Your work projects include the renovation of the bathroom? Italian shower, jacuzzi or washbasin double sinks, take the time to clarify your project. By establishing a precise budget, you can anticipate your need for financing and adapt it according to your available funds or provide a payday loan work if your budget is not enough! In any case, do not forget to take into account the specific constraints of a bathroom.
Choose your bathroom renovation work
What bathroom renovation work do you want to do? In order to determine your budget, you first need to define your needs. The most common projects involve the installation or removal of flooring or wall covering: tiles, vinyl, PVC, paint... They can also include electrical work if it is question of lighting, or of plumbing in the case of installation or replacement of sanitary elements. Are you replacing a bathtub, a shower, a basin or a sink? Also plan the removal of old equipment, or even the adaptation of the installation.
Plan the right budget works
If you know about plumbing or electricity, you can complete your bathroom renovation projects yourself or use the skills of your family or friends. This will significantly reduce your costs. There are also platforms that connect individuals with DIY skills and can help you at a lower cost.
However, be careful to surround yourself, an intervention on plumbing or electricity can be risky and ultimately cost more. Carefully establish the list of works and the corresponding budget, with requests for quotations also received from professionals on sectors.
Whatever happens, avoid low-end equipment for faucets. If you want to save money, it is better to focus on decorative elements or furniture.
With all this information, you can adapt your desires to your budget: personal savings, family assistance, or need a loan work to finance larger projects.
Do not forget the constraints of renovating a bathroom
A bathroom is a bathroom, so a wet room. As such, you will not be able to put any wallpaper or flooring on it. There are also paints that meet the particular constraints of humidity. Whatever your choice, carefully check the characteristics of the chosen materials and take care of the tightness of the joints. The detail not to be forgotten in the renovation of a bathroom ? The installation of a VMC, if the room does not have one: a good ventilation is essential to optimize the resistance of the materials and to avoid visible damage only a few months after the works.
- In the medium to long term, investments suffer from market-timing
- More than 90% of managers do not beat the markets
- It is important to invest early and regularly to optimize risk management
- A steady, long-term investment multiplies your gains
Sector studies, price comparisons, estimates of volumes processed, macroeconomic or technical data are analyzed daily by financiers to estimate the appropriate time to buy or sell such assets.
According to historical data, market-timing expectations that aim to invest and sell in a timely manner in order to maximize returns and therefore predict its direction through these indicators are almost impossible to apply, while long-term performance term are strongly influenced by only a few daily performances.
The difficulties of market-timing
Since its inception in 1998, the annualized performance of the MSCI World Index (a proxy for equity market behavior around the world) has been 5.1%. By missing only the 5 best sessions on almost 20 years (from 31/12/1998 to 01/03/2018: 5,000 trading days), the average annualized performance would have fallen to 3.94% per year!
Worse, by missing the 50 best sessions on the same period, the performance would have even been negative and equal to -4.41% per year or a total loss of 58% over the period!
In addition, 6 of the 10 best Sessions of the MSCI World are within 3 weeks around 8 of the 10 worst trading sessions!
This theory also holds true with many other indices such as the Stoxx Europe 600 (European equities), the MSCI Emerging Market (emerging country equities), the S & P500 (US equities) and many others! And the results are surprising:
Example for a capital of € 100,000 invested on the first day of listing the index
Professional managers do not beat the markets
The data of the study
According to a SPIVA * study, conducted more than 15 years ago, which monitors more than 10,000 funds, more than 90% of market-timing managers do not beat the markets over 10 years.
This SPIVA study states that foreign exposure funds underperform their benchmarks more broadly. The size of the funds also seems to be an important parameter because globally the largest funds perform better than the smaller ones.
Finally, the study adds that fees have a significant impact on returns.
The latest analysis of the Spiva study on US markets, published on March 15, 2018, tells us that despite the good performance of the end of the year on the stock market with a gain of 21.83% for the S & P 500 on the year, 52% of managers investing in large, mid-sized and small-cap stocks do not beat the benchmarks in 2017.
Worse, over 5 years and 15 years they are respectively 87% and 94% of them who fail to beat the indices.
These figures largely support the assumption that it is particularly difficult, if not impossible, to achieve long-term and repeated market expectations.
The market: the result of managers, fees, and luck ...
The market is the result of the behavior of all the managers to which we can add the costs and a certain luck factor.
Indeed, imagine leaving 10 managers in a room and ask them to exchange: knowing that prices are set by the balance between supply and demand, half of the managers will be below the average price which represents a subscript, and the other half will be above.
Add now the fees applied by each of the managers and which impact your performance logically, that is when more than half of them are below our benchmark.
Repeat the process several times and it will almost never be the same that will be above the index, so it is partly a question of luck for those who are ...
Time in the market rather than market-timing
Therefore, in terms of risk management, it is better to forget the market-timing .
It therefore seems wiser to allocate investments over time and to invest the available liquidity now and then regularly and systematically, whether the markets are up or down, which makes it possible to obtain a price. means of reasonable entry while ensuring optimal risk management.
In addition, investing over 10 years with a return of 5% is much more interesting than investing over one year for a yield of 5% because the compound interest of your investment will finally win you 62% over 10 years!
Reduced fees -> ETF
Rather than wasting time, energy, and money, it is important to invest at the level of the accepted risk in relation to profiles and projects, and to choose financial supports that are cost-effective. : especially ETFs, in order to optimize your returns.
An ETF (Exchange Traded Funds) or tracker is an investment fund, ie a basket of stocks and / or bonds, which replicates the price of an index (such as the CAC40). Trackers have the advantage of being inexpensive. Indeed, the automatic replication of an index involves only a few human resources, so that their costs are up to 10 times lower than those of traditional funds.
The cost of ETFs is on average 0.25% against 2% for a traditional fund which can have a considerable impact on your return.
According to Morningstar, assets under passive management in Europe increased by 25% in 2017 and more than doubled over the last four years.
To learn more about ETFs, we invite you to read our article: What is an ETF (or index fund)?
In summary, it is therefore a well-thought-out allocation based on your objectives and your investment horizon that will bring a real added value to the latter, rather than a risky and ineffective attempt to anticipate a market whose result is more of luck than analysis and experience.
What Nalo does for you
Nalo is a specialist financial investment company that offers a 100% ETF life insurance policy under mandate. You benefit from all the benefits of life insurance associated with those of trackers.
We recommend a tailor-made portfolio and adapt your allocation to your financial objectives and your heritage environment. Your benefits are regularly adjusted according to economic and financial conditions and we gradually secure your investments according to your investment horizons.
In addition, ETFs make it possible to invest in several hundred companies and are managed automatically. Rather than trying in vain to beat the market by selecting companies using a risky method, these funds replicate a stock market index at lower cost. Fees being lower, the performance returned to our customers is only better.
- The performance of eco-friendly investments is comparable or even slightly better than that of traditional funds
- The Ecological and Responsible Asset Selection Method can, however, reduce the diversification of your investment portfolio
- In order to reduce management costs, the use of ETF ISR is recommended
Today, the most common way to achieve sustainable and green investments is to opt for SRI investment funds ( Socially Responsible Investment ). They have the advantage, just like traditional funds, of being able to be invested in your life insurance, your PEA or your securities account.
The first SRI funds appeared in the 1970s, but remained confidential until the 1990s. They are now widespread. At the end of 2017, SRI investments totaled more than € 1 trillion in assets in France and more than € 30 trillion in the United States. By choosing this type of fund you finance companies that have a development policy that respects the environment. Nevertheless, as with any investment, there is the question of its performance. However, the history of SRI funds is now long enough to reliably measure their performance and to have the opportunity to compare it to that of traditional funds.
Read also: the operation of the rating agencies of the ESG criteria
SRI performance: comparable to, or better than, traditional funds
What does academic research say?
Several studies have been conducted to measure the performance of green and socially responsible investment funds and all go in the same direction: the use of responsible investment criteria is neutral on performance. In some cases, these criteria even have a positive impact on performance.
Yet this empirical result is counterintuitive. It even goes against the financial theory. By excluding certain companies from their investment universe, for ethical reasons and not for financial reasons, such as those selling arms or tobacco, these funds are depriving themselves of potentially performing financial securities.
To be sure of their claims, researchers have compiled more than 80 economic studies on the subject allowing to have a global vision on all asset classes (stocks and bonds) and on all areas geographical. The authors of this meta-analysis conclude: "There is no performance penalty for investments made on the basis of ESG (Environmental, Social and Governance) criteria".
More efficient eco-responsible stock indexes
It is also possible to measure the performance of eco-responsible investments based on that of the SRI indexes that have been developing for several years. These indices function as traditional indices except that they filter certain companies according to environmental and social criteria. Comparing these SRI indices to traditional indices, we realize that there is no penalty for ecological and responsible investment.
As an example, the evolution of the price of the Euro Stoxx 50 index and its SRI equivalent, the Euro Stoxx ESG Leaders 50 indicates that the latter is more efficient although very strongly correlated to the standard index. This observation is identical to that which could be made for the equity indices of the main geographical areas.
Compared performances of the Euro Stoxx 50 and Euro Stoxx ESG Leaders 50 index
Varied management methods with not always identical performances
Inclusion vs. exclusion
There are several methods of investing SRI. The most common is the so-called "best in class" method, which consists in selecting, in each sector of activity, the best-rated companies in terms of ESG criteria . On the other side of the spectrum, so-called exclusion methods will voluntarily exclude sectors considered as harmful. If today, most funds use a combination of exclusion and inclusion with an emphasis on the latter, it has been shown that purely exclusion methods are, they, detrimental to the performance because too restrictive on the investment universe.
A less good diversification
If the exclusion method is less efficient it is because it strongly reduces the diversification of the fund. The same is true for thematic methods, which, for example, will invest only in renewable energies or in companies specializing in water treatment. By focusing on a specific industry, these methods reduce the number of companies invested and increase the impact of a failure on one of your investments. They expose you to a sectoral macroeconomic risk, which could harm all companies of the fund and deprive you of successful companies, whose impact on the environment is positive but whose economic activity is different.
How to build an efficient eco-responsible investment portfolio?
Maintain good diversification
On the whole, SRI funds perform just as well as traditional funds. On the other hand, as we have seen, some funds may lack diversification. In building your portfolio, care must be taken to maintain a good level of diversification:
- choose several "best in class" funds to cover all geographical areas (European equities, US equities and emerging market equities);
- avoid funds whose geographical coverage is too limited, for example French equity funds;
- limit thematic funds to only part of your portfolio.
In order not to have an exposure to the equity market exclusively, know that there are also SRI bond funds or "Green bonds". Note that to achieve such an investment, the PEA is not suitable. On the other hand, some life insurance and some securities accounts offer a range of SRI investments large enough to meet these prerequisites.
To know how to choose the right tax envelope .
Reduce costs with ETFs
As with conventional funds, attention should be paid to management fees and potential entry fees or outperformance fees. These fees reduce the performance of the fund accordingly. In this sense, index management, ie the use of ETFs (also called trackers) is more efficient than traditional management. Fortunately, in recent years the SRI ETFs have become more democratic and it is now possible to design a globally diversified allocation made up of ETFs only, the fees of which will not exceed 0.4% annually (compared to 1% to 2% for traditional funds). . So all the tools exist to reconcile financial performance and ecological and social performance of your investments.
To find out why ETFs are preferable to traditional funds .
What Nalo does for you
Nalo is an investment company dedicated to individuals. When we support you, you can choose an eco-responsible investment portfolio composed exclusively of ETF SRI. For you, we take care of implementing an investment strategy that corresponds to your objectives and your heritage environment.
Your investments are realized within a life insurance in order to profit from a favorable taxation .
You can make a free investment simulation on our website .
Not having economic solvency is a situation that, although it is not pleasant, should not make you lose your temper. In fact, many people experience it at some point in their lives. Actually, what you should do if that situation occurs is to ask you a question: is my insolvency permanent or temporary? Depending on the answer, the solutions (that there are) are different. In this article we tell you what you can do to get ahead in both cases and how Count Fosco can help you.
Permanent economic insolvency: what to do
The first thing you should do in this case is to recognize that you have a problem. With solution, but a basic problem: in your balance of expenses and income there is something that does not work and causes the former to be superior to the latter. And since it is a problem with two faces (expenses and income), you can correct the situation by either way.
On the one hand, thoroughly review your expenses. Receipts for supplies, service bills, purchase expenses, subscriptions, rent or mortgage on the house, etc. There will be some that can not be touched, but there will be others that can. It reduces its amount or directly dispenses with expenses that are superficial or less important. If the situation improves in the future, you will be able to treat yourself to enjoying them again and it will be as if nothing had happened.
On the other hand, you can try to increase your income. If you have a job, the easiest thing (and also the most sacrificed) is to do extra hours, although for a long period of time it can be excessively hard. Meanwhile, you can prepare another better solution: expand your training and aspire to a better paid job, either in the same company, in another sector or even independently. And if you do not have a job, with more reason you should improve your training while you are looking for a job with more zeal.
Without temporary financial solvency: how to get out of the way
Not having financial solvency temporarily is not a pleasant situation, but certainly not a major problem, at least if the need for money is not too high. There are many solutions at your fingertips, whether you need them immediately or not. One of them is online microcredits , such as those that you can request in Count Fosco: indicate amount and term, fill out the online form and you can receive up to € 750 in your bank account in less than 15 minutes clock, if all the data provided are correct.
This solution is valid even if the debt in question is already firm and the company that claims it has included you in a list of defaulters as ASNEF. For Count Fosco and its lenders, the fact of being registered in this type of files is not enough reason to deprive the client of his right to personal financing . Each case will be assessed individually and other circumstances of the applicant will be taken into account, such as their level of income, the nature of these (payroll, pension, unemployment benefit, etc.) or the possibility of presenting a guarantee as collateral, something that neither it is obligatory
Another option is that of pawnshops , the sale of gold or second-hand stores. They allow you to get money with objects that you have at hand in your own home, but they have some disadvantages: you will have to get rid of items of great emotional value, such as jewelry, the money you will receive is significantly lower than its true market price and in many cases You will not receive the money immediately.
Depending on the expense caused by the insolvency, there are other solutions. For example, if it is too high a bill, you can negotiate with the company in question a postponement of the payment . Some companies, especially energy companies and telephone companies, provide facilities to carry out this procedure, sometimes without interest. They prefer to reach an amicable agreement with the client before initiating an administrative process to claim the debt and include the user in a list of defaulters. Another similar option is the fractionation of the debt, which can also be without cost or with low interest. Negotiate with the company what installments and installments fall within their plans.
Beyond these options, all viable and typical of any adult, there are other more informal and much less recommended. For example, take a hand of savings , if you have, or ask for money from family and friends , with the drawbacks that this generates: bad drink for those who request it and tension in the relationship of trust between both people.
Analyze all these options to solve your lack of economic solvency, permanent or temporary, and choose the one that suits you from an economic and emotional point of view.
Although the business economy is composed of numerous concepts, some of them really complex, there are two of them that you should master from the first day: liquidity and solvency. Although they may seem synonymous, in reality they are not.
And for the operation of your business to be correct, it is not enough that only one of them enjoy good health, but that both must be maintained in appropriate values. In this article we will focus on the liquidity ratios , which are really indicators to know if you have treasury problems in your business.
While solvency refers to the profitability of a company in the long term, what concerns us in this article has to do with the short term. Or what is the same: liquidity, which means the ability of a company to have money available to deal with their immediate payments, such as payroll, suppliers or rent the premises. To measure this, the most popular of the liquidity ratios is the one that responds to the following formula, whose result should be greater than 1: Liquidity ratio = Current assets / Current liabilities
Other concepts related to liquidity ratios
Unfortunately, cash flows are very variable, so the previous formula can give wrong results depending on the moment in which the calculation is made. That is why we speak of average cash periods . Although it is not a ratio as such, it must be taken into account: it is necessary that the average period of payment to customers be adjusted with respect to the average period of payment to suppliers, employees, etc. Therefore, it is necessary to calculate it.
The coverage ratio is also another very useful indicator to manage, although in this case it is more complex. The central idea is that certain income should serve to 'cover' certain expenses. Stated more specifically:
- Commercial debts must be faced with the commercial activity itself (collection from clients)
- Financial loans must be met with cash flows
The coverage ratio, whose result is the result of the combined calculation of these concepts, aims to keep both balance sheets under control.
Liquidity ratios: How to get it when there are treasury problems
All businesses, especially at the beginning of their business, have cash or liquidity problems at some time . If it becomes a chronic or permanent problem, the viability of the company will be compromised. If it is a specific problem, no. In fact, there are different ways to solve a particular liquidity problem.
One of them try to convert current assets into circulating money. This is not difficult, unlike the so-called 'immobilized' assets, which require at least a year to complete this process. The problem is that converting these current assets into money can be a strategic problem for the company, since these current assets can be funds reserved for investments or for other structural items.
There is another method, simpler and more immediate, to solve these problems of liquidity ratios. They are microcredits , which can be obtained without bureaucracy in Hank Morgan. Its operation is simple: you request a quantity of money and you indicate a term, you transfer the money to your account in a matter of minutes, you use it in whatever you want and you return it within the indicated date, normally in an immediate future also. Logically, it is a service that has a cost, but it brings important benefits to the company:
- Being a punctual operation (collection and payment in a short period of time), it does not alter another important ratio, which must also be under control for the proper functioning of the company: the financial debt ratio . Long-term bank loans do compromise this indicator.
- They grant low amounts : to process a bank loan, normally a large amount of money must be requested, with the inconveniences that this generates. But these online loans can also be processed if the needs for liquidity ratios are low, precisely what usually happens with treasury problems
- They can be processed for any purpose : while bank loans are usually associated with a specific purpose (acquisition of machinery, vehicles, investments, etc.), in the case of microloans it is not necessary to indicate what their purpose is.
- In many cases the debts incurred by the applicant, be it an individual or a company, are not taken into account . The corresponding delinquent listings would be ASNEF and ASNEF Empresas. Being part of them does not have to be an impediment to access these credits.
In Hank Morgan you can get from € 50 to € 750 immediately, without paperwork or travel, all through the Internet. The return period is never greater than 30 days and the return of the money, except for exceptions, is made in a single payment, which avoids medium and long-term indebtedness of the company.
The essential :
- Life insurance fees consist of management fees and operating expenses, to which must be added the costs of investment vehicles.
- Pay attention to retrocessions that may skew the recommendations of your bank or financial advisor.
- With Nalo, the fees are up to 2 times lower than those charged by banks and online banks.
What are the costs when investing with life insurance?
When you invest with life insurance, the fees are broken down into three parts: contract management fees, transaction fees, and indirectly, investment support fees.
Contract Management Fees
The life insurance policy's management fees remunerate the insurer, the broker or the bank for their day-to-day management of the contract. They are proportional to the total amount of savings achieved on the contract. Their amounts usually differ according to whether they concern the part of the investments made in the fund in euros (guaranteed capital funds), or on the units of account.
Many life insurance contracts still have entry fees. These are charges levied for each new payment, in proportion to the amount paid. Some contracts also have arbitrage fees. You pay these fees when you change the allocation of your investments. All players in life insurance do not charge a transaction fee. However, this is often the case in network banks and private banks.
Investment management fees
In life insurance, you can invest in the fund in euros but also in many other investment vehicles that are called "units of account". These are generally investment funds, ie "baskets" of stocks or bonds. The fees of the investment media pay the investment funds for the management of these baskets of securities. These costs do not relate directly to the life insurance policy, so they are rarely explained by the bank or the insurer. They nevertheless decrease the performance of your investments and are not negligible. The best way to know the fees applied to each fund in your allocation is to refer to the KIID (Key Investor Information Document).
It is possible with many life insurance players to have a contract under mandate management. That is to say to delegate the management of his life insurance. Additional fees must be added.
For more information on discretionary management, please read our article: Decrypted Money Order Management
Retrocessions and conflicts of interest
These "hidden" fees, collected by the investment funds, are also used to remunerate your bank, your broker or your adviser in the form of retrocession. In other words, in addition to the fees posted on the life insurance policy, your bank receives a portion of the fees charged on each fund.
In addition to the lack of transparency, it is difficult for your advisor not to encourage you to choose a fund based on the retrocession it will receive. This is all the more true as some funds have much higher retrocessions than others. They can account for more than half of management fees on investment vehicles.
Finally, be aware that many banking groups have their own investment funds. Some even offer only investment funds managed by their subsidiary.
In order to limit these conflicts of interest, a European directive, MIF 2, calls for the abolition of retrocession. However, this directive is still not applied in the context of life insurance.
Comparison of fees applied by life insurance players in France
Traditional actors: network banks and private banks
Traditional players are generally the ones with the highest fees, averaging fees for a unit-linked contract of 3 , 9% per year (by smoothing transaction costs). On average, the fees of these banks break down as follows:
- management fees for your life insurance policy: between 0.9% per year for the euro fund share and 0.9% for the unit-linked portion;
- agency fees: 0.87% per annum;
- upfront charge: up to 4.5% per installment;
- arbitration fees: 1.58% by arbitration;
- media management fee: 1.72% per annum.
These high fees translate into poor performance returned to investors.
Online banks have reduced the cost of a life insurance policy by eliminating transaction costs. On the other hand, they still practice high management fees composed of:
- management fee for your life insurance policy: 0.75% on average per year for the euro fund and 0.7% for the unit account;
- media management fees: 1.7% on average per year;
- agency fees: 0.1%;
Thus, in total, the average cost of a life insurance contract taken out in an online bank is 2.65% per year on the units of account.
Discover the FinTechs of the investment: the robo-advisors
Nalo and fees
With Nalo, your unit-linked investments generate average fees of 1.65% per year versus 2.65% in an online bank. Despite lower fees, we offer better support. We regularly optimize your investments according to the economic situation, we adapt your investments according to your patrimonial situation and we secure them gradually according to your investment horizon.
It is thanks to the advanced use of technology and the use of index-based investment vehicles (also known as ETFs ) that we offer you a better service at a better price.
In detail, the costs break down as follows:
- 0.85% per annum for the management of life insurance (unit of account and funds in euros);
- 0.55% per annum of additional management fees associated with the management of the units of account;
- only 0.25%, on average for investment media.
The choice of transparency
Nalo is a company independent of any bank and any other financial institution. This allows us to advise you without conflict of interest. We are against retrocessions, so we select your investment vehicles independently, only for their potential performance.