The only way to beat inflation. Who will benefit from a dynamic strategy when saving for old age? | Serials

What type of person, or investor, are you?” This is often one of the first questions that people interested in investing hear from financial and investment advisors.

The second important factor is the age and the investor’s current socio-economic position. “A dynamic strategy, apart from savings for pensions, is not at all suitable for those who have no assets, have a minimum reserve and would invest all their funds,” explains VŠE pedagogue Jiří Rotschedl.

Not everyone is able to bear the risk of dynamic investments – and this is precisely what intermediaries are required by law to find out.

“According to the law, it is also necessary to assess the adequacy for the client, i.e. his experience and knowledge in the field of investments,” Rotschedl adds.

Ten, or rather fifteen years

Dynamic strategies offer higher returns, but only over a longer horizon, which should last at least ten, but rather 15 years. So it pays off for younger and more patient savers – in too short a time the yield can go into the red.