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Post by leclairon on Jul 12, 2024 9:32:28 GMT 1
I should have looked at Assurance Vie before I was 70 so know I am now limited. However, while the rate is so good, I thought I would put some in as a savings account. We may decide, eventually, to move and downsize and I believe you can draw it if needed. I understand that Boursorama and Fortuneo don't charge fees but wondered if anyone has any other preferences. I know the benefits only accrue as a long-term investment. Would appreciate any pointers. Thanks.
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Post by norfolk on Jul 12, 2024 10:54:30 GMT 1
Careful because not all AVs are making money. I have a couple which are made up various investments and one of the investments included in both are losing money since last year. I was told to stand the losses as they will ‘bounce back’ in the future.
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suein56
Member
Southern Morbihan 56 Brittany
Posts: 7,963
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Post by suein56 on Jul 12, 2024 11:43:41 GMT 1
The main point (for me) about Assurance Vie is that, if you have children, the funds you put in there do not form part of your taxable 'patrimoine' or estate. There are fees/tax to pay if you withdraw money during your life and that money has made a gain but your offspring should inherit the money you designate for them tax free. There are two main choices - a Savings type account which pays Interest and is therefore safe but the return can be small - a bit like a cash Isa in the UK. And there are Investments you can make - in a variety of areas, eg some are shares - the value of which can go up or down. Riskier but mostly more profitable. I have mixed AVs - with Bourso and with Fortuneo. I do my own investing - then if I were to lose money, it would be my fault.
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Post by leclairon on Jul 12, 2024 13:08:53 GMT 1
Thanks very much. I hoped someone would come back with some bedtime reading ... I need to get up to speed on it. Will go through it. Rgds
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Post by omegal on Jul 12, 2024 13:25:06 GMT 1
This is always something to look through, you can have it sent by email to you at regular intervals. It's not a sales pitch just some useful nods in the right direction. www.francetransactions.com/
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Post by leclairon on Jul 12, 2024 21:03:05 GMT 1
Thanks.Have had a quick look, some interesting general info. Will look more closely.
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Post by elsie on Jul 12, 2024 22:03:00 GMT 1
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Post by omegal on Jul 12, 2024 23:00:03 GMT 1
We started our Assurance Vie after selling our last commerce back in the mid 2000's, The shares look a hit at one stage but rose again for the Wife, my own we took 2/3rds out (and of course at a cost to us according to the banks rules) and reinvested in easy wihdrawal accounts, like LEP, LDD and what ever else where we could get the money back at a moments notice. We were in our 50's then and quite agree we wouldn't have thought of investing in an Ass Vie in our 70's. We actually had two Ass vies back twenty years earlier that we cashed in after 12 or so years to put the money in to the new commerce, no fees.
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Post by lindalovely on Jul 13, 2024 10:07:57 GMT 1
I have one with Prudential designed specifically for British Citizens in France. Worth looking into. Find based in Ireland and you can find out about it with Spectrum .https://spectrum-ifa.com/financial-advisor-france/
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Post by leclairon on Jul 13, 2024 13:05:17 GMT 1
Thanks for all the info and recommendations - am printing it out and digesting it. Logically, I know it isn't great to put in AV after 70 but where else, safely, do you put spare cash? Easy to be wise after and think we should have got our act together before 70! I wanted to take advantage of the good rate so that we had the funds if we decided on a retirement pad in a couple of years.
Probably easier to let the rest sit in UK! It seems safe enough there (so far...) - you never know what new rules may come out when there are changes of government.
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Post by leclairon on Jul 13, 2024 14:15:39 GMT 1
I do subscribe to Le Particulier and remembered there was an edition on AV which I am trying to locate. Have skimmed that article on 'after 70 AV'above and it is very illuminating. I had misunderstood a few things so will go into it more thoroughly.
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Post by elsie on Jul 13, 2024 16:08:16 GMT 1
It seems many (most) French AV are just euro money fund investments and the return is only going to be about 3.5% at best. Safe, but no different than Livret A etc returns. I'd investigate how quick it is to get money out of a French AV?
Le Particulier Jan 2024 (no 1212) was devoted to Ou placer votre argent en 2024 and gives an outline of other savings options such as "superlivrets" offering higher returns, investments in shares, and property. The Feb 2024 issue has an article on stock market tracker funds (exchange traded funds = ETF).
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Post by chrisell on Jul 13, 2024 16:57:12 GMT 1
It seems many (most) French AV are just euro money fund investments and the return is only going to be about 3.5% at best. Safe, but no different than Livret A etc returns. I'd investigate how quick it is to get money out of a French AV? Le Particulier Jan 2024 (no 1212) was devoted to Ou placer votre argent en 2024 and gives an outline of other savings options such as "superlivrets" offering higher returns, investments in shares, and property. The Feb 2024 issue has an article on stock market tracker funds (exchange traded funds = ETF). No. There are two broad types - Euro funds (cash saving type) or investment based - in simple terms like the two forms of ISA. Eurofunds are a disaster - 3.1% is the best I've seen - but below 1% is common. It's decided each year so don't fall for 3%+ claims - this year is an outlier. Investment based ones do better - but risk/reward as with any investment Many AV have early redemption penalties for the first five years - investment AV also have management charges. It's just a wrapper. A wrapper that makes no sense for "cash" savings - you'll do far better in a savings account
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Post by elsie on Jul 13, 2024 18:49:29 GMT 1
There was an earlier discussion here which was mainly about the pros and cons of long-term AV theotherfrenchforum.freeforums.net/thread/2386/assurances-vie but assumed leclairon was interested in shorter term investments and more flexibility. Getting a financial advisor involved for market investment fund advice is almost certain to result in up-front fees and ongoing management charges. With the euro money funds those can be avoided. Once you have your maximum in Livret A/LDDS etc (which can total nearly €35K per person) as far as I'm aware, most savings accounts only give derisory interest. After those, since I have a UK address, I'm currently keeping readily accessible funds in UK National Savings, etc. despite them being taxable here. Until the French Government is stable and there is no possibility of the government deciding it wants a share of individual savings, etc to pay the national debt that will not change.
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Post by omegal on Jul 13, 2024 18:52:16 GMT 1
Thanks for all the info and recommendations - am printing it out and digesting it. Logically, I know it isn't great to put in AV after 70 but where else, safely, do you put spare cash? Easy to be wise after and think we should have got our act together before 70! I wanted to take advantage of the good rate so that we had the funds if we decided on a retirement pad in a couple of years. Probably easier to let the rest sit in UK! It seems safe enough there (so far...) - you never know what new rules may come out when there are changes of government. Your money is safe with French banks as we have the same guarantie of funds as the UK has but be careful that whatever bank(s) you choose they should not be related to another you are saving with, as the sum of guarantie is the same as if it was the one bank. I think I am correct, at the moment it stands at €100,000.
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