Look for the Best Choices and Options in Wealth Management

If there is no miracle recipe for managing your assets, there are a few rules to follow to avoid disappointments. Knowing your objectives in order to define the most suitable strategy is the first of them, and arguably the most important. James Scholes, founder of Evergreen Wealth Formula, gives his advice regarding the same and visit his website here.

A balanced portfolio is above all diversified, in particular between real estate and movable assets. The asset strategy is to be defined according to each profile and each situation. Many parameters then come into play: age, family situation, medium or long-term objectives, taxation, sensitivity to risk and appetite, objective or subjective, for different types of assets.

Define your goals

The constitution of a financial investment must always meet a clearly defined objective. The time spent on investing or immobilizing liquidity must be considered with precision, especially since it sometimes conditions favorable tax treatment. Investments can thus aim to:

• provide income received regularly, making it possible to supplement salaries and income from activities;
• provide income received later, serving to supplement the retirement pension or to cover dependency, a possible health problem, or the future of his family;
• be capitalized to build up capital over time, which can be used as a contribution for a real estate purchase, or be transmitted, in advance, to his children. It can also be used to finance studies or a large acquisition, install children who have become adults, prepare their succession.

Develop your strategy over time

Age is a key factor in determining the distribution of one’s assets. Even if the projects and the financial means differ according to the profiles, at each stage of life, personal and professional, correspond investments to be privileged and investment decisions to be made. An effective wealth strategy must therefore consider several successive investment strategies over the life of the saver:

– At the start of his professional life, the individual generally prefers to go into debt to buy his main residence. However, it is important to build up liquid and secure precautionary savings to deal with the vagaries of life;

– Mid-Career is generally the most lucrative period, when the income received is the highest. It is also the one where the costs are the heaviest (repayment of the mortgage, car loan, financing of children’s studies, anticipation of retirement. For this, do not hesitate to diversify your investments in securities. securities, which can be invested in a PEA or a life insurance contract; 

– Anticipating the end of their professional career, individuals frequently opt for longer-term investments, a higher weighting in equities and real estate investments, which will allow them to benefit from rental income to supplement their retirement.

– When preparing for retirement, this wealth should be optimized and risk-taking gradually reduced in order to conserve the accumulated capital.