The 6 Best Investments to Make as a Balikbayan OFW
Life as an overseas Filipino worker (OFW) may have helped you attain financial security for yourself and your family, and it may have also exposed you to a diverse range of financial opportunities. But if you anticipate coming back to the Philippines as a balikbayan, your financial situation may be a little different.
By the time you arrive back home, you may be closer to retirement age and not as physically or mentally prepared as you once were to re-enter the job market or learn a new trade from scratch. Knowing that it’s a good idea to pursue investing opportunities as early as you possibly can. Investing means that you can collect nest eggs for yourself and your loved ones over the years, as well as make improvements to your quality of life.
What are the best investment opportunities you can seek out as a returning OFW? Here’s a short list that will prove useful to balikbayans.
Your Own Property
Many say that real estate is one of the best investments to make as either an OFW or a balikbayan, and there are good reasons why. Real estate is a tangible asset that has the propensity to increase in value over time, and you can use that asset to earn passive income through rentals or simply to boost your family’s standard of living.
A house and lot in a master-planned residential community is a great investment that can go towards building a legacy home for your family. Consider Golden Home’s Periveo development in the emerging real estate hotspot of Lipa City, and reap the fruits of your hard work by owning premium real estate.
Life Insurance Policies for Yourself and Your Immediate Family Members
At this juncture in your life, it may also be a good idea to invest in life insurance policies for yourself and your immediate family. In the event of a grave illness, debilitating injury, or even death, your life insurance policy will provide a cash benefit to tide your family over and to make major expenses like hospitalization and burial less financially burdensome on everyone.
Get in touch with a trustworthy insurance agent and learn which insurance products best suit your circumstances. The sooner you can activate your policies before your return to the country, the better.
High-Yield Savings Accounts
One of the easiest and most convenient ways to grow a nest egg as a balikbayan is to open a high-yield savings account at a bank. High-yield accounts allow you to deposit money and collect a higher interest on the original amount, just as long as the money isn’t withdrawn for a stipulated period.
If you’ve saved up a fair amount of money that you’re sure you don’t need to touch for a long time, you can leave it to accrue interest in your high-yield account. Deposit in a local bank and let the money grow, then withdraw it at a later stage in your balikbayan life.
Financial Instruments such as Mutual Funds and Unit Investment Trust Funds (UITFs)
Even if you’re not yet well-versed in the world of financial instruments, now’s a good time to explore them in earnest. One example you can try out is a mutual fund, a professionally managed investment fund containing a variety of securities like stocks and bonds. Another option is a unit investment trust fund (UITF), an open-ended collective investment scheme that’s typically managed by a bank.
Mutual funds and UITFs are popular among OFWs and balikbayans because they offer diversified investment options and are overseen by professional fund managers who are knowledgeable about investments. For a laid-back approach to investing in several types of securities, try either a mutual fund or a UITF.
Government Bonds or Investment Programs
It’s also possible for you to look into investment options or programs that are overseen by the Philippine government. Several of these programs are tailored towards the needs of particular sectors, repatriated OFWs included.
For starters, check out initiatives like the Bangko Sentral ng Pilipinas’s (BSP) Personal Equity and Retirement Account, or PERA. You can also explore the various government securities offered by institutions like Landbank, which are among the safest investments you can make because they have a low risk of defaulting.
Education Funds for Your Children or Grandchildren
Lastly, upon your return to the Philippines, you can build up nest eggs for your children or grandchildren to use for their education. Enrolling them in an education fund will help you address the rising costs of tuition, board, and other expenses and keep your family from scrambling to get the money on time.
They say education is one of the best investments anyone can make, and that will definitely be true for the kids or grandkids you can help support. They can pay it forward by making you proud of everything you’ve achieved as an OFW.
Enjoy a Warm Welcome Back to the Philippines with the help of Golden Home Realty Development
When choosing which investments to try, be conscientious about learning the particulars and weighing your options. Only agree to legitimate investment opportunities backed by trustworthy companies, institutions, or agencies, as this is the best way to make good on your hard-earned funds.
On the real estate side, you can count on Golden Home Realty Development for property investments that will benefit you and your family. Get in touch with Golden Home and put your roots down upon your return home to the Philippines.