Inverstors

Profitable and safe investments. Do they really exist?

At the present time, with interest rates still low and the profitability of guaranteed deposits almost at zero, the great dilemma for investors is to find profitable and safe investments. The most risky is the stock market but this is not a favorable territory for those who seek security and confidence when delivering their savings.
In general, in financial investments to obtain profitability you have to take greater risks and, on the other hand, the most committed investors value being able to know how their money is being used. In C.I. 5 TORRES, we offer an alternative to satisfy these two concerns.
In our platform we propose a different modality. A solution to acquire profitable and safe assets and obtain the expected profit in a short time.

Tips to invest profitably and safely

In order to achieve safe and profitable investments, you have to be cautious because not everything that is offered in the market is reliable, sometimes not even legal. The National Securities Market Commission (CNMV), as the supervisor of investment companies, has a list of unauthorized entities (the so-called “BOILER ROOMS”) to warn savers of the danger posed by certain companies, especially aggressive in their commercial campaigns.
In addition to this main advice: caution; these are five basic recommendations to improve the profitability and security of your investments:

1. Define your goals
Every investor must know what he is looking for and assume the implications of each product. Review your situation: how much money you have, how long you can keep it invested, what profitability you are looking for and what risks you can take. This is what is called defining the investor profile. If what you are looking for is benefit and security, keep reading.
2. Study the market
If you hire the services of an investment company, check that they comply with the regulations and offer a good service. An ideal choice if you are just starting out: will offer simple products, requires little money and gives you great autonomy in your decisions.
3. Plan your time horizon
There is an important difference between investing in the short or long term. In both cases, there are profitable and safe alternatives, although products with a long-term maturity –more than a year– force us to forget about money for a long time and require more capital for the performance to compensate for the wait. Short-term assets allow you more dynamic and flexible planning.
4. DIVERSIFY, always
It is the best advice to gain security and profitability. To manage risk, you have to have different options in your portfolio and in different proportions according to the preferences of each one, without giving up a more ambitious product. A well-diversified portfolio will offset the setback of a trade going wrong without hurting average returns too much.
To diversify:
• Maintain different products and combinations of profitability and risk, adapted to your objectives.
• Adjust the proportion of long and short term assets according to your budget and availability over time.
• You do not have to give up anything but prioritize the safest assets and, above all, those you can understand. Derivative stock products are not recommended at all, very complex and risky.
5. Reinvest
To obtain a greater benefit with the same money, it is necessary to reinvest what you have earned and thus increase the volume of your investment without contributing additional money. For this, the ideal formula is to combine short-term products with profitable and safe financial investments. This strategy offers great agility as it is operations that expire quickly.

Mistakes to avoid when investing

Depending on how you decide to invest, you may come across different situations which may raise additional questions and concerns. Undersatnding financial and investment legalities and administrative procedures in Spain can be very complicated so we are commited to explain, assit and guide our clients through every step of the process, so we must act with caution and obtain as much information as possible about each offer.
Here are some common investment mistakes you shouldn't make:

• Start without being clear about how much to invest or how. Do not invest money that you may need soon and start with as clear an idea as possible. If you have doubts, look for short-term options from which you can withdraw without problems.
• Invest without enough information. Do not hire anything that you do not understand well how it works, how the money is recovered or what risk it has. Look for and value simple and transparent alternatives.
• Decide without evaluating COSTS. Take into account all the commissions, management expenses or additional services that you have to hire. All this reduces the expected profitability and can cause an operation that seemed more profitable than another in the end to not be.

In C.I.5 TORRES our management guarantees transparency from the beginning.
• Don't diversify. It is one of the most dangerous mistakes. If all the capital is allocated to the same profit is limited and a possible loss cannot be compensated.
• Be guided by non-professional advice. You command your money and the advice of friends or family is not usually the best. What has worked well to date does not ensure profitability tomorrow. Be totally wary of big promises and aggressive advertising. Look for your own information on reliable and specialized pages.
• Mismanage losses. In the most volatile markets (such as the stock market), sometimes you want to win very soon and, however, when there is a loss, you do not react in time thinking that the value is going to recover, and this is rarely the case. In the end, the loss multiplies.

REAL ESTATE ASSETS
• Invest in Batumi (+14% profitability)
• Various buildings in Spain.
• Urban ground.
• Bank property products.

If you are looking for a specific asset in a certain city, we encourage you to contact us so that we can offer you OFF Market assets from our portfolio or find you similar options.