Here the elderly can put money for investment

Here the elderly can put money for investment

Fixed income funds: unlike referenced funds, whose profitability is post-fixed, these have fixed profitability and are good investment alternatives if you are betting on a drop in interest rates. The risk of these funds depends on how your investment portfolio is allocated, between government securities (federal or state), private securities and derivatives. It is worth remembering that the use of derivatives does not necessarily mean a greater risk profile, since in some cases derivatives are only used for hedging, that is, as a form of risk diversification.

Bank Deposit Certificate: You can buy fixed income securities directly in the market, not indirectly through investment funds. However, you need to be comfortable about the risk of these securities, since, unlike the fund applications, you are responsible for diversifying the risks in your portfolio.The most common securities available on the market are a bank, which can be pre or postfixed, and with varying maturities period. The emergence of the investment account also reduced the disadvantage of these applications and since it is a direct investment, no administration fee is charged.

Real Estate Investments: There are two alternatives to real estate investment: through direct purchase or through real estate funds. In both cases, the profitability of the application varies which is equivalent to rental income. But, one can not forget https://www.2020medicareadvantage.org the possibility of gain with the appreciation of the property.The advantage of the applications through the funds is that the management of the real estate is the responsibility of a manager, and you have nothing to worry about. In addition, in some cases, you are offered a guaranteed payback period, in which you know how much you will receive from income.However, as in real estate investment, this type of application suffers from low liquidity, since even the sale of quotas is difficult since there is no organized market. Exactly for this, it is recommended that you invest in real estate only the portion of your equity that you will not need in the short term.

Mortgage bills: You can also opt for mortgage-backed securities, but in this case, the amounts invested are higher. The profitability of this type of application is linked to the nominal value of real estate financing. The great advantage of this type of application lies in its tax treatment, because, unlike investment fund applications, you are only taxed on the portion that exceeds the return agreed upon in the contract.