Real estate, life insurance, retirement … Where to invest your money in 2021?

Completely disrupted by the global health crisis, deprived of spending in restaurants, shops and other travel, the French saved a lot in 2020: more than 130 billion euros additional compared to 2019. And in a year 2021 when the vaccine seems being the long-awaited savior, the economic future is still unclear. So, where to invest his money for this new year?

In these uncertain times, the first good reflex is to build up solid savings, as a precaution, and available when needed. And even if the famous Livret A today only displays an interest rate of 0.5%, it offers a stable investment and money available at all times, and which allows you to rebound in the event of hard knocks. “Since March, the French have favored liquidity and availability, to the detriment of yields,” explains Armelle Lévy, journalist on RTL.

The same is true for the Housing Savings Plan (PEL), requested by many in 2020, but with an equally minimal return. “It displays a rate of return of 1%, but is taxed. It is found at 0.7% after taxation,” continues the journalist. There too, safety priority in 2021, if your goal, for example, is to pay for a primary residence.

Life insurance: profitable and low-risk investment

The preferred investment of the French, life insurance offers a safe investment and a return that can be significant. However, in 2020, we see more withdrawals than payments on it. “It is a medium to long term investment, and odon’t want to commit too much right now“says Armelle Levy. Indeed, if 70% of the funds invested in it are secured, the remaining 30% are dedicated to the fluctuating success of the markets.

Before investing your money, knowing your savings profile therefore seems more than essential. Just like being aware of your financial situation. SIf your job seems threatened, prioritize secure placements. But if you are calm on this point, nothing prevents you from investing in a PEA (Plan Epargne Action), by buying shares in companies. As the stock market has plummeted this year, new investors (more than 158,000 in 2020) are telling themselves that now is the time to buy cheap stocks, with a view to seeing them rise again. But beware of the risks of losing everything …

Another important investment, long term this time around, is your retirement. Armelle Levy advises you to start preparing for your retirement “early enough”. The new retirement savings plan (PER) is an envelope that we build up over time and that remains blocked until your retirement. “But you can exceptionally unlock money on it before you retire, if your goal is to acquire a main residence, ”explains the journalist.

In short, in 2021, to limit the risks, do not hesitate to diversify your savings. Don’t put everything on one account. But if you want to make a profit, then you have to accept the risk, at different scales depending on your profile and your ambitions. Finally, entrust your money only to approved establishments such as banks (list available on the the markets authority), in order to avoid possible scams and bank fraud.

Contents of the show:

In 2021: Where to invest your savings?
Guest : Armelle Lévy, head of the consumer section in the economic and social service at RTL.