Financial planning: Key factors for evaluating savings and investments

When deciding where to save or invest surplus funds, several key factors must be evaluated to ensure alignment with personal financial goals and time horizons. According to Alfredo Salazar, general manager of AuguStar Seguros Perú, it is essential to look beyond simple profitability and consider how an option meets specific needs.

Key considerations include:

• Term and Liquidity: The timeframe for needing the money—whether for short-term needs or long-term goals like retirement—determines the appropriate product. Liquidity, or the ease of accessing funds, is critical, as is understanding any restrictions or costs associated with early withdrawals.

• Profitability: Returns should not be compared in isolation but must be analyzed alongside the term, contractual conditions, and associated costs.