Getting your finances under control is not always easy and you may need cash unexpectedly. What investments to draw from? How to prevent this puncture from causing harmful, even irreversible, effects on the latter? Before acting, several elements must be taken into account: the duration of the financial need, the time we have to recover the funds and the age of the investment.
Start by determining whether this need is temporary or permanent. The answer will limit the field of possibilities. “Certain investments, such as savings accounts or life insurance funds in euros, allow for round trips and allow partial withdrawalsexplains Solenne Odier de la Tour d’Artaise, wealth management advisor at A2PF. But, sometimes, once the money is recovered, the product stops. This is the case with real estate investment companies [SCPI] and stock savings plans [PEA] less than five years old. » To come back to it later, you will have to start a new subscription.
How long do you have to collect the funds? If the savings books offer immediate availability, it takes a few weeks for a withdrawal on life insurance. And sometimes more to recover the money after a sale of SCPI shares.
Not considering “for certain media, a rapid exit may take place at the wrong time, in particular there may be a shortfall or a loss if you sell shares when the stock market is in bad shape or when you sell real estate in a down cyclenotes Philippe Parguey, CEO of Nortia.
Dipping into certain investments can also have negative tax consequences. A partial withdrawal from a PEA of less than five years thus entails, in addition to the immediate closure of the plan, a taxation of the gains with the single flat-rate deduction (PFU) – 17.2% of social security contributions and 12.8% of tax on the income. Exemption from the latter is nevertheless provided for exceptional departures, in the event of takeover or creation of a business, dismissal, disability or early retirement. If the withdrawal occurs after five years, the interest is not subject to income tax and the envelope remains open. We can therefore continue to feed it.
Life insurance advance
Conversely, a withdrawal will have no tax impact on a tax-exempt savings account, such as the Livret A (now remunerated at 1%), the Livret de développement durable et solidaire (LDDS), at the same rate, the Livret d’épargne populaire (LEP ) at 2.20%, etc., since these are not subject to income tax or social security contributions, regardless of the duration of the investment. Free of charge and 100% cash, “they were precisely filled to serve as precautionary savings, in the event of unforeseen expenses or financial glitches”says Emmanuel Klein, wealth management advisor at Patrimmofi.
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