Are you new to the world of investing and looking to secure your financial future?
Investing can seem daunting at first, but with the right knowledge and guidance, it can be a rewarding journey that allows you to grow your wealth. In this guide, we will explore the basics of investing, provide relevant statistics, and offer diverse perspectives to help you get started on your investment journey in Malta.
Why is it important to invest, and not just save up money?
Let’s start by understanding the importance of investing. Saving money is great, but it doesn’t always yield high returns in the long run. Investing allows your money to work for you and potentially earn higher returns than traditional savings accounts.
Now, let’s talk about the difference between investing and saving. Saving is simply putting money away for a rainy day, while investing is putting money to work with the expectation of earning more money over time. Moreover, putting the same amount of money into an investment regularly will help you get an average price that’s better over time. Investing involves taking some level of risk, but the potential rewards can be great.
Diversification – Spreading Your Risk
When investing, it’s essential to diversify your portfolio. This means spreading your investments across different asset classes, such as stocks, bonds, and mutual funds, to reduce the impact of any single investment’s performance on your overall portfolio. Diversification helps mitigate risk and increase your chances of achieving favorable returns.
Ok, so now you know that investing is beneficial to you, and you know that it’s important to minimize your risk by investing in different assets. Does this mean you know it all? Not really. Seeking professional advice is crucial when starting your investment journey.
Banks offer expert advice on various investment options, including Personal Pension Plans. This long-term plan allows you to enjoy a comfortable retirement by making regular contributions to your plan and choosing from a range of investment strategies.
Personal Pension Plan
Personal Pension Plans are a great investment option that can make a real difference in your financial future. An example to this is the APS Personal Pension Plan, where you can start investing from as little as €50 a month. This investment strategy can help you build a comfortable retirement fund that supplements your state pension.
Let’s talk about some real-life situations where Personal Pension Plans can make a difference. Imagine you’re a young professional just starting out in your career in Malta or in Gozo. You may not be thinking about retirement just yet, but starting a Personal Pension Plan now can set you up for a comfortable retirement later in life. Or consider if you’re approaching retirement age with little to no savings. A Personal Pension Plan can help you catch up and enjoy a comfortable retirement.
The APS Personal Pension Plan offers some great benefits that set it apart from other investment options.
- You can choose different levels of investment risk;
- You can stop the pension, pause it, decrease or increase the contributions at any time;
- You can choose to receive your pension anytime between the age of 61 and 70. Contributions to the plan come with a tax rebate of 25% of your annual contributions, up to €750 per year. Plus, you have the option to receive 30% of your pension as a tax-free lump sum and the remaining 70% will be received as a pension.
Taking Control of Your Financial Future
When investing, it’s important to set clear financial goals. Your retirement should be a time to relax and enjoy life, free from financial burdens. By supplementing your state pension with a personal pension plan like the APS Personal Pension Plan, you can ensure a comfortable and worry-free retirement.
Investing for beginners may seem like a daunting task, but with the right knowledge and guidance, it can lead to financial freedom and security. APS Bank has investment advisors at each branch who are there to guide you along the way.
By diversifying your portfolio, seeking expert advice, and taking advantage of plans like the APS Personal Pension Plan, you can take control of your financial future. Remember, investing is a long-term journey, so be patient, and stay informed about market trends and investment opportunities. Start your investment journey today and embrace the potential for growth and financial prosperity.
Want to learn more? Visit apsbank.com.mt/investments
Approved and Issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The APS Personal Pension Plan is licensed and regulated as a personal retirement scheme by the Malta Financial Services Authority in terms of the Retirement Pensions Act (Chapter 514 of the Laws of Malta). Terms and Conditions apply and are available upon request.
