We always say we are DIF for “different”, because our activity revolves around your personal interests, not specific products. Unlike other brokers, we are not obsessed with you “carrying out trades” so we can enhance our profitability. Our business model is based on something quite simple: happy clients in the long term and growing together. We are prepared to help you plan your finances in the medium and long-term, with the purpose of achieving specific goals, such as retirement, your kid’s university, moving house, or whatever it is, and therefore, getting what you propose to.
To provide this service, we base in two fundamental pillars: Technology and Customized Relationships. Each DIF Client, whatever its equity or income level, is appointed its own Private Broker. It is always the same professional, who shall be your representative and the one responsible of advising on subjects related to savings and investment, according to your personal situation and needs. In fact, the first step in our company is always to appoint your Private Broker.
The Private Broker is our key, a professional who knows you and knows your long-term objectives and, with them in mind, makes suggestions and answers doubts, always looking after your interests.
Thus, knowing the Client, and your personal and financial features, as well as your needs and objectives. This way, the Private Broker can help you to plan your financial future with the products that adjust better to your features and needs, but it is always the Client who chooses how to invest. You may carry out by yourself regular trades on our DIF Freedom platform, but your guide in DIF will always be your Private Broker.
The other fundamental pillar to provide our clients with the best saving and investing solutions is technology. Therefore, DIF continues partnering with providers from different areas to continue innovating and ensuring clients access to better efficiency and quality, both in the information provided and in the access to global markets. All of this makes us a broker adapted to the modern era, so dynamic and demanding. We are a DIFferent broker.
- Rule number 1: Pay Yourself First
Think you don’t make enough money to save some of it? Think again! If you earn 12,500 euros a year for 40 years, you will have earned 500.000 euros! Earn 20,000 euros for 40 years, and you’ve earned 800.000 euros. And if you earn 25,000 for 40 years, you’d have made 1 million euros!
Pay yourself first and you can get ahead in the savings game. Here’s what can happen when you save just 100 euros a month for 40 years:
• At zero percent interest, you’d have 48,000 euros.
• At three percent interest, you would have about 93,000 euros.
• At five percent interest, you’d have about 153,240 euros.
That’s the power of paying yourself first! After all, it’s not what you earn – it’s what you keep!
- Rule number 2: Start now
Want to save 1 million euros by age 67? You’d better get started soon.
The longer you wait, the more you’ll have to put away each month to reach your retirement goals. Before the crisis of 2008 it would be normal to use a 9% rate of return compounded monthly. This is no longer possible because of the financial repression imposed by Central Banks.
If you are 27 years old now expect to accumulate 333.000 euros if you put away 214 euros using a nominal 3% rate of return compounded monthly. Before 2008 saving the same 214 euros a month you could reach 1 million euros.
• If you start at age 37, you will need to put away 541 euros a month to reach the same goal.
• And if you begin at age 47, you will need to put away 1,491 euros a month.
• Wait until age 57, and you need to put away a 5,168 a month.
So, the sooner you start saving, the more you can save the fewer euros you’ll have to put away each month to reach your retirement goals. Don’t count on social security, don´t wait. Start now!
- Rule number 3: Apply the Rule of 72
The Rule of 72 is an easy way to calculate just how long it’s going to take for your money to double.
Just take the number 72 and divide it by the interest rate you hope to earn. That number gives you the approximate number of years it will take for your investment to double.
A 10,000 euros will double in 24 years at 3%, but the same 10.000 euros will take just 6 years to double at 12 percent return.
With interest rates now negative following the rule of 72 is paramount to keep track on your investments.