In a constant search for the most profitable investment, we almost forget that the performance of an asset depends on numerous criteria, including taxation or the quality of the allocation. Good news: without being a stock market expert, it is possible to improve your situation by adopting a few good habits. First of all, start with an analysis of the composition of your investments: what proportion is given to precautionary savings? Many French people keep much too high amounts there. To do this, combine the outstanding balances of the A savings account, the Sustainable and Solidarity Development savings account (LDDS), housing savings and tax-advantaged savings accounts. You can also add sums placed in term accounts or dormant in a current account. It is generally recommended to keep the equivalent of six months’ salary on these supports, but this figure is indicative and it can increase up to twelve months depending on the extent of your income and the stability of your professional situation. Beyond that, it is better to consider a longer-term and, therefore, more profitable investment: real estate, bonds, stocks, etc.
Then, take your courage in both hands and make a list of the savings contracts in your possession, without forgetting the collective envelopes to which you have joined through a company. Regarding the latter, it is often possible to transfer them: a tedious process but which will prevent you from forgetting things in the future and will allow you a better overall vision of your assets and therefore better management. This is particularly the case for old retirement systems, to be combined into a new generation PER. If in doubt, use the My retirement savings contracts service, accessible on the info-retraite.fr website and on the My retirement savings mobile application. In terms of life insurance, a review of past performance will help identify contracts to preserve and those to put aside, or even close.
Third step: automate what can be automated to have peace of mind throughout the year. Set up scheduled payments into your various envelopes (life insurance, stock savings plans or retirement savings plans in particular). Set reasonable amounts given your savings capacity, because it will always be possible to make an additional payment at the end of the year. You can also opt for managed management, offered in many contracts. However, find out about past performance and the price before signing.