Best Investment for a Senior in Inflation Period


Best Investment for a Senior in the Inflation Period

The population is aging, and the baby boomers now retired are looking to identify the best investment for a senior citizen. This category of the population, which has a substantial capital, fixed income (retirement pension) without fear of unemployment, and a relatively short investment horizon, with possible transmission-succession problems, is often looking for an investment that yields a return every month to increase its income. So, which investment should you choose after age 60? Which investment should I choose after age 80? What is the best investment for retired people? Discover our ideas of senior investments to consider in order to finance your retirement and prepare your estate.

Life insurance to create an annuity while taking advantage of the tax benefits of inheritance

Without question, life insurance is an investment to be favored to prepare for retirement. It is therefore recommended to open this type of investment at the beginning of one’s working life in order to feed it over the long term and take advantage of the magic of capitalized interest that we mentioned earlier. As the retirement date approaches, it may be appropriate to transfer the sums held in the more risky unit-linked products to the capital-guaranteed euro fund, to be sure of finding your money intact when you need it. Note also that life insurance allows you to benefit from tax advantages in terms of inheritance.

Rental real estate investment to supplement monthly income and pass on one’s assets smoothly

Retired people can also turn to rental property investment, an ideal investment for senior citizens who will be able to receive a monthly income thanks to the rents that this implies, which will add to their retirement pension. Moreover, this real estate investment will allow, with the implementation of a dismemberment of the property, to prepare its succession. By transmitting the bare ownership to their heirs, the seniors who keep the usufruct of their property will be able to continue to receive rent while reducing the part of their patrimony concerned by the inheritance tax. The heirs, at the death of the usufructuary of the property, will benefit from a free recovery of the right of usufruct and will have access to the full ownership in a very advantageous way.

Investing in the stock market to please yourself and boost your investments

Senior citizens who are less risk averse and passionate about the stock market can also invest in the stock market to have fun with direct stock picking or trading because they have the time (and often also the capital) to engage in this type of activity.

In addition, stocks can generate additional income. American dividend aristocrats or certain stocks, such as Total, for example, can be excellent investments with quarterly returns.

Resale of the principal residence to receive a life annuity

Finally, the less affluent seniors may consider selling their principal residence in order to position themselves in investments that will generate additional income. If necessary, it may also be wise to finance one’s retirement by selling one’s principal residence as a life annuity, which allows one to receive a monthly income while continuing to live in the property.

The best placement for a junior

Young people entering the job market may also wonder what is the best investment for a junior. A young working person often has little capital, but a high debt capacity, and above all a very long investment horizon. Taking these elements into account, it is in the best interest of junior profiles to start building up a diversified portfolio that will allow them to finance all the major stages of their lives.

The stock market to benefit from the long-term attractiveness of this asset class

First of all, because, as we have seen previously, shares represent the most profitable asset class in the long term, and considering the very long-term investment horizon of a young active person, it is essential to position oneself on the stock markets. Opening a PEA, a securities account, or taking a position on the stock markets via the units of account of a life insurance contract is a must, accessible to all. You don’t have to be rich to invest in the stock market. You can start with a few hundred euros. You don’t need to know anything about the stock markets either, it is possible to opt for a standard portfolio or for controlled management, at a very accessible rate and with a relatively small amount of money outstanding with the online players. Why not opt for a robot advisor for example? The digital and innovative character of this type of fintech solution is particularly adapted to young people.

Investments with guaranteed capital to secure your assets

However, there is no question of investing only in risky investments, especially if you are very risk averse. It is indeed recommended to combine these equity investments with guaranteed capital investments such as the euro fund of life insurance. Don’t forget either, as soon as you start working, to set up an emergency fund in a bank book to cover all eventualities. And add to it as soon as you have dipped into it. If you get into the habit of saving regularly as soon as you start earning, this should not be a problem.

The real estate market to get a foothold in this essential component of diversified wealth

Finally, we cannot recommend enough that you get a foothold in the real estate market as soon as possible. The SCPI, with its relatively low entry ticket, can be a solution. But it is also often a good idea to buy a primary residence rather than renting a property. Your housing expenses will thus be used to build up your real estate assets rather than to enrich your landlord.