Top 10 best investments for 2023
In 2023 you are wondering in which investments to invest your money to make your savings grow. The health and economic situation in France, in Europe and in the world making the financial markets uncertain, it is not easy to find your way around.
In this particular context, we have established for you the top 10 of the best investments to make in 2023, along with some advice for making the right choice.
Investment n°1: passbook A, sustainable development passbook and popular savings passbook
Regulated bank books are and remain a sought-after investment, since their interest rate is guaranteed by the State on the one hand, and they do not present any liquidity risk on the other hand.
However, combining them is useless, it is better to take the most advantageous for your situation and leave a capped amount of savings there. Indeed, the current rates of these booklets are at their lowest, and the interest rate served barely keeps up with inflation.
Also, favor, in chronological order, the following investments:
- The LEP Livret d’Epargne Populaire: with an interest rate of 1%, this is the most interesting of the regulated savings accounts, but it is reserved for tax households with the lowest incomes. Its ceiling is 7,700 euros,
- The LDDS Sustainable and Solidarity Development Booklet: ex-Codevi and ex LDD, the LDDS offers an interest rate of only 0.5% with a ceiling of 12,000 euros, it is used to finance SMEs,
- Livret A: it is accessible under the same conditions as the LDDS, but with a higher ceiling of 22,950 euros.
Our advice: leave the equivalent of 3 to 6 months’ salary on your secure savings accounts, this is precautionary savings from which you can draw in the event of a hard blow.
Investment n°2: life insurance
Life insurance still has a bright future ahead of it and remains one of the favorite investments of the French. It has been able to evolve to adapt to the new demand of savers, namely the alliance between security and optimization of gains.
While this investment may have been criticized in the past for its too many costs to bear, it is interesting to point out that today, the proliferation of online life insurance offers makes it possible to overcome this disadvantage.
On a life insurance, you benefit from many advantages:
- A fully secure euro fund, with no risk of financial loss, with a net rate of return generally higher than on a savings account,
- A multitude of units of account on multi-support life insurance contracts, allowing you to invest in bonds, shares, UCITS, SCPIs, trackers, etc., depending on the contract chosen,
- Attractive taxation on withdrawals after 8 years of ownership,
- A facilitated transmission of your assets, excluding inheritance, to the designated beneficiary(ies) of your choice.
Our opinion: life insurance is a simple product to use, ideal for those who wish to centralize their investments and be able to make withdrawals at any time in the event of a hard blow.
Investment n°3: the stock savings plan
As its name suggests, the PEA Equity Savings Plan allows you to invest in shares… But not only. Indeed, it is an envelope in which the money passes through a cash account before being invested.
On the program, you can choose, depending on the PEA, between shares, company shares, trackers and sometimes even ETFs. The advantage of the PEA is undoubtedly its tax attractiveness, since withdrawals made after 5 years do not lead to the closure of the plan and are not subject to income tax.
On the other hand, the ceiling of the PEA is 150,000 euros and it is necessary to be domiciled in France to be able to benefit from it. Did you know ? Minors can also have a PEA, it is called the PEA jeunes, capped at 20,000 euros.
Our opinion: the PEA is an excellent complement to life insurance, and preferable to the CTO Ordinary Securities Account in order to benefit from the tax exemption while investing in equity supports.
Investment n°4: the retirement savings plan
The PER, which replaced the PERP, the PERCO and the Madelin contracts, is similar to a life insurance contract, but intended to finance… Retirement! And as a result, you benefit from managed management on your contract allowing you to optimize the assets held gradually, depending on the date of your retirement.
In addition to this advantage, you also benefit from a tax deduction on the payments made, capped at 10% of your professional income (employee income or profits).
You can exit this contract at retirement age by opting for a capital payment, an annuity, or by preferring a mixed exit. It should be noted that certain cases of early exit are expressly provided for by law (disability, death, expiry of unemployment rights, over-indebtedness, compulsory liquidation, purchase of the main residence).
Our opinion: the PER, whether individual or corporate, is an interesting contract, but it is necessary to understand it as a long-term savings product and in addition to other more “liquid” solutions.
Investment no. 5: SCPIs
SCPIs allow you to invest in real estate without suffering the constraints faced by owners. You buy shares in real estate investment companies.
These companies are at the head of a real estate portfolio and have rental management. They can be specialized in rental real estate, commercial real estate, tax-exempt real estate, or hold several of these values.
The current advantage of these investments is profitability, since some SCPIs show returns of around 5% when the Livret A account is 10 times less. However, you will need to count 5,000 to 10,000 euros and consider this investment over a minimum of 10 years.
Our opinion: SCPIs are on the rise, but are not immune to financial losses in the event of a crisis and the collapse of the real estate bubble. For a lower entry ticket, you can consider buying SCPI shares via life insurance, PEA or PER in order to diversify your savings.
Investment no. 6: bonds and stocks
Bonds are debt securities, intended to lend money to a company or to the State in return for remuneration called a coupon. You can expect a return of around 2% to 5% depending on the duration of your investment.
Bonds, in general, are less risky investments than equities, but with lower returns because the upside and downside risks are much more moderate.
Shares listed on the stock exchange, on the other hand, are a riskier investment, but more profitable in the long term since you can expect a return of around 6% to 10% depending on the shares chosen.
Nevertheless, we remind you that bonds like stocks can lead to a loss of capital. Plan an investment horizon of ten years or more to succeed.
Our advice: Choose 15% bonds and 15% equities in your portfolio for a balanced investment. Do not bet everything on the same horse, to smooth the risk of loss.
Investment n°7: trackers and ETFs
Exchange Trade Fund ETFs, or trackers, are investment funds that replicate the performance of the main stock market indices. Thus, a tracker can replicate the CAC 40, the Dow Jones, but also the European or Asian market for example.
The advantage of a tracker is that you do not buy shares in Airbus for example, but in many companies at the same time. Thus, you dilute the risk of loss. If Airbus goes bankrupt, your tracker does not completely collapse since it is made up of many values.
You can expect returns as high as with stocks, but with lower risk. Moreover, even non-experts can take advantage of these ready-to-use “action envelopes”.
Our opinion: you can invest in ETFs via most savings products such as life insurance, PEA or PER, or take advantage of attractive online offers with lower fees. On the other hand, stay with a player located in Europe to avoid the risks associated with the distributor as much as possible.
Investment n°8: real estate investment
Real estate remains a safe bet, a “hard” investment. However, it requires that you obtain a bank loan to finance the investment, and of course a minimum of management.
Our opinion: real estate investment is to be reserved for investors who have the time to devote to property management and the shoulders broad enough to finance any repairs to their property.
Investment #9: Gold
Gold is the safe haven par excellence. When the stock market crashes, the price of gold skyrockets. So, if you listen to many economists, now is the time to invest, on the announcement of a possible stock market crash.
However, remember that gold is only beneficial in the long term, or even the very long term, unless you take advantage of buying and selling opportunities at the right time.
Our advice: prefer “virtual” gold to physical gold, on specialized and recognized websites, or via a tracker replicating its course (unofficial in France).
Investment n°10: cryptocurrency
Certainly the riskiest investment on this list, in particular because it has not been tested by the years, cryptocurrency is nonetheless very attractive from a long-term investment perspective.
Our advice: invest only a small part of your savings in cryptographic currency (5 to 10%) and favor the bit coin, because of its relative stability and age.