Short-term investments appeal to many people who want to grow their money. What must be remembered, above all, is that short term rhymes with little profitability. So don’t expect high returns by going this route. Knowing this, I invite you to discover the best short-term investments for your money.
If you took out your contract several years ago (more than 8 years), life insurance is one of the best short-term investments. Your earnings are exempt from tax up to the annual limit of €4,600 if you are single, and €9,200 for couples. As a result, you get a significant return for this investment.
On the other hand, if you have not yet taken out life insurance, you can still benefit from more than attractive profitability. Payments are unlimited and you can integrate a share of units of account into your portfolio.
Nevertheless, analyze the costs related to your contract according to the insurer you choose. If they are exorbitant, they could seriously compromise your profitability.
If you are single with an annual income of less than €19,468, or a couple with less than €29,863 in income per year, I recommend the popular savings account or LEP. It offers a higher interest rate than Livret A, around 1.25%, and is particularly attractive in terms of profitability.
The interest generated by the popular savings account is also not taxable and is excluded from social security contributions. A ceiling of €7,700 is, however, to be respected. It is possible to take out two LEPs per tax household, offering you the possibility of depositing up to €15,400.
The super savings accounts are profitable alternatives for a short-term investment to the Livret A and the sustainable development booklet. The preferential interest rates applicable on these booklets only last a few months, but are attractive and can make your savings grow.
For example, you can get a rate between 2% and 3% over a period of 2 months depending on the offers. Once this period has passed, it is advisable to change the booklet. It is a very popular solution for those looking for a very short-term investment.
Finally, speculative investments can be an excellent way to grow your savings in the short term. The concept is relatively simple: you acquire an asset whose price is likely to increase significantly in the short term. You then resell it for a profit.
Be careful, I must tell you that this type of investment is risky: if successful, you can hit very large grains. If unsuccessful, you may lose some or all of your investment. For example, investing in the stock market is one of the most famous speculative investments.
Investing in the short term must be able to bear fruit within 2 years. Investments are obviously part of it, but can investing in real estate also be? Logically, this depends on several criteria.
Anyway, you will have to calculate your rental profitability, taking into account your personal situation, the choice you have made and the possibilities of benefiting from tax reductions. Do not hesitate to consult real estate professionals to make the best choice.