Periods of fiscal crisis and economic uncertainty can bring very good opportunities, but also major risks, but everything depends on the investor's risk profile, the investment horizon and the degree of liquidity of the money he wants to invest, argues Valentin Ionescu, president of the Institute of Financial Studies, in the article "How to protect our savings in the context of the fiscal crisis in Romania".
"Safety in diversification - The first step for any person is not to keep all their savings in one place or in a single currency. It is recommended to divide the money between: bank deposits in lei and euros, at banks with a solid reputation; Fidelis or Tezaur government bonds, which offer significantly higher returns than deposits and are tax-exempt. Amidst the currency risk and pressure on the leu, keeping a portion of your savings in euros or dollars can provide an additional layer of protection. Smart investments for longer horizons. For those who have a higher risk appetite and are looking to protect their capital in the medium and long term, the options include: ETFs on global indices (S&P 500, MSCI World); investments in gold, either physically or through exchange-traded funds (ETFs); real estate, for those with sufficient capital, especially in areas with tourist or urban potential," he says. Valentin Ionescu, agerpres reports.
According to him, it is important that any investment be understood before being made and lack of information is one of the biggest risk factors.
"Emergency fund and debt exposure reduction. In times of crisis, liquidity is essential. An emergency fund equivalent to 3-6 months of current expenses, placed in an accessible account, can make the difference between stability and financial panic. At the same time, it is the ideal time to reduce or eliminate high-interest debts (consumer loans, credit cards, leasing), because financing costs will continue to be high," mentions Valentin Ionescu.
In his opinion, financial education is the best shield. Regardless of income, Romanians must learn to better manage their money and access information from reliable sources, such as the National Bank of Romania, the Financial Supervisory Authority, and independent analysts. Also, understanding risks is essential for protecting personal savings.
"The current fiscal crisis affects not only the government, but also every citizen. In an uncertain climate, prudence, diversification and financial education are irreplaceable allies. Romanians should not react with panic, but with planning and information. Even with modest incomes, decisions can be made that protect economies from inflation, instability and losses. On the other hand, it can also be a period in which investments can be made, but not for everyone, and not in everything. In fact, periods of fiscal crisis and economic uncertainty can bring very good opportunities, but also major risks. It all depends on: your risk profile, investment horizon, the degree of liquidity of the money you want to invest.Crises bring better prices and less competition, but investment success comes not from perfect timing, but from discipline and understanding of risks. If you have a clear plan and remain calm, yes, it is a good time to start or continue investing, in a calculated way. How does it make sense to invest now? Yes, if: you have an emergency fund (3-6 months of expenses covered); you invest for the medium-long term (minimum 2-5 years); you do not have expensive debts; you are willing to endure temporary fluctuations without panic. When not to invest now? If you have large debts at variable interest rates; if you urgently need that money in the next year; if you invest based on the fear of missing the train; if you do not clearly understand what you are putting your money into", explained Valentin Ionescu.
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