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How to Safely Earn Passive Income With Pag-Ibig MP2

How to Safely Earn Passive Income With Pag-Ibig MP2

There are numerous ways to invest and grow money. We have real estate, cryptocurrency, stocks, bonds, and many more. However, most investments entail a risk so we always have to be on guard, so a passive income opportunity is a perfect start for people looking to invest in a risk-free manner. 

Why should you invest in Pag-Ibig MP2?

Pag-Ibig MP2 is one of those risk-free investment platforms. It forces you to save for the long-term because it has a 5-year maturity. You can keep putting money in your MP2 in the span of five years, but you can only get your capital at the end of five years. Because of its high dividend rate (6.96% in 2020), your money will grow in that span of time — especially if you don’t take out your dividends annually.

Let’s say you deposit P500 to your MP2 every month for the next five years. Your accumulated earnings will be over PHP 6,000 (assuming that the dividend rate stays consistent). This is a good and tax-free way to store money instead of just putting your savings in bank accounts with low interest and 20% withholding tax.

To get a clearer picture of how much you can earn via MP2, YouTuber Marvin Germo explains in this video how the dividend rate works and how you can earn more with it: 

Why is Pag-Ibig MP2 risk-free?

None

Since Pag-Ibig is under the government, MP2 is one of the safest investment platforms out there. The government guarantees that your capital will not be lost, unlike in other investments where you can lose them if the circumstances aren’t favorable. 

While all SSS- and GSIS-covered employees are required to have a Pag-Ibig, the Modified Pag-Ibig 2 (MP2) allows anyone to invest and get the money after only 5 years — unlike the usual Pag-Ibig Regular Savings with a required 20-year maturity. 

Who can qualify for Pag-Ibig MP2?

Even though Pag-Ibig is only mandatory for SSS- and GSIS-covered employees, anyone who is at least 18 years old can invest! To qualify, you need to be an active Pag-Ibig member who has contributed at least once in the last 6 months. 

How to enroll in Pag-Ibig MP2?

Assuming you are already a Pag-Ibig member, you can enroll in MP2 either online or onsite. To register at a Pag-Ibig branch, you need to submit a duly accomplished Modified Pag-Ibig II Enrollment Form to the branch.

You can register online but it will also require you to go to a Pag-Ibig branch: Log in at the Modified Pag-IBIG 2 Enrollment System using your Pag-IBIG MID number. Complete the online form and then print a copy so you can submit it to the nearest Pag-Ibig branch.

In both options, you can already pay for your first MP2 savings. The minimum amount you can deposit is PHP 500. There is no maximum limit if you want to go higher. 

The more money you put in your MP2, the bigger your earnings will be. So MP2 might just be the encouragement you need to start saving more.

Photo by Thought Catalog on Unsplash

ALSO READ: Saving 101: How to start saving money so your future self will thank you

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