Everyone has some plan that is always left out: diet, a graduate or all those end of year promises. It’s a common situation, after all, unfortunately we only have 24 hours to take care of all our tasks. However, if your abandoned plan is a better financial life, you should rethink your priorities a little. Today, there are a number of investment options available in the market and one of them is certainly within your reality.
For this to be possible, of course, you should plan, discover your investor profile, know those market options and save what you can. With this, you will surely have a fertile ground to see your money render.
Calm down, it’s not as complicated as it sounds. In this post we have the help of London Capital, a company that does personal financial planning, to show a complete guide on how to start investing. You will stay within the main points of attention. Check-out!
It all starts with good planning
To start investing you should plan yourself. However, before that, you have to put order in the house. This means that you should make withdrawal with all your monthly expenses and income – preferably start right after you finish this text. This step is important so that you have an accurate picture of how much you have available at the end of the month and, especially, what expenses you can cut.
After that, you have two other important steps in the planning process: defining your goals and the value of your applications. After all, in addition to motivating, goals clearly delineate what the amount will be, and, of course, help define the best types of investments to complete the dream.
Ideally, you set goals for every aspect of your life. As an example, how much do you want to put together for your retirement, what equity do you want to graduate in the coming years, and how much will you put aside to invest in your children’s future. All these goals can be defined in the short, medium and long term.
Goal setting, as we saw earlier, is a fundamental step for you to define exactly how much you need to save to invest, and that’s the point we’ll see next.
Define the application
Depending on your goal, you will have to make a decision. Most investments will require you to make the minimal application – which can vary greatly. For the CBD, for example, you need to apply at least $ 1,000, however, for an LCI (Real Estate Letter of Credit), that application can jump to as much as $ 30,000.
So it may be that, depending on your savings and your goals, it is important that you put together the money needed for you to make the right application. There is no point in making any investment, because in the end you certainly will not get what you want. But calmly, we will still see the major investments for beginners later on.
Know your investor profile
This is an important point that can affect everything we have seen before. Today, many financial institutions and brokerages seek to clearly define your investor profile even before you make any investments – customer equity assessments are conducted as well as questionnaires. There are a few more unusual cases where brokerage firms deny a particular type of client investment because of the mismatch between your profile and the investment made, but this is more common in high-risk applications.
Knowledge of the profile is important to the financial institution, after all, it does not want dissatisfied customers. However, it is very important for you to know exactly what your limit is, how far you want to take the risk to see equity grow. It is clear that bolder investors can achieve their goals much more easily, however, they are much more susceptible to losses. If you feel uncomfortable with a situation like this, for example, it is best to avoid such an investment.
Basically, today we have three types of profiles:
This type of investor seeks security above all else, but that means having a lower return on investments. Typically, the most suitable products for this investor are government bonds and fixed income funds. For you who are starting now, this can be a good style.
The moderate investor tries to play in both teams, seeking to maintain a balance between fixed income and variable income applications. That way, you can keep a good chunk of money in secure applications, but you’re always looking to grow your income with slightly bolder, variable-income applications.
Finally, we have the bold investor, who seeks to maximize his profitability. It is even capable of accepting negative returns in the short and medium term to realize greater advantages in the future. Of course, this type of investor prefers variable income applications.
As we have seen, even if you have the ambition to become a bold investor, the ideal is to start conservatively. That’s because, at the beginning, you have to get used to the idea of having money stopped, yielding, without being able to use it for other purposes. In addition, of course, an investor who has a bad experience at the outset will hardly feel compelled to make investments in the future.
For a long time, saving was recommended for beginning investors, however, with rising inflation, this is no longer a profitable option. So let’s introduce you to three alternatives to who is starting.
Certificate of Deposit (CBD)
The CBD is a safe investment for two reasons: firstly because you know exactly how much you will get back to the end of the application; and then because the financial institution goes bankrupt, you will get back the value of the application, as long as it does not exceed the amount of R $ 250 thousand, since this investment is protected by the Credit Guarantee Fund.
In order for the current investment to generate a good return, you must apply at least the amount of R $ 1,000 and expect the income in the short / medium term (ideally, the money should be applied for at least two years) – the withdrawal time is defined in contract. Remember, still, that in this type of investment there is discount of income tax.