In an environment marked by a return of inflation and rising interest rates, it’s natural to wonder how to best manage your personal finances. In order to assist clients in their financial decisions, BCGE has developed a wealth management philosophy that enables clients to find the financial balance that is right for them according to their situation, life stage and plans.

The purpose of this philosophy is to help clients protect and make the most of their assets. Here are a few tips for keeping your financial situation under control.

• Carry out an annual financial check-up (see box) to determine the proper allocation of your assets and the right balance between income and expenses. Planning your annual budget enables you to anticipate differences that might arise between your income and expenses and, if necessary, take measures to remedy those differences. It is important that your assets be diversified; they should include short-term liquid assets, savings, a pension plan and long-term investments.
• Ensure sufficient liquidity and a savings reserve. If possible, save an amount equivalent to one or two months of wages to be better prepared for unforeseen events. Furthermore, building up savings that are equivalent to three or four months of wages will give you more freedom in the future for carrying out your personal plans. BCGE’s loyalty programme allows you to earn additional interest at attractive conditions.
• Build up your individual pension plan while taking advantage of the tax benefits authorised by law. In order to prepare for retirement and supplement your income from the AVS (1st pillar) and your pension fund (LPP – 2nd pillar), take out 3rd pillar products as soon as possible, allocating to them, if you can, at least half a monthly salary each year.
• Invest your available assets in an asset management mandate, with a highly diversified, rigorous and transparent approach. Once your basic needs (liquidity, savings, pension) have been optimised, it is possible to seek better returns through financial investments, depending on your time horizon and risk profile. We recommend delegating the management of your assets to competent professionals, whose investment strategy is based on transparent and rigorous guidelines reflecting the real economy.
• Finance your primary or secondary home by opting for rates that fit your situation. Integrate the financing of your primary and/or secondary home into a long-term budget that allows for future changes in interest rates and maintenance costs. Take advantage of finance charges (which in historical comparison are still low) to increase your savings, for example, with a view to carrying out work to improve your property’s energy efficiency or pay off your mortgage more quickly.
• Choose a reliable banking partner with an excellent reputation. Entrust your financial assets to a banking institution that you trust. Its solidity, as well as its sustainable and responsible approach to client relations, are essential. It is also important to pay close attention to the recommendations on measures to protect your assets and transactions in order to reduce risks.