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Opt for managed management
More and more life insurance contracts or retirement savings plans offer “turnkey” management, called piloted, with several levels of risk. You can thus choose a “prudent” or “balanced” profile, according to your tolerance to the risk of loss, and let yourself be carried away: it is a professional manager who will be responsible for distributing your savings over different financial funds that he will have chosen, then who will make arbitrations to adapt this distribution according to needs, always keeping the level of risk defined at the outset. Before committing yourself, ask the past performance of these managements to measure both their real level of risk and the gains made, which will allow you, after comparison with the competition, to measure the quality of the manager.
Assemble several supports yourself
Like a manager of diversified funds, you can make your own “allocation” by assembling funds in stocks and others in bonds, for example. This requires having good knowledge to define the right dosage and choose the best media. In life insurance, many insurers offer to distribute your savings 80% on the fund in euros and 20% on equities. This makes it possible to rule out practically any risk of loss over a ten-year horizon and to benefit in part from the good health of the stock market … if it is there!
Buy SCPI or OPCI units
If real estate is absent or poorly represented in your assets, real estate investment companies (SCPI) or collective real estate investment undertakings (OPCI) represent an attractive solution for investing with a long-term perspective (at least eight years). ) with limited risk. REITs, which buy office buildings, shops or warehouses to rent them to companies, offered in 2020 returns above 4%, despite the crisis. Their managers are confident in their ability to withstand a deterioration in the economy, although their health is closely dependent on the level of economic activity. Most SCPIs are said to be “yield” because they regularly distribute to their “associates” most of the rents collected. It is therefore an attractive formula to regularly supplement your income. If you do not need cash flow, two solutions: either buy SCPI in dismemberment, that is to say by separating the usufruct from the bare ownership, in order to pay them from 30% to 40 % below their value, but that deprives you of income for ten years; or acquire them in a life insurance policy, where this income will be capitalized.
OPCIs also invest in real estate, including a portion of listed equities. Their results are therefore less regular and sometimes declining. They are available in life insurance, but also directly via a securities account. Please note: the costs of these two formulas called “rock-paper” are high, for example 10% when acquiring SCPI shares. This is the reason why they are only justified from a long-term perspective. SCPIs are contraindicated for people paying a lot of taxes, because the interest paid is added and is taxed according to your marginal tax bracket.
SHOULD YOU TAKE RISKS TO EARN MONEY?
The response from our expert, Philippe Crevel, director of the Cercle de l’épargne.
“One thing is certain: if you refuse to take the slightest risk with your money, you will earn less and less! The current situation, which weighs heavily on the return on the safest investments, is set to last for several years . You must therefore accept to take risks to succeed in making your savings grow, but there is a gradation in the level of risk. Some financial products, such as stocks, bonds and real estate, taken together, can provide a better performance than risk-free investments, without preventing you from sleeping at night since the intensity of the declines. any will be limited. Today, it would be a shame to deprive ourselves of the growth potential of the equity markets when several sectors of the economy are set to experience significant growth, for example in the fields of energy, transport, ‘agrifood, water or health. “
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