Managing your assets

Managing your wealth is not just for wealthy investors. Whether you have a few thousand euros in savings or a wealth consisting of several hundreds of thousands of euros, the same methodology applies: take stock of the situation, define objectives, diversify your investments, optimize your taxation and anticipate transmission. This guide offers a comprehensive approach to managing your financial strategy in a structured and sustainable manner, regardless of age and income level.

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What is wealth management?

Definition of wealth management

Wealth management is the set of decisions that aim to constitute, value, protect and transmit the assets of an individual or a family. It covers all types of assets: real estate (main residence, rental property, SCPI), financial (title accounts, life insurance, PEA), professional (company shares, goodwill) and liquidity (passbooks, euro funds) and liquidity (passbooks, euro funds).

In addition to investments, wealth management also includes legal (matrimonial regime, donations, inheritance), fiscal (income tax, IFI, inheritance tax) and pension (death-disability insurance, retirement) and pension (death-disability insurance, retirement) dimensions.

Why actively manage your assets?

Passive or passive management exposes to several risks: erosion of capital due to inflation, underperformance linked to poorly chosen investments, unoptimized taxation, unprepared transmission that can generate family conflicts or significant costs.

Active management, on the other hand, makes it possible to make your capital grow over the long term, to reduce the tax burden by choosing appropriate envelopes, to protect your loved ones in the event of hazards and to calmly prepare for the key stages of life (buying real estate, studying children, retirement, transmission).

Step 1 - Complete a comprehensive asset assessment

The asset balance sheet is the first and indispensable step. It consists in drawing up an exhaustive photograph of your situation at a given moment.

List your assets

List all of its assets, classified by major category: real estate (main residence, second homes, second homes, rental properties, shares in SCPI or OPCI), financial (current accounts, passbook type passbook A, LDDS, LEP, life insurance, life insurance, PEA, PEA-PME, PEA-PME, ordinary title accounts, PER), professional (shares of companies, businesses, social rights), and others (vehicles, works of art, LEP, life insurance, life insurance, PEA, PEA-PME, ordinary securities accounts, cryptocurrencies), and others (vehicles, works of art, precious metals, cryptocurrencies, etc.) active).

List your liabilities

Identify all of your debts and commitments: real estate loans, consumer loans, personal or family loans, bank overdrafts, guarantee given for a third party.

Calculate your net assets

Net worth is the difference between assets and liabilities. It is this figure that is used as the basis for developing the strategy.

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This balance sheet must be updated at least once a year, and more frequently in the event of a major life event (marriage, birth, inheritance, real estate sale, professional change).

Step 2 - Define your heritage goals

Distinguish between short, medium and long term

Wealth objectives are divided into three time horizons, each justifying different investments. The short term (0 to 2 years) concerns precautionary savings and the financing of an imminent project: liquidity and security should be preferred. The medium term (3 to 8 years) targets real estate purchases, children's studies, business creation, with a mix of security and moderate returns. The long term (8 years and over) covers retirement, the constitution of capital for children or transmission, and makes it possible to focus on performance by accepting greater volatility.

Assess your risk tolerance

Risk tolerance depends on several factors: age, income, family responsibilities, financial experience, ability to sleep peacefully in the face of volatility. Three main profiles exist. The prudent profile seeks guaranteed capital and accepts a moderate return (2 to 4% per year). The balanced profile tolerates moderate volatility to aim for a return of 4 to 7% per year. The dynamic profile tolerates high volatility to aim for a return of 7 to 10% per year.

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Step 3 - Diversifying your investments

The principle of the three pockets

The three-pocket approach effectively structures financial assets. Each pocket has a different horizon and a different objective.

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Accessible asset classes

Diversification is organized on several dimensions: by asset class (shares, bonds, real estate, unlisted, raw materials), by geography (France, Europe, United States, emerging markets), by sector (technology, health, energy, energy, finance, consumption) and by horizon.

The arrival of specialized digital platforms has expanded the access of individuals to asset classes that were previously reserved for institutional investors, such as private equity, infrastructure or private debt. These strategies, formerly accessible from several hundreds of thousands of euros, can now be opened from a few hundred euros via pooling structures such as FPCI/SPV.

Step 4 - Optimize your taxation

Use the right tax envelopes

The choice of the tax envelope is decisive for the net profitability of an investment. In France, the main envelopes are the PEA and the PEA-PME (exemption from capital gains tax after 5 years excluding social security contributions of 17.2%), life insurance (annual allowance after 8 years: €4,600 for a single person, €9,200 for a couple, €9,200 for a couple, advantageous taxation in the event of transmission), the PER (deduction of payments from taxable income, deferred taxation upon exit), the ordinary securities account (maximum flexibility, taxation at the PFU of 30%), and FCPI/FIP (income tax reduction, whose rates have been modified by the laws of finances for 2025 and 2026, with an increased framework for FIPs (Corsica and Overseas).

Take advantage of tax exemption schemes

Several mechanisms allow you to reduce your tax by investing. The IR-PME (Madelin law) offers a reduction in income tax for a direct investment or via FCPI/FIP in eligible SMEs. The framework has been profoundly modified by the finance laws for 2025 and 2026 (rates, ceilings, conditions of detention), so you must refer to the regime in force at the time of payment. Pinel offered a tax reduction on new rental investment: the system ended on December 31, 2024 for new transactions, but remains active for current commitments. The LMNP (Non-Professional Furnished Rental Company) allows the accounting depreciation of property and furniture, which reduces the taxable base of rents. The land deficit allows the deduction of the deficit resulting from work in rental real estate, up to a limit of €10,700 per year (excluding energy renovation). Donations to charities are eligible for a tax reduction of 66 to 75% depending on the organization.

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Step 5 - Anticipate transmission

The transfer of assets is prepared well in advance to avoid fiscal conflicts and family conflicts. Several levers exist. Donations while alive benefit from an allowance of €100,000 per child every 15 years, €31,865 for grandchildren, a renewable exemption. Dismemberment of property makes it possible to give bare ownership while maintaining usufruct, which reduces the taxable base and makes it possible to keep the use of the property. Life insurance offers a transfer excluding inheritance up to a limit of €152,500 per beneficiary (payments before age 70). The Dutreil pact exempts 75% of transfer taxes on the transfer of a family business, under certain conditions. Finally, the matrimonial regime can be adapted (universal community, separation of assets) to optimize the transmission between spouses.

The notary is the natural contact person to structure the transfer. Early planning can cut the inheritance tax payable by two or three, which fully justifies the effort.

Call on an expert: CGPI, private banker or digital solution?

The independent wealth management advisor (CGPI)

The CGPI is a professional who offers global wealth advice, ideally not linked to a single institution. Its remuneration can take several forms: free fees (the most independent), commissions on the products placed (less independent, vigilance against bias), or a hybrid model. Give priority to CGPI holding the CIF certification (Financial Investment Advisors) registered with ORIAS, guaranteeing a clear regulatory framework.

The private banker

The private banker has traditionally addressed assets from 250,000 to 500,000 euros, or even 1 million depending on the institution. It offers a proprietary range of products, sometimes complemented by open architecture. Advantage: global monitoring and access to selected products. Limitation: the advice remains linked to homemade products, which can introduce a commercial bias.

Digital solutions

In recent years, online platforms (wealthtechs) have been offering digital wealth management services: robo-advisors, management under an algorithmic mandate, platforms specialized by asset class (real estate, private equity, ETF). Advantages: lower admission tickets, transparency of fees, ease of use. Limits: advice is often less personalized than with a human, not all heritage topics are covered.

The right choice depends on the complexity of the situation. A simple asset can be managed digitally. Complex assets (company manager, blended family, international succession) generally require human support.

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FAQS

From which assets should one start actively managing it?

There is no minimum threshold. The methodology (balance sheet, objectives, diversification, taxation, transmission) applies from the first economies. The sooner you start, the longer the capital works, which maximizes the effect of compound interest over the long term.

How much time should you devote to managing your assets?

For sound management, provide a comprehensive annual review (balance sheet, strategy adjustment, allocation check) and a light quarterly follow-up. In the case of management entrusted to a CGPI, private banker or digital platform, personal time is reduced to the validation of arbitrations.

Should you diversify your investments or focus on a few assets?

Diversification is one of the fundamental principles of wealth management. It reduces the overall risk without necessarily reducing the expected return. Excessive concentration (on a single asset, a single sector, a single geography) exposes you to significant losses in the event of a reversal.

What are the priority tax envelopes for individuals?

Life insurance remains the first envelope to be activated (flexibility, advantageous taxation after 8 years, transfer). The PEA is very effective for investing in European equities over the long term. The PER is suitable for those who want to reduce their current income tax and prepare for retirement.

When should you consult a wealth management advisor?

During structuring events: professional change, important inheritance, sale of a business, significant real estate purchase, marriage or divorce, retirement. A consultation every 3 to 5 years, even excluding events, allows the strategy to be readjusted to changes in taxation and objectives.

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