Asset management is not limited to choosing lucrative investments where to invest your savings. The goals are wider since it also involves, for example, preparing or supplementing his future retirement, ensuring the future of his spouse or even providing for the transmission to his heirs. Value Network and Collaboration can make you help to understand this financial management.

See beyond simple placement

While all savers must ensure that they select the investments with the best performance, asset management incorporates other aspects. Among the most common objectives:

Financing your children’s studies

If you plan to spend large sums on educating your children, avoid investments that tie up your savings for too long.

Ensure the future of his family in the event of misfortune

The savings accumulated today may not be enough. You should therefore consider taking out death insurance. By adding a “disability” option, because your assets may not be large enough to support your family in the event of a forced stoppage of your professional activity.

Securing the future of your spouse

The spouse inherits only part of the deceased’s patrimony. You must therefore make certain arrangements if your situation requires it.

Prepare your succession

From a certain age and a certain heritage, it is a concern that should guide the choice of your investments. Remember that above a certain amount per unit, your children will pay 20% or more in inheritance tax. An investment such as life insurance can be wise because of its advantages in terms of succession.

Clearly define your objectives

It is obvious that you must remember: a very profitable investment will be a mediocre choice if it does not correspond to your wealth objectives. There are three main options to choose from:

Build up capital

For example, to buy your main residence or that of your children, or to pass it on to your heirs. Examples of preferred media: the home savings plan, life insurance, the Equity Savings Plan, etc.

Receive regular income now

Examples of media: certain life insurance contracts that provide income, a rental investment in cash, bonds, etc.

Evaluate all characteristics

An investment, whatever it is, has four fundamental characteristics: risk, availability, taxation, performance. Four characteristics that are intimately linked.

Risk proportional to performance

Whoever favors security must accept a profit or a mediocre return.

Performance generally increases over time

Ten-year placements normally pay more than two or three years. But the notion of availability should not be confused with liquidity.

Availability is in a way the possibility of recovering one’s funds at a given moment with a minimal risk of loss. The Housing Savings Plan is safe but savings are theoretically blocked for at least four years. Or more specifically, the expected return will be reduced if you close the plan early.

Relativize taxation

Taxation should not be the only criterion of choice. A good investment is an investment that you would have chosen even without tax advantage.