This day is quite glum for me–and many know that’s rare for me. For some reason, I may be a worrywart–stressin’ over one thing or another–but I manage to smile through most of those.
Today, however, it’s hard for me to turn that frown into a smile.
Because I’m worried. Worried about what will happen to my savings.
Believe me, whatever worldly wealth I have didn’t come easy–that’s more than ten years of being underpaid, overworked, the blood, sweat and tears, the sacrifices I have made as a journalist at ABSCBN.
Most of you know that a career as a journalist, not just in ABSCBN, is mostly glamour–the pay isn’t all too great.
So just like many other people in the world, I can get anal about my savings. Moreso because I have two young children to build a future for.
My husband, fortunately, is quite the saver too, with a vision for our familu’s future. But he’s a straight-arrow soldier. And you know that means he’s making even less money than I am.
Unfortunately, I invested some of my money in two pre-need plans from Philamlife (AIG). At the time I invested, economic conditions remained favorable, but returns on investments, especially for non-six figure savings, were dismal. So like many other people, I was enticed by pre-need plans. By my estimate, the money I would pay, or rather invest, over a five-year installment period, would yield a 35-40% return for me after 14 years, not counting the other benefits such as insurance coverage.
In contrast, a savings account, even at preferential/VIP rates, would give me just 3-4% per year, not counting the tax imposed.
I figured the fact that it was a fixed-value plan, meaning the kind that would give a certain amount after a number of years, gave me that boost of confidence.
Plus it was Philamlife–that’s like one of the biggest finance institutions in the world.
Then the subprime crisis took its toll even on AIG.
Philamlife, one of the most profitable units in the entire realm of AIG worldwide, was to be chop-chopped and sold.
The Filinvest group of the Gotianuns, through banking unit East-West Bank, confirmed that it had purchased Philam Savings Bank and Primus Finance & Leasing. (see this link: http://malaysia.news.yahoo.com/rtrs/20090123/tbs-aig-philippines-8bedc88.html)
Unfortunately, some of my savings is in Philam Savings Bank. Bummer.
I got this text from MARISSA AUDITOR, the Head of AIG Preferred Banking. I think she’s sending this out to all clients. I am posting this to provide some information for parents and other people like me worried over personal finances:
“Greetings! I am pleased (to) announce the sale of AIG Philam Savings Bank to East West Bank. It’s business as usual with wider opportunities as a commercial bank. We welcome you (and) a new organization with the same seal of professionalism and expertise. Thank you (for your) patronage!”
And as for my PhilamPlans Pre-Need Plans, I still don’t know.
But if I’m worried, I feel so much for thousands of planholders from pre-need plan companies that have either closed, or are in worse conditions.
I’m talking about planholders of CAP, Pacific Plans, Platinum Plans, Legacy Consolidated Plans and others who took money and virtually lost it in one big, legitimate corporate gamble.
Let me share with you a story. Since I am no longer with ABS-CBN, I think I can share this in my blog. Anyway, this happened a few years ago.
From 2002-2006, I was reporting about the pre-need industry for ABS-CBN. It was initially all about fairness to me–trying to explain to the public as best I could about what happened to the industry. My aim was to help planholders make the best possible decision for them.
I could say with all pride that I reported news about the pre-need companies with all professionalism, accuracy and balance. There were times I felt so bad for parents–security guards and all sorts of strangers to me would come up to me in the mall, at the market and even while eating lunch, asking for help. But I simply referred them to the people concerned. I tried to remain impartial, despite my feelings.
Until Pacific Plans folded.
I did my job. Unfortunately, my dad, my sister and several other relatives work for various units under the Yuchengco Group. The latter founded and owned Pacific Plans up until a few days ago, when they sold the company to a firm led by former Asian Spirit head Noel Onate. While the patriarch of the Yuchengcos, Ambassador Alfonso Yuchengco, is a fairly decent and nice guy, his daughters and others who work for him are not quite.
Because I was doing my job, the Yuchengco sisters, Helen and (the late) Susane, gave my sister and my dad hell. In the middle of a management meeting, Susane told my sister, “Tell your sister to stop reporting about us, or else you and your father better get out!”
There were other threats and vindictive acts that followed, so much so that even ABSCBN super high management got somehow involved. I super wanted to fight back, but how could I? Too many jobs were at stake, too many families would be affected.
So to keep the peace, I inhibited myself from ever reporting about any pre-need company or issue.
My sister quit RCBC Savings, my dad simply retired from Honda Cars Manila. He had turned 60 anyways, but it was more because of all the mean acts.
Why am I sharing this? To warn people about the kind of people you entrusted your money to.
Pre-need companies have FIDUCIARY DUTIES. That means TRUST and CONFIDENCE were placed on them by thousands of people to take care of their money for their future. The selling point of their plans is TRUST. Obviously that TRUST was broken.
We understand what happened. The increase in tuition outpaced returns on investment.
However, that FIDUCIARY DUTY should have meant transparency–telling planholders the real score and offering a win-win solution. For example, the companies could have offered a return of money paid, plus a reasonable interest–rather than trying to keep a promise they knew had become an impossibility.
Worries, worries, worries.
Who do we turn to now for justice? For help?