OFWs planning retirement have a lot to consider. Regardless of if you’re 25 or 50, it is never too early or too late to start saving. Before considering any investment, it’s important to determine the amount of risk you are willing to take on. Basically, risk is the chance the investment has of losing money.
In most cases, the riskier the investment, the higher the possible return will be. In the case of OFWs planning retirement, most are willing to take some risk, but don’t want to do anything too bold. With this in mind, here are three smart investments for OFWs planning retirement. These strategies can help build your wealth for when it comes time to call it a career.
Real Estate
For OFWs planning retirement, real estate is one of the best investments they could possibly make. The Filipino real estate market continues to perform well and it is possible to make money, both short and long term, from your property investment.
Consider buying a condo unit. You can rent it out in the short term, brining in a steady source of income pre-retirement. When you’re ready to come back to the Philippines you can either use the property as your retirement home or sell it for a tidy profit and buy the property of your dreams. Real estate investment is ideal for OFWs planning retirement.
See More: Perfect property types for OFWs
Stock Market
Playing the stock market is risky if you don’t know what you’re doing. Even experts can have trouble predicting the ebbs and flows of the market. That being said, the risk of investment in the stock market can be worth the reward. If there is a company or trend you feel strongly about, then investing in that stock isn’t a bad idea. However, you have to be prepared to take a loss on your investment.
Investing in the stock market is easy for OFWs these days since they can buy and sell stocks online. In most cases, funds can be deposited via electronic bank transfers and remittance services.
If you are thinking about investing in the stock market, it is wise to speak with a financial professional.
Mutual Funds
Mutual funds are one of the safest investments and don’t require much in the way of time or effort beyond an initial meeting with a financial professional. A mutual fund is an investment vehicle that invests in stocks, bonds and other assets. The fund is created by pooling together money from other investors who share similar investment strategies. There are now several firms handling mutual funds that accommodate OFWs meaning this savings method is easier to access than in the past.
