Last year 2105, I have published an article about the good investments you can do for the year 2015. Now, I would like to give you a list that you can use for investing this new year 2016. Many people are looking for ways on how can they use their money better aside from putting it in a savings account. It is not a bad idea however to start opening a new bank account because it is a basic financial tool.
Most of the readers of this blog are working full-time as an employee of a company, working on their own business of any kinds and OFW. I’m thinking that just like me, you also want to know where to put your hard-earned money so that it will earn more in a legal and safe way.
You must learn how to spot first what’s scam or legal first so that your money will be invested in a safe scheme. Knowledge and education will help you to do this so don’t be lazy reading materials about personal finance and basic investing information. Tons of resources you can get from the internet, thus, you don’t have any reasons to be ignorant.
I started investing in 2010. But before that year, I have read many articles about personal and investments through books, ebooks, blogs and websites. Questions and answers during our coffee break also help me to get knowledge how investing works.
In my personal view, I list below the best investments that you can start with in 2016. However, before you start, let me tell you that you must have knowledge or education about how to do it. You can start here.
1. Long-Term Health Care Plan
I put this one in the first mention because it is very important to have a good health care system as we grow old. Although, in the Philippines, there’s Philhealth that you can use, it will be not enough in the time you grow old. Long-term health care system is not that good in the Philippines. Most of us don’t have this benefit in our companies. However, there are few companies in the country that offer this kind of investment.
I have Kaiser Plan, it is somewhat a hybrid product, a combination of long-term health care and insurance. I recommend this type of investment for all fathers, mothers and breadwinners because it serves as your protection for you and your family.
I am only paying around Php 3,700 per month for this plan but the benefits I can get is very fair in the long run. The payment is also very convenient because I can pay it via PayPal or direct deposit to their bank account.
2. Life Insurance
Life insurance, basically, is not for you. It is for your loved ones who will be left behind in your untimely death. All of us will die sooner or later, it is the truth. Thus, you can start now to prepare if you have the means and capacity to do it. I mean, if you have the job and you can set aside some amount of your money, I would suggest you consider getting life insurance sooner.
There are lots of life insurance in the Philippines now that you can select depending on your needs and financial situation at the moment. In addition, not all have high premiums. Most of the companies now are offering lower premium because they know common employees may not be able to pay high amount of money.
I have SunLife Maxilink Prime that I started in 2013 and I need to finish until 2023, hopefully. It is a variable life insurance, a mixture of insurance and mutual fund. Other financial bloggers suggest that term insurance is better if you have already other investment such as mutual funds and bonds.
3. Mutual Funds
I always put mutual funds in the list of good investments because once you started it, there are no other things you need to do to keep it going since it is managed by a professional and highly-experienced fund managers. It is also recommended for beginner investor.
It is very recommended to invest now in mutual funds because it is quiet cheap compared last year and few years ago. Most banks also offer mutual funds to their clients so you can easily open an account when you visit your bank.
If you want to get started in investing in this kind of investment, you can start by learning and reading here. I have written several articles about mutual funds in that section of my blog.
4. Rental Real Estate
Real estate rental is a very good example of good investments. Its concept is easy to understand and it is a common investment among Overseas Filipino Workers and employees alike.
One example of this investment is apartment or commercial building that you lease to another person or company. The income you get is from the monthly rental fee that your tenant pays you every month for their use of your property or real estate. It is the same concept used by SM and other mall operators in the country.
Another example I want to point out is my friend who has a land where a cell site was built by one of the telecoms in the Philippines. He leased the land to the company for certain period of years with a contract. In effect, he’s getting monthly rental fee from that company. Isn’t it a good investment?
5. Further Education
I would say education is one of the best investment you can start. Whether it is a master’s degree or a new skill that you want to learn such as computer programming, electronics troubleshooting and many more.
Actually, I’m also thinking about to enroll for a CAD training program so that I can level up my designing skills. However, it is a little bit difficult here in Korea to find an English training center. If I’m in the Philippines, it will be a lot easier because there are many schools and training centers that offer training in English language.
If you want to learn new skills, you may also find it online especially if you are in IT industry. I know many websites now are offering training through online seminar, even universities have online degree programs.
To close this article, I would like to point out that list is based on my personal knowledge and observations. It may not be applicable to you because maybe of your personal circumstances at the moment. However, for readers who don’t have any idea where to invest their money for this year 2016, the list above may be a good starting point. As I always tell other people, before you invest, you must study first the investment, its concept, the pros and cons and whether it will be suitable for you.