Financial Investment Simulation. A financial investment, regardless of the medium, generates income that should be expected to know the profitability. A simulation, based on data provided by the bank, remains the only way to achieve this.
A case-by-case estimate
The financial investments available on the market differ mainly according to their returns, but not only. Several other parameters make each product a unique investment for each investor profile. Taxation, management fees, any bonuses, and the amount of capital invested are all parameters that characterize a financial investment.
Only a tailor-made estimate of financial returns allows you to know the ins and outs of a financial product of your choice.
Simulating a Placement in Practice
To be reliable, the simulation of a financial investment must be based on your investor profile. How much are you willing to invest in the product? What are your investment goals? Which medium do you prefer, between securities accounts, savings plans, and other life insurance? Do you plan to make free or periodic payments? Do you plan to withdraw money from your investment before its maturity date?
These are some of the questions to ask in the simulation. With these data in hand, you can start the actual simulation by relying on the simulators or calculators offered by banks or online brokers.
The rest is just a formality: a few clicks are enough to obtain all the information related to your financial investment, in particular the cost of taxes and other social contributions or the gains to be expected. The latter index is nevertheless quite complicated to predict, especially in the case of a dynamic financial investment, in other words, which depends on the vagaries of the financial or stock markets.
If your investment falls into this category – multi-vehicle life insurance, PEA, equity portfolio – it would be best to estimate the performance of your product based on the average return on the investment over a few reference years.