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Seafarers give their blood, sweat and tears to earn good money. It would be a disservice to squander that money on frivolous things. It’s important that seafarers and their families invest that money to secure their future.
There are many different investment options for Filipinos. Let’s take a look and see which one is best for you.
Before investing on anything, the first goal should always be building your emergency fund. An emergency fund is a pool of money saved to cover unexpected life changes like job loss, sickness or death in the family, hospitalization, etc. Financial experts agree that you should have at least 6 to 12 months’ worth of emergency fund.
Time deposit accounts are ideal for those who are just starting out in life and are still uneasy with taking a lot of risks. Time deposit accounts earn a little higher than regular savings account. Savings accounts usually earn 0.25% interest while time deposit accounts can earn as high as 1.125%.
Pag-Ibig offers its Modified Pag-Ibig II (MP2), a voluntary government savings program where members can invest for as low as P500 monthly over a five-year period. Your MP2 savings earn tax-free dividends. According to Pag-Ibig, the average MP2 dividend rate in the past three years is at 7.65%.
Mutual funds are bonds, stocks and other investment vehicles that are managed professionally. The concept is you pool your money with other investors’ money to form a large capital. This pool is then invested in bonds, stocks and other investment vehicles by a professional fund manager. Large financial companies like Sunlife, Philequity, Philam offer mutual funds. You can also invest in mutual funds for as low as P1000.
Unit Investment Trust Fund (UITF)
UITF is similar to mutual funds, where all the money of investors are pooled and invested in different money market vehicles. The only difference is that UITF is managed by banks like BPI, BDO, Security Bank, etc. The minimum investment for UITF is P10,000.
Never forget to get insurance for yourself and your family. A life insurance guarantees payment of a death benefit to beneficiaries if and when the insured dies. It is most useful for people who have dependents. A comprehensive health insurance package, meanwhile, would cover you for untimely illnesses.
Variable universal life (VUL)
VUL is a type of permanent life insurance policy combined with investment. It is ideal for people who don’t want to manage different investment portfolios.
Invest in yourself
The most important thing, however, is to invest in yourself. Aside from training courses that your company sends you to, you probably have other interests that you want to develop like small businesses, teaching, etc. Attend trainings and seminars that further enhance your skills. Read books on your preferred topics. Find a life or business coach.
These are just some of the things where you can invest your money. Do you have other ideas? Let us know.