You have surely noticed that the money that is deposited in your savings account no longer earns you almost any annual interest. The average interest rate of all banks in Belgium is close to 1%, including the annual loyalty bonus. Skinny all the same…
When we know that inflation is around 2 to 3% on average each year in Belgium, you will have understood that the money sitting in your savings account actually costs you more than it saves you. pays off to the extent that it depreciates more quickly than it earns you interest. A terrible observation!
Is there a way to get interest on your money? Contrary to what the banks tell you, there are many financial investment solutions. Follow the guide through this (too) succinct article.
Money that sleeps is money that depreciates
Only leave money in your checking and savings account that you absolutely need. In general, it is recommended to leave the equivalent of six months’ salary unless you know that you will have to face a major expense in the coming weeks or months.
You hate risk and are ready to lock in your savings for 3 to 10 years
So you might be tempted to block your savings in a term account. If you agree to block your savings for a period of 10 years, some banks will grant you interest of almost 4% gross.
The principle of the term account is that you cannot move your savings. It is however possible to do so under certain conditions but you will then in principle lose the benefit of your investment.
Invest in stocks
You can decide to buy shares of companies listed on the stock exchange. Only invest in the stock market if your knowledge allows you to do so and if you are certain that you can devote time each week to follow financial news in general and more specific financial news relating to your investments. There are some very good financial magazines that can help you familiarize yourself with the financial markets. Take the time to read reviews every week for at least 6 months before making your first investments.
We can recommend the magazine L’Investeur de Test Purchase and Initié de la Bourse
Do not take this advice as gospel. Make up your own mind and take the time to think carefully about your investments.
Equity investments in recent years have yielded more than 10% capital gains per year. Finally, we must not forget that certain companies distribute dividends which can sometimes reach more than 7% gross, such as Belgacom, Telenet, Bpost, etc.
This return adds well to the evolution of the stock price.
Investing in stocks always represents a significant risk and you must be sure to accept fluctuations in your investments. There will be years of regression or even crash and positive years. On average over the last 50 years, the equity investor has obtained a positive net return on investment of 5%.
Is it enough to counterbalance your stress? Up to you…
Investing in bonds
A bond is a loan issued by a company that earns you a fixed annual interest. Bond prices vary less than those of stocks but contrary to popular belief, prices also vary and bonds are not financial products devoid of all risk.
The principle of a bond is to earn you annual interest and to repay your capital at the maturity of the bond except in the event of bankruptcy of the company.
The bonds benefit from a rating on which the interest rates will essentially depend. Ratings range from AAA to D.
Again, depending on the risks that the investor is willing to take, interest rates are higher or lower. Thus an AAA bond will yield around 1.5% net while a BB- bond can carry annual interest of nearly 6 to 7% gross.
These financial products can be very interesting investment instruments. For more information on bond products, we recommend the website of the stockbroking company Goldwasser Exchange.
Three essential basic principles
Do you want to enter the financial markets? Very good, but never lose sight of these three essential fundamental principles:
- Don’t invest money you don’t need right away;
- Have an investment horizon of at least 3 to 5 years;
- Diversify your investments: diversification is essential so as not to centralize all the risks in a few financial products.
Discretionary or personal management?
All major banks will provide you with a personal banker. They will offer you discretionary management, meaning that an investment specialist will manage your investments while respecting your prerogatives.
We personally believe that if you are able to manage and know the products you purchase, you will have more satisfaction in assuming your risks yourself. Of course this last solution requires knowledge, time and…endurance to stress.
More information on www.cpe-credit.com
You have surely noticed that the money that is deposited in your savings account no longer earns you almost any annual interest. The average interest rate of all banks in Belgium is close to 1%, including the annual loyalty bonus. Skinny all the same…
When we know that inflation is around 2 to 3% on average each year in Belgium, you will have understood that the money sitting in your savings account actually costs you more than it saves you. pays off to the extent that it depreciates more quickly than it earns you interest. A terrible observation!
Is there a way to get interest on your money? Contrary to what the banks tell you, there are many financial investment solutions. Follow the guide through this (too) succinct article.
Money that sleeps is money that depreciates
Only leave money in your checking and savings account that you absolutely need. In general, it is recommended to leave the equivalent of six months’ salary unless you know that you will have to face a major expense in the coming weeks or months.
You hate risk and are ready to lock in your savings for 3 to 10 years
So you might be tempted to block your savings in a term account. If you agree to block your savings for a period of 10 years, some banks will grant you interest of almost 4% gross.
The principle of the term account is that you cannot move your savings. It is however possible to do so under certain conditions but you will then in principle lose the benefit of your investment.
Invest in stocks
You can decide to buy shares of companies listed on the stock exchange. Only invest in the stock market if your knowledge allows you to do so and if you are certain that you can devote time each week to follow financial news in general and more specific financial news relating to your investments. There are some very good financial magazines that can help you familiarize yourself with the financial markets. Take the time to read reviews every week for at least 6 months before making your first investments.
We can recommend the magazine L’Investeur de Test Purchase and Initié de la Bourse
Do not take this advice as gospel. Make up your own mind and take the time to think carefully about your investments.
Equity investments in recent years have yielded more than 10% capital gains per year. Finally, we must not forget that certain companies distribute dividends which can sometimes reach more than 7% gross, such as Belgacom, Telenet, Bpost, etc.
This return adds well to the evolution of the stock price.
Investing in stocks always represents a significant risk and you must be sure to accept fluctuations in your investments. There will be years of regression or even crash and positive years. On average over the last 50 years, the equity investor has obtained a positive net return on investment of 5%.
Is it enough to counterbalance your stress? Up to you…
Investing in bonds
A bond is a loan issued by a company that earns you a fixed annual interest. Bond prices vary less than those of stocks but contrary to popular belief, prices also vary and bonds are not financial products devoid of all risk.
The principle of a bond is to earn you annual interest and to repay your capital at the maturity of the bond except in the event of bankruptcy of the company.
The bonds benefit from a rating on which the interest rates will essentially depend. Ratings range from AAA to D.
Again, depending on the risks that the investor is willing to take, interest rates are higher or lower. Thus an AAA bond will yield around 1.5% net while a BB- bond can carry annual interest of nearly 6 to 7% gross.
These financial products can be very interesting investment instruments. For more information on bond products, we recommend the website of the stockbroking company Goldwasser Exchange.
Three essential basic principles
Do you want to enter the financial markets? Very good, but never lose sight of these three essential fundamental principles:
- Don’t invest money you don’t need right away;
- Have an investment horizon of at least 3 to 5 years;
- Diversify your investments: diversification is essential so as not to centralize all the risks in a few financial products.
Discretionary or personal management?
All major banks will provide you with a personal banker. They will offer you discretionary management, meaning that an investment specialist will manage your investments while respecting your prerogatives.
We personally believe that if you are able to manage and know the products you purchase, you will have more satisfaction in assuming your risks yourself. Of course this last solution requires knowledge, time and…endurance to stress.
More information on www.cpe-credit.com
