How to structure your wealth?
Great question. I received many requests by mail and it is true that this is a subject that I have already addressed. It’s done!
Recommend a type of heritage is not obvious. Every person, every family is a different case. The recommendations are not the same for a businessman and a couple in retirement. The percentage of taxation also plays an important role in the structure of assets. However, there is a basic and universal principles. Overall, this article is for people with less than 100 000 euros of assets (40% of french), so make your accounts!
These principles create a basic structure to build his assets. The foundations of a heritage are paramount. Like the pyramids of Egypt, are the foundations which will allow your assets to grow healthily and especially bear fluctuations and crises.
I will talk about the ideal heritage. Anyone who can have an open mind to opportunities and keep a cool head. I will not address questions such as “risk profile or risk tolerance. These issues must come after because it is simply not smart to play the money you need.
I identified a set of principles as follows:
Principle No. 1: Save. You must have 3 to 6 months of expenses in savings. Saving is essential to have a little back on things. It is a tool you must use to your advantage.
Specifically for a couple of 28 years with the following monthly expenses:
Transport: 300 $
Rent: 800 $
Recreation: 300 $
Power: 300 $
Others: 300 $
Tax: 150 $
We arrive at a monthly expenditure of $ 2150. I recommend this couple to have $6000 to $12 000 in savings.
The objective of this money is to avoid any consumer credit. These loans are marketed with very high rates, often exceeding 18% – and are being used in an emergency.
The constitution of this pool of money is not obvious but it should be your first goal.
To successfully save, you must first serve! Once you receive your wages, put 10% of the money in a savings account. You will see that in doing so, costs are no longer the same importance. More detail in “The richest man in babylon”.
Principle No. 2: Choose your media investment. Everyone is still here? Support investment only defined the nature of the account will have to live your money.
Beware of sellers of products-known as “adviser” – whose goal is not to correctly structure your savings but simply to sell a product. The approach is to ban the product. You easily identify such people, they do not pose any questions about your goals.
The approach does not need to focus either. Typically this is the answer to one of your goals: “buy a house in 4 years” -> hop, PEL. This approach does not take into account your situation in a comprehensive manner.
We must therefore focus on a holistic approach. I would recommend you to spend time and reflect with the help of a professional.
The savings that you carefully accumulated must be available. The regulated savings is perfect for that.
In order, the savings booklet (LEP) is the most interesting. It allows up to 7700 $ paid to 4.50% from 1 August 2008. It is reserved for individuals or couples pay less than $ 732 in taxes on income (the exact amount changes every year). It is reserved for a certain segment of the population.
If you can, open a LEP and fill it.
Then the book to remain a medium of choice. It is a safe investment, the money is invested in securities issued by the Caisse des Depots et Consignations. Atur said, guaranteed. If you do not open a livret A and complete it. You can save up to 15 300 €. Your money is paid 4%. Do not make money with this type of support. The rate is adjusted so that you do not lose money due to inflation (if inflation is 6% and the book A to 4%, your capital concrete bottom). For now the livret A keeps its capital.
A booklet is a good support since it fulfills our goal of having money available.
To go further, superlivrets are the next step forward.
The superlivrets are relatively safe. There is no risk of losing your money. With these superlivrets, the institution pays your money at a rate generally lower than the book A (excluding promotion). This is where it’s a little complicated: there is a jungle of offers for you to subscribe to a particular book. The offers are often accompanied by a promotional rate on 3 or 6 months, sometimes with the limits of the amounts … Bref c’est search and once the net is calculated, it is often less than 4%. The advantage of this type of support is that there are no limits as to amount and that money is available. In addition there is relatively little imposed.
Principle No. 3: Learn! It is important that you learn to manage your money. Nobody will take care of your money than you! Sources of information are not lacking and you need to find one that matches your level. This is also the time to learn to grow your money by placing 5% of your income on the stock exchange. There are many sites to have a virtual portfolio to manage his money. You only need to put that money that you do not need it!
It is common sense but do not forget it. Another point: do not put your money on a medium that you do not understand.