Chartered Alternative Investment Analyst : Detailed Review
In practice, the funds in euros are accessible within a life insurance. Know that the best brokers offer life insurance that do not charge a payment or withdrawal fee. While traditional banks do not always give access to the best funds in euros, and are unfortunately too much in charge of management fees and remittance fees. Julie will have every interest in knowing the best life insurance before signing a contract.
Before optimization, a low-paying booklet. Before optimization, Julie put all her money (8,000 euros) and her monthly saving capacity (350 €) on a booklet A at a yield of 0.75%, which brought her only 60 euros per year. Julie has considered opening a housing savings plan (PEL), but the new ELPs pay only 1% gross (0.70% after flat tax). So not interesting, especially since any withdrawal of money from the ELP breaks the ELP. Finally the ELP is less liquid than the livret A and even less profitable.
Chartered Alternative Investment Analyst : Infomation
After optimization: towards a better investment equally liquid for real estate contribution, but more remunerative.
Booklet A offers a very low profitability, Julie decided to leave only the money she could need in the short term in case of unforeseen or to finance non-current expenses (appliances, holidays, etc). It now leaves only 3,000 euros on its booklet A, as a precautionary savings. For the rest of her savings, she intends to make her money work better.
Thus, Julie opened a life insurance on which she paid all the rest of her savings (5,000 euros). Every month, Julie directs her savings capacity with a payment of 350 euros to supply her life insurance. Julie has opted for a no-fee insurance on payment and withdrawal, and the fund in euros consistently ranks among the best in years.
Chartered Alternative Investment Analyst : Tips and Advices
Result for Julie preparing her real estate purchase?
Now, Julie expects to earn about 160 euros per year (22.50 euros on the booklet A and not far from 140 euros on its life insurance based on a performance of the euro fund similar to that of 2018). It’s more than double what she would have earned by leaving all her money on her livret A. And it’s not counting on the additional interest generated by the 350 euros she will pay each month, so the gain will increase over time.