What 3rd pillar solution for 2020?
There are many choices when it comes to pension and/or capitalization solutions. Beyond the possible risk covers in insurance solutions and the choice between a 3rd pillar 3A Or a 3rd pillar 3B, an important consideration is being given to how to invest our savings. The choice of the investment that suits us in terms of risk taking and returns will have a significant impact over the years. Capital built up at maturity will be of increasing importance in the future.
Depending on the result, our project for pre-retirement or for a better standard of living in retirement may be very different. There are several types of investments, but most do not take into account the current market situation.
Lowest interest rates
We see it every day that interest rates are at a low point. This is a real advantage for borrowers. On the contrary, it is a real challenge for investors who want high guarantees. The constraints, linked to guarantees with rates close to zero and increasingly narrow margins, are increasing. This pushes organizations to come up with solutions or to start applying or allowing themselves to apply negative interest rates. Together with inflation, this constitutes an obvious loss of purchasing power over time.
Financial markets at their highest
The stock market is currently at an all-time high and the hesitation to enter the various markets is great. The doubt about future developments and the high probability of a correction in the more or less near future prevent us from investing calmly in the markets. The opportunity for an efficient investment is rare. The wide choices of the various players complicate matters and the sometimes dubious transparency of investment content does not help with decision-making.
3rd pillar investment solutions taking into account the situation in 2020
Fortunately, there are solutions that take into account the current situation. Having a minimum guarantee and taking advantage of return opportunities without risking a market crash exists. Rather than positioning ourselves as a buyer of shares, bonds, fund shares or the like, acting as an observer by taking options on stock market indices is clever. The maximum risk is the loss of the option purchase premium that does not harm the accumulated capital. On the other hand, when the option is successful, the gain is applied to almost all of the capital. This offers an excellent capital/risk ratio. To find out more check out our page dealing with the different types of 3rd pillar investments possible in 2020
These new solutions make it possible to pass financial crises without fear while taking advantage of years of growth. Moreover, they do not require active management.
It is essential to take advantage of the new opportunities offered in 2020 through good advice.
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