What is the best financial investment? Where to find a profitable investment?
As I just mentioned, it is better to pay attention to the bankers especially if they have goals to achieve in terms of placement. They can sometimes have interesting advice but they are primarily commercial and they place their products. And yes, savings products are products for sale like any other.
When you buy a life insurance policy in your bank, it is not necessarily the one that pays the most for the market. It is therefore important to work for you and to find yourself the best placement.
If you want to take control of your finances and choose the best investments yourself then the rest of the article will be for you:
We are not all ready to take risks but if you want to have big returns with your money, it will take some, the best financial investments are not booklets or guaranteed investments, that’s why I want you advise to save your money in two ways:
A precautionary savings : It will serve you to have some money available in case of a hard blow, on a booklet in your bank for example.
Investment savings : this is what will interest us in this article, it will allow us to invest in profitable and riskier investments.
You can use some of your savings to take risks, it is money you do not need to live, for an immediate project or future, at the risk of being disappointed or in financial difficulty. It is not necessary to win on all placements, but you only need to win more than you lose and you win because you learned and you got rich.
Here are the best financial investments in my opinion:
# 1 To train
Strange as first advice is not it? And yet did not you go to school before working? have you not been trained, studied to learn your trade?
How do you want to invest if you do not know how? The best financial investment is you!
Previously I told you that it was essential to manage your own investments, with the internet you can do everything yourself and the information is unlimited.
There are two ways to go: Gather information on each financial investment as you do here by reading the article, or buy training.
Some paid online training can be interesting when the price is acceptable and you save valuable time, it is the goal, to save time and to be able to apply quickly, because time is money.
In the same way, some books are full of information worth of gold at prices at the raz of the daisies.
Take the time to read well inform you, if you do not have the time, replace the tv of the evening by a book, even if it is only 15 min it is already that.
There are also podcasts on the internet that allow you to listen to training while playing sports and thus optimize your time.
# 2 Real estate
When we talk about the best financial investment, we think almost immediately real estate because the stone has a reassuring side and the heritage side is of interest to everyone to transmit something to these children.
Real estate can earn a lot of money if you know how to invest , and can put you in a difficult situation otherwise.
Let’s go back to your banker or other wealth manager:
It will sell you new with a beautiful law Pinel promising you a drop in your taxes, it’s beautiful no? A new apartment and in addition you pay less tax?
Ben no it is nothing amazing, because you will buy a much too expensive compared to the old while the rent will not increase proportionately to this differential.
Result: you will lose money on resale and your return will be very low, around 3%.
It’s great not 3% A booklet is 0.75% so it’s better no?
Missed! 3% in real estate is really low, some investments can reach well over 10% gross as investment properties or seasonal rentals with more than 20% gross but it takes longer.
So you will understand that to have the best financial investment, you have to know the good niches …
The big advantage of real estate is the leverage: You invest with the money you do not have, the money from the bank.
It is quite possible to borrow all of your purchase , work and notary fees if your rents cover the entire credit and more.
Hence the importance of having a big yield (annual rent / purchase price).
The title of the article is: the best investment, so should you put your savings in your real estate purchase?
I would say no if you have little savings, it is better to keep them to maintain your good …
With more savings to invest, yes if the returns are high, it’s a good way to put your money, especially that your property can appreciate over time and therefore enrich you even more but pay attention to taxes …
Not easy to find big returns, even some seasoned investors are barely able to cover their credit. To have investments that generate a high return even in the big expensive cities, there are techniques to know and to be formed.
if you want to train at a lower cost and get started I recommend the training of Paul Sarrazin I followed:
To sum up: You will have to find a property with a good return, borrow the maximum from your banker and take a closer look at the tax loopholes so as not to be too taxed and train to not do anything with your money and lose it. …
# 3 The stock market
The stock market scares you? I understand, I was in the same case, especially at the beginning, we try and we lose a little money because we know nothing about it. Yet leaving your money on a booklet makes you lose agent with inflation, and life insurance with the fund in euros does little more than 3% per year for the best funds.
While we can expect to earn 10% per annum on the stock market, as for real estate, with a minimum of knowledge.
Look at the chart of the CAC 40 , the index of the French market since its creation:
You can clearly see that apart from two big financial crashes the trend is on the rise in the long run.
Instead of selling everything when you are in these crash phases, it is better to keep and wait for it to rise, and continue to buy in order to lower the average price of its shares, and ultimately on the long term we are more often a winner than a loser …
Look at French stocks since 2012, not bad?
This curve does not include dividends paid by certain companies . Indeed, some companies pay a portion of their profits and this can significantly increase the return and gains of your shares: The snowball effect .
So, if during the downs, you hold big dividend stocks , then you lose a lot less and you earn more in the long run, probably the best long-term financial investment.
On the other hand, it is possible to earn money faster on the stock market, this is called speculation: instead of investing in long-term solid companies, you buy in the right moments (decline in high-growth stock or stock) and you resell when you reach your performance goal. Some do it even on a day, this is called day trading , or on several days: swing trading, which require more time.
You will understand, there are many strategies on the stock market, and you need to get a little familiar with the technical vocabulary for sure but it is not necessary to be an expert to earn money on the stock market. It all depends on your goals, just earn more than you lose …
On the stock market, your biggest enemy is you. The psychological aspect is very important.
# 4 Create a profitable business
The best investment: Create a business? Indeed it may seem surprising at first glance, but when you think about it, if you invest a little money in a profitable business, money does not pay?
Of course you have to invest a lot of time but the game can be worth it.
Let’s take a concrete example:
You want to get started in e-commerce: Buy from a wholesaler and resell on the internet. (your site, amazon or other marketplace)
We recommend a gross margin of 30%: you buy 100 euros at the wholesaler (all inclusive) and you sell 130 euros.
You start like everyone else with the status of auto-entrepreneur where you are taxed 14.4% of your turnover.
So in the end you will pay tax (14.4 x 130) / 100 = 18.72 euros out of 100 euros invested you will earn 30% gross and more than 11% net of tax.
In the end you earn more net than most investments on the market.
So why not take some risks with a portion of your savings and test different business, even if it does not work, as long as you can real profits online not lose too much, and on the lot some will walk. But if you never try, you will never make money, as the famous slogan says: “100% of the winners have tried their luck!”
I used some of my savings to test many things, business, investments etc, some did not market others yes. The bottom line is that in the end I’m not losing and then I can invest my time on what works best, the most profitable.
# 5 Life insurance, cows and SCPI and others.
To finish on the theme of the best financial investment, I will play security, because the risk is not for everyone and everyone’s goal is not the same. Maybe you do not want to enrich yourself but just put money in a safe and quiet way without worrying about it?
So expect lower returns.
These are the real estate investment companies, which we call paperweight, because you put your savings in companies that invest in real estate without the disadvantages of asset management.
This is a much better investment than the A booklet for so-called “yield” SCPIs are around 5% per year net of fees.
It is rather safe as placement even if nothing is guaranteed. When I started to look at how to buy scpi I found that it was not easy to find a place where you could mix your investments in the best scpi. So I found a nice site Portal-SCPI where you can buy all the scpi of the market in the same place , it is not more expensive and the big advantage is that you are entitled to an adviser in wealth management free of charge, which tells you what’s best for your investment, so it’s much easier to invest and diversify your investments. At least it’s not like a bank that will put your product first.
I am not a big fan of wealth management advisors when given a free hand as I mentioned at the beginning of the article. But in the specific case of SCPI this can be useful because some are specialized in these products and know them perfectly and so give you all the information and then it is you who choose and give them the order to buy this or that product .
Invest in a company, SME:
It is quite possible to invest in companies with crowdfunding. There are serious companies that offer to invest in according to your budget in profitable investments on paper: between 4 and 10%. This entails some risk of losing capital if you bet on the wrong horse. Nevertheless I find the idea interesting and it remains an original placement to put in this top. Serious platforms in this area are known: For example is reliable and interesting yield. We can invest from 50 euros, which is a good solution to diversify investments in different companies. They have many serious partners and are regulated by the French authorities. So registered and perfectly in the rules.
Another important player in the market and reliable: Lendopolis offers an interesting offer if you go through my link below: 1 0 euros offered for 100 euros lent 20 for 200 euros and 30 for 300 euros! access to the site and take advantage of the offer . This remains a slightly riskier investment than scpi but investing to test does not represent a big risk and allows to diversify its investments.
The advantage of this kind of platform is clearly the possibility of diversifying the companies on which we bet. So if you put 100 euros on one then 200 euros on the other, you diversify your investments and therefore the risks. in any case that’s how I see things.
This investment may contain stocks, which I did, but most people do not want to hear about stocks and prefer to invest in euro funds. These are investments whose returns are guaranteed, but whose rates are declining from year to year. So we are far from the best investment but at least it is safe.
At the time of writing this article the best life insurances are at online banks, around 3% guaranteed bottom yield.
Their opening is free on the banks online you can in addition 80 euros during your registration with Boursorama without obligation to domiciliate your salary or to leave money, to register: Click here
You can open several life insurance in several banks. The big advantage is a tax deduction after 8 years.
Invest in a cow:
You invest in an association that rents cows to breeders who do not want to buy them. You are paid every year and you can reinvest your winnings to play on compound interest. I made an article on the subject that you can find here .
As I mentioned at the beginning of the article, there are many investments I have not talked about. The booklets can of course be used to place their precautionary savings but they will not pay you anything. Dare to put some of your savings into slightly riskier investments and spend some time training yourself, educating yourself, so that the money you earn with your hard work brings you money. And do not forget that the best investment is you!