When you have a little money aside, it is interesting to make it grow. But before putting your savings into risky plans, it is better to learn about profitable investments. If you are wondering what to invest in in 2020, we have given you some ways to make money. Bank placement, rental investment, crowdfunding, stock market, cryptocurrency … We take stock of all the solutions to make your savings grow. Follow our tips to get richer in 2020!
What to invest in in 2020? Life insurance!
Life insurance is not just financial security for your family in the event of death. It is also a good investment in 2020 and a good way to secure your savings at a rate higher than the livret A.
Life insurance also has tax advantages after 8 years after opening the contract. And the yields are falling more and more. Without action and only with funds in euros, you will have a profitability of around 2 to 3%. This is not exceptional, it is more of a quiet investment. Ideal for those who fear financial risk.
However, there is a solution to make your money more profitable. This consists of diversifying and investing a little in funds in euros, in SICAV funds and in equities.
And online banks offer real opportunities to invest and profit from it. In addition, the costs are low.
advice : if life insurance continues to be attractive in terms of investment, the livret A, it now has a low yield. Indeed, this still popular placement of the French only brings in 0.75%. In 2020, to get rich, it is better to forget about it.
To go further: How to know the amount of life insurance?
Invest in stone via a SCPI: real estate, a safe bet in 2020
Buying a SCPI (Société Civile de Placement Immobilier) also called pierre-papier means investing in rental companies (housing, offices, shops, etc.). Per year, you can expect to earn around 5% net of fees, knowing that it is possible to buy a REIT on credit. This can be a good investment, given the loan rates which are very low (less than 2%).
In addition, a SCPI remains a relatively interesting investment for those looking for profitability without taking too much risk. Your banker can offer you investments, but it’s best to do your own research. On the Internet, you will find online platforms where a wealth management advisor can help you choose the best investment based on your savings.
advice : there are now platforms for crowfunding in the real estate sector. On these online sites, promoters raise funds from individuals to finance projects. You will be able to find investments offering gross returns between 8 and 10% per year. This is significantly higher than the average.
Crowdfunding, invest in a French company
There is an innovative way to invest your money in 2020. Crowdfunding, or crowfunding, allows you to invest your money in SMEs in France. And for that, you don’t need a lot of money. You just have to go through platforms on the Internet such WeShareBonds Where Lendopolis, which are recognized as serious. On the first site, you can bet on a company from 50 euros.
The interest is multiple. By investing in a start-up, you support the French economy, the development of businesses in France and you earn more money than with a traditional passbook. Depending on the project, profitability is around 4 to 10%.
advice : there is always a risk of loss because the start up may not work. It is better then to carefully choose a promising project. And preferably distribute your assets to offset gains and losses, and assess what brings in the most money.
Investing your money on the stock market in 2020
The stock market remains one of the flagship investments in 2020, especially since stocks have recently seen a decline. But there is a significant financial risk. When investing in the stock market, you have to be prepared to potentially lose money. Indeed, it is not always easy to determine the right moment to sell its shares.
In any case, to make money on the stock market, you have to choose the right companies to invest in. In 2020, there are interesting actions like those of Starbuck, Shopify or Microsoft. And in France, the most recommended stocks on the market are those of L’Oréal, Vinci and Airbus.
Better to try the stock market if you are part of an insider audience or as a trader. To understand all the ins and outs, it’s best to educate yourself and practice with little money at the start. Sites like Boursorama offer virtual portfolios. It is also advisable to call on a professional trader to be accompanied in your first steps.
Investment in cryptocurrencies
Since 2018, cryptocurrencies have experienced a decline. However, they remain promising stocks in 2020. Although volatile, these virtual currencies continue to be attractive as profitable investments.
As safe bets, bet on Bitcoin or Ethereum. There are also promising currencies such as IOTA, Neo and Vet.
Read also: Which cryptocurrencies are worth your investment in 2019?
In 2020, to invest in wine?
What to invest in in 2020? And why not in wine, precisely! It may be more of a heritage diversification project. The challenge is then to build a collection. It is a good financial plan that is valued over the medium and long term.
You can therefore bet on sharp wines so that the investment brings in as much money as possible. Moreover, over the past 15 years or so, the fine wines market has developed.
However, investing in wine remains a risky bet. It is better to know the world of oenology to hope to earn money in this field.
Call on a wealth manager before investing
You are looking for what to invest because you tell yourself that now is the best time. You’re right, investing is always a good idea, but you shouldn’t just go for it. When you are not familiar with it, it is best to refer to a wealth manager before investing. If you want to know what this manager is for, you will find some answers via this additional information.
What is a wealth manager?
A wealth manager is an advisor who makes financial investments for his clients. Unlike a wealth manager, most people can call on a wealth management expert. By entrusting him with your assets, it will help you to value it. Wealth is what includes your savings, your real estate, and your material assets like art, jewelry, or gold. If you want to manage your liquidity (in other words your cash) we say that you need an average of 20,000 euros to invest. If it is real estate, the advisers will want your assets to be 100,000 euros.
What is the wealth manager for?
The wealth manager can be of use to a lot. Sure, he’ll put your money for grow your wealth but not only. You can opt for its services to lower your taxes. It can also help you prepare for your retirement and your estate. It can manage an inheritance that you will soon receive and can even allow you to supplement your income. These missions are varied but all aim to improve your financial situation.
Where can you find your wealth manager?
Wealth managers can find themselves in several ways. You have the possibility to consult it in classic banks or online banks. If you do not want to go through a banking establishment, you can opt for an independent wealth manager. They also exist in notary firms, in brokerage firms and also in chartered accountants. The possibilities are numerous, to make your choice, you can ask for the rates of different managers and choose the cheapest firm. You can also look at reputation of its latest or seek advice from those around you, if your friends have already used this type of service. As many solutions as possible investments for the future management of your wealth.