Fly high in your dreams

Set up an investment plan the easy way

Fly high in your dreams

Set up an investment plan the easy way

Nearly everyone saves

Nearly everyone saves, especially in Belgium. And that's all for the better too, because a buffer to cover unexpected expenses could come in handy one day. If you have a savings account, that's great! So, be sure to check out our top savings tips:

• The ideal size for a savings buffer depends on your personal situation, but a good rule of thumb is to keep the equivalent of three to six months' net salary in reserve.
• Make it easy for yourself by setting up a monthly standing order to steadily build up your savings buffer.
• Look into the possibility of a tax-advantaged savings scheme (such as pension saving). Make sure you use it optimally: tax relief can be as high as 30% of what you pay in each year.

But don't forget that, due to inflation, you lose purchasing power over time because the interest rate on your savings is lower than the rate of inflation. You can let your money work for you in periods of high inflation.

A practical example:
Suppose you have 10 000 euros on your savings account. With inflation at 2%, your 10 000 euros would be worth about 200 euros less after a year. However, an interest rate of 0.11% on that sum of
10 000 euros would generate just 11 euros in interest. The result is a loss of purchasing power.

How to get your money to work for you

Even though investing is not the way to make money quickly, the return on investments in the longer run is generally higher than the return on savings. That allows you to catch up with inflation and increase your purchasing power. One way of boosting the earning potential of your money is to take out an investment plan.

You should only invest money that you don't need in the short term. Create a savings buffer and keep enough money in your bank account for emergencies or unforeseen expenses.

What is an investment plan?

An investment plan provides you with the opportunity to invest a certain amount of money automatically at set intervals over time.

The benefits of an investment plan

1. Diversified investments

An investment plan is a means for investing on a regular basis. It allows you to automatically invest a fixed amount (starting from as little as 25 euros) in a fund every month. A fund invests in a mix of investment instruments (such as shares, bonds and so on), whereby its managers actively respond to developments on the financial markets.

2. Emotional investment cycle is neutralised

When prices drop, many investors sell as a precaution, whereas when prices rise, they tend to jump on the bandwagon and buy more quickly. With an investment plan, such emotions won't come into play and stress or excitement won't cause you to buy at the wrong time.

3. Flexibility

You choose the amount you want to invest (starting from 25 euros). Moreover, you can adjust your future investments and stop them if you wish. The fund units you purchase can also be sold whenever you want at the then prevailing price. Sometimes that means selling at a lower price than when you bought them.

Why start investing?

When it comes to investing, you need to think longer term. Whether you're after a high return for yourself or have dreams for your children or grandchildren, an investment plan is one way of setting aside money for the future.

Fear of heights? We’re here to help you on your way

It isn't easy taking your first steps in the world of investing and you're bound to have a number of pertinent questions. We've provided some answers below to help you get started.

Can I start out by investing a small sum of money?

Yes, you can. You don't need a need a large amount of money to get started. With an investment plan, you can start investing from as little as 25 euros a month. You are free to change that amount at any time or to put your investment plan on hold and start it up again later. At KBC, you can even invest your spare change in 10 euro instalments.

Is it complicated to invest in an investment plan?

No, it isn't. If you invest in an investment plan, you automatically put a fixed sum of money every month into an investment fund that is looked after by fund managers. By opting for an investment plan, you allow much of the work to be done for you.

Can I lose money by investing?

We can never rule that out. Return is inextricably linked to risk: the higher the return you want, the more chance you have of suffering a loss.

Limit your risk by following these two smart tips:
• Don't put all your eggs in one basket: an investment plan enables you to invest in a fund that invests in a mix of investment instruments (i.e. shares, bonds, etc.).
• Don't invest a large sum of money all at once, but instead spread your investments over time. An investment plan allows you to invest a small sum of money each month, so that you are less dependent on the timing of the investment.

Can I easily modify my investment plan?

Yes, you can. With an investment plan, you choose the amount you want to invest each month. You can start from as little as 25 euros a month, increase or lower the amount you invest (may not be lower than 25 euros), put your plan on hold and start it up again. It is also possible to sell your investment, though there may be charges involved.

Is an investment plan expensive and does it attract additional charges?

There are no additional charges associated with an investment plan. What you do pay are the usual taxes and charges for the relevant investment fund.

Does it take long to get started and what do I have to do?

There are several ways to quickly set up an investment plan, including in KBC Mobile.
Starting to invest is easy with Mobile. You decide whether to receive advice, to invest a fixed amount every month or to invest your spare change.

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