Reasons to Invest
If, like Moses - "Jesus saves, Moses invests" -, we have one foot in material things, we should think about investing.
In case you are still a young person, care must be taken because it is very unlikely that there is someone who pays your bills in old age or a good university to your children.
In summary: invest!
Investing is so for everyone, but a mere voluntary behavior.
So invest (yes!) and the sooner the better.
How can I invest?
First, we must take a break to auto-analysis, because choosing the type of investment is a complicated. More real estate? Deposits? Art? Bonds? Precious metals?
First of all, it is important to know what is our risk profile.
It is relevant the age, the need for liquidity within a specified period, the time available, personal goals, etc...
One point is certain: despite being a person with a dynamic trend in the field of investments never put at risk the money for "grocery store", ie, the money that goes to pay your regular bills.
At the summit of loss aversion, people stick their money in the mattress. You think it is a good solution? (No!).
This way, those people did not capitalize any kind of money and also took risks, in particular rats, thieves and the so-called inflation.
We get the maximum liquidity and availability - however, it is not good to talk in this hypothesis (what you want is to invest).
Apart from the rats and thieves, we put money in a bank.
This way we can keep the advantages of the "maximum liquidity"?
What do you think? Obviously not, because then we add the risk of bankruptcy and we are not facing the inflation.
However, it is important to have a liquidity reserve. Whatever the asset portfolio, is a good policy.
Being with the resources fully invested, only in exceptional circumstances.
It is an interesting investment, both for security and capitalization of interest.
However, it is out of my ideal profile because that severely limits the availability of capital.
The idea is to create a very safe financial product based on the idea of capitalization to be rescued at the age of 60 (for example) and, exceptionally, at critical moments of life.
The retirement planning can be of various types, from capital-guaranteed to savings shares.
These are products that pay interest and can be converted quickly in liquidity.
They are other assets such as precious metals, industrial metals, energy and agricultural products.
These can be easily purchased, unlike what might seem, because the investor has no obligation to bring the gold home, or to keep the oil in the backyard.
For example, a little paper called "certificate" makes the party, with everything properly secured.
Interesting and modern, the "structured products" appear periodically in the market, launched by the banks, with a unique design, which basically integrates in a single financial product a number of ways, from simple deposits to shares.
However, they must be examined individually.
The ultimate question: what has proven to be better over the years? Without a doubt the shares!
In the case of the U.S. market has provided returns of around 9.7% over the past 100 years, up 7% of the bonds, with an average inflation of 3%.
Existing data for Europe and Japan, with the necessary adjustments in time, reveal approximate abundance.
No comments yet.