The 7 Best Investments To Make In 2022
Where to invest in 2022? It is the big question that everyone asks themselves and which is sometimes difficult to answer. There is no such thing as a miracle investment. An investment may work for you, but not for someone else. The goal is to know your profile and choose the investment that will be the most profitable for you. The best investments of 2021 will not necessarily be those of the year 2022. As you will have understood, there is no easy answer to answer this question.
Nevertheless, Tacotax prepared a small list of the best investment solutions for you in 2022. An excellent way to refine your research and get your foot in the door in terms of investing. Be vigilant, always keep in mind your goals and your situation; these two components will allow you to make the best choices. Follow the guide!
1 . Where to invest your money in 2022?
2 . What to invest in to earn money?
3 . Where to invest your money to reduce your taxes?
4 . Where to invest your money to prepare for retirement?
5 . Frequently Asked Questions
Where to invest your money in 2022?
At the risk of surprisingly, there is no such thing as ” the most profitable investment in the world ” that outperforms all others and suits everyone. Investing your money and finding the best 2022 investment means, above all, knowing your financial situation and horizons, your objectives, your risk appetite, your expectations of gain, etc.
But that’s not all: investment sectors are impacted by market trends, themselves directly affected by geopolitical and economic news. However, on this point, 2022 promises to be busy: Brexit, US elections, tensions in the Middle East, upcoming trade negotiations, etc. So many disturbances are felt on the markets, even if their reactions remain moderate.
What is the best investment at the moment?
There is no such thing as a ” best investment at the moment “: investing means planning ahead and not thinking “at the moment”, but in 10, 15, 30 years. A profitable investment sector in 2021 may prove to be in deficit in 2022. “Investing your money” means, above all defining your objectives and priorities. The investment can meet different objectives:
- prepare for your retirement ;
- invest your capital;
- obtain additional income;
- prepare your succession;
- protect your loved ones;
- optimize your financial investments ;
- diversify your heritage ;
- tax exemption ;
Ask yourself the question differently: what types of investments do you need? Do you want to reduce your taxes as a priority? Build up a financial bonus for retirement? Increase your income? Have savings available when needed? Depending on the reasons, you will have to opt for different investments.
What to invest in to earn money?
Who is it for? Investors with some cash to invest and looking for investment solutions that generate regular income without constraints or manage risks.
What’s this? Societies Civiles de Placement Immobilier (SCPI) are a financial vehicle providing access to France’s tertiary property market (offices, shops, warehouses, etc.). The advantage? The company supports all rental management. Concretely, investors buy shares in SCPI (the entry ticket may vary depending on the company). The sums collected are used to finance the building stock, which is rented to professionals.
CITIES WHERE TO INVEST IN FRANCE IN 2022 (source: Notaries of France).
|City||Average price per m²||Evolution / 2019||Average rent|
|Toulouse||€ 3,100||+ 5.7%||14.1 € / m²|
|Nantes||€ 3,250||+ 10.1%||11.4 € / m²|
|Reindeer||€ 2,750||+ 7.6%||11.3 € / m²|
|Montpellier||€ 2,610||+ 1.5%||12.6 € / m²|
|Strasbourg||€ 2,680||+ 2.1%||11.7 € / m²|
|Lille||€ 3,120||+ 1.2%||11 € / m²|
|Lyon||€ 4,320||+ 10.3%||11.4 € / m²|
|Reims||€ 2,000||– 2.7%||11 € / m²|
|Marseilles||€ 2,330||+ 0.7%||12.1 € / m²|
|Nice||€ 3,820||+ 3.8%||13.6 € / m²|
|Bordeaux||€ 4,320||+ 1.5%||11.3 € / m²|
|Paris||€ 9,890||+ 6.3%||23.6 € / m²|
Why is it interesting in 2022?
For several years now, SCPIs have been popular with savers. With a net return hovering around 4% for most of them, this investment is more recommended than ever in 2022. Not to mention the fact that professional real estate is currently undergoing changes that contribute to the profitability of these companies:
- development of Greater Paris;
- warehouses on the outskirts of large urban areas;
- co-working spaces;
- childcare facilities for young children (crèches, day nurseries, etc.).
Experts also recommend investing beyond borders, in Germany, for example. Flexible assets, without management constraints, SCPI units offer the investor much more freedom than a traditional, direct acquisition. To increase your income in 2022, bet on performance SCPIs. Please note, to be profitable, you must keep your SCPI shares for at least ten years.
Real estate crowdfunding
Who is it for? Investors are looking for a quick return (less than three years), with a particular appetite for risk and some real estate investment notions.
What’s this? Riskier but more accessible than SCPIs, crowdfunding of real estate projects represented 300 million euros in total outstandings at the start of December 2019, i.e. growth of nearly 80% compared to 2018. To do real estate crowdfunding, You have to go through a platform, create an account, enter the amount to invest and choose your program.
At the end of the project (generally allow 1 to 2 years), the investor recovers his initial investment with the return, already deducted from income tax. As for the yield in question, it can range from 8% to 10%.
|Name||Launch||Total amount raised||Funded projects||Average yield|
|Homunity||2014||110 million euros||184||9.3%|
|Fundimmo||2015||70 million euros||130||9.1%|
|Lymo||2013||20 million euros||55||9.2%|
Why is it interesting in 2022?
The average yield of real estate crowdfunding reached 9.3% in 2019. Currently, the real estate crowdfunding market is focused on:
- Île-de-France (164.2 million euros);
- the Auvergne-Rhône-Alpes region (55.9 million);
- the southern region.
But there is a significant expansion of activity in 9 French regions. What makes the strength of this investment is its flexibility: like SCPIs, it allows individuals to invest in real estate without having to buy. It is an increasingly common strategy, especially among young investors, who first prefer to bet on rental or indirect investment rather than buying their primary residence. The different types of property offered to add diversity to this investment, which is increasingly akin to asset management, which is more reassuring in a crisis.
What to invest in the stock market, and why invest in the stock market?
Who is it for? Traders, insiders and investors with a particular appetite for risk. If this is not your case, prefer other investments or train with simulations on virtual portfolios. You can also go through a financial market professional. In any case, we can only advise you too much to start small, test the waters and get your hands dirty before you jump into the deep end of the stock market.
What’s this? Quite simply, a share is a share of the ownership of a business. The action represents a right to the asset and the profit. The more shares you buy, the more interest you have in the company.
Why is it interesting in 2022? The recent declines in the financial markets place equities at the forefront of successful investments in 2022, provided, of course, that you choose them wisely. In 2022, the preferred actions were those of chains (Starbuck), e-commerce (Shopify), or even GAFA and Microsoft. In France, we focus on the three growth sectors of the market:
- luxury (LVMH, Hermès, L’Oréal),
- real estate (Vinci, Saint-Gobain)
- and aeronautics (Airbus) which are the most recommended at the moment.
Some investments for bearers:
|Value||Sector||Share price (01/01/2020)||Capitalization|
|Danone||Food industry||€ 73.90||40.04 billion|
|Orpea||Senior residences||€ 115.60||6.49 billion|
|FDJ||Lottery||€ 24.05||4.70 billion|
|Saint Gobain||Materials||€ 36.99||15.13 billion|
|Ubisoft||Video games||€ 62.38||7.25 billion|
Where to invest your money to reduce your taxes?
The Non-Professional Furnished Rental (LMNP) status
Who is it for? People who rent one or more furnished accommodation.
What’s this? Furnished rentals are divided into the LMNP (non-professional furnished rental company) and LMP (professional provided rental company). When you rent one or more furnished properties, you are attached to the merchant category for tax purposes. You derive from these rentals from industrial and commercial profits (BIC), subject to income tax. Income. If you opt for LMNP status for the taxation of your BICs, you have the choice between:
- The Micro BIC scheme: accessible up to € 70,000 in revenue, the micro BIC allows you to benefit from a reduction of 50% on your profits (71% if you rent a furnished tourist accommodation).
- The Real Simplified scheme: beyond € 70,000 in revenue, the whole plan applies. More advantageous than the micro-BIC (in 85% of cases), the entire system allows you to deduct from your income all the expenses and charges related to the rental activity:
- condominium fees ;
- agency fees;
- loan interest;
- property tax ;
In both cases, the individual who rents under the LMNP status is a winner:
- At worst, it is taxed on 50% of rental income (micro BIC regime).
- At best, thanks to the deduction of actual charges, the basis for calculating the asset falls to 0 € (existing regime). It can cancel your income tax.
Generally, during the time of the depreciation of the property in LMNP, we, therefore, do not pay tax on the income from the furnished rental.
Why is it interesting in 2022? The enthusiasm of the French for rental investment has never been more vital: more than 26% of real estate acquisitions concern rental investment. Purchases of goods intended to be rented jumped by nearly 32% between the first half of 2018 and 2019. The reason? The development of student and professional mobility leads young workers to turn to furnished rentals as a priority.
The Industrial Girardin
Who is it for? Heavily taxed taxpayers who wish to make a rental investment overseas.
What’s this? The industrial component of the Girardin law, the Girardin Industriel, is a tax exemption system whose primary objective is to promote the revival of private investment and compensate for the additional costs due to the geographical distance encountered by SMEs from the French overseas departments and territories. With the industrial Girardin, the government seeks to strengthen territorial continuity by re-establishing economic equality with the metropolis and, finally, encouraging job creation. The Girardin Industriel is an excellent way for the taxpayer to recover some of their taxes while investing in a small business overseas.
Why is it interesting in 2022? The final tax reduction rate is between 110% and 120% of the contribution made—a godsend for taxpayers in the high tax brackets.
Where to invest your money to prepare for retirement?
The Retirement Savings Plan (PER)
Who is it for? Savers between 35 and 50 years old are heavily taxed (IMR between 30% and 45%) and wish to prepare for their retirement by benefiting from tax advantages.
What’s this? Synonymous with the renewal of retirement savings, the PER has been on the market since October 2019. In terms of a product, it is more like a tax envelope that includes three compartments:
- the PER Individual (PERIN) which replaces the PERP, the Préfon Retraite scheme and the Madelin contract,
- the Collective PER (PERSOL), which replaces the PERCO;
- the categorical PER (PER CENT), which replaces article 83;
Contractually, the PER can take two forms: a securities account (bank PER) or a life insurance contract (insurance PER). In both cases, the sums paid into a PER are blocked until retirement (except allowing early release), and the voluntary payments are deductible from taxable income (optional).
Why is it interesting in 2022? Because the other retirement savings schemes such as the PERP, the Préfon, the Madelin contract, the PERCO, etc., are called to disappear. More precisely, they will be absorbed within the PER. The objective of the reform of retirement savings, embodied in the Pacte law of 2019, was to harmonize the various savings products considered too complex and revive the French’s appetite for this forgotten side of savings. If you have a PERP or a Madelin contract, transferring it to a PER may be interesting.
Who is it for? Any saver. Nicknamed the “Swiss army knife of savings”, life insurance meets several objectives, offers available savings and helps prepare for its transmission.
What’s this? Life insurance is a contract by which the insurer undertakes to pay an annuity or a capital to a person, the subscriber, in return for a premium. This payment is made according to the type of contract taken out.
Why is it interesting in 2022?
Unsurprisingly, life insurance remains one of the most profitable investments on the market. In the fourth quarter of 2019, total insurance outstandings amounted to… 1,788 billion euros. That is to say four times more than the outstandings of the Livret A, and the LDDS accumulated.
Although the returns on euro funds have been declining for several years, this flexible investment appeals to savers. In addition, it is quite possible to combine euro funds with units of account, formula funds or even paper stone to make it a little more dynamic.
The 7 Best Investments To Make In 2022
|Contract||Fund return euros||UC funds||Management||1st installment||Payment Fee||Management fees|
|Fortuneo Life||1.6% to 2.4%||179 (UCITS, trackers, real estate, certificates)||Piloted, free-standing or profiled||100 €||0%||0.6% to 0.75%|
|Future Power||1.6% to 2.4%||718 (UCITS, trackers, real estate, certificates)||Piloted, free-standing or profiled||100 €||0%||0.6%|
|Yomoni Essential||1.6%||21 (UCITS, trackers)||Piloted or free||1000 €||0%||0.6%|
|Darjeeling||1.3%||994 (UCITS, trackers, real estate)||Piloted or free||100 €||0%||0.6%|
|Digital Life||1.6% to 2.4%||468 (UCITS, trackers, real estate, certificates)||Piloted, free-standing or profiled||100 €||0%||0.6%|
|Linxea Avenir||1.6% to 2.4%||690 (UCITS, trackers, real estate, certificates)||Piloted, free-standing or profiled||100 €||0%||0.6%|
|Evolution Life||1.76%||111 (UCITS, real estate)||Piloted or free||500 €||0%||0.6%|
|Power Selection||1.2%||391 (UCITS, trackers, real estate)|
The 7 Best Investments To Make In 2022