5 Investments OFWs Must Have Before Retirement

No one wants to be an OFW forever. At some point in your life as an OFW, you will have to go back to your homeland to retire.

Because of your work overseas, you have probably missed a lot of milestone events in your family like your child’s graduation and 18th birthday. Sometimes, Christmas celebrations are spent away from your loved ones. This makes retirement one of your much-awaited moments in life where you can finally spend more time with the special people in your life.

By the time you retire, all your sacrifices will only be worth it if you can enjoy the fruits of your labor. Investing can help you achieve this.

While you are earning well, it’s important that you are already setting your investment goals to secure your future. Based on these goals, you can choose from a wide range of investment options.

Be sure that you will enjoy your life back in the Philippines, and avoid thinking “I should have…” when it’s too late. Consider investing in these investment vehicles to prepare for your homecoming.

Real Estate (Land, House and Lot, and Condo)

Owning a home is every Filipino’s dream. You don’t want to retire without your own place to live in and feel secure. That’s why investing in real estate is one of the first things an OFW like you should consider during the rosy times.

Even if you already have your own home, buying properties such as condo units or houses is still an advisable investment strategy. Since it’s a tangible investment (which means that people can use it and live in it), you can rent it out to earn passive income. With this, you can still expect to earn even after your OFW days.

On the other hand, you have the option to buy a property and hold it until such time that its value has already appreciated.

Insurance (Life, Health, VUL, and more)

If real estate gives you a sense of security with a safe place to stay, a life and health insurance can provide you peace of mind. In fact, more Filipinos are buying life insurance nowadays because of the financial protection it provides.

Having life and health insurance protects your family from the financial burden should anything unexpected happen to you or in case you’ll be diagnosed with a critical disease.

Unlike the popular belief that life insurance is not for you but your beneficiaries, there are insurance products today that come with investments such as Variable Universal Life (VUL) Insurance and ULIP (Unit Linked Insurance Plan). These kinds of life insurance provide living benefits such as dividends and a cash value that grows over time, and which you can withdraw should you need extra money.

Pooled Investments (Mutual Funds and UITFs)

Mutual funds and Unit Investment Trust Fund (UITF) are pooled investment funds which you can invest in for as low as P5,000. These types of investment are ideal for OFWs busy at work, as these do not require much time and effort, unlike stocks.

Here, a professional fund manager takes care of your investment. This person is well-trained in managing investments in stocks, bonds, and other investment vehicles, so even if you are not an experienced investor, you do not have to worry much.

Whether you have short-, medium-, or long-term goals, mutual funds and UITFs offer a variety of assets for you.


If you are a more aggressive investor, investing in stocks is a good investment choice for you. While risks are high, it can increase your investment exponentially.

Buying stock shares enables you to participate in a company’s financial success. Aside from the benefits brought by dividends and increasing stock price, you will have a claim when the company liquidates its assets.

For as low as P5,000, you can already invest in the Philippine Stock Market by opening a stock trading account with stock brokerage firms. Apart from your financial goals, it’s important that you know what type of stock trader you are—fundamental trader, noised trader, sentiment traders, market timer, and arbitrage trader.


You are working hard enough, and at some point, you deserve to be your own boss. Starting your own business while you are working abroad is a good start to hone your entrepreneurial skills. It also provides extra income to your family so that your remittances are not the main source of money.

You can begin with a small franchise business like food stalls and carts with a starting capital of Php 35,000 to Php 170,000. Since you are away most of the time, choose someone you can trust to manage your business for you.

Working abroad is just a stage in the life of an OFW. There will come a day that you will have to settle in your homeland for good. Prepare for that day by investing now to guarantee that you will enjoy the longest holiday in your life.

Written by Maricor Bunal

Mari writes for Loansolutions to help educate people in making informed-decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advises and stories on finance. Also, she's fond of 9GAG, so you might read some random stuff over here.

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