13th month bonus=Invest or Spend?


What are you going to buy when you receive your 13th month bonus?

If you are employed, most likely you are entitled to receive your 13th month bonus or most of us call it Christmas Bonus.

What is 13th month pay?

13th month pay is a form of monetary benefit equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that the employee has rendered service to the employer.

When shall 13th month pay be paid?

The 13th month pay should be paid not later than December 24 of each year.

Source: http://www.dole.gov.ph/news/view/2652

Upon receiving this 13th month, what do you intend to buy? Will you just spend it all? Or you can allot a small savings for you to grow your money like investing in Phil. Stock Market.

Let’s say  if you will buy your 13th month  bonus with iPhone 6 from Kimstore worth Ph25,800.00 this year 2016. What will be its value in the future?


According to the article I read that iPhone phones depreciate its price for about 33% per year.

What Happens To An iPhone’s Value After 2 Years? 

To find out what happens to the depreciation of the iPhone after two years of usage, we look at the iPhone 6.

The iPhone 6 was launched about 2 years ago with a retail price of $1,288 for a 128 GB model. If you were to sell it today, you would be able to get about $450 based on the online price offered. That means your depreciation over 2 years would have been $838, or about 33% per year. It’s still a lot, but not as much compared to the iPhone 6S after one year.


Let’s see if what will happen to the value of your iPhone as years go by.


This is just an estimate the value of  iPhone 6 but in the Philippines this can be different but the point here is your iPhone’s value will surely depreciate.

Now, what if you decided not to spend all your 13th month bonus to buy iPhone 6 and you decided to set aside Ph6,000 only for you to start to invest in Phil. Stock Market through Insular Life’s Wealth Secure and for the next months you will set aside Ph67 per day so that every quarter you will invest Ph6,000 only. What will happen to your money if you regularly set aside to invest on the 10th year?

Let’s see what will happen to your money if you invest. The age of the owner is 27 years old.


If your money invested earned 10% per year on the 10th year you would have Ph307,416.52 already and if you let it grow when you reach the age 60 your money would have Ph2,773,287.69. Now, the advantages of this Wealth Secure is it has added features of Life Insurance and Dread Disease fund. In this sample illustration, if the owner was taken out of the picture, his family will get a guaranteed Life Insurance of Ph120,000 plus his investment fund. So if the owner passes away at age 40 and he has a fund of 443,677.15 if it earns 10% per year, what will his family get will be Ph443,677.15 plus Ph120,000 or a total of Ph563,677.15.

What if the owner was diagnosed with  one of Dread Diseases like cancer, brain surgery,kidney failure and etc., the owner can get an amount of Ph300,000 after 30 days of diagnosis of the dread disease. This money can be used for the treatment of the disease.

Here are the list of Dread Disease that can be covered.


In summary:


The question here is what will you choose to buy when you receive your 13th month bonus? Will you just spend it all to the things that will have no value in the future or will you invest your some of your money(take note, not all your 13th month bonus) that will benefit you in the future. It’s up to you but my advise is to buy assets than liabilities while also enjoying your 13th month bonus.


To know more how to grow your money in Stock Market through Wealth Secure of Insular Life, you may reach me.

Archie M. Yuki
Financial Adviser,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com

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