Top 3 Investments to Make When You Hit Your Mid-30s
There’s a good chance that you’re already more established in your career now that you’re in the mid-30’s. In fact, your earnings as an overseas Filipino worker are probably giving more space for savings. It’s wise to keep the money you worked hard for at the bank, but you know what’s better? Making that money work for you.
Your mid-30s present a great time for exploring investment options for OFWs. You’re old enough to understand risks and rewards, but not too old to enjoy financial benefits for a long time. That said, here are some investments worth trying:
Life insurance is important at any age. But it’s perhaps most important in your 30s, since this is the time you’re starting or growing your own family. It ensures that your spouse and kids will have financial support, in case untoward incidents happen in the future. What’s good about policies today is that some can serve as an investment. Variable life insurance offers exactly that. Its investment component is much like a mutual fund, where the cash value can be put into different products. You can choose from an array of fund options, depending on your financial objectives and risk attitude. As an OFW who hardly has time to learn and keep an eye on investments, this is a good option.
There are some insurance companies that offer loyalty bonuses. As long as you keep your insurance active for a specified period, you get a bonus. You can use it as an extra fund to increase investment and build wealth further. Work on designating 10-20% of your salary to insurance premiums, and the financial sacrifices will pay off later when you need it the most.
Unit Investment Trust Fund (UITF)
Facilitated by banks, this type of investment gathers funds from different people to be used for different products, such as stocks, bonds, or government securities. By buying into a UITF, you own units of the fund, so if the market goes up, then your funds increase as well. This investment option for OFWs is ideal because there are professional fund managers doing the work on your behalf. The only thing you need to consider here is which UITF is best for you.
When you go to your local bank, you’ll understand that there are different types of UITFs. For one, there’s the money market. It covers special deposit accounts and time deposits that mature in usually a year or less. This is perfect for investors who are not yet comfortable with risks. The next type is the bond UITFs, which involve government and retail treasury bonds and corporate bonds. These have longer maturity dates than money market funds. They’re ideal for moderately conservative investors.
The last two types are balanced UITFs and stock or equity UITFs. The former is a combination of holdings, while the latter is corporation stocks. If you’re an aggressive investor, this is the investment most suitable for you. Don’t worry about not knowing your investment personality. By answering a questionnaire, the banks will help you determine what kind of investor you are.
This type of investment is very popular among 30-somethings. Interestingly, it’s the overseas Filipino workers who are very keen on this. According to Lamudi data covering 2017 to 2018, a huge chunk of property seekers come from abroad. Over 21% of overseas sessions scouring website listings come from the United States, showing a 93% growth from 2017 to 2018. Singapore had a 79% increase in sessions in the same period, while Australia registered an 82% increase. If you’re part of this group, you’re on the right track. Real estate is an increasingly valuable investment option for OFWs.
For one, it appreciates in value over time. Buy a property with a million pesos now, sell it five, ten years later, and you may get double or triple the value of that. Plus, you can build equity with property investment, giving you better financial power. And remember, while you’re anticipating appreciation and equity, you can experience rewards even now. You can rent out that condo or apartment. You can receive payments every month or every week (if it’s a short-term lease).
Just like the other investments, you have lots of options when it comes to property. You can go for residential, commercial, or industrial. Each has its own pros and cons. All the same, they’re all profitable, when marketed and managed right.
Don’t let your money sit idly in your bank account. Make it work for you. Consider these investments as you think more seriously about the state of your finances.