Withdrawal of CTS and AFP: Do you want to generate higher returns on the funds?  Here we give you options

Withdrawal of CTS and AFP: Do you want to generate higher returns on the funds? Here we give you options

Thousands of Peruvians will be able to withdraw the total of their Compensation for Time of Service () and up to 4 UITs of its funds from thein the coming weeks, after the Government enacted the Congressional initiative that allows the release of these funds to mitigate the negative impact on the economy caused by the COVID-19 pandemic.

LOOK: Is it advisable to remove the CTS? Tips to make the most of your fund’s withdrawal

However, at present, many of the people who will withdraw this contingency money have a permanent job and even savings that allow them to face the current economic situation, so, what to do with this extra money?

Fernando Menéndez, Investment Manager at Vivir Seguros, recommends planning the proper use of this extraordinary money. “Since it is money intended for retirement or unemployment savings, it is essential that the withdrawal be justified. In general, it is recommended to seek to reduce debts that one may have, such as real estate, car loans, loans, card consumption, among others. If the person has capital left over or has no debts, the best thing to do is to invest this money so that it generates a return in the medium term”accurate.

investment options

Menendez stated that One way to take advantage of this extra money is to invest it safely in financial products from solid and backed companies. In this sense, among the range of products that Vivir Seguros has are Renta Max and Fondos Max, which will allow investors to see their money grow with minimal risk.

In the event that the client has a wealth surplus and wishes to invest in foreign markets, there is the Max Funds option. This product functions as an investment tool with which the investor will be able to see his capital grow in the most developed markets in the world, according to the risk profile he chooses: moderate, conservative and sophisticated.

Through this unique product Peruvians can invest in the most important stock markets in the United States and Europe. The profitability will depend on the chosen portfolio. For example, in the case of the Moderate profile, the expected annual rate is 4%, in the case of the Conservative profile, the annual return can be as high as 6%, and in the case of the Sophisticated, where there is greater risk, the expected return is of 7% or even much more. The most important thing is that there is no minimum period of permanence, so that people can access their money when they need it”Menendez detailed.

On the other hand, if people are interested in a medium or long-term investment, there is also the Renta Max option, which investors will be able to receive a fixed monthly payment that is determined by a long-term rate.

“This option is very interesting, as it guarantees a monthly pension for 5 years, with an interest rate proportional to the investment amount. As one has a larger fund, the rate goes up because certain operational efficiencies are generated and the client will have a higher return. It is recommended that you invest from 40 thousand soles upwards “accurate.

Likewise, Fondos Max has a life insurance component in the event of the contracting party’s death. Covers burial expenses and allows the client to choose the beneficiaries. In this way the investor will have the guarantee that his money will always be in the hands that he decides. In addition -if you wish- you can also receive your capital and profits generated abroad.

Financial Support

It is important that Whatever financial entity or investment modality one chooses, it must be supervised and regulated by the Superintendence of Banking, Insurance and AFPs (SBS)since it is the body in charge of the regulation and supervision of the Insurance Financial System and the Private Pension System in Peru.

“The investment must fall on solid and reliable companies. That is why it is important that, before deciding, the investor must evaluate the market to see which options suit their plans. In the case of Vivir Seguros, we have advisers who will guide them to choose the most suitable product for them and will give them the guarantee of the best investment according to their profiles”ended.

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