The French have put a lot of money aside on their booklets this year. To the detriment of life insurance contracts, however more profitable in the long term. The expert opinion of Stellane Cohen, president of Altaprofits.
Paris Match. Is it wise to fill in your savings accounts?
Stellane Cohen. They are necessary to finance your daily hard times. Keeping money immediately available in the current climate of anxiety is understandable. But the pay rate for the livret A and the LDDS, set at 0.5%, only covers the increase in the cost of living.
Read also:Four keys to opening or managing your life insurance
What alternative is there?
The most competitive life insurance contracts can be opened online and funded very easily, with a few clicks, then by direct debit, and with no payment fees. When you pay € 100, € 100 is invested, while in some traditional establishments you pay a fee on the installments.
Read also:Life insurance, tax advantages maintained
Is the capital still available?
With life insurance, you have two ways to dispose of cash: partial surrender and advance. The advance request comes with an interest rate, it can be likened to a loan, but your capital remains invested and you continue to grow your savings. The redemption consists in withdrawing a share of capital and a share of gains. The latter is taxable at the “flat tax”, at the global rate of 30%, when you make a redemption within eight years of the subscription. For the latest generation contracts, your savings will be available within a few days.
How is the security of savings, an essential criterion for the French, guaranteed?
This is provided by the capital guarantee on the fund in euros, provided by the insurer who keeps this commitment by investing in bonds that no longer earn as much as in the past. This is why the return on funds in euros is falling every year, it should be around 1.10 to 1.20% this year, net of fees and before withdrawals. The euro fund must be reserved for the part of the contract which serves as a cash pocket, the weight of which varies according to your degree of risk aversion. To seek performance, you must reserve another pocket for medium or long-term investments, in financial and / or real estate supports.
How to proceed ?
In the context of free management, you take care of the distribution of your savings yourself. If you have neither the skills nor the time to do it, you can delegate the financial management to recognized professionals, who will be responsible for selecting the media for your account according to your profile. The associated fees vary from contract to contract.
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