Saturday , January 23 2021

Savings: When the price index increases …

In 2018, inflation started again. In France, the average should be 1.8% during that year. This price increase is enough to ease the European Central Bank (ECB), which has kept in mind that it kept inflation 2%. The ECB has developed a full range of unconventional steps including the famous Quantitative easing, Is the goal of avoiding the introduction of deflationary spiral. News should be welcomed by Sewers.

Indeed, the actual performance of the inflation savings products is directly fined. Thus, when the yield remains very low, almost all savings products now save with the effect of saving inflation. According to the National Organization for Conservation of Consumers and Users (CLCV), the interest rate of the liverate will be reduced from 0.75% to 2018 in Savings, representing 3.6 billion euros. Interest It is to say an additional interest of 3.6 billion euros, if the Livermet AA would have been given the same interest rate for inflation, then it would have been paid. His rate calculation was approved in the past. Rescuers have not left Livrett's booklet. Between January and November 2018, Liverate AA registered a collective collection of 9.5 billion euros. Livret's outstanding loan (and LDDS) is important, rising to 386.9 billion euros (end of November 2018). 0.75% is better than 0%, but not for everyone …

The holding period of the booklets, the absence of alternative products, the benefits of liquidity and the safety of the investment make savers less reactive than market operators, it is clear. But that does not mean they are completely sensitive to these changes. And indeed, we have new behavior for a few years: Increase in demand deposits. B.P.C.C. According to a study by Centers TNS, the spending on the current account of French people at the end of the first quarter of 2018 is 390 billion euros, which is 130 billion euros in the last five years. The French leave about 33 billion euros in 2018 and 2017, significantly more liquidity on their accounts. Encourage practice reduction in savings during recent times of interest rates. If inflation was lost in inflation (by just 0.2% increase in 0% or 2016 in 2015), then the next price would increase significantly, ie 1% in 2017 and 1.8% in 2018 would significantly change the game. These large demand deposits condemn the safe and relatively large losses to the investor.

More than ever, families must ask themselves the question of saving. In 2018, later continued to favor life insurance: Net collections between January and November 2018 represent 23.1 billion euros, it is a "good" year. Life insurance estimates are now 1704 billion euros, representing more than 40% of French financial assets. The last estimation made by Good Value for Money is expected to yield an average return of 1.6% in Euro funds in 2018 life insurance. After reading this figure, it is easy to understand that conventional life insurance reduces savings and savings in Savings Savings. Of course, this totals hides the differences between the average insurers and sometimes contracts in the same company. In addition, in recent years, the share of account units in the life insurance contract has increased. Between January and November 2018, it was 36.6 billion euros, which was paid on the media in accounts units or 28% of contributions. Account units offer different returns, so a large number of contracts can be expected to be more than 1.6% expected for the euro funds.

This year, the decrease in oil prices compared to last year, can limit the development of the total price index, it is pulled by other factors. As we have already pointed out, we can not expect a quick adjustment of the life insurance contract in their part in the Euro. Because of the increase in rates, the previous inertia coupled with accumulation of very low coupon loans in past years suggests a delay before recording the response to performance. In addition, the improvement in recent markets and high volatility in recent weeks are kept in mind, which limits the probability of display for uncontrolled, for at least a short period of time. Once again, the economy forces investors to re-think their savings over the long run. Future law treaties, discussed in the Senate in the first half of 2019, will provide anticipated solutions and savings products to French families, such as "new" retirement savings, more flexible and more dynamic and insurance, the newest life (euroscitizens), in the display time and frame. Will be given. In any case, the release of the contract's performance is a good time to review its objectives and the horizon of savings and investment as well as its nature and distribution.

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