PPR funds are long-term savings instruments par excellence that allow you, at the same time, to have unique tax advantagesin the panorama of investment products in Portugal, and capitalize the income to long term. The long-term capitalization of earnings is crucial for you to successfully achieve your goals. financial related to his retirement.
What are the advantages of investing in a PPR fund?
In the first place, the effect of capitalization of income. As the PPR is an investment product that allows the growth of savings in the long term, the effect of capitalization of income is your best ally to achieve your financial goals in the long term and achieve your financial independence. See this example: If you initially invest 5,000 euros, and carry out monthly reinforcements of 100 euros, assuming an annual return of 8%, your final retirement value would be 15 times higher in a period of 40 years compared to a period of 10 years and 5 times higher compared to a period of 20 years.
Second, we can consider the fiscal efficiency and penalty-free redemption clauses. PPR funds have a set of tax advantages and redemption clauses without penalty exclusive to this type of investment product.
PPR tax benefits
By subscribing to or reinforcing a PPR, you can have access to a tax deduction of up to 20% in the IRS, with limits according to age:Up to the age of 34, the deduction has a limit value of 400 euros, if you apply 2,000 euros to the PPR in that year; From 35 to 50 years, the deduction has a limit value of 350 euros, if applicable 1,750 euros to the PPR in that year; And from the age of 50, the deduction has a limit value of 300 euros, if you apply 1,500 euros to the PPR that year. In terms of income tax applied to capital gains, if you redeem the PPR within the redemption conditions without penalty, this fee will be in the order of 8%. Redemption conditions without penalty are as follows: Redemption due to retirement by old age or disability;Rescue from 60 years if you have been invested in the PPR for more than 5 years; Redemption due to long term unemployment (or spouse);Rescue due to serious illness as a member of the household; Redemption for payment of mortgage loan installments;If you redeem the PPR outside the redemption conditions without penalty, the tax will be in the amount of 21.5%, if you redeem the PPR during the first 5 years of investment. Taxation decreases the longer you keep your savings on this type of product: If you redeem the PPR between 5 and 8 years of investment taxation will be 17.2%. The rate drops to 8.6%, if your money has been invested for more than 8 years, this for at least 35% of all deliveries in the first half of the contracted period. Additionally, PPRs without guaranteed capital also allow the transfer of invested capital between different entities, without additional charges and taxes. If the PPR is capital guaranteed, the maximum fee that an entity can charge to guarantee the transfer of the PPR is equal to 0.5% on the amount transferred. Which means that if you transfer 1,000 euros, at most you will have to pay 5 euros to transfer the PPR.
Why invest in PPR SGF Doutor Finanças?
The PPR SGF Doctor Finance is a simple, efficient and innovative investment solution, in the national PPR scenario, which allows you to save and accumulate assets for your retirement. The investment strategy tested and proven internationally for several decades, by thousands of investors, namely in countries such as the USA, the United Kingdom, the Nordic Countries and even neighboring Spain, is based on four basic principleswhich together make it possible to improve the risk-adjusted return of an investment portfolio:Passive (or Indexed) Management: Portfolio indexed to the three main classes of financial assets: shares, bonds and raw materials and implemented exclusively through ETFs;Extreme Diversification: investment in 11,000 different securities worldwide that allows you to reduce the so-called specific risks of exposure to companies, sectors or countries;“Buy, Hold and Adjust”: The investment is carried out on a long-term basis, only the so-called systematic rebalancing is carried out in order to control the risk of the portfolio. No transactions of a speculative or short-term nature are carried out;Structurally low fixed commissions: The fixed commissions of PPR SGF Doutor Finanças are significantly lower compared to PPR funds with an equivalent level of risk, being 1%, compared to the 2.62% charged on average by comparable funds in the market, presenting a cost reduction equivalent to 72%.(It does not exempt you from consulting the legally required pre-contractual and contractual information. The return varies according to the evolution of the value of the assets that make up the assets of the Pension Funds and is dependent on fluctuations in the financial markets. There is no guarantee of minimum income. Past returns do not constitute a guarantee of future returns. Fund Management Regulations are available at PPR SFG Doutor Finanças . The management entity is SGF.) Dolat Capital, Empresa de Investimento, SA is regulated by the CMVM (License No: 368). Our mission is to offer you a personalized, ultra-diversified investment plan with radically low costs. We firmly believe that investing through index funds and the “Buy, Hold and Adjust” methodology are the most efficient way to invest your money. Don’t waste time, start investing today in a smart portfolio, with less commissions and better returns.