When most Filipinos think about investing, they focus on peso-based assets—local stocks, mutual funds, or time deposits. But Leonidelisa Abad, a Registered Financial Planner, believes there’s an often-overlooked opportunity that can deliver a two-fold return: investing in dollar-denominated assets.
Her reasoning is straightforward yet powerful: with the right timing, you can earn from both the growth of the investment itself and gains from foreign exchange rates.
How Dollar Investments Changed Her Life
Abad speaks from personal experience. A long-term dollar-denominated investment she made years ago ended up financing a major life goal—her master’s degree abroad—without forcing her into debt.
“Recently, I realized after eight years, this investment has helped us. It grow significantly that it helped me finance my masters outside the country,” she shares. “Kasi dalawa yung kita mo doon, kita from the dollar and also from the forex, from the exchange rate. So malaki yun, you’re earning two, two times.”
For her, this wasn’t just about making money—it was about strategic planning. By holding assets in dollars, she was able to take advantage of the peso’s fluctuations over time, effectively boosting her returns without any extra effort.
Why Consider Dollar Investments?
For Filipino investors, diversifying into dollar-denominated assets can offer several advantages:
- Currency Hedge – When the peso weakens, the value of dollar assets increases when converted back to pesos.
- Access to Global Markets – Dollar investments often provide opportunities to invest in international stocks, bonds, or funds not easily available locally.
- Long-Term Stability – The U.S. dollar is one of the most widely recognized and stable currencies in the world, making it a strong reserve asset.
Abad sees it as a practical move for anyone with long-term financial goals, especially those that involve expenses in foreign currency—like education abroad, international travel, or retirement overseas.
Timing and Strategy Matter
Abad cautions that while dollar investments can be rewarding, they require the same discipline and goal-matching process she applies to all financial planning.
She recalls the importance of aligning the investment’s maturity with her education timeline. “That’s one and another thing is I am very happy that right now, I would totally say I don’t have to utang. I don’t need utang. And then takot sa utang,” she says, noting that avoiding debt was a non-negotiable part of her strategy.
This disciplined approach allowed her to reap the benefits without having to liquidate prematurely or risk market losses at the wrong time.
Practical Tips for Filipinos Considering Dollar Investments
For those curious about adding dollar assets to their portfolio, Abad suggests starting with these steps:
Identify the Goal – Is it for education, a major purchase, or long-term wealth building?
Choose the Right Vehicle – Options include dollar time deposits, dollar-denominated mutual funds, U.S. stocks, or global index funds.
Understand the Risks – While currency fluctuations can work in your favor, they can also reduce returns in the short term.
Plan for the Long Term – Dollar investments are best for goals with timelines of at least five years.
Abad stresses that just like any other investment, dollar-denominated assets should be part of a diversified portfolio—not the entire plan.
A Mindset Shift for Filipino Investors
For many, investing in dollars may feel intimidating or unnecessary if most expenses are in pesos. But Abad sees it as a smart way to future-proof finances against currency risk and inflation.
She also points out that earning from two sources—investment growth and forex gains—can accelerate wealth accumulation. This dual-earning potential was exactly what allowed her to fund her degree abroad without tapping into loans.
“Kasi dalawa yung kita mo doon,” she reiterates. “Kita from the dollar and also from the forex.”
The Takeaway
Dollar investments aren’t just for wealthy investors or those already earning in foreign currency. With the right goal, vehicle, and timeline, even modest contributions can grow into a powerful financial resource.
Leonidelisa Abad’s story is proof that strategic currency diversification can create opportunities that go beyond numbers—it can open doors to life-changing experiences, all while keeping debt at bay.
For Filipinos looking to strengthen their portfolios, it may be time to think beyond pesos and explore the double advantage of dollar investments.
