Set aside the preferred risk appetite when it comes to investing. Some people might prefer high risk and high returns and others’ choices might be of the side with lower risk. And because of the surge of information and the higher need for financial education, almost everyone might already know that life insurance is not just about leaving money for a person’s loved ones in case that person is no longer in the picture or simply put… no longer alive.
People should make peace with the fact that resources are finite—more in the case of time. As long as a person lives, there is time to accumulate resources. In that time, wealth protection and retention will be as essential as wealth accumulation.
Variable Universal Life (VUL) insurance allows one to save money to earn further interest with a separate subaccount for death benefits. Real Estate, as defined by Investopedia, “is the land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges.” Real estate does not include furniture, appliances, jewelry—or anything attached.
Now, this gets to the good parts of both investments in three important notes.
Liquidity
How easy it is to convert an asset into cash without affecting the market price always has to be considered before putting the money out there to work on its own.
Real estate is not so liquid. A person who is experiencing unforeseen financial challenges may or may not sell it right away—or sell it quickly at a much lesser price. This is because a lot of factors affect its value just like location, including crime rate, accessibility to transportation, local economy, quality of schools and neighborhood, and real property taxes.
These factors will be taken into account in case it’s put up for sale. Of course, the returns could come sweetly in the form of selling it at a higher price or just by having the sense of security that the property already appreciated in value over the years.
A VUL policyholder is allowed access to funds in case of arising financial needs without having it deducted from its face value. The potential returns are still affected by inflation such that the value of a peso might even be lower in the next coming years or decades.
Although money cannot replace life, money can, however, give happiness through buying more time for a loved one that has a terminal illness. It also includes the financial ease while one is incapable of putting food on the table, let alone pay hospital bills or worst, taking care of funeral expenses.
Potential Returns
Apparently, people invest for the possibility of winning! It’s not greedy, it’s a need. Investing is done with the hopes of returns, all for the goal of getting money to do the work, and earn while sleeping.
VUL and real estate are both considered high-risk, high returns investments. Yes, VUL potentially yields high returns, at the same time, Real estate has the advantage of more forms of making money. One of these is through rental income. Say an investor acquired a preselling condo located in Manila, which automatically has the advantage of being in the center of trade, quality schools, network, and career opportunities. Renting it out will be a sound financial decision than living in it and spending more because the mortgage will knock on the door monthly, which will not trigger anxiety when a tenant can help pay it.
Rental income sets the tone of financial stability, for decades, and even generations. VUL serves to protect whatever tangible investment a person accumulated over the years such that there will be no immediate need to sell properties because cash is guaranteed is available with the liquidity of VUL.
Operational tasks and management needs
This will talk about the demand of being in the same place as where the investment is. Yes, people do have the option to earn remotely. VUL premiums and benefits are professionally managed by the insurer. Monthly payments can now be processed through digital banking.
In the case of Real Estate, a mortgage can also be paid remotely while the maintenance and development can make it a tedious investment. Good thing that Vista Residences Inc. promotes condo living and worry-free leasing by having a dedicated team to partner with real estate investors.
This takes out the burden of having to employ and manage people to take care of the property through routine maintenance and cleanup. It is even more beneficial that the marketing side is also off someone’s hand. With this knowledge, both forms of investment can now be in a portfolio as a remote or offshore investment in the case of Filipinos who live abroad and are focused on employment.
It’s perfect for people who foresee a condominium to be a steady stream of income when retirement age approaches or in changing fortunes of time. Morbid thoughts aside, it feels good to take care of loved oneself and loved ones when the capacity to earn money is hampered in the final hours.
Ultimately, this sets to help broaden a layperson’s financial education and decide based on the current financial state and lifestyle goals. A degree can help a person secure a job quickly, but it does not come with the knowledge of own finances, keeping wealth will be an unnecessary challenge in the age of the internet when free financial advice is available on many websites.
Once a person surpasses financial ignorance, and instability, moving towards a bigger life goal and solving bigger problems will be more satisfying than worrying so much about how bills, hospital expenses, and loans get paid.
If you are thinking of moving into a new condominium, check out Vista Residences!
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit-oriented locations, and developed business districts.
At Vista Residences, unit owners can take advantage of the property’s centrality. The properties of Vista Residences are strategically located near the country’s premium universities and CBDs, making them an attractive investment for both local and foreign investors.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
