Investing for children and retirement.
Good morning community!
Today I wanted to talk to you about this topic that you often ask about. With the start of the ‘school year now upon us in fact, many of you would like to start saving and investing for your children.
The topic is certainly important and sensitive. Everyone has totally different goals, availability, and risk profiles, so we will have to give useful guidelines a little bit for everyone.
The best plan from my point of view is to create a portfolio with an accumulation plan (PAC). I recommend doing it independently without the help of banks, consultants and products where you pay a lot of fees and the management costs are really very high (sometimes even absurd).
We could start composing the PAC in several ways: from general ETFs on major world indexes, or from stocks (but this involves knowledge of a method and, above all, fairly active management).
Perhaps many of you do not know where and how to buy stocks or ETFs, and so it may be difficult to create a PAC yourself.
First, we need to be familiar with the concept of ETFs and stocks. Information we can get through books, video courses, and any other way you want, but you just need to know.
What motives motivate us to invest?
There are many reasons for us to start investing for children and retirement now, and everyone has their own:
- I would like to see my son/daughter at the age of 18 with a significant nest egg to enable him/ her to study and/or take off a few indulgences;
- If I went to the bank, I would risk bleeding myself dry and buying instruments that are not suitable for my needs;
- I want to do it myself, I stop and form little by little, build the ideal portfolio for me;
- I will have a starvation pension (assuming the pension system holds out). I also have to do this for my future (further push for self-improvement as well as children).
So where and how to start?
Once I have motivation, I need to take action by choosing a starting figure to start with and a monthly/quarterly figure with which I want to design my portfolio.
Having these motivations clear and having studied well how to do it yourself-with the help of our course as well if you found it useful-you can go and see what platform to invest in so as to have relatively low costs.
We always recommend having 3 types of current accounts so that we always have a very careful management of our financial situation. One type of account for stock market investments, another for everyday expenses, and another savings account where you keep your reserves in case of emergency expenses.
The most important part remains to untether from saying that investments are not profitable or are a scam (we often hear from a relative, friend, etc. who have lost money). As in all things, however, if we followed a clear and precise strategy, our mood would change exponentially.
I conclude by saying that the sooner you can figure out how to invest, the sooner you will have returns over the years. These annuities will make it possible to have no thoughts about children and their pensions, but more importantly, ours!