How to invest 100,000 euros in 2024?

Exploring different investment areas, such as the stock market and real estate, is essential to get the most out of your capital. It is also a good idea to consider alternative investments such as startups, the artworks or Gold to diversify and balance your portfolio. Finally, being aware of common pitfalls and mistakes can help you avoid losing your investment and make it easier for you to reach your financial goals.

The fundamentals for investing 100,000 euros

Precautionary savings

Before investing 100,000 euros, it is important to set up a Precautionary savings. This savings makes it possible to deal with the unexpected without having to draw on medium or long-term investments. It is generally recommended to set aside the equivalent of 3 to 6 months of income. So, in the event of a major blow, you can draw on these savings without affecting your assets.

Precautionary savings can be placed in very accessible bank accounts, such as the Booklet A Or the Sustainable and Solidarity Development Booklet (LDDS). These investments offer guaranteed capital and immediate availability in case of need.

Investments with guaranteed capital

Once precautionary savings are in place, it is time to think about guaranteed capital investments to invest your 100,000 euros. These investments offer investment protection, which means you won't lose money regardless of financial market fluctuations.

Among guaranteed capital investments, we find term accounts, Obligations or even the life insurance contracts in euro funds. These generally have a modest return, but they make it possible to secure part of your assets. They also have the advantage of being taxed little or not at all, which is interesting for optimizing the management of your assets.

Choosing your investment horizon

Investing 100,000 euros in the short term

When choosing to invest 100,000 euros in the short term, it is essential to take into account the risk tolerance and liquidity. Short-term investments may offer lower returns, but they are generally less volatile. Possible investments include savings accounts, money market funds, and short-term bonds.

Taxation: Interest earned on short-term investments may be subject to income tax and social security contributions. On the other hand, life insurance allows you to benefit from advantageous taxation in the event of early withdrawal.

Life insurance: One possibility for investing in the short term is life insurance in euro funds, offering a secure capitalization with a return that is generally higher than that of conventional savings accounts.

Investing 100,000 euros in the long term

Investing 100,000 euros over the long term allows you to diversify your portfolio and optimize your return. Some investments to consider include stocks, long-term bonds, and real estate investment.

Yield: Long-term investments aim for higher returns. However, they are often accompanied by a higher level of risk. When investing for the long term, it is important to diversify your portfolio to minimize risks.

Taxation: Capital gains on long-term investments are generally subject to income tax and social security contributions. However, certain tax provisions make it possible to reduce these levies according to the length of time the shares are held.

Life insurance: Life insurance also allows you to invest for the long term by diversifying your portfolio between different asset classes. Secured euro funds can be supplemented by units of account invested in shares, bonds or real estate.

Annuity: By investing 100,000 euros over the long term, it is possible to consider the establishment of a life annuity, which will provide a regular income to the investor from the chosen liquidation date.

Investing 100,000 euros on the stock market

Actions: aim for long-term profitability

Investing in shares allows you to participate in the growth of businesses by buying shares in them. Shares can offer long-term profitability by capitalizing on business performance. For investors with an amount of 100,000 euros, consider opening a PEA (Stock Savings Plan) can be a good strategy for reducing taxes on long-term earnings. It is essential to properly distribute investments across different businesses and sectors to reduce risks.

Bonds: for a short-term strategy

For those who prefer a short-term strategy, invest in obligations may be an interesting option. Bonds are debt instruments issued by companies or governments that pay fixed interest to investors. En Understand obligations before investing is crucial to choosing a bond whose lifespan is in line with your investment horizon. To invest in bonds, you need to have a Securities account and follow closely the yards on the financial markets.

Index ETFs: to passively match market performance

Les Index ETFs (Exchange Traded Funds) are investment funds that replicate the performance of a stock market index such as The CAC 40 Or the S&P 500. They make it possible to invest passively in a wide range of businesses without having to select and manage stocks individually. Index ETFs are accessible via a securities account and offer a simple way to diversify an investment portfolio. To invest 100,000 euros in ETFs, it is important to compare the management fees of the various options available and to take into account the investment objectives and the desired level of risk.

Investing 100,000 euros in real estate

Direct investment in real estate

Direct investment in real estate consists of buying real estate, such as apartments, houses, houses, offices or businesses, in order to rent them and receive rental income. This makes it possible to generate rents and to benefit from the valuation of the property over time. However, this investment method requires active property management, especially with regard to maintenance and the search for tenants.

The benefits of investing directly in real estate include total control over assets, the ability to take advantage of rising real estate prices, and the creation of concrete real estate assets. However, it is important to consider the costs associated with maintenance, management and taxation, as well as the risk of a rental vacancy.

The paper-stone: the SCPIs

Real Estate Investment Companies (SCPIs) offer an alternative to direct investment in real estate. They allow you to invest in a diversified portfolio of real estate properties without having to manage the assets directly. SCPIs buy real estate (residential, commercial or office) and receive rents that they redistribute to partners in the form of dividends.

The benefits of SCPIs include the geographic diversification, risk reduction thanks to a varied asset portfolio and the possibility of accessing investment opportunities in other countries.

European SCPIs, for example, make it possible to invest outside France and take advantage of the opportunities offered by European real estate markets.
European SCPIs, for example, make it possible to invest outside France and take advantage of the opportunities offered by European real estate markets.

Real estate crowdfunding

Real estate crowdfunding is another method of investing in real estate. It involves pooling funds with other investors to finance real estate projects in exchange for a return over a defined period of time. Financed projects can be constructions, renovations or real estate development operations.

The main advantage of real estate crowdfunding lies in its flexibility, allowing investors to access various projects with lower entry tickets than direct investment. In addition, investors can benefit from a potentially high return and a diversification of their real estate portfolio.

However, it is important to note that real estate crowdfunding presents risks, such as the risk of default by the real estate operator or a risk linked to the market.

Diversifying with alternative investments

Cryptocurrencies

To diversify an investment portfolio, Cryptocurrencies like Bitcoin are an attractive option. It is essential to Diversifying your crypto portfolio in order to benefit from the opportunities offered by various digital currencies. Bitcoin will experience a halving in 2024, which could impact its evolution.

For invest in cryptocurrencies, the DCA strategy, is highly recommended to limit the risks associated with this volatile market.

The watches

Luxury and collector's watches are alternative investments that can help diversify your savings. They are often considered art objects and can increase in value over time.

Classic cars

Investing in classic cars is another way to diversify your investments. Enthusiasts of this market can benefit from the appreciation of the value of these properties over time.

Gold as a safe haven

Gold is often seen as a safe haven in times of economic uncertainty. Recent changes in its price reflect the attractiveness of this type of investment. There are several ways to invest in gold, including buying coins, bars, or ETFs.

Forest investment with the GFF and GFI

Investing in forests provides additional diversification for a savings portfolio. Forest Land Groups (GFFs) And the Real Estate Investment Groups (GFIs) are investment vehicles that make it possible to finance forest management, while benefiting from tax advantages.

The pitfalls to avoid when you want to invest 100,000 euros

Non-diversification

It is crucial to diversify your investments to spread the risks. Putting all of your capital into a single type of investment, such as shares in a specific company, can result in significant losses if the business or sector does not perform well. It is essential to distribute your investments between different asset classes, for example by investing in stocks, bonds and real estate at the same time.

Not choosing your strategy: DCA vs Lump-sum

It is important to determine if you want to invest your capital in only once (lump-sum) or gradually over time (Dollar Cost Averaging, DCA). Each strategy has its pros and cons. The lump-sum method allows you to benefit from market profitability on all of your capital from the start, while the DCA method reduces the risks associated with market fluctuations by spreading investments over time.

Ignoring your own investor profile

Know your risk tolerance is essential for making informed investment decisions. If you are prepared to take on greater risks, you may be interested in investing in more volatile investments, such as stocks. However, if you prefer to take fewer risks, you may prefer investments that are less volatile, such as bonds or guaranteed investments. Make sure you fully understand your investor profile before making investment decisions.

The importance of monitoring your assets continuously

It is crucial to monitor the evolution of your investments and to regularly monitor the markets to seize investment opportunities and optimize the performance of your portfolio. Regular monitoring also allows you to assess the liquidity of your investments, as well as their exposure to various market risks.

In summary, it is essential to avoid these pitfalls when investing 100,000 euros. Diversifying your investments, choosing an appropriate strategy, knowing your investor profile and continuously monitoring your assets are crucial steps to maximize the profitability of your investment while minimizing risks.