cultural instinct and risk aversion

Unintentionally, these people find themselves losing can purchasing constantly, due to the fact thatThey need to improve the management of their savings”, according to the words of Sarachaga, so that these are not diluted within an economy that has a projected inflation of 7.27%.

The mission of Personal Sherpa is to disseminate content related to the subject, and to shed light on the national public based on some tips on education financial ranging from the most basic, such as learning to control expenses, to some tips that point to a higher level of knowledge.

The dollar is “systematically” in the heads of Uruguayans

According to Saráchaga, the concerns that Personal Sherpa receives are linked, above all things, to the search for financial instruments that allow “returns in dollars”, since “the dollar is in everyone’s head, systematically”.

About this, the economist affirms that it should be taken into account that the amounts of a few thousand dollars, which individually can represent a lot for the person, within the financial system “have limited ability to take risk”, something that for the conservative profile of the Uruguayan investor can be disappointing, since often unwilling to pursue higher returns for higher risk.

For incipient investors who want to experiment outside of the US currency, it may be more feasible for them, and provide them with greater security, to opt for opportunities in national currency, either in investment funds through intermediaries such as Gletir either Suraor in other fixed income options such as instruments in Indexed Units (UI).

“Investing is not just Wall Street”

Sarachaga remarks that “Investing is not just Wall Street“, but “there is an interesting world beyond”. The economist commented thatthe box where the Uruguayan thinks is a bit limited”, having the property “as the main investment”, and the “fixed terms that compensate for inflation”.

This is why he understands that “financial education is very important”, since at present you can even see people who, without knowing it, are “placing money in a fixed term with negative real returns”. This becomes wasteful, as it holds that “large amounts are not needed, but order and be systematic” to see the first returns.

Despite all this, new winds are blowing and not everything is rigidity in the finances of Uruguayans, since it would be perceived that young people are beginning to have other curiosities, and are internalizing the subject on a much larger scale than their predecessor generations. .

This is seen above all in those who have a good income, something that allows them to generate a surplus that they can use as risk capital. Although from saying to doing there is a long way, the growing interest of young people in the financial world is not necessarily reflected in an investment movementand to those who can be overwhelmed by the number of options and the excess of information.

One of the advantages they have over their elders is a greater predisposition to take risks, while the older population tends to turn to fixed income, they are willing to venture into the market in variable income.

Uruguay offers few equity options

“The world of variable income in Uruguay had its scale, but now there are few shares that are listed and I don’t know how likely it is that this could have the dynamics that it had at the time”, where also “the stock market has had its twists and turns”, indicated Sarachaga.

For the economist, there are possibilities that the financial system is more interesting “simply seeing what is quiet in savings banks and fixed terms”, where they can be observed “very important volumes that are in dollars”.

If financial education manages to penetrate society, Saráchaga believes that “we could see movements from the typical places of accumulation”, where the money remains “dead” and “with the minimum returns offered by a savings bank”.

Uruguayan seniors are reluctant to invest

This seems like a chimera when one sees the behavior of the group of older adult savers, despite the efforts of the banks to present platforms that allow easy access to investment funds. However, they could well find a foothold in a younger audience that, for a reason of legal issues, fears registering directly with a stock broker. USA.

The counterpart of the bank acting as “the guarantee” to fund investments in the North American country “with peace of mind” is that the greater the number of intermediaries, the more the commissions on the movements will be.

Today, for the co-founder of Personal Sherpa, a portfolio with a “healthy mix” in terms of risk could be comprised of investment funds, Treasury Notes in UIand Regulation Letters of the Central Bank of Uruguay (BCU), which currently present positive real returns, beyond the recent cut in the Monetary Policy Rate (dwt) by the entity.

The economist understands that people should pay attention to UI instruments thinking about their withdrawals from the labor market, taking into account that these days they are “one bank transfer away” from operating with this type of instrument, being able to fund it month by month, guaranteeing their purchasing power, and even being able to obtain a positive return over time.

Conditions for investing in Uruguay have improved in recent years

The current is a context where it is more propitious to invest compared to ten years agowhen the intermediaries did not show interest in covering people who were below amounts in the order of $50,000today a window was opened for businesses on a scale, something that is a “win-win” for everyone, stressed Sarachaga.

In turn, without the need for intense management, the youngest could include a classic index such as the Standard & Poor’s 500 (S&P 500), with which they would be diversifying directly with the 500 most important companies in the United States.