OFWs and Investing

A true luxury is a reward for investing in and developing a real asset." Robert Kiyosaki

Yehey!  It's almost Christmas.  Time for family and friends reunions.  Balikbayan boxes are slowly arriving.  Cash registers of malls are buzzing.  I bet our fellow OFW friends can't wait to go home for a much deserved break!!!
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Only in the Philippines.  When I was working in London, I used to have my vacation every December.  Everytime the plane lands in Manila, our hard-working Kababayans can't help but clap and cheer!!!  They were just ecstatic at the thought of seeing their families and friends again.  They can't wait to give their "pasalubongs", including the 4 to 5 handcarried items they brought. =)
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Where do the typical OFW invest or should I say spend their money when they come home?  Based on my observations/experience, the first items on the list are usually home appliances, i.e., new TVs, component (radio/CD players), DVD players, washing machine, laptop and the ever important, Magic Sing (karaoke system).  The ladies have new bags, new shoes, new dress, new jewelries, new perfumes.  The gents have new shirts, new watches with matching gold "bling blings", new Nike basketball shoes and a new CAR, why not?!!    On the otherhand, the kids normally have new toys, new dresses and tons of chocolates.  Ah before I forget, everyone gets a new cellphone!
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After the spending spree, here are the usual conversations:  "Di bale na, ngayon lang naman nakakaluwag."  "Kahit papanu, masaya ako at nakikita ko kung saan napupunta yun pinagpaguran ko."  "Masaya ako at nageenjoy ang pamilya ko."  "Konti-konti ko nang nakukumpleto ang mga gamit sa bahay". "  "Kaya ko naman kitain yan gagastosin ko sa next na sahod o next na biyahe ko."
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 According to InvestoWords.com, an "investment"  in finance relates to the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means to use money in the hope of making more money.
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Going back to the above scenarios, do we really invest or just spend on non-earning assets?  Do we buy assets that will generate income or more assets?  Do we earn money to make more money?  Sayang naman kung mapupunta lang sa "panandaliang' kaligayahan ang pinagpaguran nyo sa ibang bansa.  Sana magkaruon tayo ng "delayed gratification" mentality wherein tiis ng konti now for a better future.
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Where to invest? Here are some options:  1) stocks (check out CitisecOnline); 2) mutual funds (check out Philippine Funds Investment Association); 3) unit investment trust fund (go to your nearest BPI or BDO branches); 4) variable or unit-linked insurance (ask your Pru Life UK Financial Consultant, like me, ehemmmm); 5) business - franchise or own (read Entrepreneur magazine); 6) properties (preferably commercial / non-residential); and a lot more.
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Who to ask for advice?  There are a lot of personal finance coaches/experts and blogs out there.  I humbly admit that I have a lot to learn so I recommend the following experts: 1) Randell Tiongson (www.randelltiongson.com); 2) Efren Ll. Cruz (www.personalfinance.ph/); 3) Registered Financial Planners Institute members (www.rfp-philippines.com/); 4) Investopedia.com; 5) PinoyMoneyTalk.com; 6) MoneySense magazine; 7) Entrepreneur magazine; 8) Pesos and Sense (watch every Saturday, 8am, GMA News TV)
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More importantly, "dapat pag-aralan ng mabuti bago pasukin ang anumang pagkakakitaan."  We should know ourselves first kung anung klaseng investor tayo (tayo ba ay conservative, aggressive or medyo gitna lang) at kung anung investment ang naiintindihan natin.


Hope this helps.


Ge

Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).