3 Investments every OFW should have

OFW-top 3 investment recommendations

Many Filipinos wish to work abroad for a greener pasture in order to improve their livelihood. There is the so called “The American Dream” for every Filipino to work in America or in another country as most of the people think that their lives will change tremendously once that you earned dollars. According to the Philippine Statistics Authority, as of September 2021 there are an estimated of 1.83 million Overseas Filipinos who worked abroad. Our OFW workers are our modern day heroes which is why they deserve the best OFW investment for their hard-earned money to put in and also serve as an additional income for them while working outside the country.

But after earning that dollar, what comes next? Overseas Filipinos and their families really have to come to terms with the reality that they will not be permitted to keep working outside of the country permanently. They will have to retire at some point, after which they won’t make nearly as much money as they did in the past. For brighter future, it is in their interest to start investing right away so that their money may increase by investment returns.

Why Should We Invest?

There are a lot of investment options for OFWs to venture into that are truly worth investing in, rather than putting it in the bank which has a low interest.

1. Making the most out of your money

It is important for every Filipino to put their hard-earned money to good use. That is why it is necessary for every OFW worker to have a good investment options that will make their money grow continuously.

Investing for OFWs is a procedure that allows you to put your cash to work for you and maybe increase the number of assets you have in your possession. If you invest your money effectively, it has the potential to exceed the level of inflation and increase in value over time. Investment also has a good investment return for your personal benefit and for your family members.

2. Preparation for retirement

Moreover, not forever you can work overseas, so this will serve as your retirement fund to secure future and . Howerer, according to the Consumer Expectation Survey performed by Bangko Sentral ng Pilipinas (BSP) in the second quarter of 2019, just 33.9% of the respondents placed OFW remittances into savings and only 7.6% put them into investments.

Choosing a smart investment for OFWs

The bigger growth prospects that may be attained via investing is mostly the result of the force of accumulating, in addition to the tradeoff that exists between return and risk. However, it is also important to properly select which investment programs you should invest in and this will depend on your financial capability.

These are just some of the possibilities that overseas workers may put their money to work in the Philippines. Before deciding on an investment option, you need to have a certain degree of patience and do some study. Just keep in mind that you should always invest in accordance with your investment objectives, the amount of time you have available, and the level of your risk tolerance. Be careful to spread your money out among a number of different assets.

OFW Investment opportunities from government agencies

There are a great number of seminars and programs that are offered free to attendees such as financial literacy seminars, stock investing seminars, and many more.

1. The SSS Flexi Fund

SSS Flexi Fund is a voluntary savings investment program for OFW SSS members, is one of the best investments for OFWs aiming to increase their retirement savings. Similar to the Pag-IBIG MP2, beneficiaries of the SSS Flexi Fund program receive risk-free and tax-free benefits. Although it is intended mainly as a retirement investment for OFWs, early withdrawals may be used to satisfy immediate financial needs through an early withdrawal. A further advantage of investing via this SSS program is the ability to earn bonuses if no withdrawal or benefit claim are made within a year.

2. PERA Investment Personal Equity and Retirement Account (PERA)

Another ofw investment tips in the Philippines, PERA for short, is a voluntary retirement savings program. This program allows you to enjoy higher tax exemption. Once you create a PERA investment account, your assets are invested in a variety of financial instruments, such as bonds, equities, mutual funds, and UITFs.

3. Pag Ibig MP2

Pag-IBIG MP2 OFWs may join in the five-year Modified Pag-IBIG Savings II (MP2) program in addition to their usual Pag-IBIG savings. The Pag-IBIG Fund permits a minimum monthly investment of PHP 500 for MP2, but OFW members may choose to invest more to receive higher dividends or annual dividends. Therefore, expatriates should also consider investing here. In contrast to the necessary contributions, Modified Pag-IBIG 2 (MP2) is voluntary. But this voluntary savings program is available to people with excess funds who choose to participate in tax-free investments and provides higher interest rates.

Top 3 Investment Opportunities for OFWs

1. Real Estate

For an overseas Filipino working abroad, it is a good deal to invest in real estate property to generate enough cash flow . Some say that commercial real estate is one of the best investment opportunities for OFWs. Because it is a tangible asset that is highly profitable which is why for a first-time investor or for the OFW it is a great start for you to invest in a condominium. It has the power to have a high appraisal value in the near future and offers a high annual returns.

This kind of investment vehicle is not unheard of by any means; nonetheless, its primary purpose is to provide the groundwork for the purchase of a future home or location for the establishment of a company. When compared to, for example, mutual funds, this kind of investing calls for a much larger initial capital contribution from the investor. Having money invested in real estate often means having enough to continue paying on land that you have acquired, and the greater the rate of interest, the more money you may save by investing it in real estate.

One of the great real estate company’s that you should invest in is the Asterra, which offers an affordable condo units built for you that offers a place where rural charm meets the convenience of city life. Asterra is definitely a great real estate investment opportunity for OFWs that will make their money grow and has a higher chance of return on investment.

If you want to invest in property, such as a condo, you have the option of turning it into a rental or transient home, which will allow you to generate income and get rent advances. In addition to this, you may sell your real estate in a very short amount of time and make a large cash reserve in the millions of moneys. Always save emergency fund from passive income or any other investments.

2. Stocks, Variable Universal Life Insurance, Mutual Funds and UITFs Investment Opportunity

Why are stocks a best investment for OFWs? Stock investing is one of the OFW investment that will make a high profit from time to time for your personal benefits as an OFW working abroad that will secure your future even if you stopped working abroad. Investing in the stock market is a long-term plan that should be related to your long-term objectives. It is not for fast and easy gains, otherwise, you risk losing money due to the volatility of the market, as opposed to generating profits in comparison to the overall performance of the market. It can easily get an OFW investors in which as low as 5,000 pesos, you can now register an account to a firm that you are investing in.


Stock investing is also one of the investment opportunities for OFW which is a great deal in putting your money. Investing in stocks often requires a commitment over a relatively extended period of time. If you want to generate large money, you will probably need to take an active role in the process. There are many who believe that investing in stocks is fraught with peril. Investing in stocks, on the other hand, has the potential to help your money grow if done the right way. This investment option is a chance for Ofws to achieve financial independence.

If you are a Filipino citizen working outside of the country, investing on the Philippine Stock Exchange is likely one of the most common ways to put hard-earned money to work for you. This is owing to the various perks that come with investing on the Philippine Stock Exchange as an overseas Filipino worker (OFW). It is possible to earn yearly profits on the stock market of up to 50 percent which is a great annual returns. When you buy shares in a firm via the stock market, you are automatically placed as a shareholder in that business. Stocks can be bought in the Philippines through the PSE. You can opt to buy stocks directly as an investor.

Mutual Funds and Unit Investment Trust Funds

Mutual funds and unit investment trust funds (UITFs) are examples of pooled investments in which overseas Filipino workers (OFWs) may deposit as little as PHP 1,000. Investing in a UITF gives investors the opportunity to make possible higher earnings. Mutual funds and UITFs need far less time and effort to manage compared to other assets available to OFWs, such as stocks and businesses. In addition, your mutual funds and UITFs are managed by professional Fund Manager on your behalf. These individuals are able to effectively channel these money and make use of economies of scale. And at this point, all that is required of you is to place the money in the account. This is often provided by banks and varies from mutual funds in that investments are made per unit, as opposed to shares in mutual funds.

Metrobank, BDO, Union Bank, BPI, PNB, Chinabank, Security Bank, and EastWest Bank are among of the banks that provide UITFs. Bonds may be an alternative way of investment for OFWs, given their inclination to preserve cash in bank accounts or savings account. Large enterprises and government agencies (retail treasury bonds) often offer this type of investment as a strategy to raise funds.

3. Franchise Business as a Best Investment for OFWs

A business franchise is also a great way to earn passive income. You will get the opportunity of becoming familiarized with business management by making use of a method that has been shown to be effective. It is possible for investments in enterprises to create sufficient cash flow to generate an amount equivalent to or even more than the OFW’s pay. It is one of the most important options available to you if you are thinking of moving back to the Philippines to be with your family and working here to support them. Because it is now possible to conduct a business online.

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