Where to invest in 2020?

Where to invest in 2020

When you want to invest your money, you often think about the stock market, but when you don’t know about the financial markets, it scares you a little bit. The fear of not having a return, or even of losing one’s starting capital, invades us very quickly.

In our article today, we will suggest you different ways to invest your money in a variety of profitable investments.

REIT

A REIT is a Real Estate Investment Trust whose principle is to invest money in offices, businesses and homes without having to worry about management. In other words, it is a long-term rental property investment, which will share the potential income from rents received to its partners in proportion to the shares invested.

This will bring you a return of about 5% net per year without having to take care of property management.

REITs represent a very attractive investment for those seeking a compromise between return, risk and personal investment.

To get started, know that the REIT that your banker will offer you are not necessarily the best in the market. This is why we recommend that you search on the internet for specialized platforms that will present you all the REITs of the market, and it will be up to you to make your choice. Some platforms even offer the help of a free professional.

Invest in businesses

This is the principle of crowdequity or crowdlending, which involves participating as a group of people in the development of a project (a start-up).

This practice is mainly done on internet platforms, and is also very successful thanks to social networks. The advantage of this practice lies in the opportunity to participate in the development of companies in his country by investing even a small amount of money and earning more than with a savings books for example.

The yield of crowdfunding varies between 4% and 10% depending on the projects.

There are two very serious platforms known in the field: WeShareBonds and Lendopolis.

However, it must always be kept in mind that this investment represents a gamble on start-ups, which means that the risk of loss of capital is present. Therefore, we recommend two things:

  • Invest the money you do not need (the money that sleeps);
  • Spread your investment across different companies to minimize the risk of loss and diversify your investment.

The stock market

As mentioned above, investing in the stock market is a great risk of losing your starting capital, especially when you are a beginner and don’t have a good knowledge about financial markets.

However, the basic principle of finance tells us that profitability increases with risk taking. So, if we put our money in a very risky financial product, the return should be higher. This is the case of the stock market, but you must know a minimum about it.

Although investors are often advised to buy stocks just after stock market crashes, it is not always easy to identify the right time to sell them. We therefore advise you to train, document and practice before going public.

In addition, if you are a beginner on the stock market, we strongly recommend investing in the long term. You can follow the evolution curves of the stock indexes of the most important stock exchanges in the world, such as the MSCI, the Dow Jones, the Nasdaq, the FTSE or the CAC40, and see that they increase over a long period.

Real estate

The real estate sector is still a safe value for which risk-taking is at a minimum and profitability can be quite significant if we do it right. However, we don’t advise you to entrust completely your investment in the stone to a professional because the decisions that it will take in your place are not necessarily the best ones.

As with all the investments we have mentioned, we advise you to train and document yourself in the real estate field before you start. Indeed, we must identify the city, the region or even the country where the cost of real estate is low enough with a rental return correct and safe.

To do this, although new real estate generally has a lot of advantages, we must not neglect the performance that can be done in the old. Indeed, the taxes in the new real estate is attractive. For a new apartment, for example, you will save on taxes but it will be much more expensive to buy with a rental yield barely more important than in the old.

The old market is buoyant at the moment, especially with interest rates remaining low. In addition, any refurbishment work is generally deductible from the tax base.

In addition, we must not neglect the leverage that can be done by investing in real estate on credit. Starting from 0, you can buy a property on credit, and if you have invested well, with the rental yield, you can pay the credit, all the charges and generate cash in addition.

Finding property with significant rental returns is not an easy task, but it is entirely possible. For this, we recommend that you take online courses that will provide you with all the necessary tips to find the right thing.

Saving accounts

They are quoted because it exists, but the yield is currently very low and not at all interesting especially if we take into account inflation. Know that it has the merit of existing and that it is always better to deposit money there than on a simple current account, but we can not speak of investment itself with this kind of product.

Life insurance

Although his name does not indicate it, life insurance is a product of investment whose goal is not only to leave money to his descendants.

Of course, the goal is to invest money with rights holders in case of death, but it is especially a great way to secure money at a rate higher than that of the savings book.

Since it is a risk-free investment, it is very unprofitable. We usually talk about a profitability of 2 to 3%, which is not really extraordinary.

Internet

Internet represents the new simple and original way to place your money. There are nowadays people who live on the internet.

To do so, we will present below the main tracks:

  • By creating a website (a new company): For example, we can set up an e-commerce shop in dropshipping. This is a way that is becoming more and more common to create wealth with a small cash investment and without having to manage any stock of goods.
    But for that, you must have a great knowledge in the field of google SEO (Search Engine Optimization).
  • By taking over an already existing online business: If you don’t want to start everything from the beginning, you can buy back an already existing website. The cost is usually affordable. All you need to do afterwards is to invest a little in SEO and advertising.
  • By creating a blog: To create a blog and be successful with it, you must love to write in the chosen field, share your opinion and be able to keep this blog up to date.
    When the number of visitors to your blog starts to become important, you can start the monetization phase. This is done through advertising: you will get a few cents each time a user clicks on an advertisement on your blog. Another way to monetize your blog is affiliation, which is a commission that a brand will pay you each time you sell a product.

Conclusion

To finish our article, we strongly recommend investing your money and a little of your time in the training. Never throw your eyes shut in something you do not control. In addition, there is no miracle recipe, your investment will depend on your short-term and long-term goals and your risk taking.

For our part, we find that the REIT and the physical real estate remain very correct investments where the taking of risk is reasonable and the yield is interesting.

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