Savings/Investment

[Blodwyn]

Hi, not been on the forum for a while and find it mildly annoying that 'accept cookies' comes up on every page - and if you click 'options' nothing happens!  It also says the connexion is not secure.

Anyway, I have modest savings in UK at 0.5% interest and of course cannot swap to a better account as non-resident. So with inflation the money is effectively melting away. Now I'm widowed my income has halved and outgoings much the same.  So I contacted a company who did a financial review and suggested putting most in a Prudential assurance vie and the rest in a couple of other Prudential accounts. It all sounds very convincing re interest gained etc. but I'm a bit baffled - never having 'invested' before. And there are heavy fees for withdrawals - 10% to start with. I know investments are long term.

How do I know this is a good option? Of course the advisor gets commission which is made clear. The money goes to Prudential in Dublin.  But I was told the UK compensation fund is only for bank accounts anyway.

[pomme]

You don't say whether you are retired or not?

You don't say whether the intention of your investment is to provide you with regular income or whether it is for a possible inheritance (the French assurance vie inheritance rules are less favourable if you make the investment when you are over 70)?

Are you happy with locking money away which you won't be able to access instantaneously (or at least not without a heavy withdrawal charge)?

This page gives some other (unbiased) options https://www.epargne-en-france.com/en/french-financial-investments-options/

[Blodwyn]

Thanks for the reply! Yes, retired and over 70.  I mostly manage on pension but need to access savings some months and have money available for any big expenses.

I don't mind having some money locked away if it beats inflation and I agree the penalties in the early years are scary. I guess it's hard to make a long term decision.

[woolybanana]

Have you tried investment trusts? DYOR

[suein56]

Blodwyn wrote : Thanks for the reply! Yes, retired and over 70. I mostly manage on pension but need to access savings some months and have money available for any big expenses.

I don't mind having some money locked away if it beats inflation and I agree the penalties in the early years are scary. I guess it's hard to make a long term decision.

Do you live in France ? But you are thinking of a UK based investment ?

[Cathar Tours]

I read something about the EU and "financial passports" today in one of the Sunday papers. I probably would wait till July before making any decision about where to put my money country wise. Some say thinks could get difficult with regards to moving money between the UK and EU and others say it won't make any difference. The real truth is nobody knows so it might pay to wait and see.

[Blodwyn]

Yes, I live in France, I'm not sure Assurance Vie is available in UK?  The recommended accounts are Prudential, based in Dublin, but apparently portable should I ever have to return to UK.

[Blodwyn]

Not sure what an investment trust is!

[Cathar Tours]

Investment Trust

https://en.wikipedia.org/wiki/Investment_trust

There are load of other sources as well.

If you know what an ISA is then that's a from of investment trust.

You could also look at HSBC who are not just a bank but offer investment as well. You can put money in and move money around their accounts in any currency.

If you know anyone who takes Which magazine they do a financial supplement every month telling you the best places to put you savings broken down in to amount, how long you want it locked in and the interest rate.

Be wary of the fella on the phone and the one that knocks on your door unless invited. My mum nearly got caught on one of them. Said he was from Lloyds bank (with whom she did not have an account) and told her the best place was to invest in a movie film of all things. Best to say he left the house quicker than he came in.

[pomme]

[quote user="Blodwyn"]Yes, I live in France, I'm not sure Assurance Vie is available in UK?  The recommended accounts are Prudential, based in Dublin, but apparently portable should I ever have to return to UK.

[/quote]

You also don't say whether you want to invest in pounds or in euro. Given the variation in the exchange rate you could gain or lose much more than 0.5% in value quite easily at any time.

Don't assume assurance vie always go up in value. They will probably need to make at 1% or more to cover their annual service charges, etc.

Have you seen the publication Le Particulier http://leparticulier.lefigaro.fr ? You can subscribe (there are hefty discounts available), buy individual copies or can probably read it in your local library. It is a sort of french financial/everyday living Which? and publishes an annual tax guide (which is the main reason I subscribe for a year every few years) It has regular articles on investments. There was one recently on the best (French) euro assurance vie (which tend to be rather conservative in their investments).

Have you thought about premium bonds? The annual prize interest rate is 1.4% (but taxable in France).

[Blodwyn]

I know withdrawals from Assurance Vie are taxed at 35% for the first 4 years, so would not put all my money in one. But after 8 years you get an annual tax-free allowance of 4600 euros which would be enough.  I haven't checked out assurance vie with my bank (Credit Agricole) but it might be a problem if I had to return to UK whereas the Prudential one would not.  I don't want to leave France but one never knows what the future may hold.

I put some money in Premium Bonds and so far have won a little more than I would have got from Nationwide, but I know they aren't regarded as an investment, more of a gamble! And people always seem to win initially and then not so often. I would have to cash them in if I go for the Prudential products.

I guess I'm wary of being sold something that isn't best for me. The guy said I could forward his report to my son, as he works for a bank, but he has nothing to do with investment, or to a friend - but I don't have one who is knowledgeable about this.

[pomme]

You obviously know you are going to live long enough to take advantage of those allowances?

Even if you go with the Prudential you would still need to decide which funds to put your investments in.

Why not just select some similar unit or investment trusts where you would not have all the upfront costs and would not have the possible short-term withdrawal restrictions/charges?