Likely, your afore is not enough to survive only from your pension. If you want a good retirement, it is best to build an investment plan. We give you some options.
Retirement implies the finish of acquiring a period for some, except if one decides to function as an expert. For retirees, utilizing their retirement corpus that would assist in keeping charging risk under control and give a standard pay stream is of prime significance. Building a retirement portfolio with a blend of fixed salary and market-connected ventures remains a significant test for some retirees. The test is not to outlast the retirement reserves – one resigns at 58 or 60, while the future could be eighty.
If the Retirement Savings System remains unreformed, those whose savings are managed by an afore will face a complicated reality in their retirement since their pension will be equivalent to only 26% of their last salary.
The above is a scenario in which life expectancy has increased. By 2050, the number of older adults will increase to 32.4 million from 10.06 million in 2016, according to estimates from the National Population Council.
The task of saving and investing seems complicated in an environment in which 61% of workers earn between one to three minimum wages per month, that is, $2,695 at $8,085 and only 4.6% enter more than five salaries a month, that is, $13,475, according to INEGI figures.
However, if you can allocate a percentage of your income to invest for retirement, it is best to plan it now.
Currently, two out of ten people of retirement age must receive help from their family or acquaintances to pay their expenses, according to the 2015 work history survey conducted by INEGI for the National Commission of the Savings System for Withdrawal (CONSAR).
If you already have savings, the first step is to know the different investment products in the financial market and advise you with a specialist, such as an independent investment advisor certified by the authorities or with a stock exchange intermediary.
Both should help you know your risk profile to make the most appropriate investment decision. Below, we list several options:
Investment Plans with Life Insurance
Insurers sell it, this instrument deducts a monthly amount from your bank account, and options range from $1,000 per month.
Personal Retirement Plans
All financial institutions offer it; like the insurance investment plan, it is tax-deductible. The asset they have is forcing you to save; it is one of the big problems that negligence beats us.
Investment Funds
This instrument charges you a commission; you can buy and sell it whenever you want.
Exchange-traded Fund, or ETFs
They replicate some value or index behavior; you can access them from the Stock Exchange. Although the amount of contract opening depends on each stock exchange intermediary, some electronic platforms open them from $100, while in others, the minimum ranges from $10,000 to $25,000.
To Open an Account at a Brokerage House
They will build a portfolio according to your profile if you take this option. Suppose you do not have the appetite to tolerate the risk of shares. In that case, it can be a combination of stocks and bonds and obtain a return that will be a little more moderate,” says Ezquerra, who indicated that, although this option used to open generally for investors who already have $1 million, there are currently electronic platforms to invest in the stock market, which can be operated with an account starting at $1,000.
When one resigns, and there is a probability of the non-gaining period reaching out for an additional two decades or more, at that point, contributing a part of the retirement assets in value-supported items accepts significance. Remember that retirement salary will be dependent upon swelling in any event during the resigned years. Studies have demonstrated that values convey higher surging balanced returns than different resources.