With rising inflation, investing money in euro fund life insurance is one of today’s worst investments. With an average performance of 1.1% in 2021, compared with inflation of 5.8% over the last twelve months, investing in life insurance in euro funds leads irremediably to a loss of purchasing power. This is why it is high time to no longer place your money on a life insurance policy in euro funds and to prefer other savings vehicles. Among the latter, the purchase of shares in civil real estate investment companies (SCPI) is the good idea of the moment. Let’s see why.
Why is this the time to flee the funds in euros from life insurance contracts?
Because they cut into the purchasing power of savers
When you invest your money, the goal is not to lose it but to gain it. For several more years, life insurance contracts in euro funds will erode the purchasing power of savers since inflation will be higher than their performance. Under these conditions, why continue to invest in life insurance policies in euro funds?
Because they pose significant risks
More than 80% of life insurance contracts in euro funds consist of government bonds, in particular French government bonds. Knowing that the French public debt exceeded 2,900 billion euros on March 31, nothing says that France will not default at some point. This has happened before, admittedly a long time ago, but nothing says it won’t happen again.
As Véronique Baron, one of the founding partners of La Centrale des SCPI, the first French digital savings network, recalls: “Clients who call us know that investing their money in a life insurance policy in euro funds will lead to more and more risks. This is why they prefer to invest their money in performance SCPIs in order to increase their purchasing power. »
Why is it better to invest in performance SCPIs than in a life insurance policy in euro funds?
Because they allow you to increase your purchasing power
The best performance SCPIs bring in around 6% net per year. This performance legitimately allows their shareholders to increase their purchasing power, which is the goal sought by savers.
Because performance SCPIs are pooled savings products
It is better to invest in performance SCPIs in order to be the co-owner of several tens, even hundreds of buildings, than in one or two rental apartments. With rising rent arrears, prevention is better than cure.
Because they allow you to invest your money in all types of assets
Whether offices, retail premises, warehouses, business premises, real estate related to health and education, hotel premises and tourist real estate, SCPIs returns allow investment in types of assets reserved for professionals.
Buying performance SCPI shares can also be done with residential SCPIs, that is to say SCPIs investing only in rental apartments.
Because they allow you to invest your money abroad
There are of course French SCPIs (Paris, Île-de-France, region, entire territory). These are the best known and the oldest. However, European SCPIs (euro zone and rest of the continent) have the wind in their sails since they are among the best from a tax point of view. More attractive, their dividends are not subject to social security contributions at the rate of 17.2%.
Because they can be bought on credit
This is not the case with life insurance contracts in euro funds, which cannot give investors the benefit of a leverage effect. Moreover, with the rise in prices, the outstanding capital will be gradually eaten away by inflation.
Because they can be purchased in temporary dismemberment of ownership
By investing your money in the purchase of the bare ownership of performance SCPI shares, it is both possible to pay them less since they do not yield dividends but also not to include them on your plate. Real Estate Wealth Tax (IFI).
Where should you buy your performance SCPI shares?
With specialized companies
The price of performance SCPI units being identical regardless of the distribution channel, it would be a shame not to take advantage of the advice of experts such as those of La Centrale des SCPI. At the forefront of research in the field, these consultants can create tailor-made SCPI portfolios for their clients.
With companies that listen to their customers
As Theo Darroman, manager at La Centrale des SCPI, points out: “There are no small clients for us. We know that a student does not have the same means as a retiree who has just sold his business. This is why we work in harmony with all those who trust us and there are more and more of them. »
Investing your money in a life insurance policy in euro funds is no longer a recipe. Savers have become aware of the risks induced by inflation. This is why they are turning massively to performance SCPIs.
In order to be certain of investing with the best broker, you have to trust the specialists at La Centrale des SCPI, the leader in the purchase of SCPIs online, which distributes all the SCPIs on the market.
Investment in an SCPI is not guaranteed, both from the point of view of the dividends received and that of the preservation of capital. SCPIs depend on fluctuations in the real estate markets.
Before any decision to purchase SCPI shares, seek professional advice to be certain that this investment corresponds to your asset profile.
Finally, like any real estate investment, take into account the fact that SCPIs are long-term investments whose minimum holding period cannot be less than eight years.
This content was produced in partnership with Sereniteo. The editorial staff of BFM Business did not participate in the production of this content.