A slightly lower participation than last year and with a shrinking budget. In this way, Spaniards face Black Friday , the discount campaign that is the kick-off for Christmas shopping, which this year is celebrated around November 27.

Amid the social and economic ravages caused by the coronavirus pandemic , there will be fewer consumers willing to buy, and those who do will spend less than on other occasions. In any case, the online sales channel seems destined for great success, due to capacity limitations and the recommendation to avoid crowds.

If last year 64.1% of Spaniards had bought something during the so-called Black Friday, in this edition they expect to do so only 60.3%, which is equivalent to a decrease of 3.8 percentage points, according to the latest study prepared by iAhorro on trends and purchase intention of Spaniards on Black Friday 2020.

From the banking comparator they emphasize that “it is the first decrease since 2018, the year in which the first report was made.” Likewise, 59.3% of those surveyed took advantage of the discounts last year and will do it again now, 4.8% bought in 2019 and this 2020 does not plan to do so, 34.9% did not join the initiative and They confirm this decision, and 1% will buy in this edition, although in the previous one they did not.

The biggest difference, however, will be noticed in the budget that will be allocated to these purchases, 10% less compared to last year and 8% less than in 2018.

The average expenditure for 2020 will be 128.20 euros. 22.3% of buyers will only spend between 0 and 50 euros on Black Friday, 27.4% between 50 and 100 euros and 20.4% will spend between 100 and 150 euros. Only 10.5% will get from their pocket this time between 150 and 200 euros and the remaining 19.4% more than 200 euros.

In general, 54.6% of those surveyed will maintain their budget, while 34.4% say they will spend less and only 11% will increase it.

While the amount of money allocated to Black Friday decreases, only 29.7% of those surveyed claim to have created a budget, or, what is the same, more than seven consumers out of 10 have no planned investment they will make in their shopping.

Regarding the form of payment through which they face their purchases, 52.3% do so with their income for the month, 23.4% with a credit card and only 15.5% with savings accumulated in previous months .

The reasons for the declines in participation and budget lie, on the one hand, in the impossibility for many to face this type of purchases, because their economy has deteriorated or as a precaution for the future.

On the other hand, in the fact that it is about purchases that they deem unnecessary. In this, the financial expert of iAhorro, Antonio Gallardo, sees a part of ” saving as a precaution “, and another almost obligatory, “for not being able to make certain consumption expenses such as, for example, leisure”, due to the limitations derived from the health emergency.

In this sense, travel appears as the major victims on this Black Friday. If in past editions this item used to account for between 8% and 10% of all purchases, this time it plummets to 2%, the largest drop by segment.

In the rest of the categories there are few changes compared to other years. They lead the ranking of fashion and accessories (62.1%) and computer science and electronics (44.1%). With 16.9%, video games is the only one that shows significant upward changes (16.9%).

This year, electronic commerce has become especially important for the acquisition of goods and services, since 45.4% will choose this channel during Black Friday, while 20.3% prefer physical stores and 34.3% will use both possibilities.

Always according to the iAhorro survey, the convenience of home delivery is the main reason why customers prefer to buy online.

A fact that, possibly, is closely related to the second pandemic wave , to the point that, for the first time, this reason exceeds that of finding the best discounts as the reason for choosing to buy online (35.4 % versus 30.5%, respectively).

“The digital channel has established itself as the absolute leader in purchasing decisions and this year it can multiply its weight”, reasons Sergio González, professor at The Valley business school. “There is no doubt that this year there are people who will not go to the physical point, or should not do so, at least not en masse.

However, there are many who continue to prefer the physical channel because they can live the experience of touching, seeing and testing the product or service on site ”, he clarifies. In fact, those who prefer to buy offline (20.3%, according to iAhorro) point to the fact of seeing or trying on what they want to buy as the most important reason for their choice.

The uncertainty derived from the evolution of the Covid pandemic and the dark clouds that hang over the Christmas celebrations will also affect the purchases of one of the most anticipated sales campaigns of the year.

“Black Friday has a lot of occasional shopping component for oneself and the gifts will be adjusted this year to a smaller budget”, Gallardo predicts.

“If the limitations continue, it is most likely that the decline will be much more pronounced mainly in leisure, but also in food, due to the decrease in family gatherings, although these purchases are usually concentrated after the holidays in early December”, adds.

Be that as it may, 33% of those surveyed affirm that among the main reasons to buy during Black Friday is to save on Christmas shopping, while 42.5% do so without looking for anything in particular and 20 , 6% have a fixed purchase objective.

The remaining 4.75% will buy for other reasons. The majority (42.3%) expect that the discount they can obtain will be up to 20%, 23.4% of buyers expect to obtain a discount of between 20% and 40%, and 21.8 % of respondents, between 40% and 60%. Only 12.5% ​​trust in achieving savings above 60%.

If more than half of the consumers surveyed by iAhorro finances their purchases on Black Friday with the income they have received this month and only 15% with the piggy bank established in the previous weeks, almost one in four do so with the card of credit. Most of those who use this payment method (44.2%) establish a fixed monthly payment fee.

On the contrary, 39.4% prefer to return the entire amount at the end of the month.

“Both options are valid”, says the Marketing Director of imaginBank, David Urbano, “it all depends on which one is more suited to the way in which each one manages money”. Paying everything at the beginning of the month, for example, will prevent the bank from charging commissions. Also setting a spending cap is another of Urbano’s tips.

Another factor to take into account during Black Friday is fraud in electronic commerce, since it tends to increase in initiatives of this type, although the European Directive on Payment Services has increased security in purchases made online. Even so, “in case of theft or fraud, blocking the card will be the first step to follow,” emphasizes Urbano.

And, if what has to be stopped are compulsive shopping to avoid surprises at the end of the month, it will not hurt to “make a selection of what we want to have for Black Friday,” he suggests.

“In this way, it will be possible to decide if the expense is affordable or if everything that is on the list is really needed,” he adds.

Special care with prices is what they advise from the Organization of Consumers and Users (OCU). Last year, only 17% of the products became cheaper, compared to 29% that became more expensive. Average prices in the month prior to the 2019 edition of Black Friday increased globally by 0.55%.

For this reason, the organization’s spokesperson, Ileana Izverniceanu, recommends “keeping track of the products that are needed and comparing between establishments before buying.”

There are a few weeks until the end of 2020 and time is tightening to put some order in all the chapters of the fiscal year before its closing.

If you want to avoid scares in the next income statement, which may be presented between April and June of next year, it will be better to review some key aspects.

Beyond some specific elements derived from the pandemic and that may affect personal income tax , the Registry of Tax Advisors (REAF) of the General Council of Economists (CGE) advises taxpayers to find out if their income is exempt and from what Exemptions or reductions could benefit your earned income.

Have you been fired? In this case, the compensation you have received is not taxed up to 180,000 euros. Anything that exceeds this amount is reduced by 30%.

However, to benefit from this exemption, the company or another related company cannot hire you again for at least three years from the dismissal.. In order for the compensation to be exempt, it is also necessary that the inadmissibility of the dismissal is recognized in the conciliation act before the SMAC or by judicial resolution.

“It is important to remember that the Administration should not perceive indications of a pact between the company and the worker”, they emphasize from the REAF, although they clarify that, “this last year, the National Court has questioned the indications used to reach the conclusion that a pact has existed, demanding greater evidentiary force from the Administration ”.

Have you still not agreed to exempt payments in kind? Well, it may be a good time to consider obtaining the transport check or the restaurant check for next year, among others.

In the case of medical insurance paid by the company, for it to be considered non-taxable compensation in kind, it is necessary that the policyholder is the company that grants it.

Do you have the supporting documents? The allowances for locomotion, maintenance and stay expenses paid by the companies to their workers are not taxed, but “it is up to the worker to justify the expenses of stay, locomotion in public transport, parking and tolls, so that it will be better to collect all those supporting documents before year-end ”, suggest the tax advisers of the CGE.

Likewise, when the company reimburses the partners for the expenses they have incurred to travel to the place where they are going to provide their services, they must prove that the reimbursement only serves to compensate them. Otherwise, it will be understood that it is an income subject to taxation.

Are you planning to transfer your habitual residence and have you turned 65? In this case, you will not have to pay taxes for the capital gain,even when you have sold the land where the habitual residence was located, once it has been demolished, provided that the transfer is made within two years after the moment it ceased to be your habitual residence.

Of course, “if the ownership of the home is shared with your spouse and if he or she has not reached that age, it may be convenient for them to wait until he reaches that age to formalize the transfer and benefit from a 100% exemption of the capital gain”, advise from the REAF.

If the main residence consists of a surrounding land and a stable, but with a single cadastral reference, only the capital gain obtained from the sale of the building where the spouses’ habitual residence appears, that is, the profit that It corresponds proportionally to the land occupied by said dwelling.

And the annuity? Those over 65 also have the possibility of transferring any asset or right and not paying taxes on the capital gain that occurs on condition of investing the obtained, with a maximum of 240,000 euros, in a life annuity .

It is important to remember, however, that the period to carry out the reinvestment is only six months. Therefore, “if it has not yet reached that age, the taxpayer should assess whether he is interested in postponing the operation until the year in which he has it,” say the tax advisers of the CGE.

Are you considering reinvesting in habitual residence? Any taxpayer can exempt the gain obtained in the transfer of their habitual residence, but, in this case, only if the amount received is reinvested in another habitual residence within a period of two years.

To apply this exemption, it is not necessary to use all the money collected with the sale, but “it will be sufficient to apply for the same purpose money borrowed from a third party, either directly or as a result of subrogation in a loan previously contracted by the person who transmits the property ”, they explain from the REAF.

Have you donated a business or shares in a company through which you carry out an economic activity? Check that the requirements of the state rule of Inheritance and Gift Tax are met to apply the reduction in the transfer of the family business and, if so, you will not pay for the capital gain.

Do you have to move residence? An unemployed person registered in an employment office that accepts a job that requires a change of residence, can deduct an additional 2,000 euros for other expenses in the tax period in which that transfer occurs and in the following one.

“However, it must be taken into account that it will not apply if no income is obtained from the acceptance of the job for which one had to change residence,” they point out from the REAF.

Will you receive a supplement to the pension in a single payment? In the event that you receive, since your retirement, a monthly supplement to your pension, for several years, and your employer proposes its replacement with a single payment, you may reduce this amount by 30%, up to a limit of 300,000 euros.

Are you considering rescuing the pension plan? The CGE tax advisers point out that the benefits are taxed as income from work, and that, if the plan is redeemed in the form of capital, a 40% reduction can be enjoyed on the amount corresponding to the contributions made prior to 2007

On the other hand, if it is redeemed in the form of income, it cannot be applied. “Therefore, before the rescue, you must make calculations and, in addition, avoid accumulating income to avoid the progressivity of the rate,” they warn.

Likewise, if retirement or disability occurred in 2012 and you have not received benefits, but you want to benefit from a redemption in the form of capital with the 40% reduction, the taxpayer must remember that the maximum term expires on December 31, 2020. If it occurred in 2018, the same deadline will apply.

Do they give you an incentive to retire? If your company favors the retirement of workers, paying them compensation for the early termination of the employment relationship, and you have the possibility to take advantage of this measure, keep in mind that you will not be able to reduce these returns, since they do not have a period of generation over two years.

This is so “even if the company requires a certain number of years of service to qualify for the program,” clarify the tax advisers of the CGE.

Equity pension plans rely on technology and their prospects are positive in the medium term

Recent news about the early availability of Pfizer’s vaccine and increasing clarity about the outcome of the US presidential election have injected a good deal of optimism into the stock market, which has taken the bullish path again.

And not precisely in the sectors most benefited by the pandemic. Last week there were increases in airlines, cruise lines and retailers, while telecommunication, consumer staples and software services lagged.

The VDOS category of USA International Variable Income pension plans , largely supported by the evolution of technology throughout the year, is the second most profitable in the year (3.23%), only behind Variable Income Emerging International (4.22%).

Of a selection of these five- and four-rated VDOS plans, the most profitable so far this year is ALLIANZ USA with an advance of 5.50 percent. At one year, it revalues ​​by 11.76 percent, with a fairly controlled volatility of 20.08 percent, which places it in the second best group for this concept.

Portfolio management takes the Standard & Poor’s 500 index as a reference, which represents the stock market performance weighted by capitalization of the 500 largest companies listed on the New York Stock Exchange. Exposure to currency risk is normally 100 percent in US dollars, although the fund is denominated in euros.

It is managed using third-party funds, part of them exchange-traded funds (ETFs), with the aim of optimizing management and diversifying risk. The limits applicable to investments in this type of assets are those established by law.

The plan can also invest in derivative instruments, with hedging and investment objectives, and always subject to the limits established by law. It applies to its participants a fixed commission of 0.30 and a deposit of 0.20 percent.

5.46 percent is the profitability obtained in the year by ABANCA USA . In the last year, it revalued 9.14 percent, registering a volatility figure of 20.84 percent. It invests up to 100 percent of its net assets in equities, with the possibility of reducing its exposure in favor of investing in fixed income with a maximum of 25 percent.

Investments in equities are carried out solely and exclusively in the US stock markets, always through adequate diversification of assets from a sectorial point of view, as well as an adequate combination of high and medium capitalization assets.

Among the largest positions in its portfolio we find the E-mini S&P 500 Future futures contract (43.51%) the Kingdom of Spain issuance for 5 years (37.84%) Electricity System Deficit Securitization Fund (2, 60%) the Amundi S&P 500 UCITS fund (1.41%) and the DB X-Trackers MSCI USA UCITS 1C listed fund (1.20%).

The minimum initial and periodic contribution to subscribe and maintain this plan is 30 euros, applying to its participants a fixed commission of 1.50 percent and a deposit of 0.10 percent.

Also with a four-star rating from VDOS, NARANJA STANDARD & POORS 500 has advanced 4.17 percent in profitability since last January. In the last annual period, it revalued 6.99 percent, registering in this period a volatility figure of 22.43 percent.

Its investment policy seeks to replicate the Standard & Poor’s 500 index. Investment decisions are made according to the criteria of the management team, investing in a variety of sectors of companies listed on the S&P 500 index. Being invested in dollars, its evolution is also linked to that of the US currency.

Its largest portfolio positions include the exchange-traded funds Lyxor S&P 500 ETF D EUR (25.50%) iShares Core S&P 500 ETF USD Acc (23.55%) XTrackers S&P 500 Swap ETF 1C (21.60%) Amundi IS S&P 500 ETF C EUR (19.37%) and the E-Mini futures contract on S&P 500 (3.29%). The subscription supposes a minimum initial and periodic contribution of 0.01 euros, taxing its participants with a fixed commission of 1.25 percent.

The outlook appears to remain bullish regarding the economic recovery and the revenues that companies will earn. However, in the short term, there are still some hurdles to be aware of for the major indices, such as long-term interest rate adjustments, as many of the large-cap indices, such as the S&P 500 and the Nasdaq, they are very sensitive to movements in interest rates.

Therefore, as interest rates rise, they can weigh down the performance of the indices. We must also consider the influence on the final result of the elections in terms of the configuration of the Senate.