Make your money work for you:
As you probably know people in Belgium pay a lot of taxes, especially on their income from work. According to Guenter (2024) “a single person without children who earns an average salary pays 53% of their income in taxes. This means that for every 100 euros they earn, only 47 euro are left for them to spend.
The government gets this money through taxes on wages and social security contributions. Employers pay 25% of an employee’s gross salary in social security contributions, and employees pay 13%. The remaining income is then taxed at a rate of 25% to 50%, depending on how much you earn.
However, taxes on other forms of income, such as investments, are much lower. For example, if you buy an ETF for €50,000 and sell it for €250,000 within 15 years, you won’t pay any taxes on the profit. Similarly, if you buy a property for €200,000 and sell it for €350,000 within 10 years, you won’t pay any taxes on the profit.
This means that it is often more beneficial to invest your money rather than working. For example, you could take a day off to manage your investments instead of working. If you have a lot of money sitting in a savings account, you are missing out on a great opportunity to make your money work for you.”
Empowering individuals to make smart decisions in financial instruments requires actionable insights drawn from data analytics. By leveraging analysis in investment performance and predicting future trends, you can optimize your portfolio. Capitalizing on favorable tax conditions.
Furthermore, there are multiple other ways to diversify your investments other than property and ETF. These include private equity investments in smart opportunities such as the wine business where correlation with traditional markets are low.
What do you think will be the best investments in 2025?
Bibliography:
Guenter, T. (2024). Personal finance. Borgerhoff & Lamberigts.