To pursue greater income opportunities, Overseas Filipino Workers (OFWs) make it difficult to go abroad and leave their families and home nation. As an OFW, you would long to quit working abroad someday and enjoy a comfortable retirement. Return home, spend time with your family back in the Philippines, and finally get a taste of the things you wanted to do but never had the chance to because of certain work circumstances.
Here is the hard pill to swallow: OFWs cannot continue to work abroad indefinitely. They will eventually need to retire, and soon their income won't be as high as it used to be. Ultimately, they must continue finding chances to increase their financial resources.
What are we suggesting? Investments.
Why Should We Invest?
A big reminder to take note of to live a worry-free life is that you must build on your wealth because, let's face it: struggling financially is something that no one would want, and having the fortune will more likely lessen your worries about the future. No matter how much the hardworking OFWs set aside, savings alone may not be enough to secure their future. We need to find another way to keep our money growing, and investments are a great example of accumulating passive income for OFWs. Investments are a chance for OFWs to achieve financial independence that shouldn't be missed.
What would be the best investment option in the Philippines this 2022? Here are some of the OFW investment opportunities you can consider to make your money grow.
Real Estate
One of the said best OFW investment opportunities are in real estate. There are a lot of real estate investments—like condo investing—that could provide you with big opportunities to take advantage of in the future. It is a great achievement to have a permanent roof over your family's head, and once you're all settled, you could invest in real estate to have additional income. Any advice is to grab the chance to purchase the property now and then watch it appreciate over time rather than waiting to buy it when you return. Therefore, you and your family can profit from real estate whether you want to live there, rent it out, or sell it at a time when demand is high.
In real estate, condo investments are incredibly convenient because they are stable and are for long-term can increase in value over time. It can also be a good source of passive income for OFWs. Apart from residential real estates such as family homes, apartments, and condo investments, you can also try other real estate investments like REITs, commercial real estate, raw land, and crowdfunding platforms.
Stocks
As a Filipino employee working abroad, investing in the Philippine Stock Exchange is arguably one of the most popular investment methods. This is due to the numerous benefits of investing as an OFW on the Philippine Stock Exchange. With the stock market, annual returns of 50% are achievable. You become a shareholder of the company you invest in on the stock market. Additionally, being a shareholder entitles you to own a part of the business. Stock investing is typically a long-term commitment. A hands-on approach is likely required if you want to make significant money.
Some people claim that investing in stocks is risky. However, if done correctly, stock investing can help your money grow. To increase your wealth, you need to research and monitor. You will undoubtedly need to try to understand and study, so make sure to know how stocks work. There are many stock investing seminars available online, so don't worry!
Business
A franchise is yet another excellent investment for OFWs. It offers you the chance to become familiar with business management using a tried-and-true system. Investments in businesses can generate enough cash flow to equal or even exceed your OFW salary. If you're considering returning to the Philippines and supporting your family here, it's one of your most significant alternatives. Since you may now run a business online, starting a business is not as difficult as it once was. While working overseas, you can establish your business in the Philippines by giving it to your spouse or another trustworthy relative.
A word of advice: Always have a reserve or emergency fund when opening a business. For various charges, including licenses, rent advances, more equipment, etc., you can end up spending more than your initial investment.
Pooled Investments
Suppose you are finding possible passive income for OFWs but lack time to engage in active stock trading. In that case, you may want to think about investing in pooled investment vehicles such as mutual funds, Unit Investment Trust Funds (UITF), and Variable Universal Life Insurance, or VUL Insurance.
The best part of this kind of investment opportunity is that you put your money in the hands of experts who can increase it. Thanks to pooled cash, people can participate without conducting research or maintaining oversight. All you need to do is deposit money into the account, which qualified fund managers to manage. Compared to other investments, you don't need much time or effort. OFWs may profit or lose using this pooled money depending on the fund they select and the state of the market.
Cryptocurrency
Cryptocurrencies are undoubtedly the trendiest investment possibility right now due to the rise of bitcoin and other cryptocurrencies. For context, a cryptocurrency is a form of virtual money used for trade. Blockchain technology safeguards it, preventing hackers from accessing the major point of weakness in digital currency. The most popular cryptocurrencies include Ethereum, litecoin, and bitcoin. Nonfungible tokens have gained popularity recently in the Philippines.
One of the best things about cryptocurrency and nonfungible token investing is that it can be done anywhere in the world, making it ideal for OFWs.
PERA Investment
In the Philippines, there is a voluntary retirement investment program known as PERA, or Personal Equity and Retirement Account. With this, your assets are invested in a variety of instruments once you open a PERA account, including bonds, stocks, mutual funds, and UITFs.
OFWs could be great beneficiaries of everything PERA has to offer. Because earnings are tax-free of up to 5% on their PERA investment, it's a fantastic chance to start planning for retirement. Additionally, compared to non-OFWs, who are only allowed to invest up to PHP 100,000 yearly, OFWs have a greater annual maximum investment limit (PHP 200,000).
Many OFWs sacrifice going abroad and working away from their loved ones for years to secure a brighter future. Incomes in foreign currencies reportedly give Filipinos more purchasing power and more opportunities for saving and investing. It's good to have an investment—may it be for the long term or the short term—for OFWs because even if they stop working actively and retire, they would still receive passive incomes through the right investment.
With so many investment opportunities in the Philippines this 2022, OFWs will want to explore various income-earning alternatives. So, weigh out your conditions and choose what you think would help you build a worry-free and more financially secure future for yourself and your family.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
