Stone, gold, life insurance… Refuge investments against inflation?

In times of high inflation such as we are experiencing in 2022, it is natural to look for ways to protect your money. Tangible values, gold and stone are naturally preferred. Favorite investment of the French, life insurance also drains a lot of capital. All these investment vehicles can indeed constitute good investments under certain conditions. Without forgetting actions, which pay off in the long term.

• Investing in stone on credit, a good plan?

Historically, real estate is the winning support compared to inflation. Even with the increase in rates, taking out a mortgage has a tremendous leverage effect. “This is valid even without inflation, since you are financing a good at a fixed price. In times of inflation, this is even more true since the credit remains frozen (provided it is fixed rate) while your asset appreciates”, emphasizes Florence Brau Billod, President of Patrimoine SA in Marseille. However, pay attention to select quality goods! Better to aim for recent constructions to avoid work to bring it up to standard, but not new, because it is too expensive due to the increase in the price of materials. And if you buy to rent, pay attention to the location! Some major cities have capped rents, which will prevent you from passing on the increases linked to the rent reference index and therefore reduce the yield. “To save you the hassle of rental management, you can invest in Civil Real Estate Investment Companies (SCPI), suggests the Wealth Management Advisor. Over an investment horizon of 5 to 8 years, it is generally profitable.

Read also: Right to be forgotten for cancer patients, borrower insurance… Here are your new mortgage rights

• Gold, a profitable investment over the long term

Gold is historically a safe haven against inflationary risk, because it is a raw material. In addition, it does not deteriorate”, explains Florence Brau Billod. By investing in gold, you have no yield, but you are aimingvaluation of your capital. Over 20 years (2001-2021), the ingot (1 kg) has gone from €10,000 to €50,000. To protect your money over the long term, gold can be a solution. But don’t forget the fees, around 8% (taxes for the State and intermediary fees) as well as the constraint of detention.

Read: Is it time to buy gold?

• Unit-linked for life insurance

From a long-term perspective, look to units of account invested in shares on your life insurance. “Of course, the stock markets have fallen, because they have anticipated the decline in corporate margins due to the rise in prices, deciphers the expert. But in the longer term, they will find solutions and the markets will start again. rise.” Now is the time to take more risks, provided you don’t need your money within 6 months.

Read also: Life insurance: 6 tips for withdrawing your money with little or no tax

• Buy shares for your PEA

Open a PEA to invest shares is also generally profitable in the long run. “In stock selection, aim for companies that have the ability to pass on price increases to buyers, advises Florence Brau Billod. This is the case of banks, for example, which pass on rising credit rates. Luxury companies also or even agri-food companies”. If you do not want to have to manage your securities, you can give a mandate to a management company.

Leave a Comment