Preserving wealth rather than losing value: How real assets protect your assets

As individuals approach retirement, particularly those aged 55 and older, a common concern emerges: how to preserve the wealth they have accumulated. This anxiety is amplified by the end of regular income streams and the prospect of increased healthcare costs associated with longer life expectancies. The question of what legacy remains for their descendants also weighs heavily.

While wealth accumulation may no longer be the primary focus, the principle of maximizing capital remains crucial for maintaining financial maneuverability, both for the present and for future generations. However, in the current economic climate, simply relying on savings accounts is insufficient. Even with moderate inflation, money held in such accounts loses purchasing power if interest rates remain below inflation levels, a situation that has persisted for some time with rates hovering near zero.

"Today, the biggest risk for affluent clients often lies not in the financial markets, but in inaction," explains Yvan Roduit, Head of Investment Advisory at Groupe Raiffeisen. "We regularly encounter cases where entrepreneurs, after selling a business, leave sums amounting to millions in barely remunerated bank assets for years. They thus lose a real fortune while attractive investment opportunities remain untapped."

In this context, a well-thought-out wealth management strategy that includes a substantial allocation to real assets becomes paramount. These assets, such as stocks and real estate, play different roles in a portfolio. Stocks, for instance, are considered the main drivers of return in a diversified portfolio. Despite short-term fluctuations, they have demonstrated impressive long-term stability over the past century.

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Today, the biggest risk for affluent clients often lies not in the financial markets, but in inaction. We regularly encounter cases where entrepreneurs, after selling a business, leave sums amounting to millions in barely remunerated bank assets for years. They thus lose a real fortune while attractive investment opportunities remain untapped.