If you have come this far and, after reading the title of this post, you have begun to read it, that is because you have savings; you want to put them to work; You think that insurance would be a good idea; but, nevertheless, you’re a little lost.
A text like this can not aspire to help you make the final decision. It is not our intention. But what we do want is that, at least, after reading it, you have clear what you have to do to basically focus and be clear about what type of saver you are ; Because only if you know how you are, you will know what type of product you have comes better.
What do you have to do to locate yourself? The good news is that it is not a complicated process. You just have to answer three basic questions . Of course: you should not make the decision to hire a savings product until you are clear about the answer to these three questions:
1. What level of security do I claim for my savings?
This is a fundamental question. To what extent are you willing to take losses for your savings? The level of risk assumable in a savings product depends on the person, on how comfortable and calm he feels assuming certain risks; as well as other factors, such as whether you will be able to dispose of that money in the short term if you need it or how much that savings represents in relation to all of your savings. In general terms, two thirds of adult Spaniards tend to be risk-averse savers , that is, they do not want to be exposed to the risk of losing the money invested in the product or a part of it.
When a saver asks what the profitability that could be obtained with a savings product may be, it must also be very clear what level of risk it is assuming to obtain that profitability, that is, the level of security of the product.
The expectation of profitability of a savings product depends on its level of risk. When opting for a product, you must be very clear if you are willing to assume the risk of loss of capital invested in exchange for an expectation of greater profitability ( dynamic saver ). The other option is to have a more moderate profitability knowing that when you retire or when you finish the product at least you will recover all or a significant part of the money you have invested ( conservative saver ). None is better or worse; what you have to be clear is which is better, or worse, for you.
2. When do I want to have my savings?
Simplifying a lot, in the world of savings can be two things. You can be a saver without hurry , which means that we will not need to have that money until a certain time (for example and normally: retirement). Or you can be a saver without ties , that is, a person who saves but who is not clear if he will need to recover his savings at some point and wants to be sure that he will be able to use it in the short term if necessary. .
When hiring a savings product, I must be very clear about whether or not I will be able to have my savings before the end of the product and under what conditions.
3. Does the savings product have any fiscal advantage?
Another aspect that you must take into account is whether the savings product has tax advantages. If in taxes there is a fiscal benefit for certain savings or retirement products, it is because it is considered good for people to save; but, logically, you do not want that savings to be used for other purposes. That is why it is very common that the tax system, when it establishes tax benefits, also requires that the product be maintained until retirement or for a sufficiently long period of time, or that it be charged in a certain way (annuity)