How to be financially independent starting at age 30 – 09/06/2023 – Market

The 30 years mark a period in which people increase their financial commitments in the same proportion as they gain professional and financial stability. With a bigger income in hand, this is a crucial time to make choices.

It is a period to think if and when the person wants to start a family, if their professional goals have been achieved or if they want to invest more in professional success, if they take a leap in their standard of living or take a step back and start saving money. to be more secure in the future.

Regardless of the choices, if the person still hasn’t managed to accumulate reserves, it’s important to stop and think about it.

A 30-year-old today is still very young, and it looks like he still has a long way to go before retirement. In fact there is, but precisely because of this it is interesting to plan ahead.

The Allocation and Funds analyst at XP Investimentos, Clara Sodré, began her career in the bank pension area. She says that it was common to see retired clients who had a high income before, but did not do a pension plan. Upon retiring, these people began to receive an amount close to the ceiling of the INSS (National Social Security Institute), which was much lower than their income when they were active, and began to depend on payroll loans to maintain the standard of living they had achieved. had.

“They came back every six months to refinance the debt. It’s a snowball. That’s why you have to have this planning”, says Sodré.

Guide’s investment advisor, Marcio Bandeira comments that, as people who reach their 30s start earning more, it is common for them to raise their standard of living too much, above reality. “There are several cases of the person who works a lot and, to compensate for the tiring routine, comes the ‘I deserve it’, to justify trips and expensive dinners. But this snowballs”, he says.

The expert recommends that young people in this age group step on the brakes a little, and lower their standard of living, in order to be able to save what they need for the future.

And for those who already have accumulated reserves at that age, Clara Sodré advises a review of your investment portfolio

since the size of the risk exposure must be inversely proportional to the time left to retire.

That is, the higher the age group and the closer to retirement, the smaller the proportion of your resources in riskier investments should be. In a simplified way, it would be the case of reducing the percentage of reserves that were in stocks when the person was in their 20s and increasing the one that is in fixed income securities

.

“As you approach retirement, it’s important to increasingly review risk allocation and prioritize capital preservation. I’m not talking about taking venture capital out completely at that age, because that will also vary the amount of return. But the size of exposure to risk has to be adjusted over time”, comments Sodré.

PAY RENT OR BUY A PROPERTY?

At this stage of life, people begin to achieve financial stability and begin to seek independence in life. It is at this time that the need to leave the parental home arises and the question arises: pay rent or buy a property?

There is an idea that renting is throwing money away, while owning a property represents security for the future. But for Thiago Godoy, from Rico Investimentos, this is a myth.

“The person says ‘I’m not going to pay rent because it’s throwing money in the trash’. But, if you finance a property in 30 years, you are paying approximately 60% of the financing installment in interest for the bank to lend you the other 40% to pay off the property. So, it is not a very different logic to rent or finance”, he argues.

Now, if the person manages, in addition to buying a property, to set aside part of his money to invest, with the profitability of the investments he can amortize installments, reducing the financing time and, automatically, the interest.

Remembering that, as mentioned in the first article in this series about retirement, experts only recommend buying a property if the person has an extra reserve, and not allocate all their resources to it. After all, if an emergency arises, she will have her money trapped in an asset with very low liquidity

.

Another alternative raised by the specialist is to invest money in a real estate fund . The investor will be exposed to the same type of market, therefore, with a similar risk, but without having the money locked up in real estate. Remembering that it is not recommended to outsource asset management, that is, let someone else make decisions for you. Even in the case of investing in a fund, with specialized professionals to manage the clients’ money, it is important for the person to have knowledge about the product, the investment strategies and the rules of the fund, to understand if they are aligned with his profile as an investor

.

RECOMMENDED PORTFOLIOS

A Sheet

conducted a survey with three brokerage firms on recommended investments for retirement in the 30-year-old range. The investor profile adopted was moderate. It is worth noting that these portfolios are just guidelines, but it is always important to consult an expert, who will put together a plan that exactly fits your profile and personal goals for the future.

AGE GROUP PROS AND CONS

Benefits: Higher income; still have plenty of time to spare

Disadvantages: Financial responsibilities increase

* GLOSSARY Investment portfolio:

Set of all financial investments of a person. real estate fund:

Type of fund managed by professionals who invest clients’ money only in real estate developments, such as the construction of shopping malls and office buildings. Liquidity:

Ease of converting an application into cash.

Fixed income: These are applications that have pre-defined income criteria, that is, what are the ways of correcting the title invested, the time limit for the money to be invested and the minimum that needs to be applied.

Variable income: These are investments with less predictability and, therefore, are considered more risky. They are more subject to market fluctuations, such as interest rates, exchange rates and commodity prices. On the other hand, precisely because they are more risky, they are investments with expectations of higher returns.

investor profiles – Conservative: