Livret A at 1.5%: which risk-free alternatives to choose?

Maxime Kugler, responsible for the financial offer at Altaprofits, an online wealth management broker, would like to clarify a common confusion: “It’s not because you leave Livret A that you are going to take more risk. You have euro funds which will allow you to search up to 3 %, or even 4.5 % thanks to boosts from insurers, always without capital risk. » However, he recalls a fundamental: “Precautionary savings remain important. But no need to fill out your Livret A however. »

Take advantage of opportunities that arise

Boosts are bonus offers offered by insurers on their euro funds. The principle: the insurer pays an additional yield of 1% to 1.5% per year if you make a new payment, in addition to the base rate, often on the condition of investing part of the payment in units of account. “Despite the drop in Livret A, euro funds have not reduced their yield”confirms the expert.

Boosts for euro funds are not the only opportunity at the moment: “Our clients are very interested in structured products with guaranteed coupon and secure capital at maturity”explains Maxime Kugler. Accessible in particular via life insurance, these instruments guarantee the repayment of 100% of the capital at maturity and pay a fixed coupon guaranteed each year, without conditions linked to market developments. Current rates are between 3.8% and 4.5% gross per year for products with 100% guaranteed capital.

However, there is a counterpart to be aware of. If the coupon is guaranteed, the duration is not: the issuer can repay the capital early, at its discretion, according to the conditions provided for in the contract. “You should know that it can last up to ten, twelve years”confirms our expert. These products should therefore be reserved for money that you do not need immediately. And structured products being units of account, they function to trigger boosts on euro funds.

The mistake not to make in the current context

And when we want to take risk to aim for a higher return, then? With the current geopolitical situation and shaken markets, Maxime Kugler regularly observes a behavioral trap. We can compare this to a swing door: “The client decides to invest because everyone is talking about it. But it’s diving. So, the customer sells… and things go up. In the end, he only took the loss. We saw it very recently on gold, and also on the stock markets, tech in particular, just before the war. » Result: we enter the rise, we exit the decline: in addition to the net loss, we miss the rise!

This type of error in the context reminds us of the essential rules of investing in the stock markets, whether in life insurance or on a PEA: make regular payments over a long periodand stick to it no matter what. “At the lowest, at the highest, you follow the long-term trend of the market, and you know how to stick to your initial objectives”summarizes Maxime Kugler. When you have time on your hands, “It’s always the right time to invest in stocks. »