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How to properly manage my assets

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manage my assets

How can I manage my assets properly? Optimizing the management of your assets is essential to secure your financial future and carry out personal projects. Whether you have few or many assets, it is essential to organize them well, make them grow and anticipate their future transmission.

However, between complex financial products, changing taxes and the ups and downs of life, it is not always easy to navigate. Many feel helpless and therefore put off this work, which is nevertheless crucial for their overall financial situation. Through this article written with heritage consulting professionals, I want to give you practical keys to see things more clearly. Together we will discuss how to calmly analyze your current situation, define your medium and long-term objectives, as well as implement appropriate strategies to achieve them.

My goal is to help you approach the management of your assets more calmly, so that they can be a real lever to make your projects a reality. Follow the guide to finally become the enlightened actor of your financial future!

🥀 Protect your assets against health risks

The occurrence of a serious health problem, an accident or a premature death in a family can undermine the financial balance with serious repercussions on the assets. Between the loss of income linked to the work stoppage and the health care expenses, the impact is considerable if we have not been able to protect ourselvesHere are the different contracts allowing you to protect your assets against health risks.

✔️ Dependency insurance

Dependency insurance is a type of private insurance that provides protection against the risk of loss of autonomy. It works on the principle of an annuity paid to the dependent person to enable them to finance the assistance necessary to remain at home or in a specialized establishment.

Dependency insurance helps protect against the financial consequences of losing your independence. If you become dependent, the insurer will cover all or part of the expenses that are necessary: ​​home help costs, placement in a specialized facility, adaptation of housing, etc. Daily allowances are also provided. This contract covers the remaining costs once public assistance has been deducted.

In addition to the level of dependency guaranteed, carefully study the specifications of the dependency insurance: amount of capital or annuity provided, possible deductible, conditions for revaluation, terms of implementation of the guarantees, etc.

Some contracts offer an assistance benefit to coordinate the workers. Also compare your current coverage to that of your spouse and ascendants. Dependency insurance must be chosen carefully to full protection.

✔️Death insurance

The death insurance contract, also called life insurance, guarantees the payment of a predefined capital to the beneficiaries in the event of the death of the insured. This capital allows relatives to meet funeral and inheritance costs, and to compensate for the loss of income. The amount must be set according to the real needs of the beneficiaries and the existing assets.

The designation of beneficiaries is crucial in the life insurance contract. Remember to update it regularly in the event of a change in family circumstances. You can opt for a single beneficiary or divide the capital between several people. A reversibility clause allows the capital to be redistributed upon the death of the spouse, for example. It is recommended to carefully coordinate the life insurance with a funeral contract. The latter will allow funeral expenses to be financed directly, with the death benefit then returning to relatives to compensate for the loss of income without burdening the estate.

Designate a close to trust as beneficiary of the funeral contract to manage the funeral as you wish. An optimal strategy consists of covering the funeral via a dedicated contract, then guaranteeing the surplus for the heirs.

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✔️ Funeral guarantee

The funeral contract or funeral insurance allows you to build up capital that will be paid at the time of death to directly finance the funeral according to your wishes. This avoids the family having to advance the funds in an emergency. The amounts saved also generally grow into a secure euro fund. This funeral contract therefore provides real peace of mind.

There are two formulas: the funeral fund which pays a lump sum to the beneficiaries to freely organize the funeral. Or the funeral contract which guarantees that the cost of the funeral will be covered up to a ceiling with a partner. In both cases, pre-financing secures this aspect. To choose the amount, estimate precisely the budget needed for your ideal funeral. Addressing the issue of funerals is never easy. However, it is wise to prepare this in advance to avoid making decisions in an emotional emergency. Let your family know your precise wishes: type of ceremony, burial place, funeral notices, flowers, etc.

✔️ Supplementary health insurance

Health insurance is a social protection system that allows for the total or partial coverage of health expenses. It can be supplemented by private or mutual health insurance. However, it constitutes the pillar of the coverage of health expenses. Supplementary health insurance covers health care and expenses not reimbursed by the Social Security : excess fees, daily hospital charge, dental prostheses, osteopathy, etc.

It allows you to avoid paying in advance. Analyze the table of guarantees carefully: reimbursement rates according to positions, possible ceilings, deductibles, etc. Choose extended guarantees for complete coverage. Choose formulas that include reimbursement of excess fees in non-contracted sectors, coverage of private rooms, maternity packages or even specific pool guarantees.

✔️ Loss of income guarantee

The loss of income guarantee provides you with replacement income in the event of work stoppage due to illness or accident. It compensates for the drop in salary due to incapacity or disability. Check the waiting periods, insured income, types of stoppage covered, and non-forfeiture in the event of permanent disability in particular. This financial safety net is essential in the event of a prolonged shutdown.

It is possible to maintain this guarantee after retirement. Life's accidents spare no one! The disability pension will provide a welcome additional income in the event of a serious problem occurring at an advanced age. The contributions are minimal compared to the protection provided. Don't cancel too much quickly your loss of income insurance in preparation for retirement. Health hazards have no age.

✔️ Borrower insurance

Borrower insurance is an insurance contract that guarantees the repayment of a property or consumer loan in the event of certain events. Mandatory for all property loans, borrower insurance reimburses the loan in the event of the death or disability of the insured. This guarantee prevents the debt from weighing on loved ones. Analyze the TEG well with and without insurance to compare offers.

The health questionnaire focuses on the individualized rate. Review the upward coverage of loans for stronger protection. Take the time to compare the contracts offered by the bank and by insurance companies. The rates differ significantly depending on the guarantees and options included. Study the general conditions of the borrower insurance in detail. In addition to death, make sure that disability, incapacity and loss of employment are also covered. Check the relapse and recurrence clauses that avoid the forfeiture of the contract.

🥀 Protect my assets against inflation

With inflation, the prices of goods and services increase, which can have a impact on your savings and your purchasing power. If you do not take steps to protect your assets, you risk lose value over time. This can make it harder to achieve your long-term financial goals.

✔️ The harmful effects of inflation on savings

A high inflation rate like the one we are currently experiencing has a very negative impact on savings if no measures are taken to protect against it. Indeed, with the general increase in prices, our purchasing power decreases year after year if our cash in the bank account earns nothing or very little.

With an inflation rate of 5% as it is now, €100 invested without yield in an account would be equivalent to only €95 in purchasing power the following year. The real value of our available savings is thus inexorably eroding. This is why it is crucial to grow your savings via investments that offer at least a return equal to the level of inflation. Otherwise, we become poorer each year even though we are building up a kitty in current euros in our accounts. A real paradox that needs to be stopped quickly! : ,Inflation acts like a parasite that feeds on the value of our savings. This is why solutions exist to counter this scourge, which we will detail in a second step.

✔️ Rental property, a proven safe haven

You will need to learn how to manage a real estate property. Faced with the threat of inflation, rental property is a proven safe haven to protect your purchasing power. Indeed, this investment has several significant advantages in the current economic climate. First of all, rents are intrinsically indexed to inflation. Each year, they are reassessed based on the Rental Reference Index which follows the rise in consumer prices. Your rental income therefore naturally increases at the same rate as inflation, protecting your purchasing power.

Furthermore, the real estate market is structurally in deficit. Demand is much higher than supply, particularly in certain tight markets such as large cities. Your property will therefore be easily resold and re-let, offering long-term security. Finally, real estate loan rates remain moderate and constitute an interesting leverage effect for building up assets. Reasonable debt in real estate remains a winning strategy in times of inflation.

✔️ Gold, an effective protection against crises

Gold has long been considered a financial safe haven and an effective hedge against economic crises, including inflation. During periods of inflation, the value of currencies tends to decline, which can erode investors’ purchasing power. However, gold generally maintains its intrinsic value over time, making it an attractive asset to protect one’s wealth.

The main reason behind gold’s resilience to inflation lies in its tangible and limited nature. Unlike fiat currencies, which can be printed in unlimited quantities by monetary authorities, gold is a precious metal that cannot be artificially reproduced in large quantities. Its scarcity and constant demand make it a tangible asset that retains its value across economic cycles.

Additionally, gold is often viewed as a form of universal currency, meaning it holds its value globally. Investors often look to allocate a portion of their portfolio to gold as a diversification strategy, offering potential protection against inflation and fluctuations in financial markets. In times of economic uncertainty, gold often acts as a safe haven, attracting investors looking to preserve their wealth.

✔️ Stay invested for the long term

In the event of an inflationary surge, the mistake would be to panic and sell all your holdings. On the contrary, it is recommended to stay invested for the long term to take advantage of the market recovery.

The main pitfall is to exit your investments at the worst possible time, in the heat of the moment. Hold on to your assets, the situation will eventually stabilize. With these adapted solutions, you will be able to get through this turbulent period more serenely. Your wealth will come out consolidated.

🥀 Protect my assets in the event of divorce

What becomes my estate in case of divorce ? Divorce always represents emotional trauma. But it can also have complex repercussions on a material and financial level depending on the matrimonial regime. You will thus be better equipped to calmly tackle this ordeal which is also delicate on a material level.

✔️Division of real estate after divorce

In the event of divorce, the first question often concerns the future of the family home and other common real estate. Everything actually depends on the matrimonial regime chosen at the time of the marriage. In the community regime, property purchased during the marriage is legally considered as joint possessions of the couple, half owned by each spouse.

So in the event of divorce under this regime, real estate acquired jointly during the union is shared in strictly equal parts. Each ex-spouse receives 50% of the value of the property(ies) concerned. Conversely, in the regime of separation of property, no sharing takes place in the event of divorce. Each spouse remains the exclusive owner of real estate acquired before and during the marriage. Thus, if the family home was purchased by one of the spouses before the marriage, this property reverts to him in full in the event of divorceThere is no distinction between possessions prior to and subsequent to the union.

✔️ Sharing savings and financial investments

Beyond real estate, divorce also raises the question of sharing savings placed in bank accounts as well as various financial investments such as life insurance. And here again, everything depends on the initial matrimonial regime. In the context of a community of property, the sums placed in joint accounts and the life insurance contracts taken out in the name of both members of the couple are considered as common heritage.

Thus, in the event of divorce, the balances of joint bank accounts are shared in strictly equal parts, regardless of which of the spouses actually contributed to these accounts. Everyone receives 50% of the available amounts.

Under the separation of property regime, there is no sharing of savings and investments: each spouse remains the exclusive owner of the bank accounts and contracts that they hold, whether they were set up before or during the marriage. Each spouse therefore retains all of their personal savings, the balances of their individual accounts, their life insurance contracts, their PEA, his stock market investments... Il there is no distinction between assets before and after the marriage.

✔️ The complex question of pension sharing after divorce

Divorce also has significant repercussions on the pensions and retirement benefits of former spouses. The rules are quite complex, but it is essential to know them well in order to defend your interests. Under certain conditions, a former spouse may indeed be entitled to part of their former partner's retirement pension if they are in a more fragile financial situation. It is not systematic : several criteria must be met and expressly requested.

To be able to receive part of the pension of your ex-spouse, you must meet all of the following conditions:

If all these conditions are met, you can apply for your survivor's share during the lifetime of your ex-spouse. After his death, you will also be able to claim the classic survivor's pension for widows and widowers.

✔️ The essential role of the compensatory benefit

During a divorce, judges may decide to award compensatory benefits to one of the former spouses, to compensate for a disparity in their respective living conditions after the breakup. This compensation is awarded by the judge to the spouse considered to be the most financially fragile following the divorce, to avoid excessive insecurity. The conditions for obtaining it are:

This is not an automatic right: it must be expressly requested from the family court judge.

✔️ Alimony for the couple’s children

In addition to the compensatory allowance, divorce also involves the payment of alimony to support the needs of the children, regardless of the matrimonial regime. This obligation continues as long as the child is not fully autonomousThe amount is set according to the resources of each parent and the needs of the child. It is possible to arrange for a direct payment between the parents or for support by the CAF, especially if the debtor does not pay.

Exceptional expenses (medical expenses, education...) are shared in proportion to the income of each parent. Again, in the event of a conflict situation, the judge will decide based on the child's interests and the household's previous standard of living.

✔️ Optimize your wealth tax after divorce

Divorce sometimes results in a transfer of assets from one ex-spouse to the other as part of the division. From a tax point of view, it is possible to optimize these transfers. If joint real estate is transferred as part of the divorce, each spouse will be able to benefit from tax deductions for the length of ownership on their share. An advantage not to be overlooked in the event of a resale of a property following the divorce, especially if its value has increased a lot.

If the divorce involves the repurchase of jointly held financial securities, it is possible to spread the taxable capital gain over several years. In concrete terms, the capital gain made when the securities are sold to the former spouse is frozen for tax purposes. It will only be taxed in the year in which the funds are actually withdrawn. This technique makes it possible to reduce the amount to be report every year. To be studied on a case-by-case basis depending on the amounts involved.

✔️ Optimize your budget after divorce

Once the divorce has been finalized and property has been divided, it is essential to rebalance your personal budget to maintain your standard of living. After years of living together, divorce automatically implies a drop in income. You have to adapt your lifestyle so as not to be taken by surprise:

Anticipate the main expenditure items to be revised. And get help from a financial advisor if needed. If the divorce awarded you capital from the sale of joint property, invest it intelligently. Favor prudent investments, available at any time to supplement your income.

🥀 Asset management mistakes to avoid

Optimizing the management of one's personal wealth is a demanding exercise. Between the many possible investments, the erratic evolution of the markets and complex taxation, It is not always easy to make the right choices. However, some wealth management mistakes come up frequently and affect performance or increase the risk of your portfolio.

✔️ Focusing excessively on short-term returns

When looking at an investment, the yield displayed is of course a primary criterion. However, a common mistake is to focus solely on yield. immediate or in 1-2 years. However, to make your assets grow in the long term, it is much better to take an interest in the profitability in 5, 10 or 20 years. Investments with the best initial returns are also often the riskiest over the long term. They expose them to a high risk of loss of capital in the event of a market downturn.

It is therefore appropriate to adopt a long-term vision and to favour more sustainable assets, even if their initial profitability is lower. The main thing is to aim for the best possible balance between return and risk over time.

manage my assets

✔️ Only look at the gross yield without taking into account fees

The yield or the annual performance put forward in the communication designates the gross yield, before fees and before taxes. However, to correctly estimate the real profitability of an investment, it is essential to consider the net return, after deduction of all costs related to this investment. These costs can crop from 1 to 4% return each year depending on the investments.

These include annual management fees for an investment fund, entry or arbitrage fees for life insurance, transaction fees for rental property... These recurring costs eat away at a significant part of the performance. It is therefore imperative to take them into account in your comparative analysis of the various investments considered.

✔️ Placing all your eggs in one basket due to lack of diversification

This is a basic principle in wealth management: diversification of investments is fundamental to optimizing the risk/return ratio. By concentrating all of your investments on a single asset class (stocks, bonds, real estate, etc.), you expose yourself to a multiplied risk in the event of poor performance of this market.

Conversely, by taking care to distribute your assets well across different types of investments that are not very correlated with each other, the overall risk is considerably reduced. Thus, holding shares, real estate funds, unit-linked life insurance, interest rate products and cash is essential for diversifying risks and pooling returns.

✔️ Ignore recurring costs that impact profitability

As mentioned above, the costs generated by investments (management fees, entry fees, arbitration fees, transaction fees...) reduce their net return received by the saver. However, these fees are too often neglected or underestimated by individuals when making investment decisions. They focus on the gross return or past performance, obscuring this impact of the fees.

However, in the long term, these recurring costs can significantly reduce the profitability of an investment. It is therefore essential to fully integrate this dimension into the comparative analysis of the return/risk ratio. To optimize your assets, look closely at the costs is as important as performance. Thus, low-fee equity ETFs will become much more profitable than a high-fee equity fund, even if their gross performance is similar before costs.

✔️ Placing too much emphasis on past performance

"Past performance is no guarantee of future performance". This ritual phrase in business documents contains a great deal of truth. In wealth management, it is tempting to prioritize the investments that show the best returns. spent over 5 or 10 years. Those who have performed best in the past seem to be the most likely to continue their momentum.

However, the financial markets are constantly evolving and the changing contexts make any forecast risky. Who would have predicted the collapse 10 years ago bonds or the real estate boom? Rather than relying solely on a flattering history, it is better to study the fundamentals and future prospects of an investment in more depth before deciding to invest. Its solidity and future potential take precedence over its past performance.

✔️ Making decisions based on emotion

Wealth investment requires perspective and rationality to make the right decisions. Unfortunately, emotion can also play tricks on individuals. You will therefore need to have strong emotional intelligence.

For example, Some are tempted to sell all their investments in a panic during a violent stock market crash. Conversely, others are led to overinvest in highly speculative assets surfing on a bubble, for fear of missing an opportunity. Making decisions under the influence of emotion in the face of high market volatility most often leads to costly mistakes. It is much better to maintain composure and discernment in all contexts.

✔️ Trading too much without a real long-term strategy

Some individuals addicted to the markets end up multiplying the back and forths between investments in an irrational and emotional way. However, this instability generates high transaction costs which significantly weigh on the returns. In addition, this "signals"compulsive is most of the time done without a real long-term wealth strategy.

On the contrary, an allocation of assets is optimal when it is defined rationally according to its objectives, then gradually adjusted according to the evolution of the markets and its situation.

✔️ Do not take into account the impact of inflation

Even moderate inflation eats away at the value of your uninvested assets every year. In the long term, its impact is far from negligible. Let's take an example : With only 2% annual inflation, €100 placed in your current account will lose 000% of its value in purchasing power over the after 10 years. It is therefore essential to regularly integrate the effect of inflation into the valuation of your investments. Certain asset classes allow you to protect yourself against inflation.

✔️ Neglecting tax optimizations

Even with an equivalent gross return, the taxation applicable to two investments can vary greatly and impact the net return received. Know how to optimize the taxation of your assets by using dedicated envelopes (PEA, life insurance...) is therefore essential. This can earn you several net return points each year through taxes and reduced social contributions.

A wealth management approach that takes the tax dimension into account in depth becomes essential beyond a certain amount of wealth. Professional advice is often necessary. You can consult our digital marketing agency.

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