what to do with your euro fund with inflation?

With rising inflation, investing in a life insurance fund in euros is one of the worst investments to date. With an average efficiency of 1.1% in 2021 compared to inflation of 5.8% over the past twelve months, investing in life insurance in Eurofunds leads to an irreparable loss of purchasing power. That is why it is time to no longer place money on a life insurance policy in Eurofunds and prefer other accumulation instruments. Among the latter, buying shares of civil real estate investment companies (SCPI) is a good idea at the moment. Let’s see why.

Why now is the time to run away from euro funds from life insurance contracts?

Because they reduce 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 Eurofunds will undermine the purchasing power of depositors, since inflation will be higher than their indicators. Under these conditions, why continue to invest in life insurance policies in Eurofunds?

Because they pose a significant risk

More than 80% of life insurance policies in Eurofunds consist of government bonds, in particular French government bonds. Knowing that France’s public debt on March 31 exceeded 2,900 billion euros, nothing suggests 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, France’s first digital savings network, recalls: “Customers who call us know that investing their money in a life insurance policy in euro funds will lead to more and more risk. That’s why they choose to invest their money in high performance SCPIs to increase their purchasing power. »

Why is it better to invest in SCPI based on results than in a life insurance policy in Eurofunds?

Because they allow you to increase your purchasing power.

The most effective SCPIs bring in about 6% of net income per year. This performance legally allows their shareholders to increase their purchasing power, which is the goal that savers seek.

Because SCPI performance are pooled savings products.

It is better to invest in a service SPI in order to be a co-owner of a few dozen or even hundreds of houses than in one or two rented apartments. With rising rent arrears, prevention is better than cure.

Because they allow you to invest your money in all kinds of assets.

Whether it be offices, retail spaces, warehouses, commercial premises, health and education related properties, hospitality spaces and tourism properties, SCPI’s returns make it possible to invest in assets reserved for professionals.

The purchase of SCPI shares with yields can also be done with Residential SCPIs, i.e. SCPIs investing only in rental apartments.

Because they let you invest your money abroad

There are, of course, French SCPIs (Paris, Ile-de-France, region, entire territory). These are the most famous and oldest. However, European SCPIs (the euro area and the rest of the continent) are on the rise as they are among the best from a tax standpoint. More attractive is that their dividends are not subject to social security contributions at the rate of 17.2%.

Because they can be bought on credit

This does not apply to life insurance contracts in Eurofunds, which cannot give investors the benefit of a leveraged effect. Moreover, as prices rise, the outstanding capital will gradually be eaten away by inflation.

Because they can be acquired during the temporary dismemberment of property

By investing your money in buying pure ownership of SCPI shares, you can not only pay them less since they don’t pay dividends, but you can also keep them off your plate. Real Estate Tax (IFI).

Where should you buy your SCPI shares?

With specialized companies

Since the price of performance SCPI devices is the same regardless of the distribution channel, it would be a shame not to take the advice of experts such as La Centrale des SCPI. Being at the forefront of research in this area, these consultants are able to create customized SCPI portfolios for their clients.

With companies that listen to their customers

As Theo Darroman, manager of La Centrale des SCPI notes: “There are no small clients for us. We know that a student does not have the same funds as a retiree who has just sold his business. That is why we work in harmony with all those who trust us, and there are more and more of them. »

Investing in a life insurance policy in Eurofunds is no longer a recipe. Investors realized the risks caused by inflation. That’s why they’re turning to performance SCPIs en masse.

To be sure that you are investing with the best broker, you must trust the specialists of La Centrale des SCPI, the leader in online SCPI buying, which distributes all SCPI in the market.

YouTube: https://www.youtube.com/watch?v=CCKkllIYryc

Warning

An investment in SCPI is not guaranteed either in terms of dividends received or in terms of capital preservation. SCPIs depend on fluctuations in real estate markets.

Before making a decision to buy SCPI stock, consult with a professional to ensure that this investment fits your asset profile.

Finally, as with any real estate investment, consider the fact that SCPIs are long term investments with a minimum holding period of eight years.

This content was created in collaboration with Sereniteo. The editors of BFM Business did not take part in the production of this content.

In partnership with Sereniteo