond (RTB) or Time Deposit. The interest growth isn’t as big, but it’s better than the less than one percent that a Savings Account gives you.

But if the project will take place after five years, you can still put it in the stock market—but you need to follow our Stocks Update eReport closely. (For example, when we warn you of a big downtrend, you may want to pull your money out.) 

Take Your Pick and Use What Works 

So you have a choice. You can use the 30/70 Basket System or the 5W Basket System. They’re not budgets. They’re just Fund Allocation System where you divide up your money when your income arrives. Unless of course you’re like my friend Wilma who can make budgets work.

Choose which works for you. And tell me about it!

May your dreams come true.

Bo Sanchez

Project Freedom (6): Back to Basics

About 5 years ago, I came across an old and experience trader in a forum...  In asking for advice, he said that "All you need to read and understand about trading is in a few classical theories already exist about a century ago: 

(1).  The market waves in Dow Theory, 
(2).  The Vibration Energy by WD Gann, and
(3).  The philosophy of riding the Leaders by Richard Wyckoff or Jesse Livermore.
All the modern books are more of repeating and re-phrasing what had been said."

That's very true.
And, I find that to add in another guru would be more complete:
(4).  The trading psychology aspect by Mark Douglas.

The following charts are used to illustrate the implementation for these gurus' theories.

(1).  On Dow Theory.
Dow Theory is the grandfather of all Technical Analysis.  It consists of a set of 12 "Basic Tenets" (ref: Technical Analysis of Stock Trends - Edwards & Magee).  
Over here, the follow charts just focus on the implementation on one of the Basic Tenets - "The Three Trends in the Market".

Here is the definition cut and paste from wikipedia on this particular tenet:
-----------------------------------------8<-----------------------------------
The market has three movements

(1) The "main movement", primary movement or major trend may last from less than a year to several years. It can be bullish or bearish. (2) The "medium swing", secondary reaction or intermediate reaction may last from ten days to three months and generally retraces from 33% to 66% of the primary price change since the previous medium swing or start of the main movement. (3) The "short swing" or minor movement (momentum)varies with opinion from hours to a month or more. The three movements may be simultaneous, for instance, a daily minor movement in a bearish secondary reaction in a bullish primary movement.

-----------------------------------------8<-----------------------------------
Now let see how to apply these theories on the following chart.  This is China Shanghai Stock Exchange Index.

On the following diagram, when Zoom in, it can see that there are three indicators below the price chart.  Which are (1.) Momentum, (2.) Medium Swing, and (3) Trend.  These are corresponding to the 3 movements (waves) in the market.

At any one time, these 3 three indicators may run into different direction (up or down), and when the 3 movement are in sync into one direction (either up or down), then usually there will be significant movement on the price.
As shown in the price chart area, it is labeled with green when color when all the three movements are up.  Red when all the three movements are down.  And, yellow when there are moving in different direction - usually at the stage of consolidation or pull back.

If one were to use some kind of multiple moving averages such as, 25,100, 200 to determine buy or sell, then he is also using this theory.  Just that normal MA, EMA are having too much lag that will not produce good result.  It got to be dynamically mapped. (Inspired from reading "Holophany - a New Philosophy and Logic" by Clara Szalai.)

The Multiple-Time-Frame concept using daily and weekly chart is another form of waves analysis.

The JM Hurst Cycle Analysis aims to find the synchronization of shorter cycles within longer cycles is also another form of wave analysis.

Their COMMON goal of these analysesis to LONG when all the waves are moving in the up direction while SHORT when all the waves are moving in the down direction.

(2). On Vibration Energy.
The Law of Vibration in the stock market was introduced by W.D. Gann.  Gann's work is hard to understand as it involves astrology, ancient geometry and mathematics.  But, nevertheless, if one were to study and think about them long enough, he may get something out of it...  Just that if a group of ten persons doing the same research, they might get twenty versions of the interpretation.   And, this is merely my personal interpretation...

If the stock is in its steady state of vibration towards up and down direction, it would has certain amount of vibration energy level pointing in the same direction.  If it is on the sideway, it is pretty much random and will cancel themselves.  Therefore an adaptive filter can designed to capture such energy.  As compare to the previous diagram, the price chart is now built-in a filter to detect the state of trend (up, sideway, and down trend).  Also just below the price chart, there is an Adaptive  Vibration Energy Indicator to indicate the worthwhile trend. 

Adding this filter to the Dow Theory would very much reduce the trading frequency as its goal is to eliminate trading when the stock in it consolidation state.

(3). On the Philosophy of Always Riding the Leading Sectors/Stocks
In reading Richard Wyckoff and Livermore books, one can find that they put emphasis on trading the leading stocks in the leading sectors.  This philosophy itself has the following important implication:

1)  Benchmarking the stocks with their Relative Strength.
In order to find the Relative Strength of a stock among all the other stocks in the market, the indicators used MUST NOT be range-bound to certain value.  For example, many popular indicators are swinging between a certain ranges, such as 0 to 100, -100 to 100, etc.   When one compare APPLE COMPUTER to bond market, these range-bound indicators can't differentiate which is stronger in relative sense. 

2) Rotational Trading.
In rotational trading philosophy, it recommends jump to the faster running horse when it find one (of course, one need to set the period of doing so, say one week or so...  And, very much depends on individual perference time-frame of operation.)

One simple way to achieve these two KEY POINTS is to insert a reference ticker inside the current monitoring stock indicator.  For example, in the following diagram, the Momentum, MediumSwing and Trend indicators are inserted with the SPY (S&P500) as reference ticker. 

Note that there are some circles highlighted in these indicators.  Without the reference, the indicators would have give green signals when they are above "Zero Line", and give red signals when it is below "Zero Line".  Now, with such reference line, they must be greater than both the reference strength and the zero line in order to generate a green signals...  Same idea applies to the downside.  Or it would just generate a yellow signal.

One can use this idea to find the stronger sectors in the market using SPY as reference strength, then find the stronger stocks using that particular sector as reference strength.

To further illustrate the point on Relative Strength Benchmarking....  Below is diagram showing the Strait Time Index (STI) and its 30 components. 

Most Benchmarking methodology is to compare the percent price movement over a period of time.  This could be useful most of the time.  BUT during the transition of changing trend, it would produce a great lag that is not acceptable.

Instead, one can compare their indicators strength in the same pane and rank it... It would definitely produce much timely result.

(4). The Trading Psychology

There are quite some materials on Trading Psychology in the market today.  Recommend to go through the material by Mark Douglas as they are very helpful.  Especially when he talks about the Probability and Edge.   Here has a snapshot:->

http://blessedfool.blogspot.sg/2012/01/project-freedom-3-why-and-how.html

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"Our most valuable possessions are those

which can be shared without lessening;

those which when shared multiply."

I DARE YOU - William H. Danforth

To be continue with  ->The Galaxy Chart.<-

Net Worth Update(June 2012)

Get Rid of Debt first

Get Rid of Debt first

Get Rid of Debt

It is very difficult to save if we are carrying credit card debt or any high interest debt. Let me explain why. Let’s look at one of my colleague’s situation. He loves electronics gadget, entertainment etc. and believes that since he has a job, he should reward himself by buying whatever he wants. 

And, like me and most ambitious individual, he would like to go on nice vacations and buy a house and lot in the future. But how he will achieve this ambitions? He’s spending more than he earned. As a result he owes SAR. 1,000.00 on his credit card. And he doesn’t pay it off in-full. Let’s break it down and see how building up credit card debt makes it impossible to save for future goals.

Imagine that he owe SAR. 1,000.00 in credit card. Every month that he does not pay that debt off in-full, he’s being charged with interest rate of 20% per year by the credit card company for the privilege of the loan they are making to him. That means additional 20% to any balance left on the credit card.

Let’s look at how it plays out. Assuming that he decides not going to add to his debt and he will pay only the minimum payment on his card.

Current debt = SAR 1,000.00

Interest rate paid to credit card company = 20% 

Monthly payment = SAR 30.00

Months to pay = 48 (that’s 4 years)

Total interest paid = SAR 435.00 (on top of the SAR 1000.00)

My co-worker doesn’t like that scenario and decides to tighten his belt and decide to pay SAR 150.00/month to his SAR 1,000.00 debt and not add to it!

Current debt = SAR 1,000.00

Interest rate paid to credit card company= 20% 

Monthly payment = SAR 150.00

Months to pay = 8 

Total interest paid = SAR 50.00

See here’s the different; if he only pays the minimum payment, and don’t even add to the balance, he can end up paying a ton of interest. He pays the minimum per month in the first example and paid an additional SAR 435.00 in interest on top of the original SAR 1000.00.

Would you buy those same electronic gadgets if they cost around 50% more than you’re originally paid for them? I don’t think so.

As you saw in the second example, if my colleague increases his payment to SAR 150.00 each month to pay his debt and didn’t add to the debt. 

In 8 months he get rid of the credit card debt. By increasing his payment, he can markedly speed up his debt repayment.

Let’s reverse the situation and pretend he has zero credit card debt and wants to start saving for his future goals.

Monthly saving payment = SAR 150.00

Interest rate paid by bank = 1.5% (or lower) per year

Balance after 8 months saving = SAR 1,213.00

Total interest received = SAR 6.83

Practical Application

* If he uses the SAR 150.00/month to save, at the current savings rates, he earn about almost SAR 7.00 over 8 months. I know SAR 7.00 isn’t much, but getting SAR 7.00 is still better than paying SAR 50.00 interest.

* Ask yourself would you rather get SAR 7.00 or pay SAR 50.00? 

Clearly, the takeaway is that in order to reach your financial goals, you must eliminate debt first.

Some of you may look at that small interest rate on savings and cringe. Actually, I’m one of those who cringe at the low interest rates on my savings. Don’t worry about the interest rate right now. You see that interest rates go up and down, and we have no control over the interest rates at all. And regardless of how much interest we are receiving on our savings right now, it is better to receive any amount than paying interest on our debt.

As long as you are carrying credit card debt, not matter how much you save, you lose! You can gain more financially by eliminating credit card debt balances than by saving. So pay off your debt first and then saves as you can.

My Maids Are Now Richer Than Many Managers

My Maids Are Now Richer Than Many Managers

from Bo Sanchez

TrulyRichClub

Do you want to invest in the Philippines Stock Market and retire millionaire? Let Bo Sanchez tell you how. 

Three years ago, I taught my Maids how to invest in the Stock Market. People laughed at me when I told them what I was doing. “That’s too much for them,” one friend told me. “They can’t handle that. It’s better to teach them how to put their money in the bank.”

But who’s laughing now? One of my maids has P308,388 in her Stock Market account. My other maid has P176,465 in her account. That may not be much to you, but to them, they feel very rich. And here’s a fact: My Maids are now richer than many Managers. I’m not kidding.

You see, I talk to a lot of Managers when I give corporate seminars. Many of them have Zero savings and are buried in debt. My maids? They’re confident that they’ll have P5 Million in 20 years.

If you’ve got 20 minutes a month, You can work a financial miracle in your life.

Each month, my maids bought the Stocks I told them to buy. It wasn’t easy, believe me. There were days when they didn’t want to invest their money—because they wanted to buy something. But with my coaching, they disciplined themselves and invested their money.

All it takes is 20 minutes a month.  First, set aside 20% of your salary each month. Next, put in your small amount into the Stocks I tell you to buy—which can be done all online, seated in front of your computer, in the comfort of your home. And that’s it. Do this each month and you’re all set to retire a multi millionaire.

Here’s the deal: Whatever small amounts you can put into the Stock Market today will be worth millions 20 years from now. I believe that investing (not trading) in the Stock Market is one of the best ways of growing your passive income. Yes, there’s a difference between trading and investing. And my eBook and special Reports will teach you the difference.

Guarantee: You’ll Be Able To Understand Me

Do you know the problem with the Stock Market world?  They don’t speak English. Honest. They speak a strange dialect that is spoken only in the second moon of the planet Uranus. But I’ve solved that problem. If my maids can understand me, then anyone can understand me.

I’ll Hold Your Hands Every Step Of The Way

TrulyRichClub

Here’s what I do for my TrulyRichClub Gold members. Twice a month, I send a very short “Stocks Update”. I’ll tell you what companies I’m investing in and how they’re doing.  Why will I give this “Stocks Update” Report? To give my TrulyRichClub members guidance and inspiration.

Especially when there’s a crisis, my “Stocks Update” will be crucial. It will prevent you from selling your Stocks because of your panic—and lose your money. And it will encourage you to do the very opposite—buy great companies when the prices are very low.

Join Today And You’ll Start Stocks Investing Next Week

I have to be honest with you: This may not be for you.  I don’t want you to get into something that isn’t for you. First of all, this isn’t for the person who doesn’t have a job or business.

In order to invest regularly, you’ve got to earn regularly. (My Maids earn a smaller salary than Managers, but you see, it’s not how much you earn, but how much you keep of what you earn.) If you have a regular income and are willing to set aside a few pesos a month to invest in long-term investments—so you can create millions for your future—then listen up.

Listen. Half of 2012 is gone.  So here’s my big question for you: What will you do this 2012 to start growing your finances?

Will you do something now?  Or will you be again wondering at the end of 2012, “Where did the year go? Why haven’t I done anything to secure my financial future?”

If you want me to help you, then click here now.

Sign up today, because I’ll be sending out my Stocks Update Report next week for my TrulyRichClub Gold members.

By next week, you can already start investing in the Stock Market. (My eBook will also teach you how to create an online account in COLFinancial, the biggest online stocks brokerage in the country.)

To join the Club and start creating your multi-million retirement fund, then click here today.

Yes, I’d Like To Growing In My Financial Life

May your dreams come true,

Bo Sanchez

PS1. Take Charge Of Your Financial Future. Don’t leave your 2012 to chance. Do something today that will give you financial freedom in your advanced years. I believe investing little amounts each month in the Stock Market will give you financial freedom in the later years of your life. To take charge of your financial future, click here now.

PS2. By the way, the TrulyRichClub isn’t just all about the Stock Market. It’s also about having an abundance mindset. Why? Believe me, all the technical stuff I’ll teach about The Stock Market WON’T WORK if you don’t have an abundance mindset. So in the Club, you’ll also receive a lot of Audio Talks and eReports from me about having an abundance mindset. To take charge of your financial future, click here now.

Are we allow to continuously pay SSS contributions even we reach 60 years old?

Are we allow to continuously pay SSS contributions even we reach 60 years old?

Social Security System (SSS)

Some readers of this blog are asking if they can continue  their SSS contributions after they failed to pay the contributions long time ago or they already reach 60 years old but wish to pay and complete 120 months of contributions as mandated. 

My father have a same concern and wish to continue his SSS contributions which he miss to pay long time ago. But when he go to telemoney, one of telemoney staff told to my father that he is not allowed to pay SSS because he is above 60 years old now.

To find out, clarify this and also to answer those question. I decided to send an e-mail to SSS customer service or their member relations department which i find in SSS website. My e-mail is goes like this (see quote text and print screen photo below).

"Dear Sir/Mam,

Magandang araw po sa inyo. Nais ko lang po magtanong tungkol po sa pagbabayad ng SSS Contributions. Ilan taon po o hangang anong edad po pwede magbayad ng SSS? Sa sitwasyon po ng aking ama.. Sa record po ng SSS, 61 years old na po ang tatay ko.. Ngayon po may maayos syang trabaho at kasalukuyang OFW. Nais pong ipagpatuloy ng aking ama ang paghuhulog sa SSS kaso nun nag punta po sya sa isang bayad center, sinabi po na di na daw sya pwede magbayad kasi more than 60 years old na sya. Totoo po ba ito? hindi na pwede ipagpatuloy ng aking ama ang pagbabayad sa kanyang SSS contributions? kung hindi na po pwede, ano po pwede gawin kung sakaling hindi natapos o nakompleto yun 10 years na paghuhulog? ano po mangyayari dun sa ibinayad? Sana po mabigyan po ninyo ng kasagutan mga katanungan ko po.. Maraming salamat po..

Regards,

melvin

www.moneygurado.blogspot.com"

SSS contributions inquiry

After more or less 3 months of waiting of their response. I was surprise when i open my e-mail one time and got reply. Im very thankful. Although it takes many months before i got response from them.  The important thing is to know the answer in my question. Here's the reply from Member Relations Department of SSS as quoted below. (see quote text and print screen photo below).

" MEMBER RELATIONS DEPARTMENT

Marso 20, 2012

G. MELVIN ENMOCIMO

G. Enmocimo:

Ito po ay may kinalaman sa inyong e-mail tungkol sa pagpapatuloy ng kontribusyon ng inyong ama na isang OFW.

Hindi po ninyo nabanggit ang pangalan at SS number ng inyong ama bilang basehan sa aming beripikasyon.

Gayunpaman, kung ang inyong ama ay dati ng miyembro at may balidong kontribusyon, maaari pong ituloy ang kanyang hulog/ kontribusyon gamit ang SSS Contribution Form RS-5 bilang voluntary OFW member. Ang hindi pinahihintulutan ay yaong 60 o pataas ang edad na inisyal o mag-uumpisa pa lamang maghuhulog ng kontribusyon. Maaaring magbayad sa mga telemoney / remittance center abroad O, sa kanyang representative sa Pilipinas sa SM mall, Bayad Center, commercial bank o SSS office Tellering unit.

Maaari ring makita ang kanyang rekords sa pamamagitan ng pagregister sa aming website www.sss.gov.ph sa ilalim ng My SSS menu gamit ang kanyang SS number.

Para sa karagdagang katanungan, tumawag sa teleponong 917-7777 o 920-6446 hanggang 55.

Maraming salamat po.

Sumasainyo,

EUGENIA D. DELA CRUZ

Tagapamahala"

SSS Contributions inquiry (reply)

Last word

From their replied. Even though some of my question was not answered. It is very clear that an individual who is already a member and has a valid contribution can continue their  SSS contributions regardless of age and how long they miss to pay. An individual who is 60 years old and above who want to join and start paying SSS contributions are not allowed. 

I hope from this experience of my father, this article can helps now  to clear the question in your mind about SSS contributions. For more question and concern about your SSS benefits. Don't hesitate to send an email to SSS member relations department like I did. They are willing to response in your e-mail even though it takes time.