Asset conservation: discover the best strategies for efficient asset management

Wealth management can sometimes prove to be a real headache for savers looking to grow their wealth. It is therefore necessary to establish a solid strategy to optimize your investments and ensure the sustainability of your investments. In this article, we’ll explore some practical tips for asset diversification and estate planning.

Asset diversification: a basic approach to protecting your assets

When it comes to investments, asset diversification is undoubtedly one of the best techniques for minimizing the risks associated with the volatility of financial markets. It simply consists of dividing your capital between different types of investments (stocks, bonds, real estate, etc.) to limit the consequences of a possible deterioration in one of them.

Key elements of successful diversification

To implement an effective diversification strategy, it is necessary to respect certain rules:

  • Adapt diversification to your investor profile: Every saver has their own risk tolerance. It is therefore important to take this variable into account when deciding how much to diversify your portfolio.
  • Diversify geographically: it is not enough to simply divide your capital between different asset classes. It is also essential to invest in different markets around the world in order to benefit from the opportunities offered by the entire global economy.
  • Consider alternative investments: precious metals, works of art or even quality wines, so-called “alternative” investments can represent an interesting diversion in a period of turbulence on the stock markets.

What proportion for each type of asset?

Once you’ve determined the different types of investments you want to include in your portfolio, it’s crucial to determine the ratio each should occupy. In this sense, several approaches are possible and the best solution will always be the one that best suits your personal situation.

  1. Access by age: some experts recommend subtracting your age from 100 to know the ideal ratio to invest in stocks. A 30-year-old investor should therefore allocate roughly 70% of his assets to equity investments, while the rest should be divided between bonds and other less risky assets (real estate, money market funds, etc.).
  2. Approach according to financial goals: according to this method, you should consider your short-term, medium-term and long-term financial projects (buying a home, financing your children’s education, preparing for retirement, etc.) to determine the ideal allocation between different fund classes. .

Estate planning: anticipate better protection for your loved ones

When it comes to wealth management, estate planning is a fundamental step in ensuring the optimal transfer of wealth to your heirs. Especially since certain investment decisions can also have an impact on inheritance tax.

Choose your investments wisely based on their inheritance tax

To best protect your loved ones when transferring your assets, you should pay attention to the taxation that applies to the various assets held:

  • Life insurance: Often considered the preferred investment of the French due to its advantageous taxation, life insurance benefits in particular from partial or total exemption from inheritance tax, depending on the age of the insured and the date of signing the contract.
  • Securities and PEA accounts: these stock market investments are subject to traditional inheritance tax. However, it is possible to partially transfer your PEA without it being closed, thanks to the “PEA inheritance” system.
  • Investing in real estate: Directly held properties can be subject to high inheritance taxes. However, for investments in shares of property investment companies (SCPI) or property collective investment organizations (OPCI), inheritance tax is calculated on the value of the shares and not on the value of each retained property.

Opt for gift sharing to make it easier to share your assets

Finally, to best anticipate the transfer of your assets to your heirs, it may be wise to consider a donation-sharing. This system allows you to definitively divide your assets between your children while benefiting from favorable taxation. It offers the advantage of freezing the value of the donated property at the date of donation and avoiding potential sources of conflict in the settlement of the inheritance.

In conclusion, effective asset savings management must necessarily include asset diversification and estate planning. These strategies allow you to protect the fruits of your investments from the vagaries of the financial markets and ensure the optimal transfer of assets to your loved ones.

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