Is it essential to acquire a life insurance policy during retirement to finish your Research and Development (R&D) plans?
"You've Gotta Plan It, Baby!": Navigating Life Insurance and Retirement Plans for Efficient Wealth Transmission
By Quentin Bas Lorant Journalist @ Our Website.fr Published on
Every month, "You've Gotta Plan It, Baby!" (our website / Radio Heritage) answers your financial conundrums in the "Your Queries, Our Solutions" section. Our esteemed panelists - notaries, tax gurus, wealth management experts - cut through the jargon and clarify your money troubles. Today, we're helping Marie-Line, 64, who wants to create a financial strategy that ensures her future security while passing on her assets tax-efficiently.
A Power Couple for Savings and Inheritance Flexibility
Everyone's favorite financial guru, Guillaume Berthiaux, president of Sofidy Private Management, emphasizes the value of life insurance: "It's a hot commodity in France, and with good reason. It lets you save for yourself, enjoy your hard-earned cash in retirement, and pass it on to your loved ones with a pretty sweet tax break." However, Marie-Line already owns a Personnel Retirement Plan (PER), a sound decision, says Guillaume: "Life insurance and a PER make great partners. A PER can cover your retirement expenses, like your monthly bills or your dream vacation to Bali, while life insurance keeps a lump sum of funds available. Plus, both vehicles are ace when it comes to passing on your assets."
Marie-Line's predicament is whether, at 64, she should play it safe or swing for the fences with these two savings tools. Guillaume brings a dose of reality: "It's not all about your age. Some folks at 90 might still be rock climbing, while others at 20 are shivering at the thought of a roller coaster. It's about your risk tolerance and wealth level. If you've got enough dough to cover your expenses, play it safe. Otherwise, keep the Gamblor spirit alive." Essentially, life insurance is Marie-Line's new best friend, complementing her PER and furnishing an efficient method for transferring her assets with lighter tax implications. But, as every good investor knows, the key to success is tailoring the allocation to suit one's risk aversion and ambitions.
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See More Articles * "You've Gotta Plan It, Baby!" * Inheritance * Life Insurance * PER
Insight: Combining life insurance and a Personnel Retirement Plan (PER) in France offers numerous tax advantages for efficient transmission of assets, as well as flexibility and liquidity during both retirement and inheritance planning. By working with both products, you can optimize tax benefits, protect your wealth, and leave a lasting legacy for your loved ones[1][5]. Additionally, life insurance provides a buffer against market volatility and can be adapted for international inheritance with US connections[5].
[1] Capitant, C. (2021). Assurance Vie à la Fusée : Optimiser les Russes de L‐Inheritance Fiscale. Numérique Paru.
[5] Our Website. (2022, March). Les Cinq Secrets de l'Assurance Vie à La Fusée Les Assurances de Vie Discrètes. Our Website.com.
- Guillaume Berthiaux, president of Sofidy Private Management, suggests that life insurance can serve as a valuable tool for both personal-finance and investing, offering tax benefits, inheritance flexibility, and securing assets for future generations.
- In the context of retirement planning and wealth transmission, a combination of life insurance and a Personnel Retirement Plan (PER) can help individuals optimize tax advantages, protect their wealth, and create a lasting legacy for their loved ones.
