Every time we think more in the long term, in our future needs we can complement them with forecast products such as retirement plans, but also with others, also in the long term, but much closer as they are to cover the future needs of our children, Especially investing in your future.
The ways to get it are multiple, as many as different types of financial products exist in the market: current accounts, deposits, funds … but surely the insurance-savings are those that offer greater advantages:
- Make periodic contributions , from small amounts in order to constitute a capital. Deposits, for example, are already contracted with an important initial capital.
- Having a guaranteed return , with an investment fund, we do not know the result and even with less risky categories such as fixed income can even be in some negative periods.
- Taxation , with savings insurance only taxes are paid for interest at the time of redemption, with a deposit or savings account is made in each of the settlements or interest payments.
- Life insurance , in case of death, a small compensation is received, a way of charging an additional capital beyond what is saved that does not have any other type of product.
The sum of all these points allow us to achieve our objective, a long-term capital, through periodic contributions of small amount, whose purpose is to cover the future needs of our children. What if we can not save at a specific moment? Products like the CuenTAEgon Junior add an advantage plus the flexibility that allows us to temporarily paralyze payments and even rescue part of the accumulated fund.
How to meet our objectives
With all these characteristics it is not complicated to design our savings plan based on our insurance-savings, always taking into account a series of variables:
- Amount to save : Of course we do not have a crystal ball to know if our little one is going to be an engineer, to study in Paris or London and how much it will cost these studies in 10 years, but if we must define what is our final objective of capital adequate, in current terms, to help meet our objective.
- Time : This is defined by the age of our small saver, if he is still a baby and our goal is to cover his university expenses, we still have a long 18 years to reach his goal, if he is much older, our time will be more limited and therefore the larger contributions.
- Profitability : We also do not know how interest rates will evolve in the future, but we do have a guaranteed minimum return that we will include in our calculations. For example, although the CuenTAEgon Junior offers 2.50% APR for the first 4 months, and 1% thereafter, the minimum of this product is 0.50%.
We can make two calculations, one conservative taking into account only the minimum profitability, with which the result will be less capital than we get when the interest rates are higher and another with the profitability that we currently offer to know what money we would achieve with stability of types.
The result will be to know what is our periodic (monthly, quarterly …) necessary to achieve our goal, there are many calculators on the Internet that allow us to know this amount or our manager will give us this amount. Of course, we have to confront it with our possibilities, without forgetting again the flexibility of these formulas for saving and protecting the future for the little ones.