Whoever has money aside they ask themselves more and more often if invest part of the capital in pension funds or actions And the main reason is the inflation that erodes the purchasing power of money. Obviously the choice is not simple as the former do not point only to performance but to stability over time. The latter, on the other hand, can offer high returns but this depends on the markets to from their own risk propensity. Here’s what the two roads offer and for those who are indicated.
What are pension funds for and what they are
Pension funds are some tools thanks to which it is possible to put money aside that will then be returned when it will retire. It is a way to integrate the latter and have more money available when your work is finished. There are three main categories of pension funds:
The funds closed They are those established in the context of company, national or collective bargaining. Some sectors have their own category fund, for example if you are a metalworker you can count on the comet fund.
Those open, Instead, they give the possibility to choose the fund you want, the latter is managed by a bank or insurance.
Finally, the PIPs are individual pension plans very similar to those open but on a personal basis.
They work in this way: money are paid monthly or when you want in an individual account in the name of those who adhere to you on which the returns obtained over the years are also added. It is then necessary to choose where to invest your money based on the risk you want to run and the time that is missing at pension.
The investment can be:
- monetary (i.e. in titles) which is very safe but makes little;
- bond;
- balanced or halfway between bonds and actions with medium risk and performance;
- Equipment with higher risk and possibility of having greater earnings.
The advantage main of these products are certainly the tax discounts as the contributions paid are deductible from the declared income. In addition, the contribution of the employer If you have a category fund and automatic investment.
The disadvantage The main is that the money is blocked up to the pension except in particular cases. In addition, the costs, annual commissions and variable yields related to markets must also be considered.
Advantages and disadvantages of actions
The actions They are shares owned by a company. If you buy, you become owners of a small part of that company. The main ones advantages of this product are:
- The performance that can potentially be higher than what deposit accounts or bonds if you choose solid companies;
- the possibility of selling it when you want;
- the possibility of participating in the growth of a company.
The disadvantages they are instead:
- the loss of value if the company goes badly or if the market collapses;
- The need to be patient as sometimes it takes years to have good earnings;
- The risk as it would be better to diversify.
Pension or shares funds?
Focus on fOndi Pension or on actions It depends on your own need for liquidity, the risk propensity and the time horizon.
Opt for the former is ideal if you want to put money for the future with controlled risks. Convenient if:
- There is a stable job for which small amounts can be paid regularly;
- There is an age of 30 and you start thinking about the pension;
- There is no desire to deal with investments in first person;
- you have access to a category fund;
- You want a tax benefit as they can deduce up to 5,164 euros per year from taxes.
It should instead focus on actions which are more risky:
- who has a good knowledge of markets;
- Those who want to obtain higher earnings, however, knowing that the money invested can also be lost;
- Whoever does not have to immediately invest money;
- Who wants to diversify the savings.
In order to have greater safety, in any case, you could diversify the wallet by choosing both options. In fact, the pension fund could be used to build a safe base and invest a small part of the savings in actions.
