Money Matters: 6 Best Investment Options for OFWs

How many times will you hear OFWs say that the reason why they work overseas is to provide a better life or future for their families? The reasons may vary, but one thing is for sure: you are really after the good and secured life.

Working overseas allows you to earn more than what you can earn in the Philippines. Unfortunately, this “capacity to earn in dollars” will only be as good as your contract. Before your employment contract expires, you should be able to find additional means to grow your money and make sure you can use something for the rainy days.

Check out these best investment options you can try: Mutual Fund

This is the simplest form of investment you can try. For starters, you can invest P5,000 and a professional fund manager will handle your account. He will place your money in  pooled investments, which will then be invested in various securities like shares of stocks, government bonds, and other investment options,

This is a good investment because it requires little time and effort, thereby taking the work out of your hands. BPI, Security Bank, PNB, and Sunlife are some of the financial institutions that offer mutual funds.

Unit Investment Trust Fund (UITF) 

This type of investment is similar to mutual funds where professional fund managers handle your money. The difference is that UITFs involve per unit investment as opposed to mutual fund’s shares.

This is a good investment because you don’t need to exert time and effort to grow your money. It is readily available, poses lesser risk, and yields higher rates compared to time deposits. UITFs are also offered in major banks like BPI, BDO, Metrobank, PNB, and EastWest Bank .

Bonds 

Bonds are debt instruments where you can lend money to either the government (treasury bonds) or corporation (corporate bonds). Bonds also have fixed maturity dates and allow you to earn bigger profits. This also allows you to diversify your investment portfolio.

This is a good investment because of the minimal risk. Whatever happens, the issuers of bonds are obligated to pay you in both principal plus interests. Payments are also made on a semi-annual basis – and you are sure you can get that. Metrobank, PNB, and BPI are some of the banks that sell bonds.

Stocks 

If you are willing to take a risk, investing in stocks can be a good option. Investing in the right companies also allows you to grow your money by at least 50 percent, especially when you do it right.

This is a good investment because you are able to keep track of your investment online even if you are working overseas. You can also expect higher annual returns and issuance of dividends at least once a year. Investing in stock market can be intimidating, but the good news is there are various workshops, books, and articles online that will help you better understand how it works. COL Financial Group, BPI Securities, and First Metro Securities are among the accredited brokers of the Philippine Stock Exchange.

Owning a Franchise 

This is another risky investment, but if you are willing to try it, the results could pay off. This is because franchising allows you to learn and understand how a business works using a tried-and-tested system. Franchise fee could range from P35,000 to as much as a million, depending on your franchise.

This is a good investment because it allows you to earn additional income and at the same time, provides livelihood for your family. This will teach the family members the importance of money and earning as you work overseas.

Real Estate

It may require a higher amount, but many OFWs prefer investing in real estate for future family home or for the sake of having a property. There is higher risk as well because you need to make sure that you will be able to pay the amortization. Nonetheless, nothing beats the joy of having a property you can call your own.

This is a good investment because the property has a potential of providing you bigger returns. Generally, the value of a property appreciates too. Just make sure that in buying a property, you think long term, consider the location, and the possibilities you can do should you decide to come back to the Philippines for good.

OFWs have many options when it comes to investing hard-earned money. Don’t just settle with your monthly salary since you will never know what will happen. Choose the best investment option for you and you will start saying hello to earnings in no time.