Different Types Of Investments : Detailed Review


Full Gold Sovereign
If the life insurance reaches 8 years, Julie will be able to make a withdrawal benefiting from a significant deduction on the taxable gains (4,600 euros per year), it is one of the great advantages of the life insurance. If Julie needs the money she has invested on life insurance before the age of 8, she will be able to make a withdrawal (called a partial surrender), but the earnings will be taxed at the flat rate (flat tax). 30%). Even in the latter case, the net tax return remains almost 3 times higher than what it would have obtained on the livret A.

While waiting for the moment when Julie will need her savings, the interests of the euro fund are reinvested automatically (“ratchet effect”) with a minimum “tax friction”. Thus, his savings grow all the faster, it is the snowball effect of compound interest!

Different Types Of Investments : Information

Opinion of Nicolas: by pursuing this discipline of saving in time (“to pay first”), Julie puts itself in the best arrangements to realize his project of real estate purchase. On the one hand she builds a good contribution to buy and on the other hand she shows a white paw to the banker who will peel his accounts when it comes to borrow. Indeed, banks like this type of customer profile: contribution + proof of discipline of regular savings. Thus, it will obtain a better borrowing capacity and a loan at a better rate than the less reasonable client.

Guillaume invests to create an additional income. Guillaume is 30 years old and he is already owner. He earns 2,500 euros a month and saves around 500 euros a month, as well as part of his annual bonuses. His savings are now 40,000 euros. In this article, we will study Guillaume’s investments and see how he could optimize his wealth allocation in order to obtain a better return while reconciling his investments with his ambitions.

Different Types Of Investments : Tips and Advices

Guillaume’s current investments: PEL and livret A. Guillaume never really took the time to seek to optimize his investments. On the advice of his banker, Guillaume opened a housing savings plan (PEL) in January 2016, with a return that was still at the time of 2%. He invested 30,000 euros. The rest of his savings, 10,000 euros, is invested on his booklet A, whose yield is currently 0.75%. The interest collected on the ELP is 600 euros, and those collected on the A book of 75 euros. The average return on Guillaume’s assets is 1.7% (€ 675 of interest for € 40,000 invested).

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