How to properly dispose of your finances during the quarantine

But before you start creating more or less long-term investment portfolio it is necessary to create and then regularly maintain a personal or family reserve Fund.

Especially for “the Russian newspaper” Ivan kapustyasky, financial and consultant on personal investments, told how to establish such a Fund and where to invest.

“Reserve Fund” will allow not only to have the airbag on “black” day in our difficult times, but also to protect strategic long-term investment. Indeed, in the case of emergency situations and the lack of supply of money are usually withdrawn long-term investment. And accordingly, there is a risk due to lower liquidity, sell assets at a discount or at a loss, if the market is a bad situation.

According to Ivan Kapustyasky, the size of such a Fund should be 3-6 month of expenses, which include all household expenses, and payments on all existing loans.

that money, in turn, must be stored in the most liquid and reliable financial instruments: short Bank deposits, Bank deposits, cards with interest on the balance, short government bonds or bonds of large corporations.

This is necessary to ensure that in the event of force majeure, the money could easily take advantage of without losing the accrued interest. This is the first answer to the question where to invest now money. However, the yield of such assets is very low around 4-5 percent.

During the beginning of the crisis and its height should choose a more conservative tools of investment to minimize the risks.

Before talking about the strategy that you should choose in the current environment, it is necessary to clearly understand the basic investment principles.

the Most important thing that you must do first is determine your financial goals. Speaking in simple language, you need to understand why the money is needed? This will depend on the investment horizon, and a set of investment instruments that can be used in each case.

To illustrate the situation by example. If the money is needed to buy a car in three years, then they should not invest in bonds with maturity dates 20 years from now. Also, if the goal is extremely important, for example, a planned treatment in a year, it is not worth the money to invest in stocks. Obviously, these financial instruments do not fit the designated purpose. Wrong choice of tools is one of the common mistakes beginning investors.

the Money that remained after the formation of the “reserve Fund”, can be allocated to more profitable investment tools, suitable for konkretnie financial goals.

In the first place, it is recommended to open the IIS-type And, if it does not. This is a special account that gives the opportunity to buy stocks, bonds and other financial instruments on the exchange.

it is possible to place an amount equal to 400 thousand rubles annually to account for the tax deduction to improve its profitability. If at the beginning of each year for three years to defer to the IMS funds and invest the money in OFZ bonds or safe corporate bonds, at the end of the three-year period when it will be possible to withdraw money, the annual yield will be about 9-10 percent. However, it should be noted that in case of further reduction of the key interest rates it will decrease.

the Attachment via IMS in bonds is a fairly conservative strategy, but it is profitable if to compare with analogues. For example, Bank deposits, simply purchase bonds at a brokerage account, and other similar options. In conservative investing, beginners should take about 80% of the capital.

the Risky part of assets, it is about 20% for beginners, can now be placed in the shares of Russian companies, buying them in two or three passes at a reduction to get a better average price. Bought dividend history can later leave for a long time.

This is a stock, also known as “eternal bonds” due to the fact that the dividends usually are paid and are growing from year to year. On the 2-3 year horizon this portfolio can give from 30 to 50 percent increase.