Illustration by Steph Bravo
Billions of dollars are remitted to the country by overseas Filipinos workers every year.
In 2017 alone, the Bangko Sentral ng Pilipinas (BSP) recor-ded $31.3 billion in personal remittances, which then accounted for about 10 percent of the country’s GDP. Latest BSP data further showed that as of end August this year, cumulative personal remittances reached $21.2 billion, while total cash remittances, or those coursed through banks, hit $19 billion.
However, BSP data also showed that OFW households reportedly invest only 5.2 percent of their remittances.
With so much remittances flowing in the country, where are these being channeled and spent? Apart from addressing the basic necessities, is there room left for OFWs and their families to save for a car, a better home or for their future?
Local banking giant Metrobank offers here a few tips that will make it a tad easier for OFWs to jumpstart on their dreams of purchasing a new home or securing their future, as well as some investment options that will allow their hard-earned money to grow even further.
DO’S
Invest now and start building your future. Remember, it’s never too early to open a savings account or invest in any of the funds offered by financial institutions like Metrobank, which provides its clients several options to choose from. The good thing about Metrobank is that it offers manageable, reliable and secured funds.
Make a smart, well informed investment decision by ensuring that you know and fully understand the financial product that you plan to invest in, whether it’s something as simple as a deposit account or something more complex like an investment fund.
Find a bank that has a range of options for you like Metrobank, where you can also readily talk to a bank officer who can guide you through your savings or investment process.
Always read the fine print. It’s worth looking into the terms and conditions of any contract or facility to ensure that you get the most out of your hard earned money.
DON’TS
Do not invest if you do not understand the product or any of its terms and conditions.
Do not be enticed by the promise of extremely high returns. Understand that the higher the return of investments, the greater the risk.
Avoid pyramiding investment schemes, including those internet-based that induce investors to recruit others in exchange for more income. Investment products issued by banks should be authorized by the BSP.
Metrobank meanwhile offers several options for OFWs and their families to further build their funds beyond the usual savings account and realize their dream homes much earlier. Remember that investing as early as now, while you still have the full energy to work harder, can be helpful once you reach the retirement age.
UITF
One of these options, is the Unit Investment Trust Funds (UITF), a long-term investment for those who are looking for an affordable way to save and invest regularly.
According to Metrobank, UITFs refer to the money pooled together from clients and which are invested collectively by professional fund managers. This provides access to high-grade investments which would normally be inaccessible to retail investors.
This, the local banking giant explained, is appropriate for people who have money intended for long term investment and are willing to take risks in exchange for potentially higher return; and those who can leave invested money untouched for a long period of time.
The amount you intend to invest and the choice of investment product will be up to you. However, it is still best to talk to Metrobank investment managers and bank representatives to make sure you get the most out of your savings.
In this way, you might be able to achieve your home goals much faster and easier than you think. And for many OFWs working doubly hard for their families, the realization of their dream homes is the best and most concrete proof that their hard work had truly paid off.
Again, saving up for your dream home need not be a hassle. As long as you have the right attitude and the right banking partner like Metrobank, you’re definitely on the right track.