PPRs are financial investments designed for long-term investment. There are different types of PPR that vary according to several factors:
These and other factors make not all PPRs suitable for all people. And they do not all good PPRs. So choosing a good PPR can make all the difference in the accumulation of your savings.
The importance of accounting
If you want to save, whatever the goal, it is essential to do the math. And for this we must know:
- How much do we want to save at the end of the term?
- How much can we save every month?
- How much time do we have to save?
- What risk are we willing to take?
Based on these answers, it will be easier to choose a financial application that will help us achieve our goals. If we do, all the variables discussed above (capital, monthly savings, term and risk) are related, with one affecting the others. If we want to save more, we have to make bigger deliveries, for a longer period. If we can not save a higher amount every month, we will have to spend more money. Or we have to opt for a product with higher yield potential and also more risk, which may not be suitable for all profiles.
How to do the accounts?
We can do the accounts using an Excel program or with a simulator feature specifically designed for this purpose. The key is to gain sensitivity to the impact that each variable has on the achievement of our goals and the effort that is required of us. For example, if you use the DECO PROTEST simulator you may find that achieving your goals will be easier than you think, as you will have the PPR recommendation most appropriate to your specific case:
- If you start applying at age 30 and invest € 100 every month in the recommended PPR, you can withdraw with almost € 200,000;
- For every € 10,000 applied in a PPR you may be losing up to € 790 per year against the recommendations;
- A difference of 1% in the annual return of a PPR in a schedule of scheduled deliveries of € 100 per month over 30 years represents a difference of € 11,000 in accumulated capital.
The Key Question – Is It Worth Changing?
The various examples we have presented give an immediate answer to the question. It is worthwhile to change and choose a PPR that is best suited to your needs.
As we speak of investments there is always the component of uncertainty and risk. However, having some yardstick in the choice and support of a retirement simulator that helps us do the math is half way to making more informed decisions. Why not try it?