OFW Question #1: Where can I invest?

I received a call from a fellow OFW in Singapore on a rainy midnight just the other day. I’m sleepy already but there’s an urgency on his voice. He asked me “Where can I invest?”

Not so many friends ask me regarding this question, So I decided to get out of bed and made sure to give time to talk to him regarding the matter.

I told him before we proceed, I need to  ask him few questions first, and he agreed.

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These are the following questions I asked:

Do you have Emergency Funds?

Do you have debts?

Do you have an Insurance?

My friend proudly answered my questions and said that he followed my advice a year ago.

Friend: I am now Debt free! have at-least 6mos of Emergency Funds and I have Term Insurance! Now tell me, Where can I invest?

Me: That’s great! Now, we can talk more regarding Investing…

I remember why I created this blog, to educate fellow OFW’s so they can protect, grow their hard earned money and be financially literate.

As of today, only less than 1% of the Filipino population actually invest. A lot of people are intimidated when talking about Investing, worse a lot of people tend not to ask questions and pretend to know it all regarding Investing.

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So today, I will share my interview with a good friend Richard Macalintal, whom I personally recommend to anyone who wants to gain financial knowlegde.

1. What are Investment vehicles?

Investment vehicles are the only way to literally make our money work for us. It’s growing our money thru investing in various investment products or vehicle available. There are lots of investment vehicles we can choose from depending on our goal, money, skills, time and other factors. These are business, real estate, stocks, pooled funds, bonds, ETF, etc. Same in a highway, there are slow moving and fast moving vehicle that can take us to our financial destination. Though there are risks involve, it’s manageable. We don’t want to work forever. We all dream of retiring and spending our lives to the fullest. Investing is the only way to make that dream retirement come true.

2. What are the Investment vehicles that Pinoys can ride to accelerate reaching their financial goal?

There are lots of investment vehicles that we can choose from like business, real estate, pooled funds, bonds, stocks, properties, etc. However, no one size that fits all. Investment must be made to fit each financial goal, we have in life. It is still best to consult a financial planner to help you decide which one to choose. Or you can do your own diligence and study. There are lots of online resources that are available for free.

3. Do you have any personal suggestion on where to invest for the long term? Short term and mid term?

For long term around 5 years and above, I would prefer putting my money in an equity fund either mutual fund or UITF. For mid term like 3 years to 5 years, I would choose a balance fund. For short term like 2 years and below, I would choose the less risky bond fund. This is the advice I will give for most Pinoy especially OFW who are totally newbie to investment.

4. Do you have any advise to anyone who has zero knowledge regarding financial literacy?

Learn first before you invest. Do not invest your hard earned money into something you do not understand. Attend financial seminars. Read financial books. Join financial groups like TGFI (The Global Filipino Investors) in facebook to interact with fellow investors. Apply what you have learned. Keep on learning That’s how I started 2 years ago.

Richard is a Financial Advocate, Blogger, coach, speaker and the author of OFW Guide in Investing for Newbies ebook (you can get the e-book for free by subscribing to his blog here)

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Subscribe to my blog Super OFW Investor for more informations regarding Investment vehicles for OFW’s.

Feel free to ask any questions by leaving a comment below or by sending me a personal message here.

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Nolan Lazaro
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