How to invest €75,000 well in 2023?
There are no real rules to follow to invest well as it will depend on your investor profile, your more or less pronounced taste for risk, and the investment horizon you are considering. Here is a range of possible investments to be made in 2023 to enhance and grow a capital of €75,000.
A capital of €75,000 in your pocket: How to invest it well?
To invest €75,000 well, you need to focus your ambition. Is optimal performance expected? Or a risk-free investment? What sector is targeted? Real estate? Savings? Stock markets? Tax relief products? And after all, if choosing is giving up, then why choose, especially since the diversification of investments is often recommended? Here is a non-exhaustive presentation of the investments that can be made in 2023.
Fill out your booklet
Whether it’s the A booklet or the sustainable and solidarity development booklet (LDDS), placing part of your capital in a booklet is a form of wisdom and reason. Indeed, any investment presents a greater or lesser risk of capital loss. Also, when you have an envelope like that of €75,000, it is not a problem to fill your booklet A, capped at €22,950, or your LDDS capped at €12,000. We will agree, the interest rate is very low and it is not the best way to make your money grow. However, this ensures a small comfortable mattress in the event of a hard blow or capital loss of the rest of the funds invested. In other words, it would be unreasonable to invest all of a capital in one or more risky investments without keeping part of it “sleeping”.
Subscribe to a PEA
The PEA (Plan d’Epargne en Actions) is a regulated savings product. It makes it possible to acquire and manage a portfolio of shares of European companies while benefiting from a tax exemption. There is the classic PEA, banking or insurance, which corresponds to a securities account or a capitalization contract, and the PEA-PME dedicated to securities of SMEs and ETIs (Small and Medium Enterprises, and Intermediate Size Enterprises). The returns from a PEA are much more attractive than those from a classic savings account, but somewhat riskier due to an equity investment.
Take out life insurance
It is the preferred financial investment of the French, offering an annuity or capital to the insured during his lifetime, or to his beneficiaries upon his death, in exchange for the payment of a monthly premium. It has become a medium or long-term savings product. It makes it possible to invest through a mono-support contract in euros, guaranteed and risk-free, or multi-support in units of account where the capital is invested in risk-free products as well as in stock market products, riskier but with better returns. Its three main advantages are the possibility of building up capital over the long term, that of supplementing one’s income, particularly in retirement, and that of being able to transmit financial assets to its beneficiaries (who may or may not be his heirs) exempt from all or part of inheritance tax.
Subscribe to a PER
If the Retirement Savings Plan does not seem the most ambitious, and is certainly not the most glamorous of investments, it does have advantages for enjoying your retirement to the full. This is the recurring question when we pass the 35 – 40 years: Will we have a retirement? If yes, by how much? Can we keep this same standard of living? Will we be able to enjoy our happy old days? Do what we did not allow ourselves or what we did not take the time to do before? These questions are recurrent and each time with the same answer: “We’ll see when we get there, it’s not for now, and until then…”. That’s where the mistake is! It is when a future is uncertain that it is best to anticipate it. The PER allows you to be far-sighted and to ensure an additional pension to fill the delta of income lost while retiring. In addition, formerly PERP, the new PER “formula” is much more flexible and brings new advantages, in particular tax advantages, by allowing deductible payments from income tax.
Invest in an SCPI
A SCPI (Société Civile de Placement Immobilier) consists of investing in professional or residential real estate indirectly. Indeed, it brings the advantages of real estate investment, without the disadvantages of becoming an owner. The management of the building is delegated to a management company, which therefore recovers the usufruct of the property (rental, collection of rents, check-in and check-out inventory, maintenance, etc.). The investor only owns up to the share he holds according to his investment. Also, he shares with other investors the bare ownership, otherwise called the abusus. The part purchased is therefore low, the risk taken is pooled, the property management is totally nil. The property increases in value over time, and the SCPI investor becomes the end owner up to his investment, with all the added value that the property may have experienced. If the capital is however not guaranteed, it is one of the least risky investments today with a return estimated between 4 and 5% per year. If a capital of €75,000 does not allow you to buy real estate, investing in SCPIs is a very good compromise.
Invest in real estate crowdfunding
It consists of responding to a request for funds from a promoter to carry out an identified real estate program. Thus, the investor will become a co-financier alongside other investors. The concept has similarities with that of the SCPI, except that it is a limited-term investment, generally 12 to 24 months, with a better return than the SCPI but over a short period. The goal is not to become the owner of the real estate concept, but to help finance the project by earning interest. The probability of failure on this type of investment is lower, making it probably the investment with the best risk/return ratio.
stock market investment
The simplest and most effective way to do this, for a novice, is to buy ETFs (Exchange-Traded Funds, translated Funds listed on the stock exchange) which are in fact baskets of shares that follow a stock market index. They allow cost control and a diversified portfolio. You can also choose your financial securities, which can be shares, which are capital shares of a company seeking financing, or bonds, which are claims that the investor will lend, for which he will receive annual interest. . Investing in the stock market, however, requires solid knowledge of financial markets, global economic and structural impacts that will cause prices to fluctuate permanently. A novice can quickly panic in the face of these fluctuations, or else not invest in the right investment. The least expensive action, therefore the least rated, will be the least interesting at time T. But you should think about your investment in the long term, being curious about current and even future trends and influences. It is a particularly risky investment, but which can prove to be very profitable. If, however, the passion outweighs the novice’s reason, and the attraction for risk is too strong, it will be a good idea to get help from a financial professional: a trader, a financial analyst, a stock market adviser or a portfolio management company.
It brings together all the investments responding to changes in society, mentalities and consciences, consumption habits, etc. Real estate investors are turning their backs on the old, recognized thermal sieve, to invest in new housing that complies with the recently applied RT2020 standard. The sustainable investor invests his money in organic agriculture and/or short circuits, in the clean automobile market called the “ecomobile” market, in renewable energies, and more broadly in green innovation and in going back to basics, naturally respectful of the environment. SRI (Socially Responsible Investment), which aims to reconcile economic performance and social impact on the business environment, is one of the sustainable investments.
Strange terminology but difficult to put another word on this type of investment. The avant-garde investor has understood all the ambition and future expansion of the innovation market, whether it involves investing in raw materials which, as we know, are becoming scarce, and therefore whose added value is only at the beginning of its peak, or else in space tourism, solar energy, 6G technology, wind energy, LED energy, artificial intelligence, etc. These investments must be thought of in the long term because they are markets with a certain future promised to a powerful evolution.
A few tips for a smart and intelligent investment
To avoid burning your wings, here are some tips to follow before starting to invest your capital:
- Perfect your financial knowledge: Having a substantial capital and investing it intelligently cannot be done without understanding all its interest in studying the risks taken, rate and market fluctuations, etc. ;
- Target your objective: If the primary objective is that of a certain return, or a safe investment, the type of investment will not be the same. You have to determine your investor profile;
- Prepare for the idea of losing money: Apart from investing in a savings account, the rest of the investments will present a greater or lesser risk of capital loss. If the objective is to invest in listed sectors, the risk of capital loss cannot be ruled out. Also, it will be necessary to tend to diversify its investments so as not to risk losing everything on a concentrated investment whose market would come to collapse.
Finally, and finally above all else, the budding investor who would have a budget of €75,000 will have every interest in offering the services of a wealth manager. Indeed, if the latter will not be able to guarantee you the expected return when it comes to investments presenting a risk, he will know how to prepare you perfectly, advise you on the most buoyant sectors, conversely advise you against those whose economic growth is more than uncertain, and generally help you to continue to grow your capital, and to optimize it for tax purposes.