5 Wise Investments for Seafarers
According to payscale.com (a website estimating salaries for various jobs), the average income of an ordinary seafarer is amounting to 593,218 pesos per year. This gives them almost 49,427 pesos monthly, an amount which is very hard to earn if you are into average-paying jobs here in the Philippines. The usual practice of Filipino seafarers is to save some of their money and allot the other percentage of their income for the remittances they will be sending to their loved ones back home.
Surely, high-paying job gives you more opportunity to save up. However, most Filipinos are quite scared to take the risk of venturing into something that would involve a lot of money because they think they might lose it more. The truth is, if you want your money to grow, entering the world of investments is the answer.
Investment is using your money as capital to buy items or assets with the objection of acquiring income or appreciation. It is not consumed immediately but is used in the future to generate wealth or even be sold later on at a higher price compared to the price paid for buying it at first (“Investment”, 2018).
The word “investments” frightens people because they think it is a risk. You have to cash out at first and and wait for it to grow gradually. It is not likely for an investment to double up in just a blink of an eye. It is a test of patience but good things come to those who wait because with the right choice of investment to venture on, you do not have to worry about your funds. You will definitely get it back in the future a lot bigger than the money you have at first.
Since this involves your hard-earned money, we want to help you think carefully about it. Here’s the 5 wise investments for seafarers and other money-makers.
1. Life Insurance (VUL)
Minimum Investment: Php 2,000 – 3,000
Insurance operates as protection against potential financial loss, damage or harm. Premiums are paid to buy certain policies stating terms and conditions the insured is entitled to. Since we cannot guarantee that the odds will always be in our favor, especially with seafarers who spend most of their time travelling from one place to another by water, it is important that we are ready when unfortunate events start to strike us. With life insurance, you do not have to worry about the people you will be leaving behind. This is ideal for people who have dependents whom they provide. The money they will get from life insurance can cover their existing expenses, funeral expenses, and somehow financially provide for their family as they try to recover after the insured person’s death.
If you think you will only benefit from this insurance once you are already dead, you are wrong. This type of insurance offers more! To further provide for its potential clients, life insurances offers what we now call as Variable Universal Life Insurance of VUL. With VUL, you can have your life insurance and savings at one. This allows investment of the cash value by giving you separately managed accounts (sub-accounts) where each year, the amount to cover your mortality and administrative costs are deducted and the rest goes straight to the sub-account to earn further interest.
Talk to your financial advisors about this as early as now because insurance packages are a lot lower in cost if acquired at a younger age.
Minimum Investment: Php 5,000 (First Metro and COL Financial)
With acquiring of stocks, you also acquire ownership in a corporation. With just a minimum of 5,000 pesos, you technically become one of the part-owners or shareholders of the company you bought stocks to.
This is very suitable for people who do not have much time in monitoring their investments because you just have to leave it in the stock market and your money will grow provided that you carefully chose the corporation you want to buy stocks to. The company’s performance will definitely reflect on the earnings you will get. While for those people who are really interested in engaging in the stock market, they can earn higher if they will buy stocks of a company at a low market price then later on sell it at a higher price. Statistics of the publicly listed corporations can easily be accessed online.
Even without a broker, you can sell and buy stocks if you will equip yourself with the usual processes and strategies used in the stock market. With stocks, you will have access to your earned money which can be withdrawn any time.
3. Retirement Fund
Minimum Investment: Php, 5,000
It is a sad reality to think that we will all grow old and as we age, our ability and energy to work decreases.It is a wise move that we save for our future now that we are still able to work and earn more. Having a retirement fund allows us to have an income cash flow upon retirement. This will enable us to receive pension once we retire thus, fully removing the worry of who will provide for us once we stop working.
4. Mutual Funds and UIF
Minimum Investment: Php, 5,000
In mutual funds, all the money from investors will be gathered and will be used to fund a common objective. The only difference it has with Unit Investment Trust Fund or UITF is that the fund is being managed by a bank instead of a mutual fund company. This is a good type of investment because the money will be taken care of by experts who are knowledgeable on how they can make your funds grow and thus, it enables you to earn more.
5. Small Business
Minimum Investment: Php 5,000
Opening up a business is quite risky for some but do not think that way. Nothing is more satisfying than seeing your business grow and being a big part of that growth because you managed it yourself. Also, a business allows you to work on your passion or things that make you interested. It also helps you be more responsible because you decide on what you want your business to be and how you think it will earn more money. You become your own boss.If you are still apprehensive, businesses can start small. It does not have to be the grandest business venture you can ever imagine because at first you need to experiment and see if your target customers will be loyal to your products or services.
This list contains quite a handful of information that are hard to digest at first. That is why we encourage you to talk to people who are concerned with this kind of investments. All investments involve money thus, it is a must to check first the legitimacy of the investment you want to venture on and be equipped with all the necessary knowledge you need to know.
By: Glydel Anne Salanio