Alternatives to government bonds in Belgium:
maximize your returns with optimal, tailor-made solutions.
Suite au rendement plutôt faible (< 2% net) de la dernière émission du bon d’Etat de Septembre et si vous êtes à la recherche de meilleures alternatives pour réinvestir votre épargne, cet article vous concerne car il explore les solutions d’investissement qui offrent des rendements supérieurs tout en assurant sécurité et stabilité.
Below, we will analyze banking solutions, fixed-term bond investment funds and SICAVs, Branch 21 insurance products, and Branch 23 investments.
Government bonds have been upstaged by numerous banks that have been more inclined to offer higher-yielding short-term rates.
Alternatives to government bonds
1. Traditional banking solutions
Before turning to more complex investment products, let's take a look at the traditional banking solutions available to investors.
- Checking account: obviously, these offer maximum liquidity, but interest rates are extremely low, often around 0.25%.
- Savings account:Savings accounts may offer slightly higher rates, typically 0.75% with a loyalty bonus. However, these rates remain modest compared to other investment options.
- Term account:Term accounts can offer rates of around 3 to 3.5% gross, but are also subject to a 30% withholding tax. This significantly reduces net returns, which are often around 2%.
RGF advice:
These solutions offer a high level of security, but their returns are insufficient to counter inflation.
Furthermore, while liquidity is total for checking and savings accounts, it is penalizing for term accounts in the event of early withdrawal.
2. Maturity bond funds or SICAVs: rates still attractive
Maturity bond investment funds or SICAVs offer an attractive alternative with potentially higher returns. These funds are composed mainly of bonds with a fixed maturity date, which makes it possible to predict returns in advance and limit risks.
Potential returns: Maturity bond funds or SICAVs can offer returns of 4.5% or more, well above the expected returns on future government bonds.
Diversification and security: By investing in a diversified basket of more than 50 high-quality companies, these funds optimize security and capital protection.
Professional management: The best fund managers, such as M&G, Rothschild, Alienor, etc., provide optimized management to maximize returns and minimize risks.
RGF tip: Take advantage of the tax benefits too.
What's more, by taking out this investment as part of a life insurance investment contract, you avoid paying the 30% withholding tax on both interest and capital gains.
3. Branch 21: insurance products with a guaranteed minimum capital and rate
Branch 21 products are insurance solutions that offer guaranteed capital and a guaranteed minimum interest rate, supplemented by profit sharing.
- Guaranteed rates: Guaranteed rates vary between 0% and 2.5%, plus a potential annual profit share.
- Security and stability: These products offer capital protection, making them particularly attractive to conservative investors.
- Tax advantages: These products allow you to avoid the 30% withholding tax if the investment is held for at least 8 years and one day.
RGF advice:
Please ensure that you comply with the investment period of 8 years and one day, as otherwise you will unfortunately be liable for withholding tax.
4. Branch 23: advantages and security of all financial products + possibility of asset structuring.
Branch 23 products combine the advantages ofinsurance and financial investments, making them an excellent option for investors seeking to optimize their returns and tax situation.
- Diversification and potential returns: Branch 23 products allow you to invest in diversified funds, depending on your investor profile.
The potential returns are much higher, as the choice of investment products ranges from money market funds to bonds, mixed funds, and equities. - Flexibility: These products offer great flexibility in terms of investment type and management, allowing them to be tailored to all your financial objectives. Your investment will therefore be customized and "tailor-made."
- Access to a wide range of funds: Investors can access a variety of high-quality funds managed by internationally renowned independent experts to ensure optimal diversification.
- Availability: Total and permanent liquidity of all your assets.
- Tax advantage: when you subscribe, a 2% state tax is levied. This tax is final! It therefore exempts you permanently from any withholding tax and any additional taxation. The longer your investment, the more you gain...
RGF advice:please note that we also offer investment insurance policies in Luxembourg. These offer significant additional benefits for investors seeking security and estate and tax optimization.
- The safety triangle:This mechanism separates policyholders' assets from the insurance company's assets. As a result, in the event of the insurer's bankruptcy, investors' assets are 100% protected with no capital limit.
- Funds cannot be seized:Invested assets are protected from creditors, providing enhanced security for investors.
- Optimization of inheritance tax:Taking out an investment insurance policy in the name of two people, with a clause for accrual or continuity, protects the survivor from inheritance tax in the event of death.
In addition, the insurance contract offers the possibility of passing on capital to your heirs while retaining control over it and benefiting from a guaranteed annual charge of 4% for life.
Optimizing inheritance tax is the first return to aim for!
Conclusion
Government bonds, although offering a certain degree of security, will no longer be as attractive in terms of yield.
Alternatives such as fixed-term bond funds and SICAVs, Branch 21 and Branch 23 products offer potentially much higher returns, greater diversification, and optimal adaptability to your personal situation.
By reinvesting in these solutions, you can not only improve your returns, but also benefit from better protection of your capital and better wealth and estate planning.
Consult one of our experts to help you identify the alternative(s) that will maximize your returns safely, both today and tomorrow.
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