Income and expenses fluctuate widely throughout life.
Family accounts have nothing to do when you start your professional career, when you have children or in retirement.
Assessing your personal situation well and making a forecast of future income is key to anticipating
.
“Carrying out proper financial planning is very important.
It is not just about thinking about money, but about the person, their needs and their objectives ”, explains Belén Alarcón, Abante's managing partner of wealth advice.
To make a good financial design, you have to calibrate what are the current and future sources of income (income from work, rents, possible inheritances ...) and be aware of the current level of expenses and what future expenses we are going to face. (buy a home, change cars ...). In addition,
the unstoppable increase in life expectancy must be kept in mind
. In Abante they emphasize that more than half of the people who are born now will live more than 100 years and it is precisely this age that they use for their estimates of the financial situation after retirement.
José Manuel Morais, deputy general director of life at Seguros Bilbao explains that “
saving for retirement is a long-term project, therefore, it requires adequate planning and regularity
.
Bearing in mind that the goal is to save enough money to allow us to live peacefully after retirement, the key is to do it consistently and start as soon as possible.
This reduces the effort required and, moreover, makes it possible to take advantage of the profitability offered by the financial market at all times ”.
In general terms, it is convenient to have three types of savings:
A
precautionary one
, to be able to face something unforeseen.
Another with a
medium-term
vision
, to face more or less programmed expenses (the entrance to a house, a special trip, the payment of a master's degree ...).
A savings bag with a very
long-term
vision
, to serve as a complement to the public retirement pension, a source of income that will diminish in future generations, according to most experts.
Each of these three savings formulas requires different products and, above all, a different investment portfolio
. For that emergency bag, it is best to have products that are very liquid, that can be rescued immediately and that pose few risks. Deposits and checking accounts have fulfilled this function for years. However, with zero rates this type of product does not now offer any profitability. Another option would be to invest in funds with very short-term bonds. For example, the Bestinver Renta fund has rented 1.74% annually since 2016, with a very controlled risk.
For
medium-term investments
, between five and ten years, experts recommend taking more risk. In trading cycles, periods of up to seven years are considered optimal to ensure that the risk-return combination pays off. In general, the more time you can go without having to have that money, the more risks you can take.
Regarding the product, investment funds are once again an ideal vehicle.
Also the portfolios of funds.
More and more entities, such as Indexa Capital, Finizens, Finanbest, InbestMe or MyInvestor offer managed portfolios, allowing investment in highly diversified products with low costs.
Also interesting is the individual long-term savings insurance (Sialp), a very reliable product that must be maintained for five years to be attractive.
In saving for retirement, the best formula is pension plans,
whose contributions can be deducted from the income tax base.
Given that the contribution limit is 2,000 euros, they can be supplemented with investment funds, individual systematic savings plans (PIAS) or unit linked.
