How to allocate your savings? Let's be smart!

You want to allocate your savings, but you don't know where to put your head between the different products available on the market? Between life insurance, savings books, real estate or stock market investments, you want to be sure you're making the right choices. Here's a quick overview of the different investment solutions available to you.

4 GOOD REASONS TO SPREAD YOUR SAVINGS

One of the basic rules of investing is to spread your financial investments over different media. Yes, but why? 

- To limit the risks. Spreading your savings over several investments reduces the overall risk of your investment portfolio. If the value of one asset falls, the other investments can compensate for these losses.

- Maximize your returns. Choosing only one type of investment can result in a loss of potential returns. By spreading your savings around, you can take advantage of the benefits of each type of investment.

- Adapt to economic changes. Economic fluctuations can affect different sectors. Spreading your financial investments allows you to adapt to economic changes and take advantage of opportunities as they arise.

- Diversify your financial goals. Diversify your investments according to your projects: buying a house, saving for retirement or emergency savings. A balanced distribution of your savings allows you to differentiate your objectives and reach them more easily.

OUR TIPS FOR DIVERSIFYING YOUR INVESTMENTS

Before allocating your savings, start by establishing your short-, medium- and long-term objectives, which is called the investment horizon. This will allow you to better choose your savings products. A PEL if you are planning to buy a house or an apartment, a PER to prepare for your retirement or even invest in the stock market if taking a few risks doesn't scare you.

Another tip: balance your investments according to the level of risk and expected returns. Also remember to regularly re-evaluate your portfolio and your investments. Your goals or simply your financial situation may change over time. Make adjustments if necessary, such as increasing or decreasing your payments or buying new stocks.

💡 Get professional advice on managing and allocating your savings. The manager is there to advise you in the management of your money, to show you the investments and financial supports that correspond to your profile, your financial situation and your projects.

HOW TO DIVERSIFY YOUR SAVINGS

Spread your savings, yes, but not just any old way. 

- First of all, choose investments that will give you security.
- Prepare your future with a life insurance or a PER.
- Invest your money in real estate or the stock market for a long-term return.
- Invest in so-called atypical investments if you have the financial possibility and if you already have precautionary savings.

Open a passbook to anticipate life's hazards

Putting your money in a passbook is a precautionary saving. Savings books allow you to face unexpected events, to save for your vacations or to release money quickly in case of emergency. If they are accessible to everyone, the savings books offer rather low interest rates. 

Our advice: do not keep more than one or two months' salary in a bank savings account.

Putting your savings safely into life insurance

Subscribing to a life insurance contract is ideal for building up capital and saving over the medium to long term while benefiting from advantageous taxation. Whether you want to save for a future project or simply put money aside for your retirement, life insurance offers many advantages.

Psst: Birdee offers its own life insurance, make an appointment online to discuss!

💡 Want to save for a future real estate purchase? Opt for a Plan Epargne Logement (PEL). More advantageous than a passbook, the PEL is an interesting support to build up capital for a real estate project.

Preparing for your future with a PER

If your objective is to save for your retirement, opt for a Plan Epargne Retraite (PER). A long-term savings product, the PER offers attractive tax advantages and the capital built up is blocked until your retirement. An effective way to supplement your income when the time comes.

Building wealth by investing in real estate

Investing in real estate can provide a stable, long-term source of income and build wealth that you can pass on to your children later. Investors can purchase physical real estate or invest in listed real estate investment companies (SIIC), real estate investment trusts (FCPI) or a real estate investment trust (SCPI).

Investing in the stock market: long-term savings

Investing in the stock market often offers an interesting return in the long term, but is also riskier than other types of investments. Indeed, the stock market price depends on the financial markets, which makes it an unpredictable medium that requires investing at the right time.

Our advice: keep an envelope dedicated to your stock market investments and diversify the supports: purchase of shares, ordinary securities account (CTO), stock savings plan (PEA), mutual funds, stock exchange traded funds, etc.

Investing in non-standard investments

Some of the atypical investments include: crypto-currencies, crowdfunding or even investment in precious metals. While these investments can give you a nice return in the long run, they can also give you nothing. Consider these types of investments last and don't put all your savings into them or you could lose everything.

Each type of investment has its benefits and risks. It's up to you to take the time to choose the right savings products for you. Finally, one last piece of advice: diversify your investments by keeping in mind your investment horizon (short, medium and long term).