It is not new that people are big savers. The impact of the virtually zero interest has an enormous impact in our country. More and more people are realizing that they will lose money by saving. It should therefore come as no surprise that more and more people are wondering how to grow their wealth, now that we are dealing with a virtually zero interest rate.
Provide a logical structure according to your profile
There is a logical construction of family assets; savings should be in every asset for an amount that covers your expenses for at least 6 to 9 months. Savings are therefore the basis of family assets. For solutions for the best Wealth management just click here.
You then build up a next, also very conservative layer through insurance products (often group insurance) or pension savings products (pension savings are still very attractive). Only after these steps can you consider investing. How much you invest and in which instruments depend on your risk profile and your time horizon. If you are risk-averse, you might opt for 2 years instead of 9 months savings reserve. The same if you need your money within 5 years. You always invest on the stock exchange with a long-term vision.
Start investing as early as possible
View and assess your investments in the (very) long term. In the long term, investing on the stock market is always the best possible choice. Wanting to earn money on the stock market in the short term, you have to be lucky for that, you better go to a casino for that. In the long term, however, all studies indicate that the stock exchange is always the best possible investment.
Despite the sometimes erratic periods
You can perfectly absorb these erratic periods by spreading your investments (risk) over time. In this way you smooth out market fluctuations in a natural way. With a fund investment plan such as KEYPLAN you do this automatically and it is possible from EUR 25 / year.
Spread your investments according to underlying assets
Unless you are really intensively involved with investing on a daily basis: do not try to do “stock picking”, but rather invest in indices (via trackers) or via funds. Very few investors manage to outperform the market.
Academic research shows that 90% of the return on a portfolio comes from a good distribution across different asset classes. When one asset class falls, another often benefits.
A good starting point is to check our investment committee’s monthly report. We summarize our expectations for 12 different asset classes.
Invest not only money, but also time
In addition to the almost zero interest, the markets today are also characterized by volatility. What is still a certainty today may not be tomorrow. You must therefore closely monitor a portfolio. Anyone who also invests time in discovering smart stock market orders will therefore sleep a lot more peacefully and be able to secure his profit.
