Where to begin?

Personal (family) financial goals

The choice of any investment or pension accumulation product depends on your personal (family) financial goals. We suggest identifying your three to five most important financial goals and classifying them according to how long they’ll take to achieve: short-term (less than 5 years), medium-term (5-10 years) or long-term (10 years or more).

Examples of financial goals might be: financial stability (saving up enough for a “rainy day”), a trip around the world, your children’s studies at a prestigious university, financial independence – according to your personal (family) desires and needs. One of the goals should relate to the period when you’ll no longer be working and will want to enjoy a well-earned pension.

How to do it:

  • For each of your goals, define the goal itself, the amount needed to achieve that goal and the period of time for saving up that amount.
  • Decide what amount of money you’ll allocate for each financial goal and how frequently.
  • Choose the most suitable saving or investment instruments for achieving each financial goal.

For short-term goals we suggest choosing a savings account at a bank or a low-risk investment fund.

For medium-term goals you can choose somewhat more risky investment funds, like the Finasta Global Flexible Subfund.

For long-term goals we suggest choosing funds with higher-than-average risk, like the Finasta Baltic fund, the Finasta New Europe TOP20 Subfund, or the Finasta Russia TOP20 Subfund.

For pension accumulation, we suggest choosing 2ndand 3rd pillar pension funds. Accumulating in pension funds can increase the size of your pension to as much as 80 percent of your current income. The size of your future pension will depend on your current age, income, length of employment, size of contributions to pension funds, how long you accumulate and returns achieved by the pension funds. When selecting a pension fund, we recommend evaluating its rules and paying attention to the level of risk associated with its investments.

INVL investment funds are actively managed funds of shares and bonds from diverse regions. Those investing in INVL investment funds get a simple way to invest and take advantage of the growth potential in the equity and bond markets of emerging Europe, the Baltic countries and Russia. Read more about INVL investment funds here.

INVL 2nd pillar pension funds are funds into which some of the money is transferred by the State Social Insurance Fund, some is allotted by the state, and some is contributed by you. Compared with other regular saving and investment alternatives, 2nd pillar pension funds are especially attractive due to their small administration costs and potentially high yield over the long term. Read more about INVL 2nd pillar pension funds here.

INVL 3rd pillar pension funds represent broad investment opportunities and a chance to take advantage of a personal income tax exemption in Lithuania to get up to 15 per cent of contributions refunded. Read more about INVL 3rd pillar pension funds here.