When I have a stomachache, my first action is to drink that little boldo tea with mint that my grandmother recommended. If you relieve yourself, wonderful! But if it takes a while to pass, I’ll look for a specialist doctor. After all, I’m not going to risk my health. With our money it shouldn’t be any different.
I can even talk to friends and acquaintances to get tips on how to organize my finances and where to invest my savings. But when it’s time to do it, the right thing is to look for an expert to help you. After all, I don’t want to risk losing my savings.
But how to choose this specialist? Below are three important points to consider.
1. Identify your “problem”
In the investment world, your “problem” matches your investment tripod. It includes knowing how long the money will remain invested (liquidity), the degree of risk that person understands and accepts for their savings, and the expected return.
This tripod leads to the identification of your investor profile, a regulatory requirement of the CVM (Brazilian Securities and Exchange Commission) so that, to some extent, the investor understands what he needs.
2. Know the basics to not be held hostage
In terms of our health, knowing the basics means drinking water, eating and sleeping. In the context of investments, it refers to understanding some economic concepts of our daily lives, as follows:
Inflation happens when our money loses purchasing power — that is, it can no longer buy the same amount of things it used to buy at an earlier date.
Things have gotten more expensive at a faster rate than people’s incomes have increased.
Basic interest rate (Selic)
The Selic is the basic interest rate defined by the Monetary Policy Committee (Copom) of Brazil. It is an instrument for controlling inflation.
The logic is as follows: at a time of high inflation, an increase in the Selic rate causes an increase in investment interest rates, financing and loan interest rates.
Thus, people buy less and prices tend to decrease to attract buyers again.
CDI is the interest rate applied on loans between banks. It is not possible to apply in CDI, however, this is the reference rate that determines the profitability of investments in CDB (Bank Deposit Certificate).
That is, when we invest in CDBs and lend our money to banks, the interest rate we will receive is referenced to the CDI.
3. Choice of specialist and cost
Another important point to consider is the choice of professional and the cost of the consultation and/or treatment. That is, the choice of financial institution and investment costs.
In this regard, digital banks have been vying for the market and offering good products at affordable costs. In fact, some of them don’t even charge fees to invest even though they have an excellent variety of investment options.
Another advantage is that, as they are banks, you can have everything in one place: checking account, investments, commercial transactions and other banking services.
Another point to consider is the ease of making applications, which includes access to the investment platform, known as “home broker”, to the appearance of the mobile version of the cell phone (the simplicity of the application’s layout).
The truth is that choosing where to invest is a fundamental attitude for those who want to seek their financial freedom.
The intention was to provide the information you need so that you can give proper attention to the health of your economies.
Therefore, even for those who already have investments made, the tip is to consider other financial institutions or investment options. The more information and diversification, the better the results.