Combining the Savings Portfolio and Target Portfolio. Elena’s story.

From being a slave to promotions to owning her time.

This is the story of Elena*, a 45-year-old professional who, like many conservative savers, believed that managing her money well meant being the quickest to snap up the offer of the month: jumping from one promotion to another and making sure she never missed one.

What she didn’t realise was that, in reality, her money was managing her.

The myth of the “savvy saver”

Elena’s wealth was a complex puzzle: Treasury bills, an interest-bearing account at a national bank, a fixed-term deposit and a promotional account at a foreign neobank. By jumping from one institution to another, she believed she was squeezing the most out of every euro. She didn’t mind that the APR looked attractive even though the promotion actually lasted for only three months.

The problem was that this strategy had a cost that didn’t appear in any brochure.

She had to keep track of Treasury auctions and deposit maturities to prevent her money from sitting idle. Many promotions required her to have her salary paid into the account, take out products that didn’t suit her or meet minimum relationship requirements. By moving money around in search of that extra 0.4%, she lost days or weeks in the “limbo” of transfers, when her capital was earning nothing. And every time Treasury bills or deposits matured, she had to pay tax, preventing her from reinvesting 100% of the returns.

“I can’t do this anymore”

The breaking point came at ten o’clock one Tuesday night. Elena was sitting in front of a spreadsheet trying to decide whether to open yet another account to earn a few extra tenths of a percentage point. The latest in a long list over the past three years. That was when she realised she was losing hours of her life, time with her children and time with her partner, for a minimal difference.

She was tired of chaining one product after another. She needed a simple strategy she could maintain over time.

The solution: two pillars, one system

Elena decided to stop being a “deal hunter” and become a strategic saver.

Interestingly, the solution was closer than she thought. Elena already trusted inbestMe with her long-term future: she had an Index Fund Portfolio and a Pension Plan, both designed to supplement her retirement. What she had not considered until then was that the same platform could also help her with her short- and medium-term goals. There was no need to look elsewhere. She decided to centralise and divide that restless pool of savings between two complementary tools.

inbestMe Savings Portfolio: her financial safety cushion. She allocated €15,000 to the portfolio of money market funds for her emergency fund. Her money works continuously, with no entry windows or promotions that expire. No mandatory salary payments, no tie-ins, no fine print. Returns are linked to European Central Bank policy: if the ECB changes interest rates, the portfolio reflects it. Total transparency.

Target Portfolio maturing 02/2029: her home renovation project. In around three years, Elena wants to renovate her home. For the €25,000 set aside for this purpose, she chose a portfolio with a defined maturity date in February 2029. This allowed her to seek higher returns than money market investments, diversify risk across hundreds of issuers and have greater clarity about what she could expect at maturity. Her goal: to prevent her money from losing purchasing power. If the cost of the renovation rises with inflation, as is very likely, an annualised return above average inflation fits her needs perfectly.

The real test

Shortly after setting up her new structure, it was time to replace her car. Her old one had been crying out for a replacement for some time. Within a couple of weeks, she found a good opportunity that suited both her needs and her budget.

Elena didn’t have to worry about her money being locked into a deposit. Nor did she have to pay penalties for withdrawing it early. She didn’t need to keep track of Treasury bill maturities or close an account full of tie-in requirements. She simply withdrew €8,000 from her Savings Portfolio. She knew the money would be in her account within five or six business days. That was all she needed to know.

The remainder of her emergency fund continued working every day and, to restore it to her desired level, she rescheduled her automatic recurring savings.

There was no need to calculate provisions for the tax bill the following year: when the withdrawal was processed, tax on the gains had already been deducted. The following year, all the information would be included in her draft tax return.

No strings attached

Elena also learned that her plan can adapt.

If she needs to access some of the money for the renovation earlier than planned, she can make partial withdrawals from her Target Portfolio before maturity, or use her Savings Portfolio as long as the amount does not compromise her emergency fund.

If the renovation is delayed and the Target Portfolio reaches maturity, she can transfer the funds with tax deferral to her Savings Portfolio or to another Target Portfolio with a timeframe that fits her new plans. No chasing the deal of the month. No changing salary payments or direct debits. No weeks with money sitting idle. No paying tax until investments are sold.

Today, Elena no longer runs after the “promotion of the month”. She has reclaimed her time, eliminated the periods when her money sits idle and enjoys the peace of mind that comes from having a system that adapts to her life, rather than the other way around.

*We have adapted a real case, changing the name and financial goals for privacy reasons.