Good time for be young: we have studied on average more than previous generations and, despite this, we can't find a job; if we find a job often it is precarious o underpaid. Furthermore, we are living in a "critical" historical moment from an economic-financial point of view for the West and, in particular, for Europe: the stock markets of the whole world (USA and Asia included) in the last year have shown a somewhat fluctuating trend, increasing only theuncertainty which was already characterizing the post-Lehman Brothers.
In such an uncomforting scenario, how can the new generation set aside something for the future? How can he understand which is the best move to be able to afford, tomorrow, some whim like a nice summer trip or a motorcycle? How can you put down roots in a new city, buying a car or starting to think about a house?
The answer is not 42, although it might be easier if that were the case!
Very often the financial jargon of banks and advisors is not very understandable and, those who do not have a background in economic studies, or some relative or friend who knows about it, do not really know which "fish to catch" and where to start.
We at Advise Only have decided to lend a hand to all those young people with a not very high salary and who are unable to move in the complicated maze of the various financial institutions of the beautiful country.
Sure saving is hard, especially in these times, however, you can treasure the notions of this post and, when you have more availability, you will already be one step ahead!
Here are some sample questions that have been asked to our Consulting team, here we propose them with the relative answers, hoping they can help you.
D. Nowadays having a current account (c/c) is necessary, since tools such as the debit or credit card have become necessary for everyday life. But how do you decide which is the best?
R. There is no right and wrong answer but, as often happens, the best answer is “it depends”. Each bank offers different types of current account (c/c), based on your needs and what you want to get in exchange for opening the account: you can find current account zero costs for young people (generally under 27, but some structures also offer them for a few more years), for which, however, a whole series of services are generally excluded - not of fundamental importance, and in any case obtainable by paying outside the account fee - which instead they are included in other types of current account payment.
However, the best choice could be to contact one Bank online: it has lower average costs, it is more comfortable and efficient, and it is possible to communicate through a call center. Going to sites like www.supermoney.com o www.sostariffe.com you can get some advice on the choice that best suits you.
Q. Can I trust online banks without a physical branch?
R. Absolutely yes! Not only are they subject to the same controls as traditional banks, but most of them are branches of large banking groups, so you can enjoy the same solidity (at lower cost)!
D. What are the options for placing my savings, in addition to the mattress or tile, to ensure that they do not suffer the loss of value due to inflation?
R. The alternatives are many. if thetime horizon is short-term, the choice could fall on government bonds such as i BOTor a savings account. If the horizon is long-term then one could move towards investments with a greater equity content, to take advantage of capital growth opportunities. Possibly trying to diversify the risk, therefore using funds, Sicavs or ETFs, perhaps investing gradually by implementing CAP. Don't know your time horizon? Enter the www.adviseonly.com and answer the Financial DNA test, you will discover many things about your investor profile. It's free, huh!
Q. Who should I contact for advice: a bank, a promoter, a consultant, myself…?
A. Receive cadvice costs: the consultant, if serious e independent in the judgment, is definitely the best choice. However, if the amount invested is low, your commission may be too high in relation to the expected return. We also advise you to choose investments that are sufficiently diversified and consistent with your risk profile and your time horizon, but also – and above all – to know the instruments in which you invest, evaluate them not only on the basis of performance but also al risk and to liquid assets. Look for accurate and independent sources (the site www.adviseonly.com for example). Everyone can find "the right path" for their investments. Remember, if you are an informed investor, you are a better investor.
Q. What are the costs that I have to take into account?
R. Il cost of the current account and cost of securities deposit, including the stamp necessary to be able to invest in financial instruments. Other costs are those of negotiation and TER (=Total Expense Ratio). In the case of mutual funds, Sicavs and ETFs, we recommend reading "Personal defense mini-course for investors I episode" and "II episode".
D. Among all the alternatives mentioned, which is really the one that pays the most for those who, like me, do not have a large fortune but rather a few small sums?
R. Making more also means "risk more”. Check yours risk profile, because there is no one-size-fits-all answer, and then evaluate the possible alternatives.
D. What if liquidity is important to me, i.e. would I like to invest my money without having to lock it up for the long term?
In this case, the best choice is short-term government bonds, type i BOT at 3 or 6 months, or gods unrestricted bank deposits.
Q. Do you advise me to invest once a year, or to start a progressive accumulated savings method?
R. Again, the correct answer is “it depends”. If you have discipline, it is possible to start a PAC DIY. Every month/quarter/semester you can set aside an amount which will then be invested in a mutual fund, Sicav or ETF. However, if you do not feel able to make this commitment, then you could rely on the banks; many offer CAPs, but beware of the associated costs! Read the conditions well (even the fine print…). It all depends on understanding how much this cost affects the total.
D. If someone should have a sum aside, the result of a graduation gift, 18 years, etc... in that case, what should be done?
R. In these cases we are therefore talking about higher sums, which could be "fixed" for a medium-long term (let's say at least 5 years), diversifying the risk between bonds and shares. Sorry if we sound repetitive, but we still recommend that you run the first thing Financial DNA test su www.adviseonly.com to understand what the appropriate risk profile is, then you could invest in a portfolio built for needs of this type by the Advise Only team… Young Portfolio (of which the table below). Connect to the site and click Market Analysis / Investment Ideas and look at the specific features.
