Many of us have this notion that you can’t invest if you don’t have a lot of money. While that is partially true, of course, since you do have to think about food and other basic needs first before you start investing your money, the reality is that you don’t really have to have a lot of money to start investing!
In fact, overseas Filipino workers (OFWs) can start investing with as little as $3.73 per month! How is that possible?
Thanks to the SSS (Social Security System), OFWs can now invest their hard-earned money, starting with small increments each month through Flexi Fund.
The Flexi Fund is a special savings and investment program exclusively by the SSS to OFWs.
To start investing, you need to have an SSS account, with regular SSS contributions. Make sure to check the box beside ‘OFW’ in making payments for your contributions.
What makes this provident fund special is that any amount over Php200 ($3.75) in excess of the regular SSS contributions will be deposited to your SSS Flexi Fund account. You don’t even have to make separate payments because the excess amount will be transferred automatically.
Take note: OFWs who wish to join the SSS Flexi Fund must first become a maximum payer for the regular SSS account. This means that you have to make monthly contributions of Php1,760 per month; any amount in excess of your payment will go to the SSS Flexi Fund account, as long as this is more than Php200.
For example, if you deposited Php2,000 for the month, then Php240 goes to your SSS Flexi Fund. If you deposit a bigger amount, say Php100,000, SSS puts the Php1,760 to your regular contribution and the rest of the money (Php98,240) into your SSS Flexi Fund.
Because the SSS Flexi Fund is an investment account, you get to enjoy regular SSS membership benefits plus enjoy more earnings with your money. Your account receives regular dividends as well as annual earnings.
Take note that the SSS Flexi Fund is voluntary; this means that OFWs are not required to open this account type.
Earnings for SSS Flexi Fund are computed based on average rates of SSS’ short-term placements or 91-day Treasury Bills, whichever is higher; this means that you are guaranteed with a return of 4%.