The current period crystallizes a series of uncertainties that may push people to keep large sums of savings. However, with the return of inflation, keeping large sums on bank books and life insurance in Euro funds has never resulted in depositors losing so much money. Which investments should I turn to to invest over €100,000 in 2022? Which investment to choose in the conditions of inflation?
Why should an investment of €100,000 or more not be delayed for long?
The well-known proverb “time is money” has never been so relevant. With inflation hitting 5% this year, it’s getting more expensive not to invest cash.
€100,000 not invested in 2022 means a loss of roughly €5,000 equivalent purchasing power in one year.
If investments such as savings accounts or euro life insurance funds are still yielding a small return, this is too below inflation to preserve the integrity of your money in the long term.
Therefore, it does not make sense to leave the amounts unused, unless they are intended to serve a specific short-term project, such as buying real estate or starting a business. It is better to invest in everything else. But where?
What are the best investments in inflation?
Bonds can return a certain percentage if rates rise. For stocks, uncertainty is very real given the current changing environment. While financial markets can be a good investment against inflation because they capture the wealth created, it is still necessary to be vigilant and above all to have some level of technical knowledge.
For whom : For well-informed, risk-averse people
- Real estate in the form of SKPI
Real estate investment companies or SCPIs allow you to invest in real estate without any management by individuals.
This consists of investing in so-called tertiary real estate, such as shops, logistics or commercial premises or even clinics and managed residences.
Individual holders of SCPI shares will receive an annuity in the form of a yield that can reach 6% net, i.e. a rate above current inflation. In addition, they benefit from the potential increase in real estate as the value of the stock can increase over time.
Business rents are likely to rise with inflation. Mechanically, it can also keep property prices rising.
Therefore, SCPI fits the current period with many advantages. Inflation can lead to potential increases in returns that are beneficial to investors.
For whom : For all individuals with a moderate risk
How to invest over €100,000 in the best investments relative to inflation?
- How to invest more than 100,000 euros in financial markets?
The watchword is diversification, so it is better to build a portfolio from several areas or delegate management to a serious management house. And to maximize productivity while reducing costs, it is better to choose an online broker. To smooth out the risk, experts recommend investing in installments.
How to invest well in financial markets ? By investing part of the amount every month in an online broker with reduced commissions
- How to invest more than €100,000 in SCPI?
As with the financial markets, it is better to diversify and build a portfolio with several SCPIs. This trick, invented by the #1 platform on the SCPI market: Central SKPI (www.centraledesscpi.com), allows to diversify sectors and geographical areas of investment.
However, there is no need to invest gradually, there is no point in smoothing out entry points as SCPI shares have extremely low volatility.
“SCPI is an investment in real estate. Therefore, very often people invest amounts exceeding 100,000 euros. Amounts between 300,000 and 500,000 euros are also quite common. If we combine traditional real estate, it’s absolutely aligned,” explains Gregory Moulinier, founder Central SKPI.
Advantage of online SCPI platforms like Central SKPI is that they open up the entire SCPI market to clients, unlike banks or wealth management advisors who very often only have a limited SCPI panel, limiting diversification opportunities.
How to invest in SCPI? With a specialized platform such as La Centrale des SCPI (www.centraledesscpi.com / 01.44.56.00.23), as their services do not require additional costs.
With persistent inflation approaching, people should look to protect and grow their savings. What could be better than a real estate investment with an efficiency of 6% net to finally get a return on your savings?
Investing in SCPI is not guaranteed both in terms of dividends received and capital preservation. SCPIs are subject to fluctuations in real estate markets.
Before making any decision to purchase SCPI shares, please seek professional advice to ensure that this investment fits your asset profile.
Finally, as with any real estate investment, consider the fact that SCPI is a long-term investment with a minimum holding period of no less than eight years.