Fresh from conducting a total of 8 talks in my 11 day sojourn in the UAE, Oman and Qatar recently, I came home with fresh perspective of how our dear heroes are doing abroad. I gave a total of 5 talks in Dubai (UAE), 1 in Muscat (Oman) and 2 in Doha (Qatar) with a total estimate of about 1000 to 1200 OFWs in attendance. The talks were varied but all had a central theme which was money.

I got involved with the financial advocacy for OFWs in 2004 when the late Ka Tonyang Binsol, an OFW in Japan asked for my help to organize finance talks for OFWs who are back home for a visit. We were able to run successful talks which ignited my burning passion to promote financial education for the Pinoys. Sadly, my friend Ka Tonyang (loved by many, me included) passed away which temporarily put a stop on my outreach for the OFWs. Despite my absence in the advocacy for OFWs, I transferred my focus to pushing financial literacy to the Pinoys in general – something I have been doing and will be doing for a long time, but my desire for the OFWs remains.

5 years after meeting Ka Tonyang, I was blessed to be introduced to another OFW advocate, someone who has been a staunch supporter of our dear heroes – Ms. Susan “Toots” Ople. Toots, along with his partner Fort Jose of the Blas F. Ople Policy Center (BFO) asked me if I am interested in teaching OFWs about finances and I was so ecstatic to be given the opportunity to do so; the start of a wonderful partnership. In the same year, I was invited by Ms. Ople for a couple of speaking engagements in Hong Kong and other locations to reach out to the many OFWs who can benefit much from financial education. From then on, my passion to reach out to the OFWs has been rekindled and burning and I am blessed to be able to interact with many other advocates.

I have been blessed to speak and teach in 7 nations already namely Hong Kong, Singapore, Macau, Israel, United Arab Emirates, Oman and Qatar and there are arrangements being made for Saudi Arabia and Japan for this year. I am leaving again for Singapore to run programs and this year will be my fourth consecutive year speaking and teaching in Singapore. If plans go well, I may find myself in the Middle East again before the year is over – something I am very thankful to the Lord for.

Being an advocate to OFWs and the Pinoys in general is not an easy task – just ask the many other advocates. There are many hurdles but the biggest stumbling blocks would be

our behaviour and mindsets when it comes to personal finance. Our culture is a unique one and proper but basic money principles don’t seem to be ingrained in it, unfortunately. The OFWs are placed in a peculiar situation where they are earning much more than their counterparts at home and yet the financial strains they experience are just as disheartening. There continues to be problems with savings and worse, issues of debt. In my trip to Dubai, a lot of people were telling me of debt woes of the OFWs and many of them actually end up in jail because of debt. What is the most common problem of our OFWs?  It is too much financial dependence of their families, which is why most of them end up remitting all their income that ends up being spent and left with very little or no savings at all. Our brothers and sisters off shore feel that they can’t handle the burden anymore and many are on the brink of desperation. I feel so helpless whenever I speak to them as all I can only offer are few words of advice, a listening ear and a prayer. On top of financial problems, there are many other problems that they encounter – unfair employment treatment, loneliness, among others.

But, there is much to be ecstatic about OFWs and financial education as well. From 2004 to today, I have seen an enormous growth in finance advocacies and advocates amongst the OFWs. I’ve also witnessed stark improvements in the financial literacy of many OFWs as well. Although it is far from ideal, I believe that there is already momentum in the arena of financial education among them, and this is largely attributed to the OFWs themselves. In

the last 3 or 4 years, OFWs has successfully used social media as a means to spark interest on financial literacy. When the OFWs themselves began championing financial education in a more aggressive way and thanks to the internet, I believe it is only a matter of time before we see a financially enabled OFW population. Everywhere I go now, I have the chance to speak with them, sit down with them, break bread with them and most of time, I end up being encouraged myself by their passion to be financially enabled. Every country I go to, there will be advocates who will arrange for me to speak and teach and they do this not out of any gain but out of passion to help.  They have also been busy organizing their own forums, seminars and outreach groups all in the name of financial education. There are many groups out there but I would like to honor two groups whom I have been working with and I have seen their relentless passion to see a financially empowered OFW citizenry: The Global Filipino Investors (TGFI) and OFW Usapang Piso under the passionate leaderships of Floi Wycoco and Burn Gutierrez, respectively. These mighty advocates are not only making waves, they are changing the lives of many OFWs. Of course, their groups are successful because of their equally passionate core teams and members so kudos to all of them! I would also take time to honor the advocates who have been instrumental in my being able to speak to many OFWs like Charma de Villa (OFW Usapang Piso Israel), Allan Miranda (TGFI Dubai), Siegfried & Leonora Ras (OFW Usapang Piso Singapore), Leo & Normie Pascua (OFW Usapang Piso Dubai), Bernard & Rhea Anduyon (OFIEM Qatar), Rex Holgado (Alkansya ni Juan Singapore) and my dear friend Jess Emerson Uy of a co-advocate based in Singapore. There are many more OFWs who I am not mentioning but I want to thank you and the nation should thank you too.

The advocacy of financial education for OFWs is well on it’s way, it has started, it is moving and it is growing. “Alea iacta est,” the die has been cast, it is now only a matter of time and more importantly, a matter of scale.

Catch me at 2 upcoming events – Singapore event and iCon 2013 at the SMX. Details below:

Visit http://tgfiph.com/april27/ for more details.

Visit https://www.randelltiongson.com/i-con2013/ for more details.

As I was about to write this blog, I had what writers call a ‘writer’s block’ which is really a lame excuse for not writing, haha! I wanted to write something the readers would like to read about so I asked my Twitter followers for suggestions for a topic. I got quite a number of nice tips but the suggestion of Abie Aquino caught my fancy — she asked “where should OFWs invest their money?”

We all know how the country’s economy is kept afloat by the OFW remittances which continue to grow despite the odds. In fact, many experts feel that remittances should have been in a decline for the last few years. Yet, year after year, we are amazed that the amount of money being sent home still continues to surge, notwithstanding the situation of many of the countries that employ our brothers and sisters. Credit to this phenomenon can only be given to the OFWs themselves, their unbelievable resilience and unrelenting spirit. One needs to look beyond the numbers to truly fathom this phenomenon — we need to really to spend time with our OFWs and their families to better understand them and I am blessed to have done so, in quite a number of occasions.

In my time with the OFWs, I see something that is quite consistent with all of them. Our brothers and sisters abroad have a keen ability to endure adversity and make sacrifices for their loved ones. The longing for their families, long work hours, unfair labor practices, hostile & dangerous environments and discrimination are just a few of what an OFW endures on a daily basis. All of these, an OFW endures so that he can uplift the standard of living of his loved ones and he can finally achieve some financial freedom. In other words, sacrifice heavily now for a secured future.

We all know that a disturbing number of our OFWs do not end up having a secured future. While they may experience improved standards of living, it is normally unsustainable. The moment an OFW stops being employed, contracts get cut or not renewed, everything seems crashing down for many of them. Further, stories of OFWs who clocked in decades of servitude overseas yet experiencing near poverty levels during retirement continue to hound us. It is sad that all the years of labor and sacrifice will be in vain, so it seems.

What can the OFW do then? Here’s a formula that I recommend to OFWs and to everyone as well. Spend less than what you earn, invest the difference and do it over a long, long period of time. It starts with money management and prosperity really starts with savings. As the OFW builds up his savings, he can start to put his money into work and build up his nest egg. Where should the OFW should put his money? That depends on many factors: investment objective, time frame, acumen, and risk tolerance to name a few.

I notice the favorite investments of OFWs are real estate and small businesses. They are great investments that can really build capital and provide a steady stream of income. For a small (or big) business, it is crucial that the OFW or his spouse should have both the mindset and the skills of an entrepreneur. Business is never easy and it requires a lot of dedication, yet it is one that can really generate the most growth. The nature of any business is also a speculative one so one should realize the risks inherent in a business venture.  Real estate is a less volatile investment as compared to a business and can likewise generate good capital growth and income. However, real estate locks liquidity and can be difficult to acquire since it requires a lot of money to own a property. Further, many investors end up locking all their money into a property only to realize later that the growth and income derived may not be as much as he wanted it to be.

The OFW can also look at financial instruments and there’s a lot to chose from. Debt instruments like time deposits, special deposit accounts (SDA), treasury notes and corporate bonds can and should be part of the investment – they are relatively low risk and great for liquidity purposes. However, debt instruments have unappealing returns and may not be a good hedge against inflation.  The stock market is also something that they can consider, they are great for capital and a fantastic way to hedge against inflation but the investors must always be mindful of the many risks involve. Capital loss should be expected as much as capital gains while investing in the equities market. Pooled funds are also great vehicles for the OFWs. They come in the form of Mutual Funds, Unit Investment Trust Fund (UITF) or Variable Life Insurance (Investment linked). Such pooled funds have low entry amounts and they can benefit from professional money management. They are relatively liquid and depending on the fund, they can generate good capital growth. Downside in investing in pooled funds is that it carries an investment management cost and it carries no guarantees.

So, where should the OFW put his money? I say that he should try several and learn to diversify. It is foolish to think that one investment can answer all our needs and to be frank, having only one kind of an investment can be too risky for my taste. Here’s another suggestion I urge the OFWs (and everyone else) to make – invest in financial education. Financial education will answer the many financial questions we ask.

To our dear OFWs, make your sacrifices count and chose to live a life of freedom.

Philippine Remittances reach highest level
A new record high for remittances was seen this Oct, reaching $1.53 bln.
This was up by 6.7% Yoy and was better than the previous high of $1.49 bln established in the month of  June.
Remittances year to date totaled $14.3 bln, up 4.5% YOY

ADB raises growth forecast for developing Asia

The Asian Development Bank raised growth forecasts for Asia’s developing economies
Regional economies should grow +4.5% in 2009 and +6.6% in 2010.
Three months ago the ADB’s forecast was a +3.9% in 2009 and +6.4% in 2010
This signifies expectations of a V-shaped recovery for EMA
Essentially, the higher forecast was due to better than expecetd growth in the third quarter of 2009.
However they also warned against any “hasty withdrawal of stimulus packages”.
“If done too soon, recovery may be at risk; if too late, fiscal deficits and monetary expansion could become unsustainable and inflationary.”
Inflation is expected to be muted in short term but expected to pick up in medium term.
Emerging markets expected to attract capital flows given higher growth relative to developed economies.
Risk to EMA growth is a short-lived recovery of more developed global economies.