“Many times we tend to consider that saving is a problem for people in their forties and fifties, but it is not.” Christian Fontaine, deputy editorial director of Le Revenu, assures us. It is important to start generating wealth as soon as possible. So if you have $500 that you manage to save each month, some investment strategies may turn out to be more profitable and successful than others.
Investing at 25: the profile of savers
Without generalizing, investors in their 20s and 30s can afford to take risks. In fact, they may invest for a longer period and therefore may potentially be dependent on riskier investment vehicles.
This is a type of investor who, beyond performance, aspires to make sense of your investments.
Finally, it is a generation of investors who are starting out in working life and who want to build their assets and acquire a few years later. a first property.
What to invest in at 25: place 300 euros in a PEL
ELP’s Choice : If you have 500 euros apart, one of the first options you have is to open a PEL (housing savings plan) to buy, in a horizon of 5 years, his first property. A long-term strategy that also allows you to protect yourself from inflation and maintain your purchasing power in a context of central bank rate hikes.
Because ? Therefore, in order to obtain your credit, it is important, first of all, to place 300 euros each month in your PEL. A savings phase now remunerated in 2% from January 1, 2023 (vs. 1% before).
what strategy ? After 4 years, you will be able to borrow at 3.2%. A rate that is currently not competitive to the extent that deposit rates fluctuate on average at 2.8%. Except that the OAT (that fixed rate at which the French State borrows for a period of 10 years and which serves as a reference for most fixed rates, in particular for mortgages) could rise in a few years. So this possibility of borrowing at 3.2% mechanically could become interesting. “Opening a PEL today is the certainty of being able to borrow at 3.2% in 4 years”recalls Christian Fontaine.
Another interest, the PEL obliges savers to invest at least 540 euros a year in this medium (minimum 45 euros per month). An approach whose main interests are not only to reassure your bank but, above all, to constitute a contribution to be able to buy your future home.
What to invest in at 25: place 180 euros in a PEA
The choice of PEA : To boost your savings (if you manage to save 500 euros per month), it may be convenient invest 180 euros each month in your capital savings plan (PEA).
Because ? On the one hand, because the PEA is the envelope of choice for investing in the stock market (17.2% deductions from your earnings versus 30% in a securities account), and on the other hand, because this investment medium offers significant potential returns.
Even more relaxed taxation since the taxation of your profits (dividends and capital gains) only happens when you make withdrawals from your PEA (and not when you collect them).
what strategy ? An investment that must be made over time for it to work well (minimum 5 years).
What to invest in at 25: place 20 euros in a PEE
EEP’s choice : With the remaining 20 euro (of 500 euros saved each month), you can choose to place them, if you are an employee, in an employee savings plan (company savings plan – PEE).
Because ? It is a savings financed automatically by the participation and participation in the results of the company in which you work and to which you can support voluntary payments within the limit of 25% of your salary annual gross.
what strategy ? To these 20 euros per month (240 euros per year), you should know that your company will add a contribution corresponding to 3 times this amount. Each year you will thus save 960 euros (240 euros + your company’s contribution corresponding to 720 euros). With the interest, you will get a kitty ranging from 5,000 to 10,000 euros depending on if you save 5-10 years, all effortlessly.
Source: BFM TV
