5 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 quality of life. There is the so called “The American Dream” for every Filipino to work in America or in another country as they think that their lives will change tremendously when earning dollars.

According to the Philippine Statistics Authority (PSA), as of September 2021 there are an estimated 1.83 million Overseas Filipinos who work abroad. Our OFWs 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? 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 as a practical solution.

Why Should OFWs Invest?

There are a lot of investment options for OFWs to venture into that are truly worth investing in, from money-making accounts and financial instruments to real estate investments through value-packed condominiums in emerging locations in Greater Manila Area (GMA) and regional areas nationwide. But why exactly should Filipino migrant workers invest in any of these?

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 give the best value for money and grow them 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. Retirement investment

Moreover, not forever you can work overseas, so this will serve as your retirement fund to secure future. However, 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 practical 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.

Top 5 Investment Opportunities for OFWs

From mutual funds to insurance and business franchise to vertical homes for compact living in areas posed for growth, these are the top 5 investment options for financially conscious overseas Filipino workers.

1. Stocks

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.

2. Mutual Funds and Unit Investment Trust Funds

Mutual funds and a unit investment trust fund (UITF) 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. Variable Universal Life Insurance

A VUL, or variable unit life insurance, is a two-in-one package. For starters, it provides life insurance coverage. Secondly, it allows you to invest a portion of your payments in different investment funds. These funds are managed by professional fund managers. This practically means you don’t have to worry about handling your investments yourself.

For OFWs who are considering life insurance, VUL is a smart choice because of its flexibility. For instance, you can adjust your premium payments in accordance with your current financial situation. This makes it a lot easier for you to manage, especially if your income varies.

What is more, some VUL plans offer the option to invest in either Philippine Peso or US Dollar funds. It therefore gives you more control over how exactly you want to grow your money based on your preferences and insight from a professional, should you decide to consult with one if you’re unsure about your options.

4. 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.

5. Real Estate

For Filipinos working abroad, it is a good deal to invest in a tangible asset such as a real estate property. It could be through real estate investment trusts where you don’t have to manage and own properties.

But if you want to be a hands-on investor, you can venture into owning a residential property where you can generate enough cash flow by renting it out to long-term tenants, such as a starter home and a personal sanctuary for young professionals situated in a growing cityscape.

More specifically, consider investing in compact spaces through condominium units. It’s becoming more and more popular and preferred in the modern world, especially by on-the-go professionals. This is because most condos, especially those of what Asterra offers in Pampanga, Laguna, and Cavite, feature irresistible amenities and facilities.

This ranges from a fitness center, sports court, and a playground for the entire family to lead a healthier lifestyle, to other equally worthwhile amenities such as a clubhouse, landscaped gardens, 24/7 security services, open greens, tranquil landscapes, and pool area for comfort and relaxation.

Whether it’s for your first home to achieve practical living as the fruit of your hard work abroad, or as an investment property to slowly but surely build your wealth over time until your retirement, Asterra’s thoughtfully designed spaces through its condo developments are definitely worth considering. Get in touch with us today for your OFW investment inquiries!

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