Basic investing

In one of my client meetings I met with a beautiful Scandinavian woman in the age of 27,

A content writer for an Israeli based company.

The woman scheduled to be married to an Israeli local fellow (Mazal tovJ).

I arrived at the meeting as requested by the client to explain the different pension products during which I understood the real reason for the meeting.

About six months prior to the meeting, the young woman stumbled upon a report from her provident fund showing steep declines in her returns (I assume that it was due to the stock market downfall during the start of the Corona crisis).

According to her, she has little to no understanding in financial matters or investing.

I understood from her words that she does not want to take any risk for her pension money

I immediately started explaining to her about the world of investing and how historically returns tend to average around 10% over a period of more than 10 or better 20 years.

I explained the Chilean model for investing applied to the pension funds today.

Young people subjugated to more risk through this model in the stock market and the risk exposure goes down with the progression of age up until more money is in less risky government bonds instead of stocks.

I explained to her the Return on investment (ROI) calculation to calculate the yearly return and to asses’ risk for the different types of investments such as stocks’ bonds and government bonds.

I also showed her what would happen if she would lower her risk exposure to stocks considerably in a long-term investment.

 She assured me that she has a much better understanding of the matter and that she will not make any changes to her pension fund in the immediate period.

I that she was able to learn something from meJ. #investment #investing #money #investments #insurance

• 1