How to start investing?

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

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.

Goals

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

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:

Conservative

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.

Moderate

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.

Bold

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.

Recommended Investments

Recommended Investments

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.

 

A Quick Loan without Ifs and Buts

 

An instant loan without Schufa : For people who are in an acute financial emergency and also have the problem of not getting credit at the house bank, such loan offers are the longed for light at the end of the tunnel. A situation that many supposed credit brokers make use of and with corresponding loan offers on customer catch go – not always with the intention of the people with corresponding problems really want to help. The possibility of being able to receive an instant loan without SCHUFA is closer than it might seem to one or the other in the form of a mortgage loan .

Money against pledge: honest fast loan with immediate payment

 

The mortgage loan keeps what credit intermediaries and other dubious financial service providers often promise: a quick loan without ifs and buts. An offer of which around one million Germans make use of it each year and bridge a financial shortage by exchanging valuables. For a long time pawnbrokers were a dark backyard business with a very doubtful image. Pfandleihäuser were seen as a central point of contact for criminals who wanted to convert their stolen goods into face value. A picture that has nothing to do with today’s pawn shops – neither in the backyard image nor in the alleged clientele. Rather the opposite is the case, because nowadays people of all walks of life perceive the offer of a mortgage loan. Be it workers, employees or the self-employed, even companies can be found in the breadth of the credit clientele.

 

Pfandkredit: Secure instant loan thanks to a pawn loan

For a good reason, because in comparison to many other offers for a schufa-free fast loan, the granting of a mortgage loan is subject to a clear regulation, which is known in the jargon as a pawn rental regulation. This regulation clearly defines the framework conditions for such a loan agreement. The minimum term of the contract is therefore three months. The fees are set up to a loan amount of 300 euros in a table and are at this amount at 6.50 euros per month. With a loan amount over 300 euros, the fees are an independent negotiable matter. In addition, 1 percent interest is due per month; In addition, there are fees for estimation, safekeeping and insurance.

 

King’s question: What does a mortgage loan cost compared to a bank loan?

 

 

If one looks at all the costs associated with a mortgage loan, even the largest financial laity may realize that the mortgage loan is anything but cheap. Especially not in comparison to a bank loan with market average conditions. For illustration, let’s take the following example:

With a mortgage loan of 300 euros with the minimum term of three months, resulting from the statutory interest rate of one percent and the monthly fees of 6.50 euros total cost of 28.50 euros. For a whole year, this would mean a bank loan with an annual interest rate of a whopping 38 percent. Which would end up being quite close to the legal interpretation of the credit book. The advantage of a mortgage loan compared to a bank loan is therefore definitely NOT in the cost, but in the fact that this is a real instant loan without Schufa – albeit one, admittedly quite expensive instant loan.

 

 

Credit Without Schufa | Credit Even In The Most Difficult Cases

If you need money at short notice and can not access the corresponding financial reserves, you have a variety of options to get the short-term, necessary liquidity: Be it by using the expensive emergency loan, the inclusion of a cheaper consumer credit or even mini-credits or by the way to the pawn shop. For the latter, provided that there is something in your own possession that makes a temporary loan worthwhile. So the amount can be achieved as a mortgage, which is sufficient to bridge the financial bottleneck. And one can hardly believe it, the loan alternative “Pfandkredit” is still a real existing business that enjoys a certain popularity with consumers. So instead of taking out a loan, some people prefer to go to the pawn shop when they need to bridge a financial shortage in the short term. The reason for going to the pawnbroker is understandable.

 

Mortgage Credit is a schufa-free loan

 

 Mortgage Credit is a schufa-free loan

When urgent money is needed, credit usually has to be provided. If no credit line is available to service the need for cash, the bank will go to the bank and an installment loan application will be made. But to go this way requires the existence of some mandatory prerequisite and the most important thing here is the issue of creditworthiness. Anyone who has incriminating features in his Schufa information is faced with an almost insurmountable hurdle at his bank in the context of the loan request – the supposedly unworthy of credit. Even an attractive salary from an unfinished employment relationship and a long-standing customer relationship with the bank is hardly helpful. The consequence is the rejection of the credit inquiry and one is faced with the question: What now?

Dubious loan offers under the slogan “Credit without Schufa”, “Credit even in the most difficult cases” etc., do not have the best reputation. In the case of a credit rejection by the bank, this may be an alternative, but with a certain risk of “rip-off”. So as a further, possible alternative, the mortgage loan remains.

For with the mortgage loan, the issue of creditworthiness and Schufa is no reason for deciding on the awarding of a Dartlehen no hindrance or even rejection. Basically, a mortgage loan is not really a loan, but the temporary loan of a valuable asset. The prerequisite for obtaining a mortgage loan is the existence of a lendable value asset. There is a simple rule: the higher the need for credit, the higher the value of the delivered item should be. Anyone who is in possession of valuables in the form of gold, jewels and high-quality brand watches, can hope for a “loan” by mortgaging in a pawn shop.

The “rules” of the mortgage loan

 The "rules" of the mortgage loan

It should be noted, however, that a valuable asset is never rated at 100% of the purchase price, but a maximum of 30%. However, here too, there are big differences between pawn shop and pawn shop. For example, if you pledge a valuable asset with a value of 2000 €, you can at best expect the loan to be paid out in the amount of 600 €. Fees and interest deducted from this, however, are then deducted at 2.5% to 3.5% interest – incurred monthly! The first term of the mortgage loan is four months. However, as a customer of the pawnbroker, you have the option to extend the mortgage loan as often as you like, provided that you pay interest and fees. If the pledge loan is not redeemed, the pawnbroker usually auctions the respective item in a public auction. However, this happens only after six months have passed and you have not reported as a customer.