Gislan must maintain his position. And take advantage of the current turmoil to improve your strategy by globalizing your portfolio and optimizing investment taxation.
Passionate about sliding sports, Gislan watched the Beijing Winter Olympics on his smartphone every day. He wouldn’t have missed a giant slalom and snowboarding event.
On Tuesday of our meeting, France won 11 medals, including 3 gold. A score close to the record of Sochi and Pyeongchang that made him happy.
Our friend is a great sportsman himself. He doesn’t ski, but he runs every morning before going to work. He is cycling and swimming on weekends. He aims to participate in his first triathlon with three colleagues sponsored by his company, he wants. Automotive engineer Ghislain works remotely for two days in the field, three days a week.
He was worried about the evolution of the stock market, so he contacted Le Revene. He bought his first stock in March 2020 at the beginning of the health crisis, but his growth stock was good (LVMH, L’Oreal, Dassault Systèmes…) People who have been drinking soup since January.
What strategy would you adopt? Should we sell and cash while waiting for the storm to go away? Would you like to arbitrate in favor of a more cyclical stock with a more rational valuation? Gislan is a little lost. Not just him! To provide him with a personal answer to his patriotic concerns, we analyzed his income, expenses, assets and liabilities.
As a result, he has the means to reach his financial goals, but he must make a decision. quick.
Recommendation 1: Invest a small amount every month
He must continue to buy securities in order to consolidate and increase his profits. Like many beginners in the stock market, he invested a lot of money at once, but he didn’t invest anything. That’s wrong. The rule of thumb is to make a small investment every month. When the market is high, there are few securities to buy. When they are cheap, you buy more. This mode of operation optimizes cost prices and enables long-term profitability near the market average, or 7-8% per year (all the same!).
Gislan needs to use some of its monthly savings capacity (about € 500) to diversify into US and emerging equities, being careful to avoid the Eastern European stock market, which is too risky in the Ukrainian conflict. there is. In overseas markets, we recommend investing through trackers and index funds listed on the stock exchange.
They are low cost and often give good results over time. Invite him to check Le Revenu’s test bench and find the name of the fund to put in his portfolio.
Recommended number 2: Open PEA and life insurance
Gislan also needs to optimize the taxation of his investment. He pays a 30% deduction of earnings to buy shares through a common securities account (CTO). That’s a lot. If he invests through the Equity Savings Plan (PEA), punk is limited to 17.2%, or 12.8 points less. In particular, the operating modes of the two tax envelopes are very different.
In the case of the CTO, he goes through the tax office every time he receives a dividend of 1 euro or a capital gain. With PEA, direct debit applies only to withdrawals. Unless you regain your savings, the money owed to the social organization remains invested and makes money that falls into your pocket.
problem? Ghislain places stock market orders through a “neobroker” that does not offer PEA. Therefore, he has to choose another broker. He recommends a 100% online player, which offers a wide range of products and services and distributes the funds and contracts awarded by Le Revenu, which is half the price of traditional banks.
We also recommend that you purchase Trofedor du Levenu life insurance. After that, he is ready to get off to a good start on his investment. The profits earned from life contracts are rarely taxed, and when the insured dies, the capital is almost always exempt from taxation. Gislan needs to use life insurance to diversify his investment internationally, knowing that PEA is limited to the shares of companies headquartered in the European Union. In addition, he can maintain or close the CTO.
It’s up to him to follow his expectations for his future investment needs.
Recommendation n ° 3: Enter real estate
It remains to optimize the real estate component of that asset. Gislan hasn’t invested in a house yet. A tenant of a lovely one-bedroom apartment with a balcony in a modern dwelling, he sees stone as an “auxiliary investment.” This is not a earnings opinion. In our opinion, home purchases continue to be a necessary step in the construction of heritage.
Owning your home will secure your financial future and that of your loved ones. Tenants expelled from their homes by owners who want to regain their property with strict legality, this happens every day. It can be added that he is very pleased that he does not have to pay monthly rent when he retires when his income is halved.
Ghislain sees the purchase of a home as a “foot thread”, which slows down plans for travel and even expatriates. A defensive perspective. You can prevent it! Even if prices continue to rise, it is important to step into real estate so that it will not be pushed out of the market. If he lacks personal and professional level visibility to buy his home, we recommend that he invest in a villa or rental property.
Ghislain thanked Le Revenu for the quality of his advice and promises to always inform him about the asset decisions he makes after his visit.
Lessons to be learned from this heritage study
Not all ratings markets and all compartments evolve in concert. Reduction of diversification Equity portfolio fluctuations ..
No one knows how to predict when a good stock market session will take place.The only way to not miss them is to keep investing constantlyIncluding recession.