What to do with a bad investment?

Published on : 22 April 20203 min reading time

Have you invested in an investment that doesn’t pay off? It can happen to anyone. But what can you do about it? What would be the best solution? And what are the mistakes to avoid with new investments?

What exactly is a bad investment?

A bad investment is an investment with a very low return or one that weakens over time: falling rates, rental prices too low, etc. But it can also be defined as an investment that does not respect the investor’s profile, is no longer in line with his or her objectives or does not please the owner. So what is the solution? Take stock of your portfolio and sell or transfer bad investments.

What to do with a bad investment?

The fairest solution is, of course, to get rid of the bad investment(s). But that’s easier said than done. It is therefore preferable to sell the shares. However, industry professionals follow trends closely and can buy your investment from you at a morbid cost. So this alternative should only be considered if you’re really at the end of your rope. However, before selling your investment, you should consider the following:

the discount: what is the real loss in value?

and the tax interest: won’t they be able to compensate for the losses?

Note: There is also another option: transferring bad investments (retirement savings, securities…).

Nevertheless, some of them are not transferable like life insurance. Whether you want to save for a specific goal, build up a supplementary annuity or simply make your capital grow: your life insurance investment simulation will help you see things more clearly. To simulate your life insurance investment in 5 minutes, simply visit Althos Patrimoine – Wealth Manager.

What precautions should you take in the future?

In order to avoid bad investments, you should be informed about trends, fluctuations in the financial market, etc. Don’t hesitate to seek professional advice before investing, because an investment is always risky! The assistance of a wealth management advisor can be of great use to you when investing in real estate. In addition, also consider your investor profile, your investment horizon and your objectives before making an investment. Similarly, be vigilant about investments that promise excessive returns. It can be a scam!

Note: Your company can set up a company savings plan (PEE), a group retirement savings plan (Perco) or a retirement contract. If you feel the returns are low, you can refuse to participate.

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