Best Investment Ideas for OFW

I think most OFWs will agree that one of our main goal working abroad is to provide a better life for our family back in the Philippines. We want to save as much as we can in hope that one day we can go back sa Pilipinas for good. Sadly, most Pinoys abroad break this promise due to lack of financial knowledge.

No matter how much dollars you earn abroad, if you lack basic information on how to spend properly, you are doomed to commit money mistakes.

I will often get asked what the best investments for OFWs are and my top answers will surely include the following:

  • Mutual Fund for beginners
  • SSS Flexi Fund for OFWs
  • Philippine Stock Market
  • Real Estate Properties and
  • Start Up Business

In today’s post I will discuss each investment ideas and why I see them as best investments for OFWs.

But first, I want you to do the following:

  1. Write down your financial goals. Aside from providing better future for your family what else are the reason you are working abroad? Do you want to build your emergency fund? Do you wish to give the best education to your kids?


  1. Assess what type of investor are you. Before you can event invest your money, you need to know first how much risk you can handle as an investor. Are you a conservative, balanced or dynamic investor?
  • Conservative investors tend to go for investments that can provide steady income at the lowest possible risk.
  • Balanced investors are on the mid-level when it comes to risk they can tolerate. They are keen to make money but have limited time requirement.
  • Dynamic investors are those who can take risks when it comes to their investments. They mostly go on vehicles that can have high returns in the future and can stay invested for a longer period of time.


  1. Lastly, invest only in what you know. OFWs and their respective family back home are known to be prone to scams. That’s why it is best and safe to only invest in what you know. Gather all important things you need to know before you sign anything or before you give your money.


Now that the above are said and done let’s move on the best investments for OFWs this 2017.

Mutual Fund

Mutual Fund is a type of investment vehicle meant for beginners. In this investment you are basically letting a trusted asset management company handle your finances.

How mutual fund works:

Your investment will be pooled together with other investor’s money. The pooled investments will now be invested in a specific portfolio that match every investors’ goal.

There are four different types of mutual fund you can choose from.

  1. Equity Fund invest mostly on listed stocks in the Philippine Stock Market, high risk but with greater returns 
  2. Money Market Fund invest in short-term debt securities and treasury bills, can be considered as better parking vehicle than regular savings account.
  3. Balanced Fund is a combination of Equity and Money Market, bring safe capital appreciation with controlled risk.
  4. Fixed Income Fund invests in short-term fixed income securities such as government bonds, treasury bills and certificates of deposit.

Best investment for OFWs because:

  • Low initial investment required, mostly P 5000 – P 10000 only.
  • Return of Investment are known to be higher than normal savings accounts.
  • Can answer short-term financial goals such as house fund, education fund and retirement fund.
  • Diversified investment as each portfolio comprised of different stocks and bonds already
  • Perfect for beginners and OFWs who are too busy to check on their investments.

SSS Flexi Fund for OFW

SSS Flexi Fund is an investment vehicle created by the government to help the OFW community. It is considered as risk-free as it invest mostly on government securities with earnings computed on the average 91-day Treasury bill rate. With this composition, the SSS Flexi Fund is known to be high-yield, low-risk vehicle every OFW might want to take advantage of.

How SSS Flexi-Fund works:

You can voluntary apply and invest in SSS Flexi-Fund for OFWs. Your money will be invested on treasury-bills, other short-term fixed-income instruments and those that guarantee high earnings with lowest possible risk.

With the SSS Flexi Fund you can enjoy the benefits provided by SSS but with added benefits of savings and investments you can use on your retirement.

Best investment for OFWs because:

  • This investment vehicle is tax-free. You will not be charged tax for investing, withdrawing or interest earned by your investment. What you gain, is what you get policy.
  • It works a provident or pension plan for OFWs at the end or your working years or upon retirement.
  • You can withdraw your earnings anytime.
  • Applies compounded interest, meaning your money can earn interest over interest earned as long as it stays invested on the fund.
  • You can be qualified for Annual Incentive Benefits in the form of additional earnings credited to your existing investment.
  • Pay your contributions on your chosen schedule – monthly, quarterly, semi-annual or annual.

Philippine Stock Market

Investing in stocks for OFW require knowledge and understanding. It is best to secure your savings first bago ka pa mag-invest sa stocks. Although this vehicle has the highest risk factor, study shows that this also has the highest potential to grow and earn money overtime. Very helpful for those who would want to go home and spend their time with family members sooner.

How investing in Philippine stock market works:

First step is choosing your broker. Brokers act as middleman between you and the Philippine stock exchange. No ordinary citizen can buy and sell stocks without a broker. Among the top accredited online stock brokerage firms in the country are COL Financial and First Metro Securities. Once you have filled up your application form and submitted your document requirements you can now start investing. Direct investing in stock market means you can choose the stocks you will buy, how number of share you will own and how much you will invest.

Best investment for OFWs because:

  • You can monitor your investment conveniently online.
  • Higher annual returns with possibility of dividends and cash appreciation over shorter period of time.
  • Can grow your money to up to 50% increase as long as you choose a good company to invest with.
  • Perfect for long-term investors.


Real Estate Properties

Another investment idea for OFWs will be buying real estate properties. You buy one for residence and invest some on properties that you sell or rent to others.

How real estate investment works:

You can choose to do it yourself or find a trusted real-estate agent to look for potential properties for you to invest. Make sure that you invest only on a condo, house and lot or lot-for-sale within a strategic location accessible to common landmarks and modes of transportation. Once you found a good place to invest you can either rent the property out or sell at a higher price. Most properties appreciates in value over time so this vehicle has a big return.

Best investment for OFWs because:

  • Potential passive income for you and your family. You can use the rental fee to pay for the house mortgage. Once you’re done paying the property you can continue renting it out. You can also use the property to start your own business.
  • Guaranteed to appreciate in value over time.
  • Automatically increase your net-worth.

Own Business

I am a proud Entrepreneur OFW. I did not settle in what I’m earning working abroad and continued finding ways I can generate income on the side.

How owning a business works:

There are many businesses you can start as an OFW with zero to minimum capital. If you have a good location, you can avail a complete food cart franchise as low as P 35000.

Alternative business opportunities such online shop, blogging and networking are considered as good investment too. These business opportunities does not only make you earn income on the side but will also improve your skills and talents.

Best investment for OFWs because:

  • Provide livelihood for you and your family
  • Gives the joy of having your own business
  • Has a potential to become a stable source of income that could even replace your income working abroad.


Investing is a good way to put your money at work. As an OFW you have a choice to maximize your capacity to earn dollars by capitalizing on any (or all) of the best investments mentioned above. It is best that you have secured your finances before your contract expires or before you even hit your retirement age.

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