2024-03-11 10:12:32
« Money is a good servant, but a bad master», said Alexandre Dumas. What might be more true in 2024, when the economic crisis rages and threatens the purchasing power of French households. Fortunately, there are solutions to see your savings grow despite the gloomy context.
Understanding Value Investing
Value Investing is an investment strategy developed by the legendary Warren Buffett. It’s a proven approach to generating superior returns. Its principle is simple. You have to buy shares that are undervalued by the market, available at a discount price compared to the real intrinsic value of the company.
Then you will have to conduct a careful fundamental analysis companies and study their financial statements in depth to determine their true book value. It is therefore meticulous work that requires rigor and good expertise.
Fortunately, on the site https://www.value-investing-screener.com/, you will be able to benefit from innovative tools. This cutting-edge platform automatically scans the market in search of these famous undervalued stocks, sifting through no less than 35,000 companies in each sector of activity.
This saves precious time and maximizes your chances of unearthing rare gems promised to be a spectacular success.
The importance of diversification
Diversification is one of the fundamental principles for success in the stock market. Rather than putting all your eggs in one basket, you must on the contrary distribute your investments across different business sectors, asset classes and geographic areas.
This risk dispersion strategy has many advantages. First, it allows to cushion shocks in the event of poor performance of a particular sector. Then, it smoothes returns over time.
Indeed, certain assets will be able to progress while others mark time temporarily. Finally, it maximizes opportunities by allowing you to take advantage of the best potential of each asset class.
Betting on technology stocks: a winning bet
The technology sector has been on the rise for several years, driven by the constant innovation of digital giants. Despite some stock market ups and downs, growth prospects remain attractive in the long term.
Favor world leaders, like Apple or Meta, as well as the nuggets of French tech. Of course, the initial investment is significant, but so are the dividends. And with a bit of luck, your initial investment will quickly be profitable!
Explore new sustainable and solidarity investments
Socially responsible investment (SRI) is attracting more and more French people, wanting to combine profitability and positive impact. Green bonds or funds dedicated to financing ethical activities offer attractive returns while financing sustainable development.
Also know that it is possible to invest your money in virtuous SMEs, via crowdfunding platforms. Obviously, the risk is higher, but what satisfaction to contribute to meaningful projects!
Play the diversification card, by all means
To optimize your stock market portfolio, diversification is essential. Combine stocks, bonds and money market products to cushion inevitable market fluctuations.
Don’t be afraid either focus on more original assets as :
- raw materials ;
- cryptocurrencies;
- and hedge funds.
Although it requires a strong appetite for risk, the potential gains can be astronomical, provided you know how to exit at the right time;
To finish, rental real estate is also a safe long-term investment, as long as you select your assets wisely.
Capitalize on your retirement savings over the years
The mistake would be to neglect retirement savings schemes which offer attractive tax advantages while building up additional income for your old age. Life insurance, retirement savings plans (PER) or Madelin contracts for the self-employed make it possible to invest your money while benefiting from exemptions.
Little by little, your nest egg grows in a protected environment. When you retire, you are free to choose the most advantageous exit method. This allows you to look to the future with serenity!
Adopt a tailor-made wealth strategy
Whether you favor security or, on the contrary, measured risk to boost your gains, your investment strategy must correspond to your profile, your objectives and your investment horizon.
Be accompanied by professionals who will be able to provide you with personalized recommendations. The main thing is to remain consistent in your choices, without giving in to the lure of speculation at all costs. Indeed, enriching your heritage takes time and method!
Optimize your taxation to maximize returns
Before diving headlong into risky investments, it is better to start by optimizing your tax situation. Favorable taxation can greatly improve the profitability of your portfolio.
Choosing the right marriage framework
Your marital regime has a direct impact on managing your assets and its transmission. The regime of community reduced to acquisitions is the most protective for personal investments, with nevertheless solidarity between spouses on debts.
The regime of separation of assets offers even more independence since each asset remains compartmentalized. But be careful, in the event of death, the spouse inherits nothing. A property stripping strategy can, however, guarantee certain rights of the survivor. The choice is therefore difficult and it is best to seek advice from a notary!
Take out the right life insurance contracts
Life insurance is very useful for passing on your assets while benefiting from attractive taxation, provided you prepare it well. Position your beneficiaries optimally and choose a formula adapted to your objectives.
If you wish to benefit your loved ones during your life, opt for the split beneficiary clause which allows you to pay them income while retaining bare ownership. In the event of death, they will inherit the capital. It’s a formidable combination of efficiency!
Investing via a civil company
The creation of a real estate company (SCI) or a real estate investment company (SCPI) presents numerous tax advantages. Indeed, rental income received by the company are subject to corporate tax and not income tax.
In addition, this corporate form makes it possible to optimize the transmission of assets by distributing the shares among the heirs. These are all reasons to take the plunge if your portfolio is growing.
With these recommendations, your wealth strategy will take off and your portfolio will reach new heights! The main thing is to always keep a cool head and a sense of reality. The best investments remain those made wisely.
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