You have a little, a lot or no money at all and you ask yourself in what should you put your money?
I will study with you all possible answers. However, be aware that this article is not universal because there are too many things to say.
The first thing to do is to define your situation.
Do an analysis of your situation
Indeed according to your objectives (your time and the acceptable risk) your taxation, the investment will be totally different, for example the SCPI are a good supplement of very long-term incomes which one can dismember to transmit or to buy in dismemberment to get future income later (without raising taxes now) but do not expect to get your money back quickly.
It will totally modulate this article depending on your situation and your age, your income, your situation (married couple, divorced, divorced, children?) Of your wealth of your investment capacity and debt, your goals and your fear of risk. I can only advise you to take stock.
Reminder of the principles of investment
Good investment is putting your money in something and giving up on immediate consumption hoping to consume later while being paid for the frustration of not having consumed it right away.
The principles in finance that you can read in my article are simple. After it’s like a simple diet in theory, practice is sometimes a different story.
If you want to enrich yourself, just make sure you cover your needs to say you have more income than expenses and invest in things that make money that difference. Indeed we must not forget that your income as an employee is limited to the time you can sell multiply by the value of time (your hourly wage). The basic problem is that the time you sell you no longer have for you and you can do what you want, we all age. On the other hand, your investments always work, despite the fact that you work or not.
This silly principle is really powerful combined with compounding interest and fiscal leverage and financial leverage . Remember that placing x euros at an interest rate allows you to grow your money exponentially. This capital will grow all the more strongly as you have the time and maximum return and more if you can still inject money regularly.
Never forget the triangle risk /liquidity /return .
Any investment has three characteristics:
- The risk that represents the probability of loss.
- Availability, that is, the ability to get your money back (in fact, to be exact is also part of the risk).
- The return which represents the potential of gain.
There are other features like the price of entry, the number of goods, etc.
So you will have to choose in the various existing investments the characteristics you want to privilege, knowing that it is impossible to get the three characteristics at the same time, except market anomaly and cheating, but in practice it is these investments there the most profitable.
Before investing, do not forget to have the equivalent of at least 3-6 months of charges (food + water + rent + gasoline, etc.) on an account available style booklet A to avoid needing money immediately
Then if you have money to invest, let’s analyse together investments that are mostly profitable, not too risky and no matter how long your money gets stuck.
NB: So be honest, no one is 100% objective (me included), we all our knowledge, our experiences a banker will be for the bank, insurer for insurance, a real estate salesman for real estate, a crowdfunding specialist for its platforms.
Invest in what you understand is what Warren buffet , one of the richest men in the world said.
Diversification reduces the risk, but also limits your chances of having a great win . So having 5 to 10 investments diversifies little, but offers a potential for big returns, having 20 investments increase your diversification and gives you a return closer to the average with a lower risk of extreme (both bonus and penalty). We can diversify the sectors (real estate, equities), the investment moment, the type of investment (share / bond) and even the investment category (small business, big), the place.
From a certain point, you will have what is called an investment portfolio, in which case you will mainly think according to your portfolio.
In general we advise to know how many actions to take is 120-your age. Example at 30 years you should theoretically have 90% shares (120-30) in a stock market portfolio.
Build your portfolio according to your age and your means
This part is probably the most difficult because it is subject to many variations, do not take it for advice (I would not be held responsible), adapt well depending on your situation, this is just a plan of life.
For your children (under 10 years old)
The most common mistake made by parents and very expensive for children is to put everything on a secure product or booklet A , your children do not need it they have time before them, often it will be more interesting to take a product type life insurance unit of account with shares.
Indeed 1000 € at birth on a fixed interest rate account gives just 1220 € to 20 years.
By cons if you have life insurance (or a product equivalent, life assurance is a special french product but has not really something do do with insurance) to say 5% or even 10% he will have 20 years respectively 2600 or 6700 euros, a real difference. (Formula 1000euros X (1 + rate) power time that is to say 20 years here). It’s one thing to start in life with 1000 €, it’s another to start with almost 7000 euros and we have not added anything for 20 years.
Just to illustrate a crazy difference:
To have 1 million when you retire at 1 year you have to put 17 € / month at 10% net for 65 years or at once 2500 € about yes only 2500 € (calculation 2500 * 1.1power 65) , by cons by putting on a booklet A would have to put comparatively more than 500,000 euros. More fortunately if by chance (in fact by selection of good investments) you reach 15% return we speak only of a single sum of 150 € or a multiplication by 6666 in 65 years, do not tell me that it does not give no thought.
I see you coming with your “yes but”, no “yes but”, stop with this sentence, ask yourself the question “how to do” and move from a negative attitude to a winner attitude.
This is not extraordinary returns except for the 15%, the stock market (Dow Jones dividends reinvested) during the last 10 years has made 12% since December 2008, 7.1% if you have suffered the crisis since January. A life insurance with a 100% Dow Jones equity tracker and you have 1% less return than the dow (11% or 6%), remove the inflation you turn around 5/8% in pure glander mode.
So for 2 hours of your life and a few thousand euros, your child will put the rest during his life, serve him it will help a lot even if it does not reach the million.
You understand the difference between the rich “sons of” and the poor now. The booklet A how much did you cost? I am 31 years old it cost me a good packet of money.
Good product: life insurance
10-20 years
This part is probably the most difficult because it is subject to many variations, usually as long as you are not in active life (still at daddy mom) and you will not need to spend particularly. It will mix between bonds and shares, the more you will need the money for studies, car, etc more it will take bonds with a lower return.
It will be necessary to think of a moment to open a booklet A to begin to have the equivalent of 3-6 months of charges as emergency funds.
Good product: life insurance + booklet A
20-30 years
Often an age where there is a lot of expenses and little income. It’s normally an age that if you’ve done well, but since most people have not prepared anything in the past, you risk going into active life empty-handed. If you have the opportunity to stay at Mom’s daddy boost your accounts thoroughly.
At first, complete your 3-6 months of booklet expenses and at the same time begin or continue to invest for the retirement and the first apartment. With low means you can still play on life insurance full action (you have retirement at 70, do not hope to have retirement before) or crowdfunding.
Be careful if you have a good capital: do not buy a big new car, this purchase will plumb the rest of your life. It is said that if you put less in your retirement than in your car every month, then you have a big problem.
If your employer abounds a PEE to boost the death, it is bread blessed these things, be careful if you change the box money is boring to withdraw (experience made at Crédit Agricole).
Good products: life insurance + booklet A + PEE, crowdfunding why not, real estate why not, stock market. You have to have several products (booklet 3/6 months reserve + scholarship for retirement + possibly real estate)
Note you can almost swap PEA (a french product that allow you to invest in stocks with fiscal facilities) and life insurance
30-40 years
In principle, the gap widens between those who did nothing and those who did. If you have not done anything yet, you will have to invest heavily.
Often children appear for those who have not had one before and you have a home loan on the back.
If you ever have a legacy, the bad idea is to pay off your mortgage, the good thing is to gradually invest your money and pay your car at 6% (real estate credit is closer to 1%, better invest this money and get 5% and have 4% total (5-1) than prepay because you hate credits).
If you have children, read the part 0-10ans
Good products: life insurance + booklet A + PEE, crowdfunding why not, real estate why not, stock market. You have to have several products (booklet 3/6 months reserve + scholarship for retirement + possibly real estate). Be careful there may be tax optimization with other products.
40-50 years
Generally children go through the study box and there you have made investments and it goes relatively well or you are strangled between credit and studies …
Continue on the launch, for the most fortunate you start to have other investments (second good …)
Good products: life insurance + booklet A + PEE, crowdfunding why not, real estate why not, stock market. You have to have several products (booklet 3/6 months reserve + scholarship for retirement + possibly real estate). Be careful there may be tax optimization with other products.
50-60 years
Normally it is now that you have your biggest salary, that your children leave the family, it is often necessary to still help them a little. But now for those who have not arrived we must put the pedal on the accelerator retirement being more than in 10 years, you must already have a nice nest egg that has mostly grown thanks to good investments.
Good products: life insurance + booklet A + PEE, crowdfunding why not, real estate why not, stock market. You have to have several products (booklet 3/6 months reserve + scholarship for retirement + possibly real estate). Be careful there may be tax optimization with other products.
60-70 years
Retirement goal, if you have not done anything at this age for retirement is already too late, however you have more than 25 years to live, 25 years is long, so you can still invest in part for you (retirement home) and partly for your children, grandchildren.
For those who have already invested, your annuities allow you to help your loved ones and enjoy.
Good products: life insurance + booklet A + PEE, crowdfunding why not, real estate why not, stock market. You have to have several products (booklet 3/6 months reserve + scholarship for retirement + possibly real estate). Be careful there may be tax optimization with other products. We are a bit in a logic of transmission, there is of course the life insurance, the dismemberment, see a specialist.
70-80 years
There we move into the transmission and retirement home, you start to be in much less risky investments and especially passive investments that does not require management, because let’s be clear, in 10 years it is not certain that still able to handle something.
Good products: we are in a logic of transmission, there is of course the life insurance, the dismemberment, see a specialist.
Morality
Invest as soon and as much as possible, the best time was 20 years ago, the second best time is now. In any case at one time or another someone has to tighten their belts and not have fun, you or your parents or children if you are a c **.
Example: to have 1 million to 65 years
According to bankrate
at 1 year you have to put 180 € / month at 5% net for 65 years (yes mom puts 180 € on an account, already hard)
at 1 year you have to put 17 € / month at 10% net for 65 years (easy to do) or at once 2500 € about yes only 2500 € (calculation 2500 * 1.1power 65)
at 20 years old, you have to put 500 € / month at 5% until you turn 65 (the salary of young people is almost SMIC, it would eat half)
at 20 years old you have to put 106 € / month at 10% until you turn 65
at 30 you have to put 880 € / month at 5% until you turn 65
at 30 you have to put 280 € / month at 10% until you turn 65
at 40 you have to put 1666 € / month at 5% until you turn 65
at age 40 you have to put 770 € / month at 10% until you turn 65
at age 50 you must put 3600 € / month at 5% until you turn 65
at age 50 you have to put 2300 € / month at 10% until you turn 65
at age 60 you must put 14300 € / month at 5% until you turn 65
at age 60 you have to put € 12,200 / month at 10% until you turn 65
note: inflation is included in the percentage, in practice it will then take about 3% more than 10% and there are often taxes.
As you can see, there is a big difference between 10 and 5% yield and depending on the age, above 500 € / month let’s be serious, rare are the people who do something, or they can not, either they do not want. In practice, there are almost three cases that really exist.
Shorten if you want to be rich quickly
Then you have to take big risks (especially via leverage), do not diversify a lot 5-10 products, invest and invest in a business (your company or equivalent). Reinvest everything like a big pig, work smart and a lot. In only 5-10 years it is feasible. You have to make a few thousand euros a month only.
How to invest and where to invest: available investments
antiquities
Antiques are a field of specialists.
Rates: a few hundred euros to several tens of thousands according to antiquity
Performance: An investment in antiquity or art is considered in the long term, at least between 8 and 12 years to hope for an average gain of 7%.
Liquidity: low
Taxation: be careful there is a particular
Art
Accessible from a few hundred euros, but likely to reach stratospheric prices, art is a potentially very high risk investment.
One must be wary of fashion effects and know each other.
Rates: a few hundred euros to several tens of thousands according to antiquity
Performance: An investment in antiquity or art is considered in the long term, at least between 8 and 12 years to hope for an average gain of 7%.
Liquidity: low
Taxation: be careful there is a particular
stock Exchange
As much as honestly, there are traders and investors. I have already done a big article on the subject because it’s so vast. See the stock market
Take an example with 5000 € and fees (per line + transaction + retention) you can pay one or two shares, so you do not need to trade because it will take a lot of profit to get to zero. The trading you can forget.
In addition, the CAC is at 4300 you have a good chance of losing (the CAC oscillates between roughly 3000 and 6000 and 4300 still being in the middle http://richesse-et-finance.com/how-to-get- all-the-bets-in-purse-my-method-two-barriers / ). It will take knowledge to find exceptional companies at normal prices (you do not want normal businesses at exceptional prices), brief market and average and you do not have the knowledge.
On the other hand via PEA, PEE or life insurance like the one I propose or on a tracker for example that you can additionally feed every month yes it is possible. There the stock market takes all its interest. The return on a tracker is the return of the stock market, it is average, but you take less risk.
There are many possibilities and the stock market still has big advantages. It is a possible choice for a small wallet like a big one.
Rates: a few hundred euros to several tens of thousands depending on the method of your investment
Performance: Depending on whether you trade or invest, it depends on the timing, the company and your strategy. In short, many factors mean that you can expect an average (highly variable) return of 10%.
Liquidity: strong
Taxation: depending on how you invest
Derivative (turbots, etc.)
These products are more or less complex derivatives and are set up by financial institutions for issuers with specific financing needs. These products represent a small portion of derivatives and are reserved for seasoned investors. Exotic products are often criticized for being illegible. In addition they are often very volatile, that is to say that the course can vary astronomically in a few days. They can also have a leverage effect that is, you can lose more than your investment. Reserved for pros.
In general they represent only a few percentages of investors’ portfolios.
Rates: very variable
Yield: Beyond 10%, but be careful you can lose more than your investment.
Liquidity: strong, but often we can invest in the long term
Taxation: yes
Casino
Rule # 1 to remember: the casino is a for-profit business, so it only sets up games where it wins, so the house always wins.
Rates: very variable
Yield: negative in the long run, see definition
Liquidity: only in casino
Taxation: yes
Sports betting
Same as the casino although there are sometimes market anomalies.
Rates: very variable
Yield: possibly positive
Liquidity: only in casino
Taxation: yes
Crowdlending
Possible, BUT there are risks (diversify well in the platform by selecting projects adapted to your time, choose your platform well, because a good part of the platforms will be bought or merge as in telecoms in the past).
My choice: octuber and bondora in europe
mintos if you like the countries of the East (a site approved by the state of Eastern Europe … but the site shows more than 10% net off tax and I tested it, I loved it and it represents in 2018 almost a quarter of my capital).
NB The stats of gains and defaults are to be taken with tweezers (including the question when is a company is in default?).
PS There are risks (non-reimbursement, closure platform, delays …) and no reduction in taxes.
Rates: the entrance ticket is only a few euros
Yield: 2 to 15% or more depending on location and asset class.
Liquidity: not always possible, often it takes from 1 to 5 years.
Taxation: yes
Crowdequity
invest in the capital of companies, this is 5 companies (usually it takes 1000 €), on some sites you can invest with less than 100 € or pounds for example on seedr .
Rates: a few euros
Risky, but potentially interesting.
Yield: you can exceed 20%
Liquidity: not always possible, often it takes several years.
Taxation: yes
Crypto currencies
There are many scams and the market has no intrinsic value, there is a lot of speculation and as the market is not regulated (attention transactions are not anonymous, it is possible to trace all transactions) the market serves a lot to make black and every announcement that the state will regulate the currency is breaking the figure.
The number of crypto currencies is not fixed, people create just every day some will get to make a reputation, and these are the ones in which you will eventually invest. There is very little cryptocurrency exchangeable directly for euros. Most exchange with bitcoins. In fact, bitcoin is a great cryto currency.
I have some, but all my money is not in crypto.
Rates:Risky, but potentially interesting. Highly speculative
Yield: you can exceed 100% sometimes
Liquidity: rather liquid
Taxation: I do not know
Real estate
real estate, the way that many investors choose to make money, the subject is as vast as the stock market and the detailed article I made is super big on real estate.
Fees: a few tens of thousands
Potentially leverage (credit) possible
Yield: 2-10%
Liquidity: rather illiquid
Taxation: Yes
Car places
Possible with tens of thousands of euros easily, much less than a building.
Difficult in town, if not impossible, to have a car without a parking space
Fees: a few tens of thousands of euros
Yield: 5-10%
Liquidity: low
Taxation: yes
Saving account
It’s not an investment, it’s savings … They do not earn money, but limit the loss due to inflation. It is on this kind of product that you have to put the 3 to 6 months of charges that you need.
Rates: a few euros
Yield: 0.5-2%
Liquidity: very liquid
Taxation: often without
Manuscripts
Many scams exist, but the manuscripts are a bit like art or antiques.
Rates: I do not know
Yield: I do not know
Liquidity: low
Taxation: I do not know
Raw materials
It is a particularly volatile investment.
As a separate asset class, commodities (agricultural, precious or industrial metals, oil, etc.) are a strategic investment in a long-term perspective. The evolution of their price is strongly linked to the level of production and even to the level of the estimated natural reserves, in particular in the case of products on energy. Climatic and geopolitical factors can also impact their prices.
Commodities may have a significantly different evolution from traditional securities markets (equities, bonds).
In times of inflation, there is an upward trend in commodity prices. This makes it possible to cover part of its portfolio against rising prices. On the other hand, because the majority of these products are quoted in US dollars, there is a negative correlation with the variations of this currency.
This investment category remains subject to specific risks. However, there is the option of investing in commodities through a global index that reduces risk by investing in multiple assets.
Rates: variables
Yield: very variable
Liquidity: variable
Taxation: I do not know
Furniture
You have to know each other.
Beware of fashion, the sector in its mode and is more or less cyclical, 50s, furniture louis XYZ, in short attention, especially since we must have the eye to find the rare pearl.
With prices ranging from € 150 for an old trinket to € 30,000 or more for beautiful signature furniture – collectible furniture can reach several million euros.
The first condition for investing in antique furniture is to have room to accommodate the furniture. It is necessary to request an invoice specifying the time of the object and its detailed description.
Rates: a few hundred euros to several tens of thousands according to antiquity
Performance: An investment in antiquity or art is considered in the long term, at least between 8 and 12 years to hope for an average gain of 7%.
Liquidity: low
Taxation: be careful there is a particular
Watches
Collection watches are not legion, it is a specialist market.
Rates: a few hundred euros to several tens of thousands according to antiquity
Performance: An investment in antiquity or art is considered in the long term, at least between 8 and 12 years to hope for an average gain of 7%.
Liquidity: low
Taxation: be careful there is a particular
MLM
A lot of work is to be expected for honest mlm and otherwise you will find especially many scams.
Fees: nothing, but a lot of work
Yield: sometimes very profitable
Liquidity: difficult to resell customers
Taxation: be careful there is a particular
Life insurance and other mutual funds
Yes, but to have a little performance you need at least bonds and / or some actions: my advice is to buy after a crash if you want to do a one shot (the CAC oscillates between roughly 3000 and 6000 and 4300 being still in the middle), but there are other places (Asia America, just see). Otherwise buy regularly for several years, for example an index that replicates the market, your price will certainly be average, but you will have no or little loss of investment risk at the top of the bubble. You can combine the techniques of regular purchase + reinforcement during times of crisis.
Unfortunately you can forget about the euro bottom that does not yield anything in the long run.
The advantage of this type of investment is mainly tax.
Rates: about 300 euros in entrance, sometimes according to funds much more, but you can buy every month.
Yield: as much as the underlying (stock market, real estate, metals, bonds)
Liquidity: good
Taxation: be careful there is a particular, often advantageous
Binary options
What we do not tell you is that who says super leverage says great club effect, in case of loss you can end up with a credit on the back higher than your initial bet (good in general there stops and margin calls, but hey), more are the scams in the area.
Rates: about 300 euros in entrance, sometimes according to funds much more, but you can buy every month.
Yield: as much as the underlying. Very risky
Liquidity: good
Taxation: be careful there is a particular, often advantageous
Gold and metals
Speculative investment, the price is still high and the costs are important (I’m talking about conservation costs, because keeping gold at home is not necessarily a good idea).
Rates: a few hundred euros
Yield: purely according to supply and demand, very speculative
Liquidity: correct
Taxation: be careful there is a particular
Part B banks
The repurchase of your securities is assured, but it can take time. Know more than with the law of September 10, 1947 on the status of cooperation, the rate of return offered can not exceed the average rate of return of bonds of private companies. This rate continues to fall to reach floors.
Rates: a few euros
Yield: low 2% can be
Liquidity: weak to strong
Taxation: yes
PEL (for french only)
Now at less than 2.5%, frankly it’s not profitable. However, except for older PELs, they are very lucrative.
Rates: a few hundred euros + 45 / month
Yield: 2.2 to more
Liquidity: strong
Taxation: yes
SCPI (rela estate, for french)
From (yield or tax) to see, you can find interesting things at this price, but often for other reasons, with only 5000 € the advisor will not let you put that money in SCPI, because if you need it you could attack him for bad advice, because SCPI is a long-term investment. And yes, too much protection kills performance.
Fees: a few thousand on the other hand possibility of taking a credit
Yield: 2-5%
Liquidity: low
Taxation: yes
Wine
We must know each other.
Most of the possible appreciation could be generally done within 5 to 7 years after bottling.
Intermediate consumption of wine makes stocks available for sale more and more rare value is taken by the decrease in stocks.
Investing in wine is a long-term project. But know that the market is rather cyclical it is an over-the-counter market for which there is no quotation net so impossible to sell easily this product yet made of water.
Rates: a few tens of euros to several thousand
Yield: 8%
Liquidity: low
Taxation: I do not know
cars
Special market for collection cars. You have to know each other.
Note a car out of collection always loses value and is not an investment.
Rates: a few thousand euros
Yield: variable
Liquidity: average
Taxation: I do not know
Create you own business
A business will take time and money.
Know that it takes 3 years according to Kyosaki to start to draw a SMIC and you will have burned all your cash (except to create a blog, but say that you have to do thousands of hours of work for zero € and I knowingly, do you mind?) …
It will require managerial and commercial talents in addition to some specific webmaster and writer talents.
So I put several business ideas for you to dig into.
Rates: a few tens of euros to several thousand
Yield: very variable, in general it takes at least 3 years minimum, rather 6 to make it a success.
Liquidity: low
Taxation: a slew of taxes, law, etc.
A website
A website is especially time-consuming (let’s say it’s a barrel of danaids), but you have the advantage that it does not cost much to install. However the competition is tough, downright savage. A few hundred euros are enough to open a blog type website with some plug-ins … For more specific sites, it climbs relatively high by against …
A software
If you have a sales network, developing software can be a good plan.
Rates: a few tens of euros to several thousand
A restaurant
If you have skills as a cook or baker, the restaurant can be a good alternative. You can open your own restaurant before a budget of only 2000 euros. Of course with a background of 3000 or 5000 euros the quality of your products and services will be improved.
Thrift shop
With your 5,000 euros in a clothing store or something similar. The hardest thing is to find suppliers who offer you high quality clothing at lower prices.
Sports articles
You can open a sports shop rather easily. You can easily take back the old models of the sportsmen and the bellies again.
A resale shopping center
You sell items that are deposited at your home for cash. You need a big warehouse.
Automatic laundry
To place a few thousand euros, you can invest in a laundromat. The advantage in this activity is that you do not work much and have a good return of money. For your business to be profitable, choose a spacious and well-attended place, ideally in town. Equip your premises with washing machines and dryers, soap dispensers and softeners and a camera.
Reload ink cartridges, computer repair and phone
A lucrative business and rather easy. This type of business is working well for now, as manufacturers are making margin on the cartridges.
Another company
Do you have management skills? You are a handyman emeritus? Invest your 5000 euros and more in the creation of businesses as a DIY company. This can be a primary or tertiary sector company depending on your skills and aspirations. It can also be a very small business, a small or medium business or an LLC. It all depends on your chosen field. In any case, make sure that customers are interested in the products and services you offer. You will thus ensure a good return of money.
Franchise
Small franchises are a good way to place a few thousand euros. However if you do not make a figure you lose your license and you have it in the bone. Among your advantages, you enjoy the notoriety of the parent company and easily attract customers in addition to selling its products.
Training Center
If you have skills in the field of education and especially the support necessary to open (authorization if necessary), you can open a school or training center.
New technologies
The products of the new technology constitute a good investment allowing the fast gain of money. By investing 2000 euros and more, you can sell phones or computers. You can also open a company working in areas related to computing such as tasks related to multimedia, photo editing … This type of business requires a good market research before setting up. This, to avoid investments at a loss.
Conclusion
So we have several investments that emerge real estate stock market; companies and specialized. Basically the stock market is almost anytime real estate you have to have enough to pay the credit. The company will take the most time, and the specific tips are often reserved for experts.
Without risks? Yes it exists, but it is without returns …
Unless we cheat.