Why an OFW Must Start Investing in the Stock Market and Not Just Rely on Savings

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Stock Market Investment and Trade Strategies - JayceeDeGuzman.com

For the past 3 days, I was meeting OFWs in Hong Kong and in China.

Some of them have spent most their lives working abroad than living together with their family back in the Philippines. I feel their longing for their family back home.

My dear OFW friends, on a quick note, please do not let your hard-earned money sleep in savings accounts (banks).

I just went to one of the Philippines’ leading banks last week to inquire about their different account types that can give me the highest yield. I won’t disclose the bank’s name for confidentiality reasons.

Their highest is 1% per year to be invested in short-term investments.

That means your PhP100,000.00 will only yield LESS THAN PhP1,000.00 after 12 months.

Why?

Because that yield is subject to 20% tax, which makes your take-home yield PhP800.00 only.

To myself I was saying, “Golly gee, why would I put a huge amount that can only grow that much when I know I have already grown my stock portfolio by more than 30% in one year?”

On the other hand, I spoke with some OFWs and they have a negative pre-conceived opinion about the stock market based on the second-hand information they normally get from another person who doesn’t understand how the stock market works.

In fairness, with all the news on investment scams, I believe having that pre-conceived impression on any type of investment vehicle, including the stock market, has just become a defensive mechanism so to speak.

Maybe, just maybe, it’s your respectful way of expressing, “Investment na naman? Scam na naman? Give me a break.” (Translation: “Another form of investment again? Yet another scam? Give me a break.”)

Never accept the notion that the presence of investment scams is a norm when it comes to investing.

To achieve the absence of investment scams in our society, the presence of your initiative to research and learn the facts about any investment vehicle is necessary.

Do not give up your will to enter the world of investing just because there are many investment scams around.

If you have due diligence to study, you’re lowering the chances of being scammed by up to 0%.

Sometimes, the reason why we don’t start investing is that we’re just too lazy to do the research. Then, we pass the blame on the presence of investment scams and not on the absence of our willingness to study, study, and study (Did I say study already?).

If I may suggest, please confirm the information you’re getting and do not believe it as it is. “Eh Sir, wala po akong time para siyasatin pa ang stock market.” (Translation: Sir, I don’t have time to study the stock market.)

This is the hard truth: YOU HAVE TO MAKE TIME.

Hadn’t you made time to learn how to walk when you were a baby, guess what, you would have still been crawling on your knees.

If I want to grow my revenue year after year, I have to put more time studying and renovating new and existing business ideas and procedures, respectively.

I am not telling you to learn everything about the stock market.

I am not telling you to master the fundamental and technical analyses if your work abroad doesn’t give you the luxury of the time to really dwell on studying the stock market.

What I am telling you is to have that desire to learn the basics such as understanding the two ways of growing your money in the stock market (capital appreciation and dividends), opening an online stockbroker’s account, and buying and selling stocks through your online account.

At least, when someone asks you, “Do you know how the stock market works?” you can say, “Oh well, in the stock market, I earn in two ways: capital appreciation and dividends. I have just opened an online stockbroker’s account. Every month, I invest 20% of my net income in the stock market. When I receive dividends, I reinvest it on my stock picks due to the power of compounding interest. I don’t put all my eggs in one basket so I diversify my portfolio.”

Once you can say those lines with understanding, you are ready to invest in the stock market.

Jaycee De Guzman

Jaycee Silverio de Guzman is a computer scientist by profession. He is the founder and CEO of iPresence Digital Marketing, Inc. and Equilyst Analytics, Inc. He is a husband and a father.
Jaycee De Guzman

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