One of the questions I get the most is “what is the best investment for someone with R$ 1,000?”. Variations with different values are frequent. Although there is not just one answer, I decided to do simulations of some different strategies among the options of Tesouro Direto. I’ll show you where I would apply it and how much R$1,000 yields in different scenarios, just like the screen I show in the following video.
Where to invest R$ 1,000 for the emergency reserve?
Looking at Treasury Direct, if you still don’t have your emergency reserve up to date, I would invest in the Selic Treasury.
By investing the R$1,000 once in the 2027 Selic Treasury, you would withdraw R$1,400 at the end of the expiration date. It is a profitability of more than 40% in the period, already discounting the Income Tax. In savings, we would have R$ 1,300 in the same period.
Repeating the application of R$ 1,000 every month, the contributions would total R$ 59 thousand, which would become R$ 68,700, against R$ 66,800 in savings.
It is a profit of almost R$ 10 thousand. That’s R$ 2 thousand more than in savings.
Still confused about your emergency fund? Check here for the best explanation of it.
Where to invest R$ 1,000 for those who already have an emergency reserve?
If you already have your emergency reserve up to date, I recommend diversifying your investments in the Fixed-rate Treasury and the IPCA Treasury.
These investments are recommended for those who planned to leave the money invested until the end of maturity. So, be careful not to invest in options that will only expire after a period that exceeds your goals.
As there are several maturity options, I will stick to the 2029 Fixed Rate Treasury and the IPCA 2045 Treasury, investing R$ 500 in each option.
How much do R$ 500 earn in the Prefixed Treasury?
On the date of the simulation carried out in the video at the top of this text, the Prefixed Treasury 2029 was yielding 12.04% per year.
With this return, the BRL 500 invested in a single payment would have turned into BRL 975 net at the end. It is a return of 95% in the period, while savings would not yield 50%.
Repeating the application of BRL 500 every month, the contributions would total BRL 40,500, but this would become BRL 57,500, which is much more than expected for savings (BRL 48,000).
It is a profit of R$ 17 thousand. That’s R$ 10 thousand of what we would have in savings.
How much does R$500 earn in the IPCA Treasury?
On the date of the simulation performed in the video at the top of this text, the IPCA 2045 Treasury was yielding 5.63% per year above the inflation measured by the IPCA.
Applying BRL 500 in a single opportunity, this would become BRL 2,900 at maturity against only BRL 1,500 in savings.
Repeating the application of BRL 500 every month, the total amount contributed would be BRL 138,500, which would become BRL 372 thousand already deducting taxes and fees.
Do you know how much you would have if you made these same investments in savings? Only R$ 253 thousand. That’s R$ 120 thousand less than expected for this IPCA Treasury investment.
Is it possible to invest like this?
I know that there will be complaints that this simulator is “broken” because the Treasury does not allow investing until maturity, removing the possibility of new contributions when there are about two years left to maturity.
But it is precisely at this time that the Treasury usually launches a new application very similar, but which expires later.
In fact, the Treasury did this this year and I did the math showing how much the new Treasury investments are yielding. It’s all recorded in the video below.
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