Best Investments for Hard-Earned Money of OFWs 

Overseas Filipino Workers were considered modern-day heroes of the Philippines. Aside from the fact that they may experience a variety of hardships abroad physically, emotionally, mentally, or even social, to establish the needs of their family, these people are admirable because of their strength, bravery, and fine qualities handling life catastrophes. They deserve to be called Modern Day Heroes as they generally contribute and favor the Philippine economic development. How? Through remittances, OFW ensures to secure their family needs by sending money, which plays a significant role in the current economy. It helps alleviate poverty and create a stable cash flow circulation or liquidity amid the global financial crisis. 

Working on foreign land for the family means hoping to provide a better future for them. Overseas Filipino Workers know that they cannot work abroad forever, that sooner or later, they will need to go back to their homeland, the Philippines, to retire and won’t be able to earn as much as they used to. The great deal and opportunities for these sacrifices should be a reasonable allocation of hard-earned money into great investments. It’s the only way to improve your chances of a brighter future. You’re saving and building by making investments. Aside from that, making regular investments pushes you to set aside money regularly, which helps you develop a long-term financial discipline. So, What kind of investments should you seek? Here are the best investments for OFW that you may consider: 

1. Real estate 

This was one of the most preferred investments of OFWs because a home is a tangible asset, and it can personally benefit you from having your place. It also has the potential to provide high returns, as you will have a big cash reserve in the millions if you decide to sell your property.  

However, before purchasing a house and lot in the Philippines, ensure to research and figure out your financing options. It would be best to work with a credible real estate developer to ensure that your purchase is in good hands. Here are some credible real estate developers in the Philippines: 

  1. Lumina Homes is a leading housing developer that offers affordable house and lot packages in over 50 locations nationwide. Lumina also recently added in their portfolio a condominium in Cavite. Both developments with flexible payment plans. Best Startup Asia just named the Top Real Estate Company in the Philippines for its innovations and position at the forefront of digital real estate transactions. 
  1. Crown Asia has constructed condominiums with a combination of natural and contemporary conveniences to provide each customer with a well-balanced life experience, in addition to communities with houses. You may find Crown Asia condominiums at Bacoor, Tagaytay, and Sta. Rosa, as well as Las Piñas. 
  1. Bria Homes offers socialized house and lot available through bank and pag-ibig financing. 
  1. Vista Residences has long been the go-to condominium for young professionals searching for accessibility, security, comfort, and convenience to practically everything a condominium has to offer. It has been serving the needs of Filipinos, international investors, young professionals, and students. 
  1. Camella Homes is the Philippines’ leading homebuilder, having an established track record of delivering high-quality homes for over 40 years. Camella has been in the industry for a long time and has built a broad range of high-quality residences in world-class settings and decorated with awe-inspiring themes. 
  1. Camella Manors is Vista Land’s newest and yet affordable mid-rise condominium building project. Camella Manors was founded on the concept of creating a lifestyle in which being in is as fun as going out, recognizing that staying at home is more important than ever in the age of the “new normal.” 
  1. Lessandra provides its clients with a wide range of well-crafted houses with features that allow each homeowner to live a fun-filled living in a vast and expansive neighborhood. You may also enjoy and create memories at the clubhouse by shooting hoops on the basketball court, swimming in the pool, and playing on the playground with your children whenever you like. 
  1. Brittany, which defines elegance and lifestyle in every home, is now available in several areas, including Crosswinds Tagaytay, Sta. Rosa Laguna, Vista Alabang, and Lakefront Sucat are just a few of the places where you can relax in peace and tranquillity on your terms. 

2. Stocks 

Stock investing allows your money to grow if done right. Annual returns of 50% are possible with the stock market, but of course, you need to put in the effort of learning and studying. OFWs can now engage in the Philippine Stock Exchange (PSE) even if they are based abroad, thanks to the development of online trading platforms. You can start an account with some online stock brokers for as little as PHP 5,000. OFWs can invest more and contribute to it monthly because of their strong earning capability. 

3. Franchise Business 

Owning a business franchise is another excellent option for OFWs as it offers tons of benefits and lowers risks of failure. This also gives them more exclusive perks and opportunities to explore. Franchising is a long-term investment and a perfect business for OFWs while working abroad. It allows them to learn the ins and outs of running a business while following a tried and tested approach. Franchise ownership provides OFWs with the possibility to supplement their income. However, it would help if you worked with someone you can trust because you are not always in your home country, and there should be someone to manage the day-to-day operations. 

4. Mutual Funds & Unit Investment Trust Funds 

OFWs can invest as little as PHP 1,000 in mutual funds and unit investment trust funds (UITFs), pooled assets. The most straightforward choice appears to be investing in a mutual fund. This sort of investment relieves you of the majority of the effort and places it in the hands of experienced fund managers. Their duty will be to grow the money you’ve put into it without you having to keep track of it. 

5. Life Insurance 

Family Care And Protection

Overseas Filipino Workers (OFWs) are lauded for supporting their family while also contributing to their development through remittances. It only makes logical that they should be financially protected, given their sacrifices by living far away from home and experiencing risks they might encounter abroad. OFWs support their families by working as breadwinners. If something happens to them and they become unemployed, their families will lose their primary source of income. Hospitalization as a result of an injury or illness might have an impact on their pay and remittances. For OFWs and their families, life insurance provides a safety net. 

6. Bonds 

If you’re looking for something low to moderate-risk investment options than stocks but have relatively higher interest rates than cash deposit accounts, consider bond investments. They serve as excellent alternatives to time deposits. Large corporations and the government (retail treasury bonds) to raise funds by pooling investments from investors. Bonds have fixed maturity dates. 

7. PAG-IBIG MP2 Savings 

In addition to their usual Pag-IBIG savings, OFWs can apply for the Modified Pag-IBIG Savings II (MP2) program. It’s a five-year voluntary savings plan with better rates than time deposits and significant annual dividends. MP2 is particularly advantageous because it is tax-free and backed by the government. OFWs interested in opening an MP2 account can do so online. Your relatives can pay on your behalf at any Pag-IBIG branch, or you can do it yourself at their overseas remittance partners. 

8. Variable Universal Life (VUL) Insurance 

Variable Universal Life Insurance (VUL) is a type of cash-value life insurance plan that invests a portion of the premium, potentially earning large profits. VUL insurance allows you to hit two birds with one stone by providing both life insurance and investing. This is great for OFWs who do not yet have life insurance and are looking for one. OFWs are eligible for a Variable Universal Life Insurance (VUL) plan as long as their application is signed in the Philippines. 

Author: Catherine Muñoz 

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