How to invest the savings in 2020 ? What are the best opportunities we have available to operate in the markets? Should we still rely on the Post Office or the bank ?
In today’s guide we will analyze the best strategies for investing savings, also tracing different paths depending on the objectives and the amount of capital.
We will also talk about how much to invest for optimal results, taxation and convenience.
If you have put aside a nest egg, however large or small, we advise you to read through our guide, which will analyze every aspect of the investment through our experts, even for those who are beginners.
We also advise you to read our investment guide even if you already have some experience in the markets. We will have some goodies even if you have already invested in the past and you simply want to change gears.
You are preparing to read the most complete guide ever written on how to invest in 2020, whether it is the savings of a lifetime or a small sum that you have decided to risk on the financial markets.
The current situation of the world economy
Without wanting to claim to offer a complete examination of the financial markets, we believe it necessary to introduce you to the world and local situation of the financial markets, which we must always keep under observation before making investments with our savings, even if it were a question of a short-term investment.
- There is great demand for safe investments: not only from small savers, but also from institutional investors. This has pushed the yields of government bonds safe (and similar) downward ;
- The stock market pulls: not universally, but in the markets that matter most. Those who invested a few months ago in equities often achieved good returns;
- The emerging countries pull less: the emerging markets that had enabled many to invest successfully seem to be in relative crisis. China, Russia, Turkey and Brazil no longer grow as they did a few years ago.
How to invest, savings is more important than where to invest
It was NOT a random choice: how to invest is much more important than where to invest.
This is because, especially when it comes to investing savings, we will have to have a good strategy, thinking about both the short and the long term, setting goals and trying to be disciplined.
Not having a strategy, says the Anglo-Saxon and American tradition, means having the perfect strategy to fail.
We must therefore analyze our risk appetite, our goals, the capital that we are actually willing to invest, and above all what we expect to happen in the near future.
On our site you can find in-depth guides to set the right strategy and choose your goals.
The alternative of social trading
The social trading is one of the best opportunities we have available to trade, especially if we have not experienced and we still want to begin to employ our capital.
How does social trading work?
- You can follow successful investors and copy trading, with just one click. You can choose from hundreds of traders who have your risk profile and your goals;
- You can get free signals, since the best platforms analyze the investment trend of thousands of subscribers and are able to tell you automatically how and where the market will move;
Do you want to try social trading without investing even 1 euro? eToro – click on this link – offers you a free demo account with social trading that you can start using immediately.
The demo account, as we will soon see in our continuous guide, is an account that allows you to invest with virtual capital, without initially investing your savings.
How much are you willing to risk?
Risk is the fundamental concept of every type of financial market. The return you get for your investments is compensation for the risk you run by lending money or investing.
What you need to understand before investing your savings is that you have to understand how much you are willing to risk.
What do we mean? We mean that on the one hand a greater risk is accompanied by a greater potential gain and on the other hand the more you risk, the more obviously your capital will be in jeopardy.
You will necessarily have to answer the following questions before choosing a winning strategy to invest your savings:
- What part of capital can I afford to lose ? It is one thing to look for the maximum profit with money that is not fundamental for our survival, one thing is to risk capital that we will need in the near future;
- Which performance can satisfy me ? If you need or want to earn as much as possible from your invested savings, you will inevitably have to commit yourself to risk something more.
Is it possible to invest savings without risk?
If you are an attentive reader of our website, you will already know how to answer this question: do you think it is ever possible to invest today without having to bear a risk, albeit minimal?
Investments and risk-free are two entities that cannot be put together at all.
There is no investment without risk. And know one thing, we tell you about the over ten years of experience in the sector: if you happen to read or listen to an investment without having to bear a minimum level of risk, things are two:
- It is a scam;
- They are making fun of you.
Ponder every single aspect well before investing your savings, implementing a risk management strategy that provides for a weighted diversification by virtue of the economic situation of the reference period.
But that is not all. Before implementing it and then adopting the operations for opening orders in the portfolio, you understand how much you are willing to lose, in the eventuality in percentage, compared to what you have budget to invest.
What does safe investment mean in 2020?
The economic scenario has changed radically and today investing in security means:
- Minimize any losses: or study a strategy that allows you to sterilize the risks before they occur;
- Protect yourself from inflation: that is, choose investments that grow more than the average inflation rate;
- Be liquid, to be ready to seize new opportunities if these should finally show up.
We will inform all of our guide to these guidelines, with the certainty of offering our readers a truly complete guide to the best savings investments.
Can you really double, triple your capital in a short time?
Before going into the specifics of our guide, we want to make another premise.
As many of you will have already met online advertisements that promise you to double or triple your savings in a few days or a few weeks.
These are nice and good scams, which you should try to avoid because they won’t bring you anything good.
What you can reasonably expect from your investments is an increase in the value of your capital over time, which will allow you to increase your assets.
Nothing is magical, no one has ever enriched themselves with trading or investments within a few weeks.
Invest the savings with the bank
The first of the options you have available is to entrust your savings to the bank and try, thanks to the help of a good financial promoter, to increase your investment.
This is the classic way of investing savings, which the bulk of Italians have used in the past and which today is starting to creak.
Because? Because there are several problems that are related to the investment of savings, in 2020, as in the past and as in all probability in the future.
- Costs: bank managed savings often have unsustainable costs. There is talk of several percentage points on the invested capital, which means that even if you have an investment that you earn, you may find yourself at a loss;
- Your interests and those of the bank do not coincide: the bank has an interest in selling products that are convenient for you and very cheap for you. An example? The myriad of asset management products, such as mutual funds and insurance-financial products;
- You do not have full control: even if the financial promoter obviously needs your authorization to operate with your capital, you will not have completely the pulse of the situation. The situation is very different compared to those who invest instead with online trading, perhaps taking advantage of the latest generation platforms.
We are not prejudicial to what is offered by the banks to invest their savings.
We are only emphasizing the fact that today we can have available hundreds of alternative solutions, which offer lower cost plans and with full control of the situation to those who invest their savings.
Invest the savings with online trading
Invest your savings in 2020? The online trading is definitely one of the best options you have available.
With the best platforms for online trading, in fact:
- You have very low costs and in any case much lower than those offered by the bank;
- Freedom: you can invest in virtually any type of security and in any type of market. We are faced with a possibility that could even frighten you when you are a beginner, but which will prove to be fundamental later;
- You have full control of your wallet: you decide which title to enter and which to discard. You will be the one to open and close positions, you would decide whether to increase or decrease the risk.
We are facing a possibility, that of online trading, which today has opened the doors of all the best world markets to anyone who even has only a few hundred euros to invest.
Here are the best platforms you can use right now to learn how to invest in online trading.
No, we are not talking about universities, but of an attitude that you should maintain for the whole period of your life in which you would like to work with online trading.
You have to study, because of online trading is an information war, a war that you will win only if you decide to study the basics day by day and then the evolutions of the market that interests you.
With the 24option trading manual downloadable from here you can learn the basics of trading in Forex, stocks, commodities and even cryptocurrencies. A complete guide to start investing in the best way and to understand the markets you are going to try.
Invest the savings with the managed tools
There are hundreds of managed tools that your bank may have already proposed to you for investment. We are mainly talking about mutual funds and unit-linked policies.
They are tools that might even seem more than valid and maybe even interesting: for a few dollars there will be experts to manage our portfolio, who will trade to maximize our profits and minimize our risk.
In reality the data – which are available to everyone – tell a very different story.
As far as mutual funds are concerned, there are very important problems, which you absolutely cannot ignore if what you have in mind is to maximize the profit of your investment and still take low risks:
- They cost a fortune: you will pay commissions of more than 2% each year for management only ;
- They have lower average returns than personalized investor portfolios. To understand, to a more expensive management, do not correspond then greater earnings;
- They are unclear: however clear the prospectuses may be, you will never be sure of what the fund manager is doing. There are also funds that leave truly enormous freedom to the manager to invest in certain products;
- They can be very risky: don’t be fooled by the managed formula. Inside this category, you can hide products that are definitely not suitable for those who invest their savings;
Managed savings, in any form, are always and in any case more advantageous for the manager (and for those who promote these products, such as the bank) and for the customer, that is for us who are looking for a good investment for our savings.
The tools to invest savings in 2020
Given that we will be able to invest today – thanks to the possibilities offered by online trading, in the markets we prefer, below we briefly show you the best markets worldwide, also signaling those that are the pros and cons of each market.
Today you are lucky compared to the investors of a few decades ago: you really have the opportunity to invest on your own, following your skills and your information.
A freedom that is certainly a great responsibility, but that can certainly offer you many satisfactions, both in terms of earnings and personal fulfillment.
Invest savings in bonds, BOTs, CCTs and BTPs: advantages and disadvantages
Let’s start with the tool that is perhaps the most common for small and medium savers: the obligation.
They are debt securities, in the sense that they represent in all respects a loan we made to the state that issued the security.
When you buy a BOT, a CCT or a BTP issued by the Italian Republic, you are actually lending money to Italy.
In exchange, Italy – or any other state that issued the bond (so they are called in English) – recognizes the payment of an interest, usually six-monthly.
A very simple system that everyone can understand immediately and that allows everyone to earn a little something.
What are the advantages for those who want to invest savings in bonds in 2020?
- Simplicity: The product is very simple and allows you to earn even without knowing stock and finance;
- Management: you don’t necessarily have to buy and sell continuously. You can also buy a stock and wait for it to expire.
Without forgetting that today bonds have very low returns, thanks to the international economic situation. What to do then?
Simple: we need to diversify.
Bonds are an interesting way to build our secure base. You choose the percentage of capital to devote to bonds, to then move on to analyze the other types of products to invest.
Investing your savings in shares in 2020
Another very interesting alternative is that offered by the stock market. Everyone can invest today in shares, even if they are not exactly millionaires and above all even if you are interested in markets other than the Italian one.
There are plenty of platforms, such as eToro – which you can preview by clicking here – which allow you to invest in stocks either directly or through contracts, at costs much lower than those offered by your bank.
Investing in shares means becoming a full partner of a listed company, which means that you will follow its destinies, both for good and for bad.
You can make money from shares by buying and selling on the same day, or you can go and invest more in the long run, as so-called cassettisti do.
The stock market offers you very important possibilities, even though it is a riskier financial product on average at least compared to bonds.
You can start trading by practicing investing virtual capital on multiple markets, using the demo account – this gives you the chance to invest without spending even 1 euro to understand the functioning of stock exchange markets.
Not only Italy: from home today you can invest all over the world
The advantages of online trading become obvious when we are dealing with stocks. If until recently it was possible to invest only in Piazza Affari and through its own bank, today we have just one click away from any type of stock market.
Some prefer German shares, some American ones, some French ones. And there are also those who, as a small saver, love to venture into emerging markets such as China or Turkey.
Investing in ETFs and Indices: for an already diversified investment
ETFs are one of the most popular instruments among independent investors. The reason is very easy to understand: ETFs are instruments that offer good diversification, which follow the best stock market indices and have very low costs.
We are in front of the funds in all respects, which however do not have an active management, but a management that is called precisely “passive”.
There are ETFs able to replicate the most disparate indices: NASDAQ, FTSE MIB, NIKKEI 225, CAC 40 and so on and so forth.
We are dealing with a product that is actually very interesting:
- Very low commissions: you will actually end up paying a few tenths of a percentage point for the management, often even less than 1/10 of what you would pay with a mutual fund;
- Higher performance: the data speak for themselves, passive management savings in 53% of cases are better returns than managed instruments;
- Diversification: later we will discuss why it is important to diversify the investment. For now, you just need to know that ETFs make it easier to diversify.
ETFs allow you to invest in virtually the entire economy of a country, despite having only one security in your portfolio.
Investing your savings in raw materials: in 2020 it could be convenient
Another category of investments that you can use today to invest, thanks to online trading, is that of raw materials: natural gas, oil, but also cocoa, soy, gold, silver.
These are excellent investments – taking into account the fact that these are enormously volatile instruments – that today you can do even from home thanks to the best platforms that offer CFDs, or contracts for difference.
This is certainly a category of investments that is not suitable for everyone, but which we can include in a reduced percentage compared to the totality of capital we have invested.
Investing your savings in Forex: today even for small children
Forex has for decades been a market exclusively for specialists, one of those where small fish could not even think of approaching.
Today, however, thanks to the best platforms for online trading, you can go to invest without problems on the dollar, euro, yen, Swiss franc and on all the major currencies worldwide.
Also in this case you can think about opening a free demo account to go and invest virtual capital before venturing out with the capital you saved with sweat and sacrifices.
Forex is certainly a riskier market than we have presented to you so far and this specific type of investment should be reserved for a minimum amount of capital, unless you have a strong risk appetite.
As we anticipated at the beginning of our guide – at higher risks, however, there will also be potentially higher earnings.
Investing in cryptocurrency savings? It is possible with the best platforms
We close with an investment that for many may seem unconventional, but which offered excellent returns to those who moved in time.
We are talking about cryptocurrencies like Bitcoin, Ethereum, LiteCoin and others, which offer a medium-high risk prospect, but which offer potentially higher yields, again for the fundamental law of finance.
Also for this category of investments you should avoid using all your capital, and diversify to avoid being involved in a crack.
The best online platforms allow you all to invest in the best cryptocurrencies.
Should you invest the savings in this period?
You should always invest your savings. Leaving them to rot on our current account means eroding our savings from inflation and expenses, while even with a very low-risk strategy we can earn something.
Today’s guide can be your starting point to really start trading and investing your capital to the fullest, choosing the risk that suits you best.
Investing your savings is certainly the best of the choices you have available.
Is online trading a scam? No, it helps you diversify your portfolio
No, online trading is not a scam. It is indeed one of the best opportunities you have today to operate on the markets and to make your sweaty savings pay off.
Of course, you will have to follow correct and correct information, such as those we provide you every day on our site. Eye, because if it is true that choosing the best platforms for online trading you can surely get a lot, it is equally true that there are unfortunately scammed platforms, which were born with the exclusive goal to defraud customers.
On our site you will find insights on all the legitimate platforms to invest your savings, in 2020 as in the future.
Invest savings with policy, especially in trading
Investireinborsa.org advises you, before making even one order, to first learn every aspect of trading well – how? Through specific training.
Investing your savings is not a game and to do so you need to be well informed. Adopt the best trading strategies, but first carefully follow every training process.
Conclusions of our expert staff
The investment of savings is the best way to make money out of one’s capital. Not all that glitters is gold and unfortunately you will have to dodge offers that will surely not offer the best to your pockets and the return on your capital.
Remaining away from the banks and from managed savings, you will be able to move in search of the best returns and modulate the risk you want to take.
Today, thanks to the internet, you actually have excellent tools at your disposal to operate directly from home, and also to constantly increase your knowledge.
Knowledge that, we repeat to you in closing our guide, is fundamental for all those who really want to get the best from the financial markets.