Investment strategies for Pension Supplement: Real Estate, Stocks, Bonds & More
Many of us consider at some point in our lives how to supplement our retirement in order to remain financially comfortable. While there are several options available, they all require careful consideration of both risks and returns, especially when compared to what an investment with MOMO Estates has to offer.
1. Life insurance (Branch 21 or 23): These are designed as long-term savings products. A tax of 2% is levied on each premium deposited. In addition, there are often entry fees ranging from 1-3%, and sometimes even exit fees. What is important to understand is that at an inflation rate of 4%, the return after deducting fees and taxes can greatly reduce.
2. Bonds: Although bonds are generally considered less risky than equities, it is essential to realise that in a period of low interest rates, as we have recently experienced, the net return after inflation can often be negative. This means investors actually lose purchasing power.
3. Shares: Investing in equities can yield attractive returns, but it also comes with higher volatility. Global events, from economic recessions to geopolitical conflicts, can affect equity markets. There are also additional costs such as securities and stock market taxes, which can reduce net returns. Moreover, as history has shown with companies such as Fortis and Kodak, even large, established companies can fail.
4. Raw materials: While precious metals such as gold and silver are traditionally seen as safe havens during economic turmoil, it is crucial to realise that they do not generate dividends or interest. While they may increase in value, they do not provide regular income unless they are sold.
5. Property rentals: Real estate is often praised for its ability to provide both capital growth and regular rental income. However, as with any investment, there are both advantages and disadvantages. Managing property yourself can lead to higher returns, but it also requires more time and effort. Think of things like finding reliable tenants, dealing with maintenance issues and navigating the legal aspects of renting.
It is crucial to understand that the return on investment often goes hand in hand with the risk taken. For many, property management through third parties seems to be the ideal route for a worry-free indexed income. As an indication of capital gains, one can consult historical prices of comparable properties.
Additional Options: Several strategies can be considered when planning an investment:
- Purchase through a partnership.
- Use of financial levers such as a traditional mortgage or bullet credit.
- Using leverage to purchase multiple properties instead of just one with equity.
This approach could potentially result in a veritable "money generator".
Invest with MOMO Estates
When you want to secure your financial future, choosing the right investment option is essential. MOMO Estates stands out from the crowd here with their real estate investments. While the average return for property investments in Belgium hovers around 3.5%, MOMO Estates offers an impressive efficiency up to 6.32%. And that's not all: they take all worries out of your hands with their comprehensive management service. This allows you to invest with confidence, knowing that your investment is in good hands so that you can enjoy your retirement to the full. If you're looking for a combination of high returns and peace of mind, investing with MOMO Estates is the ideal choice.