Let’s be clear: the power of investing wisely

“Let’s be clear” is the concept that guides our commitment to bringing financial literacy and a culture of insurance closer to all people, without technical jargon or complications, on our social media. With this approach, we present content that explains topics that often seem complex—such as investing, saving, or risk management—in a simple and straightforward way. Through everyday examples, clear language, and expert insights, we aim to help everyone make informed decisions about their financial future. Because understanding what matters shouldn’t be hard.

Below, you’ll find four sample pieces of content—but we have many more. Follow us on YouTube and don’t miss a thing.

When it comes to investment, time is your best ally, and compound interest is the key to understanding it. This phenomenon allows your money to not only grow from what you invest, but also from the generated interest.
Let’s take a practical example: three people start investing at different ages (25, 40, and 55 years). With a monthly investment of €100 and an average return of 7% per year, the results are surprising.

• The person who starts at age 25 accumulates €250,000 upon retirement.
• Those who start at the age of 40 barely reach €80,000.
• And anyone that starts at 55 years old accumulates only €17,000.

The difference is abysmal. That’s why, the sooner you start investing, the more time your money has to grow. The key is not in how much you invest, but in when you start.

Before investing, it is essential to know your investor profile. This is defined by your objectives, time horizon, and risk tolerance:

• Conservative: prioritizes safety and seeks to avoid risks.
• Moderate: balances safety and profitability, opting for products such as bonds and stocks.
• Aggressive: willing to take greater risks to obtain higher returns, investing in high-risk funds or stocks. 

No profile is better than another. The important thing is to build a solid and personalized investment strategy with the help of a financial advisor. Get to know yourself well and make decisions that fit your needs and objectives.

You don’t need large amounts to get started in the investment world. With just €50 or €100 a month you can access diversified portfolios and take advantage of the strategies of major professionals.

• Where to invest? The most advisable thing is to seek the support of a financial advisor who can help you select diversified funds tailored to your profile and time horizon.
• Importance of consistency: investing regularly allows you to enter the market at different times of the economic cycle, increasing the stability of your portfolio.

With consistency, planning, and good advice, investing becomes a tool accessible to achieve great results in the long term.

Market fluctuations can generate scary feelings, but the most important thing is to maintain calm and not make impulsive decisions. Before acting, make sure to comply with these three points:

• Diversification and professional management: having a well-diversified portfolio managed by experts minimizes individual risk.
• Appropriate profile: your investment must align with your risk tolerance level and the defined investment term.
• Professional advice: having an investment expert will help you make informed decisions in times of uncertainty.

If you meet these premises, stock market dips should not alter your initial plan. In fact, with proper planning and enough time, dips can be an opportunity to buy.

Investing is not just for experts; it is an accessible tool for everyone. With clear information, planning, and consistency, you can take advantage of the power of compound interest and build a stable financial future. Remember, the best time to start investing is now. Let’s be clear!

And if you have any more questions, #MAPFREexplains.

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