Savings plans, actions … What do you do with your money?

Each of us allocates the money for a specific objective, some may think about the dream retirement, others in buying a house and some in the future of their children. Whatever your goal, you should think about what to do with your money.

The way to reach your goal is simple: you must allocate part of your monthly income to the future. If after doing math you think that with your current income and future income forecasts you will not reach that long-term goal, you can think about putting your money to work.

Before you start investing your savings like crazy, investigate what each of the options consists of and choose the one that best meets your expectations. You must be very sure of what each one consists of and the benefits that you will obtain.  

There are many investment methods, below we will see some of the best known:

Venture capital

It consists of financing a company with a high growth potential in exchange for a shareholding.

This method is a way to invest in future businesses and new startups. If you do not want to invest directly in a company, you can choose to participate in venture capital entities.

Stocks or Variable Income

It is the best known investment method, but that does not mean that it is the simplest. Before starting to buy and sell, as if it were the wolf of Wall Street, do your homework.

One of the basic rules is that the money that is going to be needed in a short period of time is not invested. This is so because although you can quickly dispose of the money invested by selling the shares, you may be forced to do so for less than the amount at which you acquired that share. Remember that the world of the Stock Market is very variable.

Bonds and Obligations of the State

Another way to invest your savings is with securities issued by the State with a term of more than 2 years. The Bonds and Obligations are the same in everything except the terms, in the Bonds it varies between 2 and 5 years, while the Obligations are always over 5 years.

These securities are acquired in a competitive auction and the bids must be at least 1,000 euros and always multiples of 1,000.

Savings plans

Savings plans are medium-term savings products designed for retirement. Among their benefits, the one that stands out the most is that they are exempt from taxes.

There are different types that you can choose, on the one hand, Individual Long-Term Life Insurance, SIALP; on the other, the Individual Long-Term Savings Accounts, CIALP.

Remember that you can only contract one savings plan per person, that the money cannot exceed 5,000 euros per year and that the investment term is 5 years.

If you need advice on savings plans , our agents will be happy to answer your questions and queries.

Always remember that it is important to encourage savings in the family environment, in addition to investing part of the savings to get a certain return on money.

One piece of advice, invest in the medium / long term, so your money will give you greater profitability.