See What to Consider When Choosing Between Fixed or Variable Income

When it comes to investment, the first question that arises is, what is the best option? Fixed or variable income?

The answer depends on your financial goals, your investor profile and the risk you are willing to take.

However, investing your money is one of the most efficient ways to build long-term wealth.

So let's explore these two types of investment, their main differences and how to choose the best one for your financial planning.

What is Fixed Income?

Fixed income is a type of investment where profitability rules are defined at the time of application.

This means that, when investing, you already know how much you can earn or how your income will be calculated.

Fixed income investments are ideal for those seeking greater security and predictability.

Some common examples of fixed income are:

• Direct Treasury: The government issues public debt securities to raise funds. The investor buys these securities and receives back the amount invested plus interest.
• CDB (Bank Deposit Certificate): It works like a loan that you make to the bank, and in return, it pays you interest.
• LCI/LCA (Real Estate and Agribusiness Credit Letter): They are issued by banks and are exempt from income tax for individuals. They finance the real estate or agribusiness sector.

The great advantage of fixed income is that it offers much lower risk, making it ideal for conservative investors.

However, in times of high inflation or falling interest rates, returns may be low.

What is Variable Income?

Variable income, as the name suggests, does not offer predictability in earnings.

Here, returns are linked to the performance of market assets, such as company shares, real estate funds or cryptocurrencies.

The returns may be high, but the risk is also high.

Main examples of variable income:

• Actions: Buying shares means acquiring a small part of a company. If the company grows, the value of the shares tends to increase, generating profits for the investor. However, if the company's performance worsens, the shares may depreciate.
• Real Estate Investment Funds (FIIs): These are funds that bring together investors to invest in real estate. The income comes from the rental of the properties or from the appreciation of the assets.
• Cryptocurrencies: Investing in digital currencies like Bitcoin can yield huge returns, but there is also a lot of volatility.

Variable income is a good option for investors with a greater appetite for risk and who are looking for more aggressive growth potential for their assets.

However, it is necessary to accept that market fluctuations can bring losses in periods of decline.

How to Choose between Fixed and Variable Income?

The choice between fixed income and variable income depends on two main factors: risk profile It is financial goals.

1. Risk profile: If you are conservative and prefer to avoid sudden fluctuations in your assets, fixed income is the safest choice. For those who are more daring and have a tolerance for risk, variable income can offer opportunities for greater gains.
2. Financial goals: If you are investing for short- or medium-term goals, such as buying a car or building an emergency fund, fixed income may be more suitable, as it offers more stability and predictability. For long-term goals, such as retirement or wealth growth, variable income may be interesting, as time helps to dilute fluctuations and maximize returns.

Additionally, many investors opt for a hybrid strategy, which consists of combining the two types of investment.

This helps to balance the portfolio, ensuring a level of security with fixed income and increasing growth potential with variable income.

Examples of Investing Apps

To make your decisions easier, there are several applications that help you choose and manage investments, both in fixed and variable income.

Below are some examples with links and user reviews:

1. Nubank – NuInvest (Formerly Easynvest)
   • Rating: 4.5/5 (Google Play)
   • Simple to use application, with fixed income options (Direct Treasury, CDBs) and variable income options (shares, funds).
2. BTG Pactual Digital
   • Rating: 4.4/5 (Google Play)
   • It offers several investment options, including fixed and variable income. Highlights include personalized recommendations.
3. XP Investimentos
   • Rating: 4.3/5 (Google Play)
   • One of the biggest players in the market, with several investment options and support for beginners and advanced investors.
4. ModalMais
   • Rating: 4.2/5 (Google Play)
   • Application that offers a wide variety of investments, including stocks, funds and fixed income. It has an intuitive and simple-to-use interface.

Conclusion

Choosing between fixed income and variable income depends on your financial goals and your risk tolerance.

While fixed income offers security and predictability, variable income brings greater potential for returns, but with more uncertainty.

The key to investing intelligently is to balance these options according to your profile and goals.

With the help of the right applications, you can monitor the performance of your investments and make adjustments over time, always seeking the best return within your financial planning.