A lot of our Overseas Filipino Workers break their bones for their families back here in the Philippines. As a matter of fact, hundreds to thousands get jobs and leave the country every single day. There are jobs that pay well and is more than enough for them and for their families but there are not-so-good-paying jobs as well. Along with that, many jobs that Filipinos get outside the country are well-off meaning, they work there so they get big salaries as compared to working here in the Philippines.
Some OFWs play the game well and invest; either abroad or back here in the Philippines. Furthermore, there are Filipinos that even though they’re not getting a higher rate, they’ve saved investments for themselves and for their families.
The thing is, a lot of us still have the fear of investments even our brothers abroad. In this article, we will be giving you the best investments for OFWs. So if you have a friend or a relative working overseas, you might want to read more and share this to them.
Why invest if I have a high-paying job abroad?
Successful people are not those who work for someone or for a company. Successful people are the owners of these companies and most entrepreneurs and businessmen always include initial investing as stepping stones for success. Yes you have a high-paying job abroad and it pays you well that you get to support yourself and your family back home but do you want to be there forever? No, right? Investments are one way of escaping the paycheck living.
Invest on stocks and shares
If you’re more of a risk-taker and if you know how the stock market industry, then invest in the stock market. The Philippines has a growing economy for market shares and you don’t want to lose this opportunity. Moreover, if you invest in stocks, you would be able to decrease your taxes in a legal way. Unless you decide to sell your shares, you don’t need to file returns on your earnings. In addition to all of these, investing in stocks give you dividends which you can use to reinvest as well. Investments in this industry not only gives you a chance to be part of big companies, but also learning what’s there in the market today.
Peso treasury bills
Although this investment is not as grand as stocks or foreign exchange, it gives a safer option for your money rather than just putting it aside. The good thing about peso treasury bills is that you can get them at discounted rates and prices, unlike stocks. Furthermore, the Philippine government has a zero to low rate of defaulting the currency debt which makes your investment safer and less risky.
Although this is more of a time-savings kind of investment, it won’t hurt to have money in cooperatives. The thing about cooperatives is, a lot of people are doing it and therefore, the yield won’t be as high as you would expect. However, there are a lot of things you can do in cooperatives rather than just investments; you can loan, you can apply for shares, and such. If you’re looking for a no-risk type of investment, you might want to consider investing in cooperatives.
Unit Investment Trust Funds (UITF)
Probably the first time you’ve heard of this, a Unit Investment Trust Fund is an open-ended, ready made investment projects put up by banks from different investors of course with the goal to achieve the same single thing – for their money to grow. It is safe in a way that fund managers are the ones managing these UITFS which is best for people who wants to invest and has little to no knowledge about bonds. UITFS are being monitored and approved by the Bangko Sentral ng Pilipinas to ensure the smooth and transparent growing of investments.
Retail Treasury Bonds
This type of investment is considered to be the safest form of investment here in the Philippines. The only time that your money will be gone is when the Republic of the Philippines defaults its current debt but that is unlikely. Retail Treasury Bonds or RTBs are fixed-income instruments, meaning they pay a fixed and known interest rate for the maturity of the investment. Investing in RTBs is the best and safest way to construct your investment portfolio and the good thing about it is that you can start investing for as low as Php5, 000.00.
Nothing beats being the boss of your own, right? You can use your income to slowly invest in small businesses and be the boss you are dreaming to be. Although there are a lot of small businesses to choose from, you have to of course deliberate and think what business is for you. The profit or yield for having a small business will depend on the market and of course the performance of the business you’ve put up. So if you’re planning, better think and plan about all of the factors first including location, capital, market, etc.
Here is a list of the most feasible and easiest small businesses you can put up for you and for your family back in the Philippines:
- Sari-sari store
- Mini convenience store
- Food carts
- Food stands
- Perfume/cologne making
- Healthy food delivery
Those are just some of the few small businesses you can start with your family. The good thing about this is that it’s at minimum risk; the only risk is when your business won’t boom and of course, you won’t let that happen, right? As a matter of fact, putting up two or three of these can already be enough to stabilize income in your family meaning, the one working abroad can already go home and just work on these investments.
If you want something that you wouldn’t sweat on, you can have your family put up a money-lending program (pautang). Although there’s a lot of risk associated, it can yield high-value returns without you thinking of location and market. Everyone would need to borrow money and that’s where this type of business comes in.
The catch is when someone fails to communicate with you; if they run off or hide from you but you can easily secure that investment with writing or signature. So, if you plan on this type of investment, ensure that you get the borrower’s specimen or sign an agreement.
These are just some of the things where you and your family back home can invest on. This is the start of your road to investment and a good life. Although there’s a lot of risk attached to it, its returns would definitely astound you. Besides, there’s risk in everything, right? Even in just letting your money rest in a bank, it still has risks.
So what are you waitin’ for? Invest now and change the way of your life. These investments can make your loved one abroad come back home and just focus on what you’ve started.