A good balance between investment and monetary units of account may be safer than any contract in euros. At the end of last year, deemed secure compartments of life had drained 1,000 billion euros, equivalent to the market capitalization of the Paris! While the units of account, a priori more risky, because they contain including stocks, accounted for only 182 billion. The stock market crash of 2008 caused a massive migration of savings into cash. Reaction understandable individual investors wanted to secure their assets. But in doing so, they have not forgotten too quickly to judge an investment over time? A contract of life insurance used to fund projects of long-term increase his pension to his family immune from difficulties. To address these needs, return on investment mainly cash may prove insufficient.
Security, but at what price? The contract says euro provides a certain security level of capital invested. Insurers must comply vis-à-vis policyholders commitment to reimburse the amount of savings invested at maturity of the contract (net of management fees). That's why managers invest mostly drained of capital to debt. However, the interest rate of the latter are also more profitable than before. In many contracts, reserves of any hidden thing of the past. Indeed, this explains why yields are so disparate from one company to another. If the most efficient yet provide between 4% and 5%, the least attractive already leveled off at around 3.5%. And it's not over! For surprises are expected in 2010.
Moreover, if inflation should return, interest rates are expected to go up to the curb. The low-rate bonds, as they are issued these days, will become obsolete. Unfortunately, they are the ones who feed the contracts currently undertaken. The second family of contracts, said that units of account, are a minority in the overall collection. This is simply because they are indexed to the performance of equities, said in substance Stéphane Girardot, Marketing Director of Sal. Oppenheim. And observe: "Do you know the future direction of the CAC 40? Watch the movements of subscription contracts in life insurance." When investment shares are higher, attention, stock markets will fall. Conversely, if the lowest is that the recovery is near!
Distrust of investors for financial markets is understandable. Stéphane Girardot considered the case of an unfortunate who have subscribed, March 7, 2001, a contract exclusively invested in equities. If he has loosened the legal issue, March 7, 2009, he has lost an annual average of 6.45%. In other words, for a bet of 100, it recovers only 58. However, this scenario is the worst of all those computers could grind. Otherwise, the median performance stands at 9.16%, which will double the capital in eight years. The best contract observed on eight carries a performance by 400%. Three quarters show a gain of 70%. And to return as unlucky, he might cancel his loss by applying its investments as follows: 61% euro and 39% in equities.
The ideal combination It is not necessary to be fully invested in equities to capture performance. A reasonable proportion sufficient to ensure safe gain. However, many life events can occur before the normal expiry of a contract. If the savings must be liquidated prematurely, and that just as a typhoon falls on stock markets, he must know how to fix the threshold limit of what someone is willing to lose. If tolerance does not exceed 15%, it is necessary, as calculated by Stéphane Girardot, opt for a mix 70% euro and 30% shares. With such distribution of assets, a contract product in the worst case a cons-performance minus 13%. But in the best case scenario, it is a gain of 173,000 euros, from an investment of 100,000 euros. Investors can therefore safely increase the proportion of equities in their contracts. Paradoxically, they are less likely than remaining exclusively invested in bonds and cash
Security, but at what price? The contract says euro provides a certain security level of capital invested. Insurers must comply vis-à-vis policyholders commitment to reimburse the amount of savings invested at maturity of the contract (net of management fees). That's why managers invest mostly drained of capital to debt. However, the interest rate of the latter are also more profitable than before. In many contracts, reserves of any hidden thing of the past. Indeed, this explains why yields are so disparate from one company to another. If the most efficient yet provide between 4% and 5%, the least attractive already leveled off at around 3.5%. And it's not over! For surprises are expected in 2010.
Moreover, if inflation should return, interest rates are expected to go up to the curb. The low-rate bonds, as they are issued these days, will become obsolete. Unfortunately, they are the ones who feed the contracts currently undertaken. The second family of contracts, said that units of account, are a minority in the overall collection. This is simply because they are indexed to the performance of equities, said in substance Stéphane Girardot, Marketing Director of Sal. Oppenheim. And observe: "Do you know the future direction of the CAC 40? Watch the movements of subscription contracts in life insurance." When investment shares are higher, attention, stock markets will fall. Conversely, if the lowest is that the recovery is near!
Distrust of investors for financial markets is understandable. Stéphane Girardot considered the case of an unfortunate who have subscribed, March 7, 2001, a contract exclusively invested in equities. If he has loosened the legal issue, March 7, 2009, he has lost an annual average of 6.45%. In other words, for a bet of 100, it recovers only 58. However, this scenario is the worst of all those computers could grind. Otherwise, the median performance stands at 9.16%, which will double the capital in eight years. The best contract observed on eight carries a performance by 400%. Three quarters show a gain of 70%. And to return as unlucky, he might cancel his loss by applying its investments as follows: 61% euro and 39% in equities.
The ideal combination It is not necessary to be fully invested in equities to capture performance. A reasonable proportion sufficient to ensure safe gain. However, many life events can occur before the normal expiry of a contract. If the savings must be liquidated prematurely, and that just as a typhoon falls on stock markets, he must know how to fix the threshold limit of what someone is willing to lose. If tolerance does not exceed 15%, it is necessary, as calculated by Stéphane Girardot, opt for a mix 70% euro and 30% shares. With such distribution of assets, a contract product in the worst case a cons-performance minus 13%. But in the best case scenario, it is a gain of 173,000 euros, from an investment of 100,000 euros. Investors can therefore safely increase the proportion of equities in their contracts. Paradoxically, they are less likely than remaining exclusively invested in bonds and cash
No comments:
Post a Comment