While we explained to you in a previous article that the livret A no longer pays as much as before but that it is still a good investment device , you are certainly wondering how your money can bring in more. Also, it is quite possible to invest your money and make a present of use to your loved ones .
Before thinking about the means, you have to decide on your investment horizon, that is to say when you will need the capital invested, and your heritage objectives, ie the motivation for the investments. If it is a precautionary savings, you will need to be able to access them at any time and often in an emergency (to pay taxes, bills, etc.). It will therefore be necessary to check that your means of investment allows it. On the other hand, if it is a medium or long-term investment to finance a residence or studies for example, then you can take more risks and your money will bring you more. Once this question has been answered, it is time to choose the investment solution. Attention, who says more profitable, does not say without risk…
Which safe investments?
Thanks to the State guarantee, the booklets (booklet A, young person, LEP, LDDS) ensure that the saver recovers his bet. How it works ? Depositing money on these booklets generates interest rates which are added to the starting capital. This liquid product (name used for investments where money can be withdrawn immediately) is a safe place to deposit precautionary savings. Note that each booklet has its own interest rate (around 0.5%) and a deposit limit.
The life insurance contract also guarantees the subscriber not to lose the money deposited, whatever happens. It allows you to secure your funds and prepare your succession. This device generally has a higher rate of return than passbooks, but its profitability tends to fade. To increase its yield, you can vary your life insurance investments between unit-linked funds and euro funds.
Which investments have the best returns?
The stock market is one of the best ways to make money with your initial bet. The PEA (Plan epargne en Actions) allows you to invest in bonds, shares or funds and in general in the large companies of the CAC 40. Thus, you will benefit from dividends or a capital gain on resale.
Great competitor of the stock market? Cryptocurrency. The effect of the volatility of these virtual currencies is twofold: the possibility of gain is infinite and on the other hand, the risk is real. Investing in cryptocurrency therefore requires having good resistance to stress and being available at all times to buy or sell currencies.
Real estate is a buoyant market so do not hesitate to invest your money there! SCPIs (Civil Real Estate Investment Companies) are a good investment . The rate of return is around 4% and to optimize it, we advise you to invest in several SCPIs. With an average annual return of 9.2% in 2021 according to the specialized barometer, real estate crowdfundingis a very popular investment solution. But what is it actually? Anyone who wants to make a real estate transaction but does not have the necessary funds should contact a specialized agency to be put in touch with investors. At the end of the loan or over time (depending on the operation of the chosen platform), the real estate operator reimburses the capital and interest to investors. Any individual can lend funds to a real estate project but beware of the risks
What investment to prepare for retirement?
Opening a Retirement Savings Plan (PER) is an investment option to anticipate retirement. You can deposit as muc money as you wish, but be aware that withdrawals are not possible before retirement.
Where to invest €80,000?
Diversifying your investments is the safest way to earn money from the €80,000 you have invested – but not necessarily the most profitable, we grant you. Regardless of the devices you choose, remember above all to save part of your sum in precautionary savings. For the rest, you can also place them on the stock market, on a PER (Retirement Savings Plan), life insurance or even in real estate crowdfunding. To make up your mind, don’t forget to think about your investment horizon.
Where to invest your money without being taxable?
State-regulated savings accounts (LDDS, livret A, livret Jeune, PEL) are totally exempt from tax. So although their yield is low, it may be interesting to take an interest in them.
The PEA also allows you to benefit from tax advantages. There is no tax to pay on capital gains generated by investments after 5 years of ownership! The only thing to pay will then be social security contributions.
Other solutions exist if you are looking to pay less tax. To do this, invest in real estate! Within the framework of the Pinel law (on the purchase of a new property or under construction) and the Denormandie law (on the purchase of an old property to be renovated), you can benefit from a tax reduction under certain conditions.
