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I don't know if I am the worst possible moderator for this round table or the best," the writer of this opened the debate that was held on a good Monday morning in Espacio Bulevar, many floors above Madrid's Gran Vía, "because I am the terror of financial managers.
If it were up to me, I'd have the money under the mattress instead of in the bank.
My profile is so conservative that advisors put their hands on their heads."
The guests at the debate that our magazine organized with
Bestinver (Acciona)
-
Marta Vila,
Product specialist at this firm;
Tania Salvat,
head of Institutional Business (Iberia) at
BlackRock
;
Ana Guzmán,
Investment Director at
Portocolom,
and
Elena Domecq,
Sales Executive at
JP Morgan -
agreed: "I think you are the most suitable. You have a very conservative profile, quite common in Spain, where almost 40% of savings It is in deposit (which is like having it under the mattress). Surely your manager would tell you to put that
money to work
so that it would give you, if possible,
positive returns,"
Elena Domecq began.
Ana Guzmán agreed... partially, "because you represent a large part of the population, but I don't agree with you that you are conservative."
As?
"Yes, because by thinking that having money under the mattress is conservative, you are missing out on many opportunities and losing long-term purchasing power."
Marta Vila, Product Specialist at Bestinver.
Earth swallow me.
"To give you an idea," Marta Vila then added, "in 20 years in Spain, the CPI has risen 53%, that is, the 1,000 euros of 20 years ago could now buy half of the things. Is that be conservative? Because it seems that what you want is to lose money, instead of investing in assets that beat inflation, which is the trend now.
Why women invest less
Once the matter is clarified, we get into trouble.
According to the
IV Savings and Investment Observatory in Spain
prepared by
Bestinver
in collaboration with
IESE,
46% of men declare themselves inexperienced in finances, a figure that rises to 64% among women.
We invest less,
don't we like to risk?
Ana Guzmán explains: ·There we are dealing with a
biological issue,
the level of
testosterone
and
cortisol
in men and women.
The more testosterone, the greater the risk taking.
Women, as a general rule, tend to assume less, due to a pure biological profile.
Then there is the cultural issue: we tend to preserve everything related to the family rather than putting it at stake.
There are also the biases that we are all fighting against, that old idea that women know less.
And now, the million-euro question: Why do you have to take risks to invest?
First step: well, take a step
"I believe that to invest you have to
take the step,"
says Tania Salvat;
"You, for example, have decided to go to a
financial advisor.
Just as you would go to the doctor if you felt that your body was bad. It all starts with having that concern. Today you have here four women who work in the financial industry, in positions of responsibility. And it is our responsibility to give visibility to the fact that women
can
also make risky,
non-conservative
decisions ,
we can lead
and we can help others launch themselves. I believe that we must
educate
from childhood on the importance of saving, because
the ability to save is what leads us to the ability to invest...".
Tania Salvat, head of Institutional Business (Iberia) at BlackRock.
What is and what is not risk
Marta Vila offers another perspective: "I think there is a
misconception about risk.
Because many times we consider that
something that is volatile, that fluctuates,
like the stock market, for example,
is something risky.
And that really
depends on our time horizon. Someone who invested before the pandemic could see enormous falls in March or April 2020. Our funds, for example, fell by over 20%. If that person had
left
there, out of fear, he would have lost. He
would
have because you considered that what was happening was
risky
. Well no. If you have a sufficient time horizon and you wait, you would now be making money. It is a very psychological issue, which is why you also have to know where to invest and who to delegate to. You have to invest with a trustworthy house that explains these series of things to you.
Clarifications on the long term
The above makes the following question inevitable: is it an immutable rule in investment matters that the
long term is safe?
According to Elena Domecq, "there are studies that suggest that if you maintain an investment over the years, the
dispersion
that you can obtain from that
profitability
is
much lower.
Therefore,
staying invested is very important.
I believe that here, the advisor has a very important role, conveying to his client that, for example,
volatility is within the normal range.
Over the years there are many
events
that cause financial markets to falter. Suddenly in a calendar year there may be a very large
drop in profitability
, but it is most likely that this year will end with
positive double-digit returns.
I understand that it is difficult to keep yourself invested and not leave in the
moment of panic
- here the advisor has a very difficult role because he must help keep calm -, but it is essential... Because if you leave at the worst moment and wait for everything to be resolved to invest again, the market will have already taken the lead. Over many
years, if you "If you miss the five best days in the market
- because those days tend to come after the worst - if you miss that recovery, the
return
you get is
much lower."
The
financial advisor
is, therefore, almost a
psychologist.
And an
educator
, because he has to train his client.
However, there are those who prefer to invest on their own.
Investing on your own: a good decision?
"It's like you self-medicate instead of going to the doctor," explains Elena Domecq;
"There are many ways to do it yourself, of course, but
taking advice is key."
Ana Guzmán, for her part, brings to light a prejudice abundant in our society: "Sometimes it seems that it
seems bad that they charge you
for advice. But the thing is that when they advise you in a bank they are also charging you, even though you are not you're finding out."
And she adds: "What I believe is that it is
important
to make
decisions for the right reasons
and using the right information."
Who can (and should, according to experts) invest
Next, we address a key issue: who can invest?
What age, professional, or economic profile should someone who decides to 'put their money to work' have?
Ana Guzmán is very clear: "I believe that the step between savings and investment is determined by the fact of having a
proportion of money,
no matter what,
that you will not need tomorrow.
Although you will need it in a month, for example. There You already have a
time horizon
in which to
risk a little.
Because, as we said before,
there is no investment without risk.
From there we should all invest, out of responsibility, because we should all think about ourselves. We need savings that in the future have
greater purchasing power."
Elena Domecq, Sales Executive at JP Morgan.
Domecq adds to the above that "we need
financial planning
to be very clear about what our
spending needs are going to be."
That being said,
anyone can invest.
It is true that in other societies, for example in the United States, people begin to save and invest, if they have the capacity, from the day they start working.
In Spain this decision is reached much later.
But
the sooner you start investing, the greater your potential will be
in the long term." Tania Salvat adds that "everyone who has the capacity to save should invest." And she points out how there are currently multiple figures and formulas to do so, from the
rounding
they propose numerous banks, get started through technological applications, through your bank's advisor...
And what do we do with the
taboo
that still exists in Spain when it comes to talking about money?
All the participants agree that, against this, where we must focus is on
financial education.
Tania Salvat explains in this regard that at BlackRock they have been cooperating with Inspiring Girls for some years "to
bring finance closer to girls.
We are already working in 10 countries, we are trying to get an interest, a stimulus... We should all have that interest."
Invest in sustainability?
Fashion or opportunity?
Once the decision to invest has been made, it is time to decide
what.
Because it is not about putting the money in the hands of a third party and having them do what they want while we are on the hook.
For example, there is increasing interest in investing in
companies that have committed to sustainability.
Or are we already tired of hearing this word?
"I'm glad you asked me that question," jokes Ana Guzmán, an expert on the subject.
"It is true that the word is boring. And there is a fashion component. Therefore, it is time to separate the wheat from the chaff. What is true is that the financial sector can play a great role as a channel of resources towards companies that are on their way towards greater sustainability, to do things better. But this is progressive, because breaking the model on which we have based the system is very complex."
Ana Guzmán, Director of Investments at Portocolom.
Elena Domecq adds in this regard: "
Sustainability
is here to stay. Companies are going to have to invest in it, that is going to involve an expense and from the investment point of view it is
capital that is put to work.
We want to
capture those opportunities
for companies that are working to be more profitable in the future. That is key."
When to invest in an investment fund
Without financial knowledge, it is obvious that it is best to put yourself in the hands of experts.
Investing like our grandparents in a single value - we older people remember the mythical 'matildes' of Telefónica, where so many put their savings - which is equivalent to putting all your eggs in one basket, is not usually the most advisable.
Marta Vila explains that
"the fund is a very useful tool
for the average citizen. You invest in a vehicle that can have 50 companies and it provides us with a way to
program systematic savings.
In Bestinver, for example, you can invest
from 100 euros initially,
then since 50. He is a very interesting figure."
What we can learn from the way the rich invest
As Tania Salvat has experience in managing large assets, at this point, having broken the ice, we dare to ask her a slightly more 'spicy' question: can we learn something from the way
the
rich
invest ?
What do they have that we don't have, besides money?
"I'm going to take the issue to the professional investor," says Salvat.
"My day to day life is to take insurance companies, pensions, etc., that are managing money in the long term. The main thing is that they have a
more defined investment process
and
make better informed decisions.
They respect their investment horizons more, they have more financial culture and
know how to diversify...
In the end, the key is
to allow yourself to be advised.
In general, Ana Guzmán adds, "the rich people I like
do not invest where they do not know or understand,
and
they are disciplined.
They allocate a percentage of the investment, and
they do not look at the newspaper every day."
"Not even the app, like me," I intervene.
How to choose an advisor
All of the above is very good, but...
in whose hands should you put your money?
Ana Guzmán believes that with the one "that aligns your assets with your values. One way is to go to the website of the
National Securities Commission,
see the list and do a little research to find the advisors that best fit you."
What if I stay with
my bank
instead of looking for an advisor?
Marta Vila explains that "it is great to go to your bank to ask. They are probably going to have an open architecture, that is, a lot of products at your disposal, but it is also likely that they do not have as much knowledge of all those products, precisely because they are An independent manager does allow you to get in touch with a person who can explain the product to you in much more depth.
Investing in a house versus investing in the financial market
Marta Vila 'complains' about the resistance of the young Spanish public to investing beyond doing so "in buying a house. Variable income is still scary, there is a great lack of financial training."
-Is the great obstacle to investment in Spain made of brick?
"I would say yes," responds the Bestinver representative.
Tania Salvat intervenes on this point: "I also don't think it is bad to invest to buy a house. In the end it is something that everyone wants. We talk about what 'goal investing' is. There is more and more talk about investing
for objectives
What you have to be clear about in your investment portfolio is that you can have some
short-term objectives
- such as investing
to
do a master's degree -
Goals for when I'm 30 - it could be investing to buy a house -... Obviously , everyone wants to have a decent home, but the important thing is to sit down, do your numbers and think about what your financial objectives are in the short, medium and long term. Even thinking about retirement, even if you are young.
And if I have passed 60, can I start investing?
In this round table, the idea that you have to start
investing young has been repeated on many occasions,
because the sooner you start, the greater the profitability you will achieve.
The above makes it inevitable that this moderator will ask herself - and ask - the following question: "I, who am a disaster... Does it make sense for me to start investing?"
"Taking into account that
life expectancy is increasing,
and that you are going to have a greater percentage of time, God willing, during which you are not working, well,
yes, you should invest,"
Elena Domeqc tells me.
And he adds: "What you are going to want for that moment is a
certain financial stability.
Your approach is not going to be the same as that of a young person. You have to see what your resource needs are going to be, and what your objectives are. The assumption risk will not be the same either. At your age you don't usually start investing in something very volatile.
Marta Vila, for her part, comments that "there are
products for one year
that can give you an interesting return... You have to
organize
yourself , see, with your money, what you want for the day to day, what things for two or three years (fixed income), and what things for more years (variable income). That you make that composition and that you get on with it."
"Come on, you're already late..." she jokes (although she doesn't mean it jokingly at all, I know).
Next, Tania Salvat explains to me that "in addition, there are products on the market that do it for you. If you think a little about what the world of pensions is, there are
products that are life cycle.
If you start investing young you will "They give a greater weight to equities, because it is assumed that your time horizon is long... And they graduate."
And don't screw up
We are running out of time, but I don't want this table to end without asking the four participants one last question:
what is the biggest mistake we make when investing?
"Getting out of the market at the wrong time and not staying invested," Elena Domecq responds instantly.
"Not to repeat, investing where it is not understood," adds Ana Guzmán.
"For the same reason, not respecting the investment horizon," adds Tania Salvat.
"Do not diversify," concludes Marta.
And with this and some shares of a cake...