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Marc now wants to move towards a more dynamic allocation of his savings. In concrete terms, it is ready to take risks (to expose itself to greater volatility in its portfolio), knowing that this should in the long run offer a significantly better performance. As a good father, Marc also wants to diversify his wealth in different asset classes.
Before optimization, Marc had his 250,000 euros placed in a life insurance contract in his bank. The euro fund yielded around 1.50% and the fees on payment amounted to 2%. Another part of the outstanding amount was invested in units of account. In this case, active investment funds, which involved 2 layers of fees: the management fees specific to the funds (fixed + percentage on performance, up to 3%) and the management fees of the contract of life insurance (1% management fee).
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The sum of all these expenses (expenses on payment of the contract + expenses of management of the contract + expenses of management of the funds) ends up representing a significant cost coming to significantly burden the progression of the patrimony.
After optimization: a dynamic allocation to investments that pay more in the long term (projects: children’s study and retirement).
As a good father, Marc retains a significant portion of his investments in euro funds for guaranteed capital. But he has decided to open new contracts with no down payment fees and access to euro-denominated funds that outperform his old fund in recent years. In practice, Marc distributes € 150,000 in 3 funds in euros, from 3 different insurers, whose performances have been close to 2.50% in 2018. Why diversify on several life insurance? In particular to benefit from the guarantee of the insurer, whose ceiling is 70 000 euros by insurer.
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Marc also decides to subscribe € 100,000 in shares of SCPI (real estate investment companies), financed entirely on credit. This in order to take advantage of the credit lever (make work money that we do not have) and take advantage of low interest rates. To see concretely the implementation and the result, you can consult our article presenting the investment of 100,000 SCPI on credit made by Nicolas. Know that the performance of SCPI is up to now of the order of 5% per year.
In addition, Marc takes the initiative to invest € 100,000 in the stock market. Having no competence in this area or the desire to get involved, Marc decides to delegate the management of his stock market investments in life insurance in managed management. With a little more involvement, Marc could also have invested directly on well-rated investment funds (or trackers to go to the simplest and most effective), but having neither the time nor the will to get involved in this task, managed management is an interesting service.