The future of public pensions and financial stability has generated growing concern among Spaniards. A scenario that has driven interest in new savings and investment formulasespecially among the population under 40 years of age. For this reason, more and more citizens are looking for alternatives that allow them to guarantee their long-term economic well-being and ensure a peaceful retirement.
In fact, one of the most repeated messages on social networks revolves around the convenience of start investing as soon as possible. In this context, Pedro Muñoz, investment expert, has released a video through his TikTok channel (@jpfinancial2024), which he shares with his colleague Javier Rumbo and in which they give tips on how to learn to invest, about the investments you have to have before you are 40 years old.
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Where you have to invest “yes or yes” before the age of 40
Among the most common recommendations by the expert are index funds, investment in real estate and fixed income. Three formulas, which are widely used in international markets and are presented as complementary options to protect against economic uncertainty.
Long-term investment funds
The first option that Pedro presents are index funds or long-term investment funds. According to the expert, investing “about 300 or 400 euros per month in an index fund for more than 30 years can translate into an accumulated capital of up to half a million euros,” which would allow “a much calmer retirement,” he says.
Invest in real estate
The second investment option proposed is the purchase of homes for rent, very common in Spain. The mechanism is simple: after paying the down payment and formalizing the mortgage, the rent of the property would be used entirely to pay the loan, generating passive income from the first moment. “You will be paying your mortgage automatically and you will obtain benefits from day one,” he points out.
Fixed income investment
Finally, it is worth highlighting the convenience of allocating a portion of your savings to fixed income products, such as bonds or treasury bills. This type of asset, less volatile than the stock market, allows “inflation to be covered in the simplest way and with hardly any volatility,” according to Pedro.
Change of mentality focused on savings and investment
However, experts warn that the future profitability of these investments depends on multiple factors, including the evolution of the markets or the economic situation.
However, the growing popularity of this type of messages on social networks reflects a change in mentality towards individual financial planning, although the lack of advice can pose risks. The financial educationAccording to analysts, it continues to be the best tool to face the challenge of long-term savings and guarantee economic peace of mind for retirement.