[ad_1]
Economist Marius Dubnikov said that investments depend on the income and savings opportunities of one person each month.
“You should save 10% of your income and periodically invest it in stocks, bonds, mixed mutual funds. Both life insurance and the third pillar of pensions are suitable for this periodic investment. Such investment is simple, it is enough allocate several tens of euros An investment of this type is safe because it produces a long-term return.
When a person has already accumulated more assets, then it is necessary to choose more carefully where to invest, because market fluctuations can bring not only good but also bad consequences to a significant amount ”, commented the economist.
Where to invest next year?
According to him, seeing currently a money printing policy, real estate is a good option to invest. Because it has the ability to maintain its value, even for money and depreciation.
“So next year it is favorable to invest in real estate. However, this investment also has drawbacks. To buy a property it is necessary to have accumulated a lot of money. Liquidity is also important. For example, a person owns real estate, which he rents, and its value is 100,000. euros. You need 10 thousand, because you will not be able to sell part of the property and take that amount.
Therefore, investors who want liquidity choose stocks or bonds. And the way a person reaches them depends on their ability and willingness to make this investment. People who want to invest a long time can buy stocks and bonds directly and take an interest in them. There are also investments, pension funds or life insurance, which also allow access to stocks and bonds ”, explained M. Dubnikov.
According to him, before investing, a person should assess the risk, liquidity, how quickly he wants to get the investment. It is also necessary to choose the way in which you want to make these investments: you want to invest directly or through investment funds.
Real estate is the most coveted investment
According to the economist, a survey of the population showed that they would like more to invest in real estate.
“It just came to our attention then. Various “truths” are often forgotten in the head of a young man in a family. First of all, it is stated that you need to graduate from college after graduation. And it doesn’t matter at all what specialty that young man chooses. Although in some cases, completing professional training and becoming a good professional will be an opportunity to earn much more.
Parents are also encouraged to purchase their own home with a loan as soon as possible. However, this is not an investment. If a person buys a house and lives there, he only keeps the value of the money3, but does not invest, ”said M. Dubnikov.
According to him, in other countries, especially in the West, people are more inclined to invest in stocks.
“In short, housing is very expensive in some European cities and it is impossible to buy it with an average salary,” said the economist.
Swedbank Senior Economist Vytenis Šimkus said that Lithuanians like to invest in real estate because they are very familiar with this form of investment.
“The Bank of Lithuania conducted a survey and it turned out that only 1% of the surveyed households have shares. And almost 90 percent own their own home. Households.
Investing in real estate is understandable to people. On the one hand, this is good because people should invest in understandable things and not risk their money. But on the other hand, it is unfortunate that people are not trying to allocate their funds. Putting your savings into one investment can be dangerous.
I would advise residents to look for alternatives, distribute savings, find out and choose various investment methods, ”advises the economist.
Required guarantees
According to M. Dubnikov, a person should have enough money to live for 3 to 6 months without losing his source of income.
“For example, if a person’s income is not high, but they are doing a job that is in demand, they have enough savings, if a person has obligations, they should have savings for 6 months. Families who have purchased a home with a loan must have life insurance. The person who generates the main family income must be insured for the amount of the loan contracted.
It is also important to insure against critical illness. Lithuanians experience heart attacks, strokes and cancer diseases more frequently. Every fifth resident hears a diagnosis before age 65. These people survive, but need rehabilitation, which usually takes years. Therefore, we should have critical illness insurance so that a person can earn a living from that year on, ”said M. Dubnikov.
According to the economist, it is also important to repay all consumer loans as much as possible.
“It just came to our attention then. You take money out of your pocket and feed the lender and at the same time try to save by earning less than the loan” burns “money.
It’s better to repay all consumer loans and stop taking them, ”advises M. Dubnikov.
Safe and risky investments
Vaidotas Rūkas, Head of the Investment Management Division of INVL Asset Management, which manages pension and investment funds, said that investments can be safe, such as bonds or deposits, and more risky, such as stocks or real estate.
“The way an investor chooses depends on his accumulated assets, his goals and his tolerance for risk. A younger person can choose riskier investments, while an older and richer investor should choose safer forms of investment. This rule is universal ”, explained the specialist.
According to him, Lithuanians invest mainly through pension funds.
“More than 1 million. Lithuanians accumulate their money in pension funds. Their accumulated assets amount to 4 billion euros.
Looking further, we see that the real estate sector dominates among Lithuanian investment options. This type of investment is chosen by those people who have accumulated a lot of capital. To invest in real estate, you need to have at least several tens or tens of thousands, ”said V. Rūkas.
Earn money first, then invest
In most cases, the savings and investment rules recommend a 10% savings. Your income. However, V. Rūkas agrees with this rule only partially.
“A low-income person may not always be able to put 10% into an investment. Your income. However, as salary increases, so does the amount of money available to save.
Therefore, low earners should focus on their value as market participants. They should invest in developing their skills. And when you get a raise, it would simply be spending half, a third, or another of that increase on savings. This amount depends on each person ”, advises the specialist.
V. Rūkas advises investing also for young people who may have less money and for older people who have already accumulated a greater amount.
“In this way, the younger ones will gain experience and then adopt a more rational and time-tested form.
You need to understand that investing in stocks, for example, can face not only returns but also market fluctuations. Inexperienced investors are scared and often want to stop investing. However, in this case, it is often necessary to simply wait and sometimes, despite fluctuations, to invest more.
You also shouldn’t invest borrowed money. For example, a person has bought a property with a loan. He planned to rent a home, but was unable to do so due to the coronavirus pandemic. This means that there is a threat that you will not be able to fulfill the obligation to the bank. Therefore, these things should be considered in advance so that there are no problems later, ”said V. Rūkas.
Investment and speculation
According to him, it is still important to distinguish between what is an investment and what is speculation.
“Speculation is when we expect to sell something more expensive and the investment often doesn’t even need to be sold. For example, it is not necessary to sell real estate for a person to make a return on renting it. Of course, the return that a person expects from the rental may be lower, but it will remain so. And by owning stocks, investors share in the earnings they receive: dividends.
However, raw materials are not an investment, for example, when you buy oil, it is not clear if you will be able to sell it at a higher price. Gold or silver can also be speculations, because it is not clear whether their price will rise or fall ”, explained the specialist.
[ad_2]
