How does Selma put my investments together?
What Selma has a look at:
1. How you take care of your money so far.
Have you been saving your money mostly on your cash account, invested a part in stocks, bitcoin or have you already bought an apartment?
How you have been taking care of your money has a large impact on your future investments. Knowing your past investments, Selma is able to calculate how much risk you are already taking.
2. Your savings potential
To better understand how much risk you can take at max., Selma calculates how much you can save up until your retirement.
This is calculated based on how much you are able to save monthly. Selma calculates the total savings including a growth rate that depends on your age, the type of your work and the stability of your income. The savings potential of a 27-year-old freelancer with fluctuating income is quite a bit different in comparison to a 43-year-old university professor with a steady monthly salary.
3. Your relationship with risk
Beyond your ability to take risks, Selma evaluates how comfortable you are in dealing with losses. We make sure that you don’t take more risk than you like and always refine your investments. Selma does this by combining an initial self-assessment that includes your emotions and reactions to loss scenarios.
Your ideal investment
After Selma got to know you a little better, we create your ideal mix of investments based on your profile. Selma does that by:
1. Excluding things, you have already invested in
To prevent you from taking too much risk in certain areas, Selma excludes for example real estate investments in case you had already bought a house or own an apartment.
2. Putting together a perfect mix of growth vs. stable investments
Based on your investor profile Selma calculates, which part of your money should be invested in growth-focused investments (e.g. company stocks) vs. in more stable products that focus on keeping their value. (e.g. country loans).
3. Spreading your investments across the globe
To make sure your investments aren’t dependent on the performance of single companies, industries or countries, Selma spreads your risk across the globe.
4. Investing less in markets that are expensive
Selma keeps an eye on financial markets 24/7 and measures constantly if market prices are high or low. In case prices of specific financial markets are too high, Selma would automatically invest less in them. This is done in order to reduce your risk of losing money once markets correct.