Investment: should you opt for regular or periodic payments?

When it comes to investing, one of the first questions many investors ask themselves is whether to make regular or periodic payments. There is no universal answer to this question, as the choice between these two approaches depends on various factors specific to each individual. Would you like to get a clearer picture of how to manage your investments? With Birdee, you can learn how to invest your money with the assurance of finding a strategy tailored to your objectives.

REGULAR PAYMENTS: THE ASSURANCE OF LONG-TERM INVESTMENT PEACE OF MIND

Regular investing requires financial discipline that encourages you to save and invest regularly, which can be beneficial, especially over the long term.

Regular payments are for me if:

✅ I want to capitalize on my investments : Investing money on a regular basis allows you to benefit from the effect of compounding over the medium and long term. The interest or gains you make on your investments in turn generate income, which is reinvested. Over time, this can make a significant contribution to the growth of your portfolio.

✅ I want to diversify my investments: Regular investing gives you the opportunity to diversify your portfolio. You can spread your investments across different asset classes (equities, bonds, real estate, etc.) to reduce overall risk.

✅ I want to automate my payments: You can set up an automatic payment to simplify the process by defining a date and an amount to be withdrawn each month.

PERIODIC INVESTMENT: THE ADVANTAGE OF FLEXIBILITY

Periodic payments offer a more flexible approach to investing. They consist of investing a sum when interesting opportunities arise, without being dependent on a fixed payment frequency.

Periodic payments are for me if:

✅ I'm flexible: With periodic instalments, you can seize investment opportunities as soon as they arise. You decide when and how much to invest based on your financial situation and objectives. This allows you to react quickly to investment opportunities or unforeseen financial needs.

✅ I want to minimize risk-taking: Investing periodically reduces the risk of putting a large portion of your capital at risk at an inopportune moment. You benefit from better diversification of your market entries, which can enable you to buy shares at a lower price.

✅ I want to take advantage of market opportunities: You can take advantage of stock market fluctuations by investing when you feel prices are attractive. This can allow you to take advantage of market downturns to buy shares at lower prices.

OUR TIPS FOR CHOOSING BETWEEN THE TWO INVESTMENT APPROACHES

Set clear financial objectives

Define your objectives for the short, medium and long term. This will help you determine whether a regular or one-off investment approach is more appropriate. For example, for retirement, a regular investment makes more sense, whereas if you simply want to take advantage of stock market opportunities to earn an attractive return, a one-off investment will be preferred.

Evaluate your risk tolerance

When it comes to investing, it's important to get to know yourself. Evaluate your own risk tolerance and your ability to manage market fluctuations. Not sure where you stand? Read our article on how to invest according to your profile.

Analyze your cash flow

Examine your financial situation, your income, your monthly expenses and your ability to invest on a regular or occasional basis to determine the most suitable investment method. Make sure you can maintain an ongoing investment plan without compromising your financial stability.

💡 Good to know: investing is open to everyone, even the smallest budgets! Find out how to invest as little as 50 euros.

Take your personal discipline into account

Regular investment also means discipline and organization. Automating your payments can be a useful way of ensuring regular investment, without any additional mental burden.

Be aware of market opportunities

If you choose to invest from time to time, keep an eye on opportunities in the financial markets and the stock market. This requires a high level of monitoring and responsiveness.

Diversify your portfolio

Whatever your approach, make sure you diversify your portfolio and your investments by investing in different asset classes to reduce risk.

Stay flexible

Your initial choice between periodic or regular payments may change over time, depending on your financial situation, your objectives and market conditions. Be ready to adjust your strategy as needed.

Combine investment strategies

Why not combine regular and periodic payments? You could, for example, set up regular instalments for your long-term investments, while retaining part of your capital for periodic payments when interesting opportunities arise.

EXAMPLES OF INVESTMENT PRODUCTS IN WHICH TO PLACE YOUR MONEY

Not sure which products to invest your money in? Here are some investment ideas that might interest you:

- Life insurance policies are a popular choice because of their tax advantages and flexibility.
- SCPIs (Sociétés Civiles de Placement Immobilier) offer the possibility of investing in real estate without the need for direct acquisition of a physical property.
- The PEA (Plan d'Épargne en Actions) is ideal for investing in French and European equities on a tax-advantaged basis.
- Other options, such as mutual funds, ETFs (Exchange-Traded Funds, with which Birdee works), bonds, and investments in private companies, also offer diversified investment opportunities that can meet your needs and risk tolerance.

Your choice of investment strategy depends on your personal situation and financial objectives. Whatever approach you choose, the key to success lies in planning, discipline and adaptability.