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The challenge of investing as costs rise

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Poupança: A difícil tarefa de investir face ao aumento de custos

















After World Savings Day this Monday, Oi explored different products in which he could invest his money. A task that is not always easy. According to a study by Intrum, 33% of Portuguese admit that in the face of an unforeseen problem, they could pay the equivalent of less than a month’s salary from their savings without going into debt. However, it represents a percentage above the European average of 26%. It’s true that there are always small steps you can take in your daily life that can make a difference at the end of the month. Your wallet will thank you and your savings could get fat.

Term deposits – If its simplicity is one of its advantages, the offered rate of return makes this financial product less attractive despite the European Central Bank (ECB) raising interest rates. A solution that punishes those with credit but benefits those with savings. According to the latest data from the Bank of Portugal (BdP), the amount of new term deposits in August increased by 7% compared to the previous month, reaching 4,124 million euros. This is the highest value recorded since January 2020, when it reached 4,195 million euros.

The truth is that in recent years this product has been losing fans due to low rewards. According to Decaux, “Typically, term deposits up to 12 months, which can be mobilized in advance, are the best option for this first phase of savings. Although current returns are not particularly attractive, capital is guaranteed and liquidity is immediate.

And if there is no financial investment that is 100% risk-free, it is also true that there are applications that carry more risk than others. If we analyze the risk scale of various financial products available to depositors and investors, deposits are among the safest applications, and in the worst case and in the event of a bank failure, customers can apply to the Deposit Guarantee Fund up to 100 thousand euros per bank and holder.

Savings certificates and KTPK – The loss of attractiveness of time deposits leads to the fact that Portuguese savers are increasingly turning to public savings products. In this universe, Treasury Growth Savings Certificates (CTPCs), which have replaced Treasury Savings Certificates, are the product that generated the most interest. In the case of savings, the rate of return is calculated based on the three-month average Euribor observed over the previous ten business days, plus 1%. The interest rate on new subscriptions to savings certificates (Series E) is set at 2.106%. In CTPC, the interest rate increases: in the first and second years, 0.75% (gross interest) is paid, and in the third year it rises to 1.05%, in the fourth – 1.35%, in the fifth – 1.65% and 1 .95%. % in sixth, reaching 2.25% last year. From the second year onwards, the interest rate increases by a premium corresponding to 40% of the average real GDP growth at market prices for the last four quarters known in the month preceding the interest payment date.

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tantalizing obligations – Until recently, buying treasury bonds (OT) was a bargain, as it was one of the most lucrative uses for capital-backed medium- to long-term savings. But if OT was given new life in 2016 when the government issued Treasury Variable Income Bonds (OTRV), the product began to lose its appeal, and with it, the disinvestment trend that Portuguese families tracked increased. , in debt securities.

In terms of risk, it is similar to certificates, that is, there is only the risk of losing capital in the event of a government default.

Retirement Savings Plan – The main advantage of PPRs was the tax credit they provided, as they allowed deducting 20% ​​of annual deliveries up to 300, 350 or 400 euros depending on the subscriber’s age. But since 2015, the rules have changed: the limits are based on age (400 euros up to 35 years old, 350 euros from 35 to 50 years old or 300 euros for those over 50 years old) combined with limits on total deductions. from the collection. Most PPRs are capital guaranteed, so the risk profile is moderate. According to Decaux, those who have less than ten years left before retirement should not invest more money in PPR in order to be able to buy them out at the age of 60 without any problems. Individuals aged 40 to 55 may continue to invest because some PPRs have higher interest rates than deposits.

The state is also introducing its own product known as State PPR. Monthly, 2%, 4% or 6% can be deducted from the salary, depending on age. This means that you will only reach the maximum benefit limit if your monthly income is over EUR 3,645 (with a 4% discount) or over EUR 7,292 (with a 2% discount).

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If a – Direct investment in the stock market still intimidates many Portuguese. This can represent a profitable business, but the risk is always higher compared to other investment products. The investor can make a purchase individually, by directly choosing the shares he needs, or through equity funds by purchasing units of one of these instruments. Experts advise stakeholders to make these investments over time (at least five years) to overcome market fluctuations.

What is the best way to invest your money? It is best to invest periodically and regularly. The trend of financial markets is to rise in the long run. Periodic and regular investments also allow you to eliminate the influence of emotions on investments. Do not try to guess the best time to invest.
Do not forget, however, that in times of greater uncertainty, we should avoid investing in a particular asset. The focus should be on a diversified strategy, betting on multiple assets and ultimately different asset classes.

Don’t forget the divide and conquer rule: by choosing bonds from different countries and sectors, you can reduce investment fluctuations.

Consider your financial intermediary: choosing the right one can mean saving many euros, as choosing the best financial intermediary depends on your investor profile.

Gold – Gold is still viewed as a good safe-haven investment in the event of a major global crisis and collapse of the financial system. However, this advantage applies only to the metal in physical terms, since when it comes to investing in financial products related to gold (funds, ETFs, etc.), it must be borne in mind that the price of this raw material is extremely high. predict.

There are other disadvantages associated with its growth potential and speculation in the market. And, contrary to what you might think, when you decide to sell bullion, nothing guarantees that you will make money. If you take into account the commissions and margins charged by banks, the losses will be even greater. It is very likely that even during a period of rising world prices for gold, you will not get a better price for bullion, given the difference between the sale and purchase price.

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But, regardless of the chosen method of investing in precious metal – from having it on hand, buying coins and bars to investing in financial products with gold risk – the investor must always take into account the time horizon that needs to be seen in the long term and potential investment losses, since gold has been losing its luster lately.

emergency fund – The first step is to eliminate overspending. There is no magic formula for balanced accounts and savings. Either earn more or spend less. Since it is not always easy to increase income in personal finance, it is necessary to control expenses. After comparing income and expenses, you should try to identify unnecessary expenses that can be reduced or eliminated without compromising your well-being. See how much they weigh in your budget. Maybe the answer is not to save or save a little.

Ideally, write down all the debts (how much is left to pay, installments, term and interest) and identify the ones you want to liquidate. You should start with debts with the highest percentage. If in the short term he does not see the possibility of liquidating or reducing debt, his debt capacity is low. Take advantage of the extra income to reduce your debt burden. But in assessing your financial health, it is important that you know if you are ready for the unexpected. Whether it’s unemployment, a low rate, or another emergency, there are unforeseen events that can indicate a total lack of control over the budget. Ask the question: if you stopped working today, for example, because you were unemployed, how many months could you live with the same level of spending? Ideally, have an emergency fund (in liquid assets) that allows you to live for at least six months with the same level of spending – that is, if you have 500 euros of monthly expenses, you should have an emergency fund of 3 thousand euros.



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Economy

This house in the middle of a village in Braga costs 1.8 million (and even the maid’s room is luxurious)

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This house in the middle of a village in Braga costs 1.8 million (and even the maid's room is luxurious)

It has “only” four rooms, but it costs 1.8 million euros. The family home, located in União de Freguesias de Escudeiros e Pensamento, five minutes from the center of Braga, is the most expensive family property for sale at luxury real estate agency Engel&Volkers, but it comes with some “add-ons” that, for some of them, may worth the investment.

The villa is located on a plot of 3800 square meters (m2), has six rooms, four bedrooms, four bathrooms, a swimming pool, a “small grass football field and a vineyard plot”, parking, central heating, air conditioning and wooden floors.

According to Engel & Volkers, the increase in the cost of housing, in addition to the already described, is also “modern architecture, with highly detailed and refined finishes”, which fits into the policy of the agency, one of the main in the premium segment worldwide, which in 2020 earned about billion euros.

Photo: Engel & Volkers

Photo: Engel & Volkers

Photo: Engel & Volkers

Photo: Engel & Volkers

The ground floor has an entrance hall, a double living room separated by a fireplace, also double sided, overlooking the street, overlooking a small vineyard and with an outdoor pool.

The real estate agency also says that the house is surrounded by a “green and harmonious environment offering unique peace and privacy.”

Consulting the company’s website held this Saturday by O MINHO, and out of curiosity, managed to verify that there is an additional room on the first floor, also with luxurious touches, called the “maid’s room”. division into luxury villas that served to accommodate domestic workers without moving them to the owners’ sleeping area, although its existence is now common for people with less mobility.

Photo: Engel & Volkers

Photo: Engel & Volkers

Photo: Engel & Volkers

Photo: Engel & Volkers

Photo: Engel & Volkers

“On the same floor, we also have a large dining room, gym, kitchen with laundry room and maid’s room, as well as a garage for 2 cars,” emphasizes the real estate agency. On the ground floor, he adds, there are three “large suites” connected by a “shared balcony.”

Photo: Engel & Volkers

Photo: Engel & Volkers

Photo: Engel & Volkers

Photo: Engel & Volkers

Photo: Engel & Volkers

For those who are interested, and with a “full wallet”, a house “in the arms of nature, with enviable south exposure and complete privacy” is guaranteed.

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Bankers demand 6.25% pay rise at ‘breaking point’ and refuse further layoffs – ECO

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Bankers demand 6.25% pay rise at 'breaking point' and refuse further layoffs - ECO





Bankers demand 6.25% pay rise at ‘breaking point’ and refuse further layoffs – ECO































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Economy

Woman with fake belly caught smuggling hundreds of semiconductors (already worth 500 times more)

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Woman with fake belly caught smuggling hundreds of semiconductors (already worth 500 times more)

Sanctions and supply chain issues have created a parallel market in China, where these chips are sold for 500 times the market value.

Chinese customs officials caught a woman trying to smuggle semiconductors inside a prosthetic belly while pretending to be pregnant. This arrest sheds light on the reality of smuggling that has emerged in the world’s second-largest economy following the sanctions imposed by the United States of America.

According to bloomberg, a woman was caught by the authorities while trying to enter Zhuhai via Macau on November 25. According to customs authorities, the suspect had more than 202 processors and nine smartphones.

The woman came to the attention of the authorities when she was asked what month she was pregnant. “She said she was five or six months pregnant but she had a big belly that looked like she was in her third trimester,” Chinese officials explained.

The economic crisis caused by covid-19 and all the problems that have arisen in the supply chain have opened the door to the emergence of a black market in semiconductors in a country that needs these advanced chips to produce millions of products.

The situation has worsened recently as the Joe Biden administration tightened sanctions on China, focusing on developing advanced technologies, especially for military use.

According to the North American economic publication, the situation is so serious that the prices of these devices reach values ​​up to 500 times their market price, which creates ideal conditions for creating an entire parallel market with telecom operators and resellers.

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