Wealth management covers legal, asset, financial, retirement and tax issues! Today we're focusing on two of them: financial investments and tax optimisation.

Financial investments

This is one of the most important levers used by wealth management advisers to create or develop assets. Why is this so? The variety of alternatives and the flexibility they offer make them a major tool for diversification. This is the watchword of professionals, all the more so in the periods of uncertainty and volatility that we have been experiencing recently. This essential diversification takes place both at the heart of the asset allocations offered and in the type of medium in which the funds are invested.

There are bank passbooks, which are the precautionary envelope to build up first. Then there are the various more or less long-term financial investments, where the recommended allocations are decisive. Finally, there are investments that offer differentiation and diversification, such as SCPI (Société Civile de Placement Immobilier) units, stripped SCPI units or GFI and GFV units (Groupement Forestier d'Investissement and Groupement Foncier Viticole respectively). There are also investments in FIP and FCPI funds, local investment funds and innovation investment funds.

How can I optimise my tax position?

Tax can be optimised, but it is generally not an end in itself. Rather, it is a lever used to maximise the return on the investment, whether real estate or financial; or the 'icing on the cake' of a diversification investment with social virtues. In the first category, we find PER (Plan d'Epargne Retraite) and property investments such as Pinel Plus. In the second category, there are shares in forestry groups, investments in local companies (FIP) and young, innovative companies (FCPI).

As the state is not able to fund all these projects or alleviate needs, it relies on its citizens. That's why most tax reductions are in return for investments that benefit society. The most significant of these is the reduction for home-based employment, which enables more people to access these services and therefore more employees to find these jobs.

Opportunities exist to contribute to the betterment of society while optimising your tax position. The end of the year is approaching! Now is the time to take stock with your advisor to analyse your tax situation and anticipate your tax return for 2024. If you'd like to meet with a specialist, the Wealth Management advisers at Wealth A7, a firm that has been operating in Toulouse for over 15 years, can help and advise you - contact us!

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