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What to invest in in 2020 - 2021?

It's not easy to know how to confidently invest your savings.

Faced with the multitude of products available and the possibility of an looming economic crisis, it is normal to feel confused.

To grow your capital without being feathered, find out what to invest in 2020 and 2021 with solutions that really pay off!

Investing in 2020-2021: what is changing

Unlike previous years, 2020 and 2021 are marked by a strong suspicion of an economic crisis. The financial markets are unstable and are experiencing increases that do not seem to be able to last.

In order to know what to invest in, given this particular context, it is first of all necessary to exercise caution. If there isn't any, question of advising you to leave your savings on a booklet A which no longer brings in anything, it is important to reduce the risks as much as possible.

The investment avenues proposed in this article are designated by the experts as offering the best ratio between return and the risks taken. Of course, the ideal investment differs depending on your profile and your particular situation. However, they will let you know in which direction to go.

Safe bets to invest your money

Are you looking for a proven investment? You are in the right place. The assets presented here have already proven themselves and will continue to perform during the coming year.

Real estate investment

Real estate is THE safe bet par excellence. It has always contributed to building fortunes. There is no millionaire today who has not placed part of his capital in stone. This placement has the particularity of being able to take several forms that we will discuss here.

Rentals of the past

The most well-known the kind of real estate investing is traditional leasing. Buying a home to rent it out is an investment that always pays off in 2020 and will pay off in 2021.

For maximum profitability, it is important to carefully study your project upstream and to do your calculations carefully in order to be sure that your property can be self-financing.

Avoid new residences whose promoters sell you the possibility of tax exemption with a lot of arguments. These operations are not profitable and the promised tax credit is often far from being achieved.

To obtain financing, your file must be stronger than ever, because the trend is to raise the lending criteria on the side of the banks.

Buying in LMNP

This investment system, little known to the general public, is nevertheless an excellent investment. Buying a Non-Professional Furnished Rental involves buying accommodation in a service residence.

There are 4 types of purchases eligible for the LMNP:

-student residences,

- Accommodation Establishments for Dependent Elderly People (EHPAD),

- tourist residences,

-business residences.

It is recommended that you focus on the first 2 as you are sure to benefit from a near zero vacancy rate due to the high demand.

Buying a property in LMNP has many advantages. The first is the simplified management of your property since it is provided by the manager of the residence. You must therefore be particularly attentive to the skills of the latter to make your choice.

Another benefit of this device: its taxation. Thanks to the reputedly deferred amortization system, you can erase a large part of your rent taxes.

Like any real estate purchase, housing in LMNP must be chosen with care. You must ensure, among other things: the real existence of a request, the capacity of the chosen residence to respond to it and the quality of its management.

SCPI

Civil Real Estate Placement Companies are an attractive alternative to the purchase of a property. These are investment companies that own real estate purchased with savings collected from investors.

Salaried managers are appointed to select assets, hire them out and maintain them. They repay the rents received to members in proportion to the amounts invested.

The entrance ticket to a SCPI is between 2,000 and 5,000 €. An investment accessible even with a modest capital and which avoids having to take out a loan. Although it is possible to take out a mortgage to invest in a SCPI, but it is not a profitable operation.

There are different types of SCPI with specific specializations. Take the time to carefully study the project, performance and management of each company before making your choice. Do not hesitate to chat with people who have already bought shares.

Life insurance

This financial product is still among the safe values ​​for those wondering what to invest in 2020. The reasons for this success are largely due to the innovation of the players in the sector who have succeeded in developing high-performance products and more. sure.

The establishment of the flat-rate levy system desired by the government also strengthens its appeal since it reduces taxation in the event of early withdrawal and simplifies it. Last significant advantage: exemption from inheritance tax, with a ceiling of € 152,500 per child and per parent.

Investments that go up

This category of investment is a little more risky than the first, but the bet remains largely acceptable given the profitability. These assets could well establish themselves this year and become essential.

Professional Private Equity Funds

A FPCI is an investment vehicle that allows you to invest your money by betting on stocks that are not listed on the financial markets. Investors subscribe for units by initially conserving their capital. The FCPI will then ask them to make a contribution of the amount of their initial commitment.

After a period generally between 3 and 10 years, it is possible to request to recover your initial investment plus any capital gain. The areas of investment of these funds are varied. It is therefore necessary to inform yourself carefully.

This investment benefits from very favorable taxation. However, it is mainly aimed at informed people. If you are new to personal finance, do not hesitate to seek advice from an independent expert.

Specialized Professional Funds

FPS are collective investment undertakings which aim to invest in the real economy via companies and unlisted assets. They may, for example, own real estate.

It is an investment that allows great freedom since its field of action is not limited to a single type of purchase. This flexibility makes it possible to adapt swiftly to changes in taxation and the legislative framework. It also makes it possible to provide greater security.

Again, this is an opportunity for an informed audience. But it remains accessible to neophytes as long as they benefit from the necessary support.

Structured products

Structured products are financial products that can be included in the composition of a life insurance contract or be purchased through a security account.

The main difference with traditional products is their clarity. The content, the level of risk and the expected performance are clearly indicated, which is a major asset in a period of doubt like the one we are going through.

A structured product is built from an index or a share whose price serves as an indicator. It has a protective barrier that corresponds to the level above which your capital is guaranteed. Their duration is quite long (around 10 years), but many contracts provide for possible exits from the first year.

The Retirement Savings Plan

The Macron government's Retirement Savings Plan planned to replace the PERP is not the first solution that comes to mind when one wonders what to invest in. However, recent modifications to this device make it an investment solution worth considering.

All savings can now be released in the shape of capital, the payments made can be partially deducted from your taxes and you can benefit from a reduction of more than € 30,000 on your inheritance tax in the event of death. after your 70th birthday.

What to invest in in 2020, the mistakes to avoid

If you value your capital, avoid making the mistakes on this list! These false good ideas, when not just scams, can melt your savings like snow in the sun. Stay vigilant!

Focus on stocks

Considering the warning signs for a new financial crisis which are on the increase, now seems ill-suited to invest in the stock market.

Far from having learned the lessons of the 2008 slump, the world of finance is more than ever being overtaken by its demons. In addition, trade tensions between the United States and China are also affecting financial centers.

The stock price is too high for it to be profitable to buy it now. So leave the stock markets aside for now and fall back on less risky investments.

Buy bonds

Once favored by those looking for secure investments, bonds are no longer a profitable asset today. With interest rates very low, if not negative, government bonds can even cost you money instead of earning you money.

If you absolutely want to grow your capital by lending money, prefer crowdfunding or credit to individuals. Note that these two solutions present a significant risk of loss of capital.

Invest in cryptocurrencies

With the fever sparked by the spectacular surge in Bitcoin, cryptocurrencies have become the object of much covetousness in recent years. But the explosion of the bubble around this virtual currency escaping any regulation had the effect of a cold shower.

Bitcoin seems to have dragged other cryptocurrencies into its downfall. Nothing predicts that their price will rise again this year. So refrain from investing your nest egg in it.

Put it all in the gold

Gold is always a safe haven in times of economic doubt. Many investors are betting on a surge in its price, the announced financial crisis occurs. Others see it as a way to secure their money.

Betting everything on gold is not, however, a good calculation. We must not forget that precious metals are taxed on purchase as well as on resale. You will therefore have to wait for the price to rise significantly, otherwise you will lose money.

Gold is not an asset that earns interest. You only earn money if its price soars and there is no evidence that it will happen. So do not devote more than 10% of your assets to it.

Investing your money in exotic assets

It cannot be said enough, if you are looking for what to invest in, always play the card of caution. The web is teeming with all kinds of scams that boast of investments that are more exotic than each other.

Online cellars, gems, acres of forest, rare earths, works of art and other bogus bargains of the same ilk are presented to the naive saver as the key to their enrichment.

In some cases, this is outright scam. In others, the "advisor" who promotes it fails to tell you that the return on investment is only possible if you have a 6-figure capital.

In the end, you will have lost the money saved at the cost of many sacrifices to make the fortune of a crook who will have taken advantage of your naivety. Stick to assets that have already proven their worth and seek advice from a real professional if in doubt.

You now have a few ideas on what to invest wisely in 2020. All the investments mentioned here have been proven to work. Even if there is no investment that is entirely risk-free, they have the advantage of presenting a level of security in accordance with the prudence recommended by the economy.

It's up to you to choose the solutions that best suit your personal situation.

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