Making the most of the popular savings account is one of the twelve tips for optimizing your investments. To grow your heritage, you must leave nothing to chance. Here are twelve simple tips to get the most from your investments. The Evergreen Wealth Formula offers the best suggestions to you here.
In a world where returns have crashed heavily, it is better to put all the assets on your side to maximize the payoff from each investment. Sometimes it is enough to know a few rules to greatly improve profitability or, quite simply, to avoid losing a few healthy percentages of interest. Obviously, a lot of advice deals with fees. Why bother to select the best products if you have to give up 5% entry fees for each payment? With the rise of Internet underwriting, it is now easy to avoid this layer of fees. But it’s also important to get the most out of every investment. Here are twelve simple tips to optimize your investments, whether they are stock market, precautionary or life insurance.
Life insurance: withdraw your earnings without paying a penny of tax
The taxation of life insurance has remained untouched. You should take advantage. When you make withdrawals, called redemptions, on a contract of more than eight years, you benefit from an annual allowance of 4,600 euros for a single person and of 9,200 euros for a couple on the share of the gains in the redemption. Beyond that, the portion of interest withdrawn is either integrated into your resources and subject to the income tax scale, or taxed at the flat rate of 7.5%. To know the exact amount that you can withdraw without taxation, some calculations are necessary.
The Right Value
If this is your first buyout, it’s simple. You must first know what is the share of interest or capital gain in the value of your life insurance. It is equal to the value of the contract less the amounts you have paid into it over the years. Then all you have to do is apply the following formula: multiply your authorized allowance (4,600 or 9,200 euros) by the value of the contract and divide the result by the amount of the gains acquired. For the same contract value, you will be able to withdraw much more if your contract has a significant portion of capital, as tax is only levied on gains. You are entitled to this allowance once per calendar year. Between the end of December and January 1 of the following year, you can therefore withdraw the double. Another tipmake redemptions from time to time and immediately transfer the amounts obtained to a contract without entry fees. In a flash, your interests will have turned into capital!