How to survive in retirement without government assistance: financial expert advice
Get Rich / / December 20, 2019
CFO and founder of "Crafting financial solutions"CFO Kiwitaxi.
Why should not rely on money from the state?
Every month I pay 22% of their salary to the state for their own old age. With a salary of 100,000 rubles get 264 000 rubles of pension contributions per year.
Over 45 years of working experience recruited 11.88 million rubles, and this without compounding, ie without taking into account the time value of money.
The amount of nice, but I do not see it.
expectancyLife expectancy and healthy life expectancy
data by country Life in Russia - 66 years for men and 77 - women. It is understood that the figures are tentative, but let's take them as a starting point. Given the new retirement age (65 for men and 63 years for women), in the future, to retire, I barely have time.
In the average woman would be 13 more years of life. When pensions 10 000 rubles per month is just 1.56 million rubles for 13 years.
Total net profit of the state received from the two old people of different sexes - 22.2 million rubles.
At the Pension Fund of Russia in general will have the money?
Reasonable question: where and how to invest-income FIU?
According toBasic information on the investment of pension savings for March 2018 FIU invests over 33 operating companies. But in fact, 98% is invested by Vnesheconombank. Here calculationThe calculation of the value of the investment portfolio and the calculation of the net asset value, in which invested pension funds of the net asset value of the investment portfolio.
Googling yourself, which is really "put" VEB pension accumulation. Fund managers not only did not earn, they have lost 40% of what it was.
The financial balance of such a technique is known - the substitution of one asset by another: for example, the money in securities. To estimate the fair value of assets in the private sector there is an institute of the audit. But no one is audited by the Russian state.
Therefore, I believe that a prosperous future FIU unlikely.
What I will have a pension, if I still live to see it?
Many are concerned with the question: if I live to retirement, will I get my money, and how to count them? But money is not yours: the accumulative part of the pension was canceled back in 2014 (such as a freeze). Given the dynamics of the situation, most likely, forever.
Your contributions go to current pensioners and ensuring you have a very conventional attitude. The pension is calculatedAs formed and calculated future pension by IPK, and it's still not the money in the pension account.
If in a simple way, the IPC - it only accounting factor: who is more given, the greater will receive in the future. And it is about the distribution of available funds between pensioners, and not about the investment and accumulation.
Deductions will provide your children and grandchildren. Just as you are now paying for retired parents and grandparents. Therefore, what you will have a pension, no one knows, even the RPF.
And what should I do now?
Rely only on themselves. Include head. Turn off laziness. Read the recommendations of experienced experts.
It turned out that you live in a state with a high country risk. Country risk affects the value of money and the interest rates on loans. (That is why we have with Europe is such a big difference in rates on the mortgage.)
But there is good news. You live in a great time: the boundaries are blurred, IT and Finance merged in the ecstasy of technological capabilities.
The answer to the question "How to make money to retire without sacrificing life now?" Is quite simple: learn to invest on their own.
4 rules for successful investing, tested on itself
- Create a constant cash flow. Lists the 10% of earnings in their own "retirement fund."
- Learn simple and reliable tools investment. Do not get fooled by the sophisticated derivative instruments - most often it is a divorce.
- Minimizes the risk. Country risk eliminate investments in foreign instruments.
The default risk of individual issuers and the volatility of the portfolio yield is solved by diversifying the asset portfolio. The risk of the banking system (or exceeding the limit DIA) refusal to remove deposits.
- Delve into it as if it affects your life. At least from this it depends precisely its quality in the future. Not enough time? Consult with professionals.
How can we ensure a comfortable old age?
To start calculate the expected economic effect.
Take half of the official contributions to the Pension Fund with the same salary of 100 000 rubles. Let's say, 11 000 rubles per month for at least 20 years (240 months) disability gap.
here example calculation of its own pension fund.
If you provide an annual yield of 8% (which is more than real), you build up pension capital in the amount of almost 6.5 million rubles from some 11,000 rubles per month.
You can start investing at age 30, to finish at 50, and you will have 15 years to carousing. Incidentally, it is more than 40 000 rubles per month, if the time to remove all the money from the investment account and do not get interest.
You are aware of the benefits? Invested in two times less than the FIU, amassed a total of 20 years, and then another 15 years to enjoy life up to 40 000 rubles per month. Okay, caught 40 000 rubles in 2038 prices - this is not the current 40,000 rubles, so the table contains the calculation of the adjusted rate of inflation (4%). This means that the prices of the year reaching 50 years you will receive 4,034,000 million, and this is a pension of 25,800 rubles a month. Like it or not, it is still better than no pension from the Pension Fund.
So where to invest?
Where to go, to make it simple and secure, and even at 8%, - share personal experiences.
The Russian stock market is not an option. And all: stocks, bonds, mutual funds. And the banks are there too. First, country and political risks. Secondly, the exchange rate risk (the ruble still unstable). Third, in Russia nobody cares any minority shareholder or bondholder. The final beneficiary of the Russian company - CEO and his entourage contractors. You never prokontroliruete, where they will spend your profits.
The banking system fever, DIA not a panacea. Especially when you invest with a horizon of 20 years and a capital of more than 1.4 million rubles.
The only thing that will be faced in the Russian market - it is the brokers and exchange, but in reality it is not scary and even free.
It is better to invest in the global economy.
The entire economy of the planet (well, maybe except for North Korea) is based on the paradigm of consumption. It comes down to the GDP of the countries, and in finance, in turn - to the profits of companies that produce GDP.
Corporate profits - is the growth of their capitalization and market capitalization - is the value of the shares. This means that the foundation (the basis of capital gains) of the entire financial system of the world is the stock market. Everything else is secondary.
But what about the bonds (bonds)? This is an elementary tool to attract debt capital, but the source of repayment is still the same profit.
Do you know why companies place bonds and take, in fact, in debt? Yes, because they will earn 15% of the invested capital, and you will be given on bonds 8%, ie 7% they will receive nothing. Money-they were yours, not theirs.
But it is absolutely true, because your 8% they are required to pay almost any scenario (other than bankruptcy), and 15% to pay the shareholders do not have to. And it all depends on management's ability to generate profits.
We have come to the key principle of investment: the yield is directly proportional to the risk. Shares of more profitable and more risky bonds are less profitable and less risky.
You already know what I am bringing you to the formation of asset portfolio in the stock market. It does not need to be afraid. That's the way the economy of developed countries, while the Russians just for the most part illiterate in this field.
Assess your risk profile, that is, how do you personally willing to tolerate the temporary loss and what you want to return. Depending on this, pick stocks, or bonds, or a combination thereof.
Choose only foreign companies and diversify the portfolio by industry. Possible and by country, but remember that the main economic growth - in the US IT-sector.
What should I know?
For peace of mind during periods of subsidence of the market and reduced profitability remember two golden rules:
- Be in the market. finance theory tells us the important thing using only public information (eg, technical and fundamental analysis), beat the market in the long interval is not possible. Therefore it is useless to try to make more of the market, wasting your nerves. Be in the market.
- The crisis will not last forever. Time financial crises must be endured. There is the concept of "the psychology of pent-up demand." During the crisis, consumers prefer to save. Once the crisis was over, the consumer begins to consume the excess accumulation. Thus, after the crisis, the stock market is accelerated and quickly regains lost ground. It does not apply to bonds that have a fixed rate of return (coupons and principal, you will get in any case, except one - the issuer's default).
Where better to open a brokerage account?
I have tried different brokers and their analysis. By experience I recommend to open a brokerage account in the BCS, because they will not require archaisms such as digital signatures and installation of third-party platform for trading.
For passive investor will suffice web interface with SMS confirmation of orders.
On the basis of what decisions?
Do not reinvent the wheel, use consensus forecasts professionals. Information and services in short supply.
News of the stock market and the economy. Articles about investments and financial instruments. Stock quotes, charts online. Technical and fundamental analysis. Comments and analysts' forecasts.
BCS Express →
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Tinkoff. investments →
What to do if you really laziness to understand?
If you look for information, to understand the analytics portfolio, and to collect you just too lazy, then I advise you to buy ETF (Exchange Traded Fund) on the finished portfolio of assets (stocks, bonds, metals). And even better - to assemble a portfolio of different ETF. Look at yield, each of which exceeded 8%.
This trendy and effective financial instruments have become increasingly writing in business publications. Read delve. I am sure, will understand without any problems.
- Do not believe in a decent state pension.
- The sooner choose to independently form their future security, the better.
- Do not invest in stocks and bonds of Russian companies.
- Invest in foreign financial instruments and income grow together with the global economy. (Another of the legal economy in the planet still do not.)
- Carefully re-read the article and proceed.