Since childhood, many of our citizens have heard a lot of talk about the small size of state pensions. I was no exception, so over time I began to look for ways to arrange my financial life in such a way as to stop worrying about such things as the retirement age, the actions of the pension fund with my savings, the size of the pension, social guarantees, etc. And I managed to find a reliable method suitable for young people who are still far from retirement and which is used by about 1% of the residents of the Russian Federation. Find out what you need to do in order to ensure yourself a decent life in retirement and stop worrying about the results of the pension reform.
In order not to worry about the size of the pension, what you can buy with it and whether you can even pay all the necessary expenses for medical treatment, healthy food and other necessary things that I don't even know about now, it is enough to use a fairly common in many countries, but not common in our country, the way. Because the majority of the population of our country either received life experience in the USSR, or was brought up by such people and lived among them, it is not surprising that only 1% of the inhabitants of the Russian Federation use this method.
This method consists in the gradual creation of your capital, which in the future can free you from work and ensure a decent life. First, for several decades, you save money to buy certain assets, and then these assets provide you with such income, which makes it possible to live without working.
And such assets are not bank deposits, which barely keep pace with inflation, but shares in large and reliable companies around the world, incl. enterprises in Russia and the United States, as well as their obligations towards borrowers, one of which may be you. In the professional language, shares in companies are called ordinary shares, and obligations on which interest is paid on a loan are called bonds.
A young person can already, immediately after reaching the age of 18, begin to set aside a small part of his income, for example, 10%, for the purchase of stocks and bonds. Shares allow you to get a share, and therefore a part of income, in a large and stable business, and bonds allow you to receive more reliable fixed income in exchange for a temporary provision of funds to the same companies or the state. Moreover, such a state can be both Russia and the United States, and interest will be paid to you, respectively, in rubles or dollars. The same is with shares: at the age of 18 you can buy shares (shares) of large and reliable, including growing companies such as Gazprom, LUKOIL, Apple, Microsoft and hundreds of others.
At the same time, both stocks and bonds bring significantly higher income than a bank deposit. However, there are risks: the companies you hold can go bankrupt, and you will get a small fraction of their initial value. Similarly, with bonds: after bankruptcy, you may also not get back a part of the paid value. But the good news is that the likelihood of bankruptcy for a company you can buy is very low! After all, these enterprises are run by experienced managers who are fluent in their key professional skills.
So how do you start buying stocks and bonds? Today in Russia it is easier than ever to do it, you need to follow 3 simple steps:
- Open a brokerage account;
- Make money on it;
- Buy shares of companies of interest.
All securities are traded on the stock market, which is accessed by a broker. Opening a brokerage account today can be free of charge and many brokers do not need to pay for it, and the time and costs for buying securities (stocks and bonds) are very small. In particular, you can open such an account with Gazprombank or Promsvyazbank to purchase shares and bonds of our largest companies: Gazprom, LUKOIL, Rosneft, Sberbank, Rostelecom, MTS, etc. You can even open a brokerage account at Tinkoff Bank online by receiving a bank card in the parcel. It will allow you to purchase not only shares and bonds of Russian companies, but also very many American companies.
What securities should you buy?
There are 2 answers here:
- Just go through the sectors of the Russian Federation and the USA and select the companies with the largest market capitalization. Today, for example, for such a strategy one can acquire Rosneft, Sberbank, Gazprom, LUKOIL, AK ALROSA, MTS, Rostelecom, etc. in Russia and Apple, Amazon, Microsoft, Nike, etc. in USA. If you compose a portfolio of all these stocks, then you will receive both a share in these companies and dividends, as well as protection from bad situations, which one of the companies may fall into - after all, this company will occupy only a small share in the portfolio.
- Open an account with Tinkoff Investments and buy ETFs for American and Russian companies in any proportion convenient for you, for example 50:50. This is the easiest way to get a small stake in each of the hundreds of US and Russian companies in which the ETF invests. Of course, you can not only be limited to the United States and Russia, but also invest in the economies of China, Japan, Germany, England and Australia:
This is enough to start creating serious capital. In addition, you can think about what unnecessary expenses (for example, bad habits) should be eliminated from your life, begin to engage in professional development in an area that provides you with current income and set aside most of the saved unnecessary expenses and salary increases for buying stocks. large companies or ETF units. In a few years you will be pleasantly surprised at the result, and in 15-25 years you will even forget why you need a state pension, because the dividends on your capital will exceed it several times!
Finally, I would like, of course, to remind you that there are different situations in the world, and the economy may fall or enter a crisis, and the prices of your shares and shares may fall several times for a long period. In such cases, you should not panic and in no case sell securities, because sooner or later the economy will recover, because people need to consume what it produces.
How to determine the share of stocks in a portfolio?
As a rule, stocks or ETF units are more risky in the short to medium term, but more profitable in the long term. In addition, shares are growing in value with good performance of the company. Therefore, at the beginning of the journey, you should keep more than 90% of the portfolio in stocks and ETFs, and with increasing age, you should reduce the proportion of stocks and increase the proportion of bonds in the portfolio. Ideally, upon retirement, the income from safe bonds should already cover all of your essential expenses.
