Overseas Filipino workers are the nation’s modern-day heroes. In an effort to give their loved ones a brighter future, they work in a foreign country. However, OFWs struggle to accumulate their own retirement savings despite their contributions to the economy and to their own families. Saving for the future while providing for their loved ones is a challenge for many OFWs. Therefore, for OFWs who prefer to make wealth, investment is the perfect way to start. Smart investing may enable your money to outpace inflation and increase in value. There are several lists of the best investment for OFW in the Philippines.
What is an investments?
Before you invest in anything, you need first grasp what an investment is. An investment, according to the dictionary, is an asset or item acquired by an individual or group of individuals with the goal of generating income or appreciation.
In other words, when an OFW invests, they want to double or even triple their initial investment. To begin investing, you will need one thing above all: capital. This can take the shape of money, real estate, or anything else with significant purchasing power. As an OFW, the Philippine economy is an excellent area to start exploring for your next investment.
Fortunately, there are a variety of investment possibilities available where consumers may put their hard-earned money to work and realize their aspirations of a secure future. Here are the best investment for OFW in the Philippines to consider if you want to save for your post-OFW life or build your retirement fund.
1. Real State
Real estate is one of the best investment for OFW in the Philippines since it is a tangible asset as opposed to stocks and mutual funds. Another advantage of having your own place is the personal benefits. Bria Homes is one of the best options for profitable property investments for OFWs. Bria Homes, one of the country’s major real estate developers, provides more than fifty housing projects around the country to select from, all with affordable house and lot units in safe and secure environments. Bria Homes is the best option for ordinary Filipino employees and OFWs looking to invest in a home of high, reputed quality that is also reasonably priced.
Once a real estate investor has begun investing in properties, they generally make two movements. They may rent out the property or wait for its value to rise before selling it. If you can locate long-term tenants, the former earns greater cash more regularly and continuously. Investments can also be made using PAG-IBIG funds and monthly PAG-IBIG deposits.
2. Stock Market
If done correctly, stock investing helps your money to increase. Annual returns of 50% are possible in the stock market, but you must put in the effort of learning and studying.The stock market is huge, even on an international level. Although the ROI is quite great, the danger is also very significant. The main guideline for stock investing is to buy cheap and sell high. As a result, the OFW investor must buy stocks at a low price and then play the waiting game until they can sell them for a high price.
Understanding the basics and investing appropriately will help you manage the risk of losing your stocks in an ever-changing market. There are also numerous online trading platforms, such as the Philippine Stock Exchange (PSE), that can assist OFW investors in learning the fundamentals of stocks and trading. Some stockbrokers expressly cater to OFWs, allowing them to open an account remotely and understand more about the stock market.
3. Mutual Funds and UITFs
When compared to alternative investments for OFWs such as stocks and businesses, mutual funds and UITFs take little work and time. Your mutual funds and UITFs are managed by a professional fund manager. All you have to do is put money in. Mutual funds and unit investment trust funds (UITFs) are investments that are pooled together. You can begin engaging in the investment as an OFW for as low as PHP 1,000. There are so many financial options that it can be daunting at times. Fortunately, several local banks, such as BPI and BDO, have made it possible to open UITF accounts online provided you already have a Philippine bank account or, in the case of Security Bank Philippines, a UITF account. Mutual fund businesses are very plentiful in the country, and you won’t even need to open up an account in person.
Management of mutual funds and UITFs does not require active participation. In contrast to maintaining track of the stock market on a regular basis, a professional Fund Manager will handle your investment and undertake all of the work of monitoring your funds. As an investor, all you really need to do is put money in and wait for it to increase. If you want to diversify your financial portfolio, this is a smart option.
4. Franchise Business
Having a business franchise is another best investment for OFW in the Philippines. It allows you to learn the ins and outs of running a business while utilizing a tried-and-true framework. A business franchise investment is also one of the most popular investment options, not just for OFWs but for everyone in general. If the business grows well enough, it may provide enough cash flow to allow you to stop working abroad if you prefer to utilize it for business rather than investment. If not, it is a smart strategy to save for a rainy day, sometimes known as an emergency fund. One disadvantage of investing in a franchise firm is that you must be hands-on.
This include running the company and monitoring day-to-day operations. While you are abroad, you can also choose to delegate ownership or control to someone you completely trust, such as family members. Still, you have other possibilities, such as investing in a business that is already up and operating full-time and working out the terms of your ROI with the owner. In any event, investing in a franchise business is an excellent method for OFWs to get experience as entrepreneurs.
5. Pag-IBIG MP2 Savings
In addition to their usual Pag-IBIG savings, FWs are eligible to apply for the Modified Pag-IBIG Savings II (MP2) program. It is a five-year voluntary savings plan that provides excellent annual dividend earnings at greater rates than time deposits. Another advantage of MP2 is that it is tax-free and government-backed.
OFWs who want to open an MP2 account can do so online. Your family can make payments on your behalf at any Pag-IBIG branch, or you can make payments yourself through their overseas remittance partners. If you put some money here, you have nothing to lose; it’s also a fantastic and secure investment option if you just want to diversify. Aside from the 5-year lock-in term, it is less restrictive than other investments, and its returns are promising. If you want to earn a passive income but don’t know where to begin, this investment channel is a great place to start.
6. SSS Flexi Fund
One of the best investment for OFW in the Philippines who wanted to grow their retirement fund is the SSS Flexi Fund, a voluntary savings-investment program for foreign SSS members. OFW members, like Pag-IBIG MP2 members, receive from risk-free and tax-free benefits under the SSS Flexi Fund program. Although it is intended primarily as an OFW retirement investment, an early withdrawal might be utilized to meet immediate financial requirements.
Another perk of investing through this SSS program is that you can receive bonuses if you don’t withdraw or claim benefits within a year.