Terms, Capital and Objetives
In this third of a series of four articles aimed at introducing you to the financial market, we will address an important point that many people have doubts, which are topics related to how to choose an investment, how much money to invest, how long should the money be left. applied and such matters. Let's start at a point where there is still a big "mist" for those who ‘are starting to study the subject. Many people still ask “what is the best investment? How should I choose an investment?” And others like that.
First of all, let's break a myth that many people still believe, there is no such thing as the best investment in the world, if there were, everyone would invest in it. What do exist are different application options that, as we learned in the second article, can work together in an efficient portfolio. But before knowing what to invest in, we need to know why to invest, for that, we can go back to the first article and remind you that we invest with some purpose, retire, buy an apartment, increase capital, in short, we invest with something in mind.Objectives
To choose a "good" investment, we need to analyze our goals and "fit" them into our investments. A practical example, one of your goals is to retire in 40 years, there are some good investments that may be eligible for this type of long-term goal, among them we have investment in shares for bolder profiles, investment funds or real estate funds for more moderate profiles, or CDBs and long-term treasury bills for more conservative profiles. You can find an investment option for virtually every goal of your life, just knowing the term of your goal and the required capital, which will give you an idea of which investment to adhere to, along with what we've learned in previous articles. So, to complement your knowledge, let's introduce compound interest.Juros compostos
You may have probably studied about this in high school, but what you may not know is how much compound interest is present in our society. Banks work with compound interest when making a loan or financing, stores also use it for installments with their credit card, in short, there are several examples of how people pay compound interest. But, as you may have already learned, we can also receive compound interest on financial investments. To fix it, let's remember our lessons and define what interest rates are. We can basically define interest as remuneration paid by every borrower to the lender, acting as a certain “multiplier” of the capital invested. There are some types of interest, but we are going to focus on what we consider to be one of the most important, which is compound interest, or interest on interest. This type of interest is calculated on the accumulated amount for each period. For example, let's consider an investment in a pre-fixed government bond with an average return of 6% per year, and you invested R$1,000. In this case, the monthly return would be around 0.5%, that is, in the first month of income, the accumulated capital will be R$ 1,005, a profit of approximately R$5. In the second month, the interest will work with this accumulated amount, that is, instead of receiving 0.5% of R$1,000, you receive 0.5% of R$1,005, the accumulated capital will be R$1,010.02, profit, now of R$5.02. In the third month, the interest will work with this new accumulated value, that is, instead of receiving 0.5% of R$1,000, you receive 0.5% of 1,010.02, profit of, now R$5.05, the new value accumulated in the third month month would be R$1,015.07 and so on.And now that you've been introduced to the “multiplier” of your money, let's talk about values.Capital needed to invest
There is still a lot of doubt about this, as many people think that to invest, only having a very large initial financial contribution. Really, to have enough passive income for your lifestyle, that is, to live only on the returns of your investments, you need a certain amount of invested capital, but to get there you have to start. Remember "Don't wait to have a farm, a powerful tractor and a combine harvester to start planting." (CERBASI, 2008). So, let's break this myth that to invest you need a lot of money! In fact, many government bonds have a minimum investment of less than R$50, there are also some shares of companies that have a value of less than R$10, and even better, there are investment funds with a very low initial investment value. Not everyone has a lower investment value, some CDBs can reach a minimum investment of R$20,000. Maestri Investment Group LTD. it has investment options in investment funds with very low minimum contributions, of only US$ 1, and have terms that serve most of its medium and long term objectives. Visit www.investmaestri.com and learn more! *US dollar quotation (US$) on 02/13/2020 at 4:30 pm (Brasilia time) – R$ 4.35Cyclic and non-cyclical actions
To define this topic, let's take advantage of Investopedia's placement on the subject: "The terms cyclical and non-cyclical refer to how highly correlated a company's stock price is with economic fluctuations." What this basically means is that when the company “follows” the economy, it is cyclical, and when there are usually no large variations in economic downturns, they are non-cyclical. We can give a simple example, easy to understand, cyclical companies usually offer products or services that are purchased and/or hired in times of good economy, such as apartments, cars and vacations. While non-cyclical companies tend to offer non-durable products, they can also be essential products for a large part of the population, such as hygiene products and staple foods.Conclusão
The biggest conclusion we can draw from this article is, you invest with something in mind, and from there, "choose your path to tread", no matter how long it will take, as long as you plan, seek to know and take the initiative to start , your path to investment success is likely to become a reality. Another thing we learned is not to wait to have great possessions to start your journey, we can start with little, and little by little, we will do a lot.
However, once again, we want to show the importance of knowledge and the habit of financial education so that your plantation is better fertilized and your harvest is better used.
Sources:
Juros. Mais Retorno. Disponível em: https://maisretorno.com/blog/termos/j/juros. Acesso em: 12/02/2020.
Dólar comercial. UOL. Disponível em: https://economia.uol.com.br/cotacoes/cambio. Acesso em: 12/02/2020.
CERBASI, Gustavo. Investimentos inteligentes: para conquistar e multiplicar o seu primeiro milhão. Rio de Janeiro: Thomas Nelson Brasil, 2008.
BOGOSIAN, Eduardo. 1., 2019, Brasília. Workshop Finanças Pessoais 2019. Brasília: Maestri Investment Group LTD., 2019. 52p.
Cyclical vs. Non-Cyclical Stocks: What's the Difference?. Investopedia. Disponível em: https://www.investopedia.com/articles/00/082800.asp. Acesso em: 13/02/2020.