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Post by houpla on Oct 7, 2022 19:59:05 GMT 1
Does anyone have any first-hand experience of these? I need to tuck away a little windfall, but apart from knowing that CA won't get near it, I don't know who to go with. Any pointers gratefully received
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Post by Seaboots on Oct 7, 2022 20:36:18 GMT 1
AVs are ok if you don’t need to touch the capital. I’ve had two with Gresham (ex Legal and General France) since 2005 and they are doing well.
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Post by houpla on Oct 7, 2022 20:43:38 GMT 1
Thanks, Seaboots! I'll look into that...
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Post by pcpa on Oct 7, 2022 20:51:14 GMT 1
I'm interested as well, I have a reasonable amount after the sale of my UK house and a building plot, at my time of life I don't want to gamble on the stock market, I can't afford to have a capital loss, if the interest does not pan out to be what they claim (as if it ever would!) then tant pis but I would rather have it under the mattress devaluing rather than give it to a bank etc to reduce the capital. Is there anything in France like a UK fixed rate 2 or 3 year bond? I'm not against assurance vie per sé but any insurance aspect has zero value for me and I simply cant countenance any investment may reduce in value. I have gradually been transferring the money to the Nationwide (both they and Santander will keep accounts open for me in France) as they were offering 3% on a 2 year fixed bond, 6 months loss of interest if you withdrew early so in the worst case if you started it and changed your mind after the 14 day reflection period you would get back less than you put in. I held back hoping they might put the rates up and I was right, its now 4.5% but when you look carefully you cannot withdraw any money whatsoever or close the bond until the 2 years have passed. I doubt that I will need it during that time but you never know what life may throw at you, I have never heard of this on a bond before, was it ever the case with other bonds or other UK financial organisations? What it does tell me very clearly is that they expect the interest rates to go up again, maybe several times during that 2 years. Any information, views or observations?
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Post by Seaboots on Oct 7, 2022 21:05:27 GMT 1
Thanks, Seaboots! I'll look into that... Your nearest Gresham office is in Bordeaux, I used to be with them but changed when I moved further south and have since been with Montpellier branch. They advised me to diversify about six years ago when the invested money was put into SCPI which increased my interest with quite a low risk investment.
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suein56
Member
Southern Morbihan 56 Brittany
Posts: 7,492
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Post by suein56 on Oct 7, 2022 22:13:04 GMT 1
Online Ass Vie from well a respected company such as Fortuneo have much cheaper charges than on-the-ground companies. Avoid taking out an Ass Vie through your on-ground Bank as their charges are v high.
Don't forget Tax Free savings accounts such as Livret A, LDDS. Boring but v safe and their rates are going up.
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Post by houpla on Oct 8, 2022 6:36:01 GMT 1
Thanks, Sue . I did know about the physical banks being uncompetitive, and I'll see CA in hell before they get near it . After reading up on the tax and social charge implications of AV, I am leaning more and more towards tax-free savings accounts.
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Post by Seaboots on Oct 8, 2022 7:35:30 GMT 1
You need to shop around to compare charges.
I enquired at the two banks I was with at the time (CA and Tarneaud) both of whom charged 1% of the initial investment which for me represented about four months of interest. Friends recommended Gresham (ex L &G) who offered 0% entry fees so it was a no-brainer for me.
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Post by houpla on Oct 8, 2022 8:13:24 GMT 1
It's not just the management fees, though, Seaboots. I'm sure when Pomhorn first recommended AVs they were tax-and-SC free (tax after 8 years). Looking at them now, the social charges seem to largely wipe out the better rate of interest. Governments, eh. Don't you just love them?
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suein56
Member
Southern Morbihan 56 Brittany
Posts: 7,492
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Post by suein56 on Oct 8, 2022 9:42:07 GMT 1
Yes Ass Vies regulations have changed over the years. Most people I know use them to safeguard some capital from succession charges for their offspring and other family members. Also as a Retirement or Savings Account whilst they are still alive ..
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Post by pcpa on Oct 8, 2022 10:46:39 GMT 1
does anyone have any information, views or observations on my posting?
I have all the livrets that I am allowed to hold and others that I shouldn't, the interest is derisory and the maximum allowed is very little in comparison to the sum I need to invest for interest income.
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Post by Seaboots on Oct 8, 2022 10:56:44 GMT 1
does anyone have any information, views or observations on my posting? I have all the livrets that I am allowed to hold and others that I shouldn't, the interest is derisory and the maximum allowed is very little in comparison to the sum I need to invest for interest income. I would say an AV or two would be your best bet if you don’t need to touch the capital. Also, it would be preferable for the person or persons you nominate as beneficiary to also open an AV to make the transition easier following your death. I’m afraid I know nothing about livrets etc.
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Post by lapourtaider on Oct 8, 2022 10:59:50 GMT 1
does anyone have any information, views or observations on my posting? I have all the livrets that I am allowed to hold and others that I shouldn't, the interest is derisory and the maximum allowed is very little in comparison to the sum I need to invest for interest income. Look at obligations
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Post by pcpa on Oct 8, 2022 12:18:29 GMT 1
I would say an AV or two would be your best bet if you don’t need to touch the capital. Can you please explain why? I wont need to touch the capital for a couple of years and can commit to that but something life changing may happen, beyond that I'm sure I will end up buying another property or properties for rental income. But am I incorrect in thinking that the capital value could reduce according to the markets? If not then it 100% is not the best but would be the worst investment for me at my time of life. I'm sorry but you will have to explain that for me, perhaps I am being very slow today. I ask again, is there anything like the UK fixed term fixed rate bonds available in France?
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Post by Seaboots on Oct 8, 2022 12:59:49 GMT 1
I would say an AV or two would be your best bet if you don’t need to touch the capital. Can you please explain why? I wont need to touch the capital for a couple of years and can commit to that but something life changing may happen, beyond that I'm sure I will end up buying another property or properties for rental income. But am I incorrect in thinking that the capital value could reduce according to the markets? If not then it 100% is not the best but would be the worst investment for me at my time of life. I'm sorry but you will have to explain that for me, perhaps I am being very slow today. I ask again, is there anything like the UK fixed term fixed rate bonds available in France? I have no idea what other financial products exist in France. The classic AV will impose higher fees if money is taken out before eight years. After eight years the cost of taking out your money is more favorable. It’s no good looking to take money out after say, a few years. Don’t do an AV if you can’t guarantee it being there for less than those first eight years. You can take out (or at least you could take out, unless the rules have changed etc) the interest gained at any time up to the eight years and only pay minimal taxes on the interest earned. The monies taken out on that interest will be included on your annual tax return and included in the calculation of tax owing, if any for that fiscal year. (As I understand it).
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