We’re sharing a guide for a skilled advisor to help you plan and segregate your savings for short, medium and long term goals.
The opinions of the employees of You are personal.
Public finances and the economy are fundamental issues for a large segment of the population in Mexico. In a recent survey, 41% of respondents answered that these topics are important for this. However, this is not the case with savings and personal finances: only 30% of Mexicans report saving on a daily basis.
33.4% of savers surveyed say they will save for “whatever is on offer” in the future, and 15.1% have no specific goal.
At Principal, we know that saving without a goal doesn’t work. For this reason, we are passing on a guide for a qualified advisor to help you plan and separate your savings for short, medium and long-term goals:
We say your goal is short term if it is less than or equal to a year. There’s room here for a vacation, car purchase, graduation, or even your wedding.
In order to invest for these purposes, you need to consider the safety of your money as you plan to use it soon. An unforeseen event can seriously affect the achievement of your savings goal. Therefore, you should look for instruments or investments with low volatility.
Another important factor is liquidity, which means you can have your money quickly. Mainly because you could use those savings for an unforeseen event if your emergency fund were suddenly depleted without having to wait days to collect your money.
Depending on your particular situation, your advisor will recommend certain instruments or funds. Remember that the same investment solution cannot be applied to everyone.
We speak medium term if your goal is between one and five years; I mean, you have no plans to use that money until then. Unlike short-term, it is important here that you do not touch the funds until the specified period has expired. These investments also require more planning.
Although savings should always be safe, for these purposes products with higher volatility and lower liquidity can be accepted in order to achieve higher investment returns. If you are looking for the medium term, it is usually because you want to devote a significant amount of money to a relevant project in your life, such as B. for starting a business or buying your first home.
If your savings are for goals you want to achieve in more than five years, you’re already talking about the long term. This usually takes into account savings for your retirement or your children’s university payment. It is not because it is something far away that it is less important.
Correct asset diversification and detailed and constant planning are critical to this term. Many things in the markets can change in a few years. For this reason, this type of investment requires long-term specialized institutions and professionals like your Afore.
What is the best term for you?
It all depends on your investor profile, your goals and your savings opportunities. Either way, it is important to have professional advice and not to sacrifice long term by focusing 100% on your short term projects. With a good guide, you too can save in the short, medium, and long term and still have money left over to have fun.
Remember, the resources in your individual account are yours. Find out more at www.gob.mx/consar