I’m an OFW in Shanghai, China and 48 years old now…can you advice me how i can save and prepare for my retirement? BTW i’m paying my SSS (1560 pesos and 940 pesos goes to their flexifund every month and had 81 months contributions, will i still continue paying even i reach the 120 months contibutions?)as an OFW but i think it will not be enough for my retirement….so please do help and teach me.
Hoping for your kind cosiderations.
Guita of Colayco Foundation:
Yes continue to make your SSS Contributions and your contributions to any retirement plans you have. But you are right, it may not be enough.
SSS and retirement plans often do not offer high returns on your investment. This is both good and not so good – good because putting your money in their care is not as risky, not so good because the growth will not be so big. This is why it’s ok that you continue to make your contributions.
Have you tried out our Retirement Calculator? This will give you a good retirement target you should work towards. You can access it here.
As you will see, the retirement target is big but if you achieve it then you will have a very good retirement – not dependent on others, financially free and able to enjoy! To reach this target, investing in growth is necessary. Instruments like mutual funds can help you with that. For more info about mutual funds, click here.
There are also other investment options for you to consider. We have an upcoming webinar this April which can give you both a good foundation in your financial planning and investing. It will be on April 19, Friday 6-9PM Philippine Time. Learning fee is USD25. Do let me know if you’d like to join us so I can send you details. Pisobilities: Wealth Within Your Reach (Webinar)
I am currently working in Abu Dhabi UAE as an OFW. I am very much interested in investing in a mutual fund while I’m still young to ensure not just my financial security but my family as well. What should I do? What will be my first step in doing such investment? and does your foundation also caters investment?.
If you’ve read Mr. Colayco’s books then you have taken step 1 to becoming wealthy. It’s good that you want to secure your financial freedom as early as now.
First thing to do is identify your goals – there are 3 basic things to prepare for
- protection – these are ‘just in case’ funds, you want to be ready for emergencies and calamities
- life goals – this is whatever you want – your future child’s education, yearly vacations, car, house, etc.
- retirement – this is for the day in the future where you will no longer work (hopefully it’s by choice and not because of other reasons like illness).
You need to be specific. What? When? How Much? and How Much by When? (this last one refers to how the price/cost of what you want is affected by inflation also known as Future Value). The Pera Palaguin Workbook can help you with calculating Future Value and financial planning.
Second is start saving. Set an amount you can save every month and set it aside for investing. Mr. Colayco recommends 20% of your income. If that’s a bit too high, then save what you can and strive to increase it every year.
Third is grow it through investng. Options in the Philippines and Australia are different so you will need to check what are available in both.
Before investing in any instrument, it’s important that you know and understand the risks of investing and growing your money. All legitimate investments are good but not all of them match the investor. We have an upcoming webinar this April which can give you both a good foundation in your financial planning and investing. It will be on April 19, Friday 6-9PM Philippine Time. Learning fee is USD25. Do let me know if you’d like to join us so I can send you details. Pisobilities: Wealth Within Your Reach (Webinar)
just wanna seek 4 ur advice.my husband is g0ing abr0ad,sh0uld i c0nsider getting him an insurance/life plan like SUNLIFE? he’s g0in to w0rk at d middle east,in saudi arabia..tnx
Guita of Colayco Foundation:
Yes you should get him life insurance so that in case something happens to him you and your child have something to fall back on. More essential however since he is working abroad is that he have adequate health/medical/hospital insurance (or he should check local laws if he is covered by their social benefits). If his employer and the government does not provide this, he should get his own plan upon arriving.
I’ve recently become more involved with Colayco Foundation for Education, the first, most experienced and most effective in teaching personal finance to Filipinos, and I’ve answered so many questions about investing, managing money, business, etc. Names have been redacted. Most of these are originally found on the Francisco Colayco Facebook Page, Colayco Foundation and Francisco Colayco Website
I’ve recently become more involved with Colayco Foundation for Education, the first, most experienced and most effective in teaching personal finance to Filipinos, and I’ve answered so many questions about investing, managing money, business, etc. Names have been redacted. Most of these are originally found on the Francisco Colayco Facebook Page, Colayco Foundation and Francisco Colayco Website.
Inquirer: Interesado po ako mag invest habang bata pa po ako. Kasalukuyang nasa Dubai po ako. 23 yrs.old. Magkano po ba ang dapat ko invest a month kung ang target ko ay 4 million na ang pera q after 20 years?At paano po computation?
Guita of Colayco Foundation: Maganda na habang maaga nagiisip ka na tungkol sa iyong financial stability. May pamilya ka bang tinutulungan sa Pilipinas? Para saan ang P4 million? Magkano sa ngayon ang kaya mong i-save at invest?
Generally for every Php1M you are targeting, invest in an instrument giving you in 20 years an average annual return of - 10% you need to save and invest Monthly for the next 20 years – Php1390 Lump sum – Php148K - 20% you need to save and invest Monthly for the next 20 years – Php410 Lump sum – Php26K
Because you are young and have time to invest, instruments you can consider are stocks, mutual funds and business.