What are your recommended Philippine Investment Vehicles of Choice?

[gadinaz]

For an Expat considering moving & investing in the Philippines, what are some investment options available, and how & where would one learn more about them?

[Rick B]

This is for some THE BIG QUESTION and i have no solution but am trying look for one, like a lot of others here, there are obvious ones like...franchises, cafe, bar, restaurant business, taxi\'s, jeepneys, internet cafe, etc etc others seem a better bet like commercial or residential letting OR business investment. However, having explored most of these topics, i just know it\'s not easy, in fact i\'d go further and say it is very difficult. Cultural issues as well as cutting across people who are already in the business could lead to a disaster, especially for foreigners who may be risking all in the way of extended financial commitment.

Small business say sari sari or trading food / fish / small farming for a family member may be low risk but rewards are low too

just not sure on this one, anyone else with the answer? crystal ball anyone?

Crystal ball sales!.....everyone needs one 

[RUFUS]

yes...CRYSTAL BALL!!!
I too would very much like a crystal ball...
I think you are on to something.

RUFUS

My wife and I have invested with the Legacy Group here in the Philippines with their 5 year 20% peso CDs. These accounts are under the PDIC for a max of Php250,000 per account. We have been in this program since 2005 and can draw the interest monthly. BTW, the interest goes into a  checking account and we write a check and deposit it in a different bank to stay under the PDIC max. These 5 year CDs are RP tax free, but the interest earned on the CD interest isn\'t and taxed at 20% like any investment/savings that isn\'t locked in for 5 years, (as I understand).

To diversify, we have bought/re molded and built a total of 4 rentals located within site of our house which has been a 3 year project to complete.

Hummm, since I\'ve run out of room to build, looks like I need to learn how to retire or buy something else to play with.   
B-Ray

[Manila Cockney]

Rather than just thinking of Philippine investment vehicles think globally. Very easy to do now with the internet no matter where you live. Depending on your citizenship take advantage of tax benefits of being an expat. If resident in Philippines you will be taxed on income unless investing in tax free instruments such as the long term 5 plus year time deposits. 

Rather than just thinking of Philippine investment vehicles think globally. Very easy to do now with the internet no matter where you live. Depending on your citizenship take advantage of tax benefits of being an expat. If resident in Philippines you will be taxed on income unless investing in tax free instruments such as the long term 5 plus year time deposits. 

Good advice.....I have diversified into 6 different investment vehicles in 3 different countries and 4 different currencies

I don\'t expect them ALL to perform flawlessly but losses in one or two areas should be covered by the others

I thought I would add a bit here.

We have also invested in the Legacy International credit card program which isn\'t PDIC. From time to time, they have come up with a 3 year program, that\'s what we have and the RISK is less then 18 months for the seed monies.

They write posted dated (12 for the 3 years), checks that can be cashed every 3 months. All checks include P & I, therefore a zero balance at the end of the time period.

With ANY time deposit weather there\'s a balance or not, one needs to keep in mind what to do at the end of the time period? There\'s the BIG unknown!!

We went for the non-PDIC investment because the risk was limited to 18 months and gaining 33 1/3% on the money and we live off that plus rentals letting the 20%  5year CD grow since the seed money will be there plus interest at the end of the time period.

It\'s working for us now and time will tell as they come due what I must do next.
B-Ray   

[clee353]

B-Ray:I just hope you did a Google search on the Legacy Group. Didn\'t quite like what i dug up, but then again, I am not involved with them directly as you are.
http://www.pinoymoneytalk.com/2007/06/08/double-your-money-investment-philippines/

Carolyn353

B-Ray:I just hope you did a Google search on the Legacy Group. Didn\'t quite like what i dug up, but then again, I am not involved with them directly as you are.
http://www.pinoymoneytalk.com/2007/06/08/double-your-money-investment-philippines/

Carolyn353

Interesting read there Carolyn and thing said I already knew. Putting all your CD\'s in one Rural Bank is the biggest risk of all!! Legacy owns 12 of them across the Country, (some very old banks). Spreading a one name CD\'s around, what\'s the chance of them all your in going belly-up, therefore only one CD being covered by the PDIC?

Is dealing with the like of Legacy much different then investing in stocks and bonds??  I lean to better.

We have 5-20% CD\'s started late 2005, 2 in my name, 2 in my wifes and 1 joint in 3 of Legacy\'s Rural Banks. What\'s the odds of totally loosing our investments?  The risk is if more then one we are in goes belly-up.

Then the question is, how big is Legacy and what would it take for it to go belly-up? Rural Banking is just ONE operation their involved in. Remember the name says GROUP and I can count 14 other diversified areas the company has.

Yes, the risk is there no question about that! Hopefully a somewhat educated one? BTW, just heard yesterday and haven\'t checked it out yet, that Legacy bought another non-banking company.

Will Legacy get as big as SM beer? Who knows? We are just on a 5 year, (+ some 3 year), ride and then?
B-Ray

[fareye]

I am noticing that the regulations for foreigners and brokerage accounts can be sticky or and there is no stock option trading that I can see. If you have a US brokerage account I recommend that vehicle (trading in the US market) because there are some really good investment strategies with index options...that is what I am doing with one conservative strategy making about 8% per month! All one would do is just wire money directly into your USD account in the PH every month or so when you want to cash profits. But as a foreigner myself, I am comfortable keeping the bulk of my money in the US and having the money work for me there...there just seems to be more possibilities and everything is more streamlined (if you know what you are doing) and easy.

Ah yes, the key words, \"if you know what you are doing\"!

In the years in business\'s, some fair, some real good, (by my standards), my pea-pick\'n brain said invest in things you can see, feel and sell! Banking was nothing more then a checking account to pay bills.

Retiring in the Philippines, my still pea-pick\'n brain was saying the same thing. Therefore, built and remodeled rentals. Again, something I can see, feel and sell, \'service\' this time.

Talking with an investment manager at a major bank and we had become friends over the year, I told him I needed to make what I had left to work more. Naturally, he showed me what the bank was offering. As one would except not what I needed.

A phone call and a meeting was set up with what he was doing with part of his investments OUTSIDE of the bank, (reason I haven\'t name names).

That\'s how I got hookup with the Legacy Group and gathered paperwork on the company. Being a know nothing involving, (non-inventory), investments and in a foreign country, some trust is involved and since found some other affluent Pinoys doing the same.

Is Legacy a good vehicle? Totally unknown over a longer period of time then we have been involved!  And with how the world is turning these days and our investment time runs out is still totally unknown what will be available. I\'m just glad I have some brick and concrete in the mix!
B-Ray

I am noticing that the regulations for foreigners and brokerage accounts can be sticky or and there is no stock option trading that I can see. If you have a US brokerage account I recommend that vehicle (trading in the US market) because there are some really good investment strategies with index options...that is what I am doing with one conservative strategy making about 8% per month! All one would do is just wire money directly into your USD account in the PH every month or so when you want to cash profits. But as a foreigner myself, I am comfortable keeping the bulk of my money in the US and having the money work for me there...there just seems to be more possibilities and everything is more streamlined (if you know what you are doing) and easy.

[Manila Cockney]

I am noticing that the regulations for foreigners and brokerage accounts can be sticky or and there is no stock option trading that I can see. If you have a US brokerage account I recommend that vehicle (trading in the US market) because there are some really good investment strategies with index options...that is what I am doing with one conservative strategy making about 8% per month! All one would do is just wire money directly into your USD account in the PH every month or so when you want to cash profits. But as a foreigner myself, I am comfortable keeping the bulk of my money in the US and having the money work for me there...there just seems to be more possibilities and everything is more streamlined (if you know what you are doing) and easy.

Investing in Index Options making 8% per month is hardly a conservative strategy! A good financial advisor would tell you that it is high risk and with any option investing its easy to lose 100% of your investment (premium). Index investing (it was futures not options but similar) brought down one of the UKs oldest Banks, Barings. Good if you know what you are doing but not recommended for the novice.   

[fareye]

Financial advisors....I\'d never listen to them! I am a SELLER of options... a credit spread strategy on index options that is fairly low risk and banking 5-10% per month. But, yes, not for novices. And this is not investing it is trading.

[callme]

Can I ask the names of the filipino banks which in fact offers a deal like 20% interest?