Be aware that saving depends on ourselves; Being
realistic and not asking for impossible amounts from investments, choosing the
right products or understanding that saving does not end at retirement are some
tips.
Planning for retirement is not an easy or quick
task. Before doing so, it is convenient to take into account certain keys, or
tips, that can be very useful when making decisions.
For example, understanding that, more than the
State, the resources that we will have in retirement will depend essentially on
ourselves . Thus, one must be aware that our financial situation during
retirement depends essentially on oneself, not on the State or the government
in power. Our situation in retirement depends, first on our savings effort and,
later, on the return that we demand from our investments. State contributions
in the form of a public pension will be welcome, but we cannot guarantee that
they will be sufficient to maintain our standard of living in the future.
When deciding investments, we must be realistic: we
cannot ask the stock market for what we did not earn with our work or what we
would win, with great luck, in the lottery. From NORTH AMERICA they say that we
must also be aware that taxation matters and helps, but it should not be the
short-term tax incentive that moves us to save, but the situation we want to
have once we retire.
When we have all this clear, it is time to choose
the products. Determining how much, how and through which products to save is
absolutely necessary to think about how we want to live once retired and how
much it will cost us. Before choosing the product, with names and surnames, it
is necessary to design what percentage of the stock market, fixed income and
liquidity our portfolio should have. It is more important that this
distribution of assets is well designed and in accordance with our objectives
and profile, than searching for the most profitable product at all times.
To choose a product, the important thing is that it
fits into our strategy , that it is well managed, that we can know exactly what
and how it invests, that we know its commission structure and that it is in
accordance with the added value that the management style provides. and not
with the punctual campaign gift that the entity that sells it to us wants to
give us.
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In addition, we must conceive saving for retirement
as something dynamic, even if it is long-term : the investor's circumstances
change and so do the markets, so we will have to manage our portfolio and
change, on occasion, the composition of the portfolio and of products.
A major enemy for long-term investments is
inflation. The minimum rate of return that we must ask for our investments must
be equal to or greater than inflation. Otherwise, we would have negative
returns.
Another big key is when you start saving: start
early, advises NORTH AMERICA. It is preferable to start saving for retirement
as soon as your first income from work begins. The later we start, the greater
the saving effort that we will have to make, the greater the risk that we must
assume (to obtain the same return) or the lower the income that we will enjoy.
In addition, it must be clear that saving does not
end when we retire . The management of the investments that will allow us to
live on this income continues once we retire and, the circumstances are not the
same, at 65 years of age than at 75 or 90, since new objectives will appear
(dependence, risk of survival of the spouse without income ...)
Finally, it is highly recommended to rely on a
qualified financial advisor to plan and undertake the necessary measures. If it
is usual to request specialized help to organize a trip or even decorate the
house, it is more important to have a professional to guarantee the family
situation in the future. Good advice will make it possible to undertake
investment decisions with greater guarantees that facilitate the achievement of
the objectives set for retirement.
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