Wealth management: 7 golden rules

5 avril 2022

Successfully growing 1,000, 10,000, 100,000 euros or more is not that simple.

In a context of uncertainty, it is up to you to determine your objectives in terms of security, taxation, return, and your priorities: finance the studies of the children, protect your spouse, prepare the transfer of your assets... Le Revenu tips for successful wealth management.

Rule no. 1: Buy what's cheap

Credit is not expensive today. Do not hesitate to borrow, after having compared at least three loan proposals. Investing in stocks is also interesting. Provided you do not need your money for five years, invest methodically and accept the risks inherent in the stock market.

Rule no. 2: regularly take stock of your heritage assets

Carrying out an asset assessment is a prerequisite for any serious investment decision. By imposing this exercise on yourself, you will have the elements to, at least once a quarter, make the necessary changes according to your individual requirements. You can carry out such a report on your own, with the help of the specialized press, a private bank or a liberal wealth management professional with the status of financial investment adviser.

Rule no. 3: diversify your investments

Whatever your age and your aversion to risk, hold, according to your means, your real estate assets, shares, bonds and monetary products. Professionals talk about asset allocation. In the long run, you can only win, because these investment families do not perform well or badly at the same time. Once you have determined the percentage of each of these assets, select the appropriate products.

Finally, follow up. Changes in the value of your investments will necessarily change your initial allocation. Make sure this distribution remains consistent with the level of risk you accept.

Rule no. 4: eliminate investments whose profitability is disappointing

This is often very difficult, due to the personal ties that some have with family real estate whose return is sometimes negative. You also have to know how to part with listed shares that no longer have the potential they had when they were purchased in the past. The examples could be multiplied.

Rule no. 5: carefully measure the performance risks that make you dream

Given inflation of between 1 and 2%, the quest for profitability above 3% requires accepting risks. Anyone who claims otherwise is lying to you, regardless of the solution offered. Risk management in all its components is an essential axis for optimizing the management of your assets.

Rule no. 6: beware of tax exemption magicians

Leader of the heritage press for nearly 50 years, Le Revenu warns you, both about a set of arrangements benefiting from French tax advantages and about the offers offered discreetly and wrongly guaranteed by direct sellers from certain foreign countries. To optimize your taxes legally without playing tightrope walkers, make the right tax choices by following the advice of our paid publications.

Rule no. 7: Get involved in managing your personal finances

Le Revenu encourages individuals to invest in the management of their financial and real estate investments. Two hours a week is enough to follow economic news. You do not need to acquire advanced knowledge, but only to integrate common sense rules and apply them wisely. Of course, it is sometimes necessary to consult an expert (notary, lawyer) on a technical point.