In recent years, Brazilians, in general, have become more interested in financial education and investments. Data from B3 (Brasil Bolsa Balcão) shows that, in November 2020, there were 3,17 million registered accounts – almost double the number compared to the previous year, when there were 1,6 million. The number of accounts registered with B3 (Brasil Bolsa Balcão) increased significantly in the last year, even with the crisis.
For public servants, saving has become even more necessary., given the approval of the pension reform and the proposed administrative reform under discussion (Read more about the administrative reform.), which calls into question, among other benefits, the stability of the civil service.
Therefore, if you, as a public servant, haven't yet developed this habit, now is a good time to consider investing!
Changes in the way we invest and save.
Over the past 5 years, the investment profile of Brazilians has undergone significant changes. Alexandre Fontenelle, a partner at Voga Invest, an affiliate of XP Investimentos in Brasília, explains that "it has always been very convenient for savers to put their money in a fixed-income fund, which would pay 100% of the CDI (Brazilian interbank deposit rate) and have an average return of 1 or 1,2% per month, without risk and with plenty of liquidity."
However, nowadays this scenario has changed completely and the Investments in fixed-income funds yield, on average, only 0,25% per month..
In this context, those who are in the habit of saving are starting to look for differentiated products: "today you see a large migration of investment from within banks to open investment platforms," he says. Alexandre.
Saving for retirement or to buy a property?
Clemilton Ataíde retired as a forensic expert from the Federal Police after nearly 30 years of service. He states that, along with his wife, he always had the habit of saving between 10 and 30% of each of their monthly incomes.
The couple's initial goal was to buy a property. Today, already owning two apartments, their goals have changed. According to him, seven years ago they stopped saving to acquire and... They began saving and investing with the aim of ensuring a better quality of life in old age. – even though they retired with full benefits and parity.
Alexandre Fontenelle explains that public employees tend to invest more, but generally with medium-term goals. According to him, the first general objective of clients is to buy a property and, after paying it off, "the tendency is for them to start building an investment portfolio and use it as a form of retirement, seeking to have a source of income through the interest that investments provide," he states.
However, pension reform directly influences this behavior.
Pension reform and investments for public servants
The investment advisor explains that the previous generation of civil servants was not interested in building such a large reserve fund for the sake of guaranteed income after retirement.
However, after the reform was approved in 2019, "high-ranking public employees, who earn between 20 and 30 reais per month, will only receive the INSS ceiling upon retirement – something around 5 to 6 reais per month," he explains. Alexandre.
Therefore, the advice from the partner at Voga Invest is that new entrants to the public service invest in private pension plans and an investment portfolio to maintain their standard of living after retirement. "I believe that this upcoming generation will have a much greater awareness of investment than the older generation," he comments. Alexandre.
How much should I invest monthly?
Experts recommend investing 10% to 30% of your income per month. "There's a calculation that shows that..." If a person manages to save at least 10% of their salary for 40 years, they will likely be able to maintain the same standard of living after retirement.", Explain Alexandre.
Luciano Alves, a lawyer, businessman, and investor in the capital markets, also warns that "before taking the first step in this direction, it is essential that the prospective investor maintain their emergency fund unchanged, which represents 20% to 30% of their net worth."
How to invest to have security?
When discussing the process of building an investment portfolio, Alexandre He explains that the first aspect to consider is the person's age. Above 50 years old, the ideal is to opt for a more conservative portfolio, since this person "is no longer in the building phase, but rather in the asset maintenance phase," he clarifies.
However, those starting their careers in public service now still have time to invest and weather market fluctuations. In this case, the expert says he would put together a more aggressive investment portfolio: with more stocks, multi-market funds, investments abroad, and private pension plans investing at least 70% in stocks.
Consider your investor profile.
Luciano Alves warns about the need to map the investor profile. He explains that, for the conservative profileInvesting in fixed income makes more sense for those who have... moderate profileAccording to Luciano, "investment funds that pool resources from a group of investors are proving to be more attractive." As for... more aggressive profile"Variable income investments – such as stocks and real estate funds – will be your 'golden window'," he emphasizes.
Furthermore, Luciano emphasizes that the ideal is to build a stock portfolio that guarantees monthly dividend payments, focusing on good, large companies in perennial activities that ensure an economy cannot fail to prosper, such as electricity, telecommunications, and sanitation – in other words, sectors with a well-established business foundation.
Considering the current scenario and the opportunities available in the market, it is advantageous to take advantage of the stability and predictability to set goals and plans to achieve them. To do this, it is advisable to seek trusted specialized advice to assist you on this journey.
So, how about starting your investment portfolio? 🙂
