Beware having too many eggs in one basket

Recently, I have focused on pension and estate planning, two very important components of financial planning in France, but a third key element is savings and investments. 

When you have worked to build up your savings, it is not always easy to decide how best to look after them, especially if you are nearing retire­ment or already enjoying your retirement. You most likely have some or all of the following objectives:

  • Protect your capital and maintain financial security
  • Generate an income
  • Grow the capital, but with an acceptable level of risk
  • Leave a healthy inheritance to children and grandchildren

Asset allocation and diversification are key to helping you achieve these goals – in simple terms, do not put all your eggs in one basket.

Cash

Most people feel safe with cash. The money you hold on deposit in the bank does not drop suddenly based on geopolitical events, investor sentiment or a company’s misfortunes. And yes, it is important to keep some savings in cash. It is a convenient liquid asset, available when you need it (dependent on any fixed-term restrictions) and it helps balance out risk in your overall portfolio.

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