In a changing interest rate environment, we have listed for you articles “special investments” in terms of real estate, stock market and other innovations to optimize your personal finances.
Savings: 7 key questions
Faced with various financial uncertainty, investors have generally two reflexes : inflate their current accounts and, if they can afford it, invest in real estate.
Yet if one believes the latest trends, financial investment flows are rising again.
1. What to do with your money?
“The first reaction today when we realize that short rates turned negative, is to leave his money on current account,” says Philippe Crevel, director of the “Cercle de l’Epargne”.
In fact, demand deposits explode.
But does he continue to charge to block his current account at a time when the idea of taxing deposits begins to catch on?
“You have to keep in mind that we have never made much money with short-term investments, because when rates rise, track and charge inflation to absorb the apparent differential pay ‘ says Philippe Crevel.
It is therefore more than ever necessary to relativize the market data in terms of near-zero inflation, but also those of taxation and own expenses to various treasury solutions. At this game, the Livret A always wins.
It may also be wise to look towards “superlivrets promotions” regularly put forward by Internet players like BforBank, ING Direct, Fortuneo RCI Banque … but also by conventional banking and insurance networks (Societe Generale, CIC, Allianz, AXA, etc.). Some of these deals still have rates of 3%, even more tantalizing that can combine subscriptions from different brands.
Caution, however, the announced pay, subject to conditions (limited amount of payment, first subscription, etc.) are ephemeral and are generally valid for two or three months.
After this period, the initial rate applies again. The descent is so severe: return of 0.3% for the iconic Orange booklet ING Direct, and 0.6% on average for the other. This remuneration is even more ridiculous that, unlike the regulated booklets, it is subject to tax and social security contributions.
2. What investments to begin to build savings?
Gilles Etienne, Cyrus Council, a prerequisite is required: “When you start, you should always opt for flexible substrates, which can leave at any time. “And avoid fixtures that rely on debt. This may seem obvious. Yet the list of novice investors is long. And Didier Orens, Private Client Director of Savings Banks, adds: “Never neglect the unexpected. That said, the next step is to reason by the project, with a logical regular savings balancing capital preservation and yield research. This allocation will be determined case by case, depending on the risk appetite of each and investment horizon. It is also essential to take account of own fiscal logic to the various investment solutions. “
This well in hand roadmap, then the investor has the choice between several marked paths (passbook accounts, home savings, PEA, etc.) including heritage professionals agree in placing top … Insurance life.
This, today paid at the rate of 2%, before fees and social security contributions, is a flexible and tax-free to get cash (subject to interest corresponding to withdrawals do not exceed € 4,600 or € 9,200 for a couple).
For the investor, the four major advantages are liquidity, diversity, low taxes and a non-conforming inheritance system, not to mention the flexibility it grants its user can, in most cases, feeding his contract free payments may be suspended at any time.
3. How to limit the risks?
By diversifying ! Professionals are unanimous on this point but the message is not well received by investors.
Aware of this refusal to take risks, asset managers all advocate the same smooth diversification strategy.
As Didier Orens remark: “It pushes open doors recalling it, but it is essential to have financial wealth allocated between cash, funds in euros, the shares held through a PEA or units of account, but also the paper stone as REITs, OPCI. “.
4. How to pay less tax?
The question concerned the number of taxpayers, victims of a more concentrated than ever tax on classes “upper-middle” have seen their tax bill skyrocket since 2012, under the dual leadership of the reform of the family quotient and the alignment of taxation of capital gains on the other income.
The temptation is then to focus synonyms investment tax relief and solutions are many:
capitalization of financial income in exempt envelopes (regulated savings, life insurance, EAP, employee savings, etc.)
deduction of investments from taxable income (pension plans)
or direct reduction of taxes payable via the rental property, innovation funds, etc …)
for the ISF reduction of the tax base through the purchase of artworks, share wine or forestry groups, capitalization contracts, subscription of a tontine, etc …
or direct action against the tax payable by investment in SMEs, or gifts …
Some tax-deferred investments yield little but are guaranteed. Others require a long term commitment. Still others, promise a good performance, but not without significant risk.
5. What investments for retirement?
In all cases, the choice must be consistent. It which fit into a financial strategy itself online, depending on the age of the investor, his employment and family situation, his investment horizon, and of course his risk aversion
Over eight years, a rate units of account (UA) in the order of 30 to 40% appears to be a good compromise, even trim down around 10% if we think need his savings in two years.
Then, one can, in addition, open a pension savings plan (PERP, Madelin contract Préfon, etc.) so, especially if it is heavily taxed (at least 30%), to optimize the tax gain associated with his diet. Contributions are tax deductible up to € 30,432 in 2016 for the Perp or Préfon (with potential increases for those who want to make up for years non-contributory and € 71,440 for Madelin).
For employees who have access to company savings schemes, they can look into the Perco. This investment may lead to a tax-free capital or a low-tax annuity choice.
Furthermore, the investment horizon remains long enough to diversify its assets and invest a portion in shares via a PEA. This will be the day came, additional income all the more valuable it will be completely tax-free (including in the form of a life annuity).
Another track, if you have finished paying for your home, consider the report of real estate (directly or in the form of SCPI), a source of both tax cuts and additional revenue.
6. Who should you pay?
Should we go to a public bank, private run hotel, an independent heritage consultant or one of FinTech which begin to bloom on the Net? Each intermediary has its strengths and limitations.
If one seeks both ease of access, solidity, “all in one” standard lines open throughout the financial range (passbook accounts, home savings, life insurance, mutual funds, REITs, etc. ), push the door of the nearest his home agency seems most appropriate. You will have to settle for solutions “house”, often not competitive and contend with a high turnover of account managers.
Conversely, an independent consultant will offer you the quality of an exclusive relationship, built over time, and the relevance of offering multi-manager, but that’s sometimes the price of a certain fragility of its operating structure. The same goes for the CIF (financial investment advisers) and other brokers found on the internet.
As private management antennas, benefiting from both the solidity of the institution (bank or insurer) which houses while offering customized solutions open on the beautiful signatures of the market they target only financial wealth “comfortable” .
Since we have a little heritage and subject to select an intermediate having not only storefront but additionally equipped with various amenities of the supervisory authorities (AMF, ACPR, Orias) to exercise, and a good financial standing, it is better to multiply his interlocutors.
In addition to encourage diversification of the management of its assets, this strategy has the merit of duplicate safety nets likely to tender in the event of a financial crash generator failures.
7. What mistakes to avoid?
The list is long :
neglect unforeseen by dispossessing its liquidity,
unrealistic underestimating the risk-return ratio of the moment,
forget to reason by project and investment horizon,
give in to expediency and pressure from the seller,
stop at only a nominal rate of investment displayed in bold rather than focusing on supply conditions detailed in lowercase letters,
do not compare fees, performance history,
And especially :
believing in miracle investments
rushing headlong without asking questions or inquire with CARP or the AMF on guarantees of the proposed product or intermediary that promotes.
Without an exhaustive list of scams to finance investments and nebulous, and to conclude, simply refer to the latest scandals of the moment.
Source: Les Echos