Personal Finance: Can you plan for the long term in Argentina?

It is very common as Argentines, when we talk to someone about savings and investments, to think that in our country everything is very difficult to do. It is nothing new that Argentina has always stumbled against the same stones for years, and although it is true that the context can condition some factors, the reality is that the development and financial sustainability of each household depends on what one sets out to do, plans and make.

The secret is to understand how the strategies and instruments work to build wealth, to be clear about the objectives and needs we must solve in the long term and, of course, to avoid falling into shortcuts, which we already know end badly.

What problems do people encounter when saving?

Our reality made us experts in resolving short-term savings situations, surfing between inflation and devaluation. This takes the focus away from the people in the issues that they will inevitably have to face later in time, such as retirement, loss of productive capacity or financial independence.

I think the main difficulty today is the lack of knowledge savings and investment strategies that are sustainable over time.

How do you plan for the long term?

There are various ways to plan finances, the important thing is always to have a personalized strategy.

One of the tools that is generally underestimated, but that solves many situations that savers and investors must face, are the life insurances.

How can life insurance be an investment?

Life insurance has a considerable history of building wealth in our country and in the world, the issue is that they are not that popular.

Whether for the protection of personal or family assets, as well as retirement planning or capital construction, these tools are made up of efficient savings and investment strategies, which are a excellent option to plan for the long term.

How do these tools build wealth?

The saver makes a regular contribution of money, delegating to the insurance company the task of managing and investing that money efficiently, through a specialized investment team.

These investments will be capitalized in a compound manner to form a more important capital. For those who are not familiar with the compound interestthe key to these strategies is the amount of time spent, achieving better returns.

The greatest benefit of life insurance is in the additional protection that they provide, shielding the assets and financially guaranteeing the projects that the investor has.

This is an extreme simplification of how these tools work, so it is always advisable to design a plan tailored to each person.

What is needed to carry out a planning of this type?

It sounds obvious, but the fundamental thing is to want to have a strategy of these characteristics.

Wealth is not built overnight, so it is important to assume the commitment with oneself of wanting to achieve this goal.

Historically, those who consume life insurance the most are the people with the highest purchasing power, with the purpose of guaranteeing what has been built. But today these tools are no longer exclusive, being able to count on accessible and efficient financial planning.

Mariano Medina He is a financial planning advisor, insurance advisory producer and founding director of Ser Financiero, one of the teams of professionals that make up the financial consultancy Grupo Abax.

Av. Del Libertador 6430 14th floor, CABA

Phone: 1139140043

www.serfinanciero.com.ar

www.grupoabax.com

Email: [email protected]

Instagram: @ser_financiero

LinkedIn: Mariano Medina https://www.linkedin.com/in/mariano-medina-ok/

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