The personal and familial world is made up of 2 categories – consumption and savings; both are very dominant in our present and future financial behavior.
The complexity of managing our savings is one of the most important missions in every stage of our lives, from our parent’s behavior to our children and grandchildren’s.
This current period is more challenging than ever before in terms of the possibility of us enjoying things that we were used to, like trips abroad, shows, plays, etc.
Over the past two years, most of us spent our leisure time mostly at home, with our families, and our various spendings have decreased accordingly; thus, we have more money to put into our savings and investments, from a long-term perspective.
However, this period also taught us the importance of savings and investments, of preparing for unexpected times, like what we experienced not long ago and even now: closed and closing workplaces, lockdowns with or without reimbursements, reimbursements that should or should not be returned, etc.
The goal of the investment should be specified and clearly defined so that we can prepare according to their need and know whether the plan is to deposit, for example, a one-time sum or a standing order for savings in the capital market.
Here are some of the many possible goals and targets of savings and investments:
- To buy a first house.
- To increase our future stipend.
- To help our children with buying property, fund their education, etc.
- To enter a nursing home and to maintain the same quality and standard of life we are used to.
- To invest our free money in a business in order to strengthen its resilience with money that is not being used.
There are many ways and a wide variety of products for achieving our personal, familial, and business goals:
- Training funds.
- Investments provident funds.
- Investing in the capital market investment through a savings policy.
- Portfolio management.
- Investment funds / hedging funds.
- Commercial real-estate in Israel / abroad.
- Mutual funds.
- Direct investments (shares, bonds, EFTs, etc.).
Which of these best suit our personal needs?
Should you combine different products?
These are only two out of the many personal and managerial complexities of investments.
Every investment/savings channel includes many sub-channels, like which organization will manage the money, the route within that organization, the right way to think about shares/bonds, etc.
Therefore, there are many steps between understanding the need and turning it into an action, many questions we need to answer, many things we need to do even before purchasing one share for our investment portfolio.
For more information and a private instruction, contact us at Sparta-capital.
