There are 3 ways to make the capital you invest in your 3rd Pillar grow, some solutions rely on total security and others favor returns, in exchange for lower security and guarantees.
The classic solution
The operation
This solution works in the same way as a traditional savings account. Your money is 100% secure and the capital is paid annually at an interest rate set by the company.
In the bank the interest rate is variable and fluctuates according to the economic situation and fees are applied periodically, lowering the return of the solution.
In insurance a minimum interest rate is fixed until the end of the contract and in the event of a positive result from the company, a contribution to the surpluses is paid to you.
The advantages
- No risk of loss
- Surpluses paid by insurance companies
The Disadvantages
- Low efficiency
The mixed solution
The operation
With this solution, up to 80% of the capital is secured and guaranteed throughout the duration of the contract, so you are sure to receive at least this amount no matter what happens.
Another part of the capital is invested in an investment fund, allowing you to take advantage of the rise in financial markets while taking advantage of great security and greater earning potential than traditional solutions.
This type of solution only exists in insurance.
The advantages
- You choose the guaranteed capital between 10% and 80%
- Attractive return thanks to the share in investment funds
- High earning potential in the medium and long term
- All in one solution that did not require follow-up
- Death and disability coverage
The Disadvantages
- Not interesting in the short term
- Only available in insurance
The investment fund solution
The operation
With this solution there is no security, 100% of the capital is invested in investment funds that you select in advance.
This is the solution that will allow you to achieve the best performance among all existing solutions, however there is no security or guaranteed capital so there is a risk of total loss.
This type of solution exists in banking and insurance.
The advantages
- Maximum earning potential
- Large selection of investment funds
- Possibility to adjust your fund portfolio during the contract
The Disadvantages
- Higher risk of loss than all other solutions
- Requires good economic knowledge
