The government will lower the Livret A, a favorite investments Frenchman, from 2.25% to 1.75% on 1 February. Bad news for investors, because of the crisis, rushed product safely, liquid and totally tax-free. At this level, the booklet A is it worth, what are the alternatives … Franck Doukhan, Associate Director at Cyrus Council, responded to questions from users.
Should we expect a further decline in the rate of Booklet A?
Franck Doukhan: The rate of Booklet A depends on a formula made from the rate of inflation and pay money in the short term (Eonia, Euribor three months), which themselves depend on the inflation. However, in 2013 a recessionary economic environment, it is likely that inflation will fall again. We can therefore expect a further decline in the Livret A.
Is it more advantageous to place their savings in a savings plan (PEL)?
A condition of accepting a blocking time money on a minimum of four years, actually, the rate of pay of PEL of 2.5%, it would be interesting to take advantage of this investment. Otherwise, the rate of pay would be reduced.
For a young executive, the next investment is likely a real estate purchase in two to three years, should favor a combination A + Booklet Booklet Sustainable Development (LDD), or ELP?
If the property acquisition project is less than four years, which can receive compensation at the full rate of the ELP, it is not attractive to put money on this product. Four years before, in case of redemption, the remuneration of the investment is reduced, since no state has a premium just to boost the compensation of ELP.
Given the currently very low and attractive mortgage rates (without a PEL), it would be a shame not to take advantage of three years, which is the horizon set by this young executive, to find the most profitable investments .
I liked t transfer my interest in my savings passbooks on bank books at the higher rate?
Indeed, some accounts or passbooks offer more attractive than the rate of pay Booklet A. However, they are taxed at the imp? T income for the Finance Act 2013 and social contributions of 15.5%, it is necessary to identify the net remuneration of imp t that you would bring this type of investment. The choice will depend on your tax rate.
The rate of pay of LDD will he be affected? If this is not the case, is not it more interesting to put his savings on this type of books?
The rate of Booklet A is the reference for many other savings. This is the case of LDD, whose compensation is automatically aligned with that of Booklet A from 1 February.
LDD and passbooks are not they the same pay?
We must distinguish the gross net rate to compare this type of investment. The LDD has a net pay of 2.25%, for the moment, and 1.75% as of February 1, while on the bank books, wages are subject to imp? T and social security contributions.
a particular taxed at a 14% marginal bracket has an overall tax rate of 28.8% (integrating CSG deductible 5.10% and social security contributions of 15.5%). A passbook will therefore have a gross rate of 2.46% to display the same pay as the passbooks (1.75% net);
for a person taxed at 41%, the overall tax burden is 54.4% excluding exceptional contribution, which would require a gross remuneration of the bank passbook of 3.84% to a performance equivalent to that of A. Booklet
If you are not eligible for the popular Passbook, we do not want to stock investment and knowing that the passbooks will barely compensate for inflation, an investment in a REIT would be appropriate?
The gross yield on REITs is actually attractive, probably still around 5%. However, the net earnings depend on the mode of detention. Indeed, the compensation of SCPI is a property income in the absence of charges or land deficit, would be subject to progressive rates imp? T income, which was added social contributions.
It might be wise to acquire shares of REITs through a life insurance policy, including taxation in case of redemption would be more favorable than direct ownership.
Term accounts do not they become more interesting?
Term accounts offer a scalable compensation depends on the duration of the investment. For example, a deposit account over 24 months can provide a gross remuneration of 3.45%. The value depends on your investment horizon. Clearly, if you think you need your savings, this is not preferred.
Also note that the rate quoted is gross earnings tax, which must be deducted from social security contributions of 15.5% and the tax rate on income.
The interest rate on term deposits is different depending on the bank: mine told me a rate of 1.20% for 12 months …
Indeed, it depends on banks and the length of detention. For example, for a holding period of six months, we can find differences ranging from 0.12% to 2.30%!
In an eye profane, what is the best investment at the moment if we exclude the investment risk in the stock market and life insurance?
It all depends on your goals and your investment horizons. However, if you do not want to invest your money in life insurance or stock exchange, the choice is limited to passbook, LDD, or other short-term investments.
What about life insurance: is it more interesting now to place his savings?
The 2012 fund performance euros of life insurance contracts will average between 2.8 and 3% (gross of social security contributions). This gives a net salary of 2.50% which is higher than the Booklet A. But in case of redemption, that is to say, if you need to withdraw money, be aware that the tax would penalize the rate at the date of inception of the contract.
Is it not wiser to put their savings in life insurance by investing in mutual funds or stocks?
It is clear now, pay money without risk is low and can barely cover the rate of inflation. Moreover, some short-term investments today offer a net return of negative inflation. Provided accept some risk capital, that is to say that you can partially lose money, investments, stocks or bonds, either directly or in mutual funds, offer more attractive prospects for profitability.
Today, an investor who wishes to preserve its capital inflation and taxation is obliged to take the risk.
For those who accept a slight risk capital, it is possible to move towards products called structured or form in which the capital is guaranteed or protected. These investments may offer attractive pay up to twice the compensation fund of the euro life.
The booklets are simple and s? Rs. Life insurance is not a good plan because you do not speak of management fees …
We discussed the life euros funds, including pay, probably around 2.5 to 3% in 2012, is still announced net of management fees.
In 2013, the rates of euro fund life insurance will they fall further?
It is likely that the downward trend of recent years will continue in 2013. “No surprises,” we should still attend a slight decrease euros compensation fund. Therefore, given the tax and inflation, research performance require risk taking. At each measuring its ability to accept risk.
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