Financial longevity goes far beyond retirement

Financial longevity was the central topic debated during the National Financial Education Week (ENEF Week), held between May 18th and 24th.

With the population's life expectancy increasing, financial planning needs to go beyond retirement and consider the need to maintain income and assets for longer.

The market doesn't stop and money doesn't wait. Subscribe to the Resenha do Dinheiro newsletter and stay up to date with everything that matters to your pocket. Just click here.

According to Thiago Godoy, financial educator and presenter of Resenha do Dinheiro, investors should not only think about short-term market movements.

"Today, a 60-year-old person must live, on average, at least another 20 years. Therefore, it is essential to prepare financially to maintain quality of life during this period", he says.

Godoy also warns of the importance of seeking more efficient investments in the long term and assesses that savings limit wealth building over the years.

"When we think about the long term, compound interest can be an ally or an enemy. Savings, for example, make the investor lose a large part of the income they could obtain from alternatives such as the Treasury Selic or CDBs from large banks", he explains.

For Bernardo Pascowitch, founder and CEO of Yubb, one of the main challenges of long-term financial planning is considering the impact of inflation on assets.

"Brazilians often do not consider inflation when thinking about financial longevity. And Brazilian inflation is persistent. Therefore, investors need to look for more profitable alternatives than savings to preserve purchasing power over time", he observes.

In addition, younger investors should consider riskier assets in their long-term strategy.

"Thinking about longevity, especially for younger people, it doesn't make sense to put 100% of the portfolio in conservative assets. It's important to have a portion in variable income, shares, funds or even bitcoin to seek greater asset appreciation", adds Pascowitch.

Marilia Fontes, founding partner of Nord Investimentos, advises that financial education needs to be part of everyday conversations, whether in circles with friends or among family members.

"There is no greater citizenship than patrimonial citizenship. There is no point in working and earning an income if the person cannot build wealth and reach the future without financial freedom", he states.

Dinheiro Review
Carried out with the support of B3 and the investment manager BlackRock, the program is presented by Thiago Godoy, the "Financial Daddy", Marilia Fontes, founding partner of Nord Investimentos; Bernardo Pascowitch, founder and CEO of Yubb, proposes a light, direct and uncomplicated approach to topics related to financial education and investments. The attraction addresses the main themes of the economy weekly with the informality of a conversation between friends - without compromising on analysis.

The Money Review airs every Friday, at 7pm, on the CNN Money YouTube channel and on Sundays, at 3pm, on CNN Brasil.

Source: CNN