11 minute read
Business and Finance
ALLIANZ 4LIFE formule epargne (Investment Account)
Most of you by now know about the savings account called Assurance Vie which is an investment with tax advantage (revenues and inheritance tax) but did you know that with us, there are different sort of Assurance Vie depending on what you expect from your money. This article will present you with one very innovative assurance vie from Allianz, which is looking for the best growth of capital while protecting you from market crashes.
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a) Criteria for subscribing: Available to any French resident of 18 to 80 years old who have a minimum of €30 000 to invest. No maximum. b) How does it work: This Assurance Vie works a bit like a “stop loss”. On the anniversary date of your contract, Allianz looks at how much is on it and takes stock of the amount. If your capital has decreased by more than 10%, Allianz reimburse you up to minus 10%. e.g.: You invest €100 000 on 01/01/2016 and on 01/01/2017 you have only €80 000 left on it due to a market crash. Then Allianz re-adjust your contract to €90 000 (100 000-10%). On the contrary, if the amount has increased, Allianz take stock of the amount and the 10% guarantied is re-adjusted to this new amount. E.g.: on 01/01/2016, you have invested €100 000 and on 01/01/2017, you now have €115 000, then Allianz recalculate the stop loss of -10% from €115 000 so if in 01/01/2018, you have €100 000, then Allianz re-adjust your contract to €103 500 (115 000-10%). So not only it protects you from market crashes but it secures your gains. You can choose a stop loss at -15% or -7% instead of -10%. c) How the money is invested: The money is invested in one of two funds: Allianz Strategy 30 (stop loss at -7%) Allianz Strategy 50 (stop loss at -10%) or Allianz Strategy 75 (stop los at -15%). All 3 funds have been noted 5 stars by Morningstar (Independent investment notation company). As of the 29th of April 2022, Strategy 75 has made +18.11% in the last 3 years, +34.66% in the last 5 years. Allianz Strategy 50 has made +9.77% in the last 3 years, 21.42% in the last 5 years. Of course, performances of the past are no guaranties for the future and those figures include the recent losses since January 2022! d) Fees: Well, yes, I don’t work for free all the time! Entry fee normally 4.50% but unfortunately, I always negotiate and never take that. Usually above €100 000, I take 0% (if below 100K, around 0.5% entry fee). Management fee per year is 1.015% + 1.10% for the stop loss guaranty option. e) Withdrawals: Partial and full withdrawals possible at any time. No fees for taking your money out. f) Adding money to it: Only on the anniversary date of the policy and a minimum of €1500. Or any time if you have taken out the stop loss guaranty which you can do after the first year of the contract. g) Transforming it to Allian4Life formule Retraite: You have the possibility to transform this contract onto the pension version which guaranties income. You are to be over 50 years old and 60 to start getting the income.
Conclusion: With interest rates being at their lowest ever, it is imperative to look at alternative investments that would bring more income without risking it all. Especially if the inflation goes above the % of interest you get. If this happens, you actually lose money without realising it! Allianz has a solvability ratio that is one of the best on the market at 174% for Allianz France and 200% for Allianz Group so don’t hesitate to contact me for any further information regarding our very large range of investments.
And remember to check out our web site www.bhassurances.fr/en for all my previous articles (“practical information”) and register to receive our monthly Newsletter. You can also follow us on Facebook: “Allianz Jacques Boulesteix et Romain Lesterpt” And don’t hesitate to contact me for any other information or quote on subject such as Funeral cover, inheritance law, investments, car, house, professional and top up health insurance, etc…
No Orias: 07004255 Visit our web site
www.bh-assurances.fr
BH Assurances
22 rue Jean Jaures 16700 Ruffec
Isabelle Want
Tel : 05 45 31 01 61 Mob : 06 17 30 39 11 Email : isabelle.want@bh-assurances.fr
Making a home in France? Six financial essentials to consider
by Catrina Ogilvie, Blevins Franks
If you are new to living in France or organising your move here, you probably have a list of jobs to get through. While it may seem long enough already, you need to include a wealth management review on the list. It is important to adjust your tax, financial and estate planning for your new life in France and spending a little time on it now will reap dividends and give you peace of mind. If you have been living here a while, are you sure your financial planning is up-to-date and designed for your life in France?
1) Residence
There are two concepts of residence to be aware of and plan for: legal residence and tax residence. Make sure you understand the rules for French tax residency and, if you meet any of them, that you correctly declare your worldwide income, gains and property wealth as required by French tax law.
2) Tax planning
French tax rates can be high, but the tax regime offers opportunities to lower your liabilities, from the parts system for general income, to taxefficient arrangements for your savings and investments. Don’t presume that what was tax efficient in the UK is tax efficient here. You may need to convert existing arrangements to ones more suitable and effective for French residents.
3) Property
If you have not yet moved to France, investigate whether you are better off, tax-wise, selling your UK home while UK or French resident. How your own French property can have unexpected tax and inheritance consequences. Explore all the options to determine which is best for your family situation. If your household’s worldwide real estate amounts to over €1.3 million, you will be liable for France’s annual property wealth tax.
4) Inheritance taxes and estate planning
French succession tax can be high, up to 60%, and succession law imposes forced heirship. Take professional advice to help ensure your wishes are carried out and your assets will pass to your heirs with as little tax as possible.
5) Your investment portfolio
Review your savings and investments to check they are suitable for you now. Are you holding the right spread of assets to meet your objectives, time horizon and risk tolerance? Do you need to hold more assets in Euros and diversify away from UK shares and bonds?
6) Pensions
Review your pension funds and the options available to consider how to maximise your retirement savings. Living in France presents opportunities. For example, you may be able to transfer your UK funds into a Qualifying Recognised Overseas Pension Scheme (QROPS) which can provide various benefits. The sooner you review your finances, the sooner you can get on with enjoying life in France. Taking professional guidance will ensure you have all the facts and understand your options.
Keep up to date on the financial issues that may affect you on the Blevins Franks news page at www.blevinsfranks.com
Moving to France? It’s not as difficult as you may think.
Talk to Blevins Franks about the key steps to take before and after your move. We have 10 offices across France, with advisers living locally, and can help you with: Residence | understanding and applying for post-Brexit residence permits Tax planning | minimising tax on income, capital gains, wealth and inheritances Estate planning | navigating and avoiding foreign forced heirship rules Investments | designing portfolios to suit your circumstances and goals UK pensions | exploring your options to find the best solution for you Talk to the people who know
05 49 75 07 24
niort@blevinsfranks.com
www.blevinsfranks.com
154-fr INTERNATIONAL TAX ADVICE • INVESTMENTS • ESTATE PLANNING • PENSIONS
Blevins Franks Group is represented in France by the following companies: Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists. Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z. Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.
Ask Amanda
Ihave a long-term relationship with a UK regulated financial adviser, why should I change to a financial adviser in France?
Many of us have banking and financial services relationships from the UK and whilst you may feel a financial review now you are resident in France is not urgent or important the benefits can be enormous. A full financial review can be free, and you should always ask what costs are applicable to any consultation you arrange. Some of the benefits include:
Capital Gains Tax – Certain tax efficient savings and investments recognised by HMRC would not qualify under French taxation, leaving you with a tax bill on the gain element. Inheritance Tax – UK inheritance tax planning is quite different to that in France and even though you may have a UK Will , tax on your estate will be based on French tax rates and laws.
Compliance with the French tax system – Knowing how and when to declare your investments and savings can avoid financial penalties for non-disclosure.
It is very important to remember that whilst your UK financial adviser has been of great service whilst you were resident in Great Britain, if they are not trained and regulated in the country you now live the French authorities will still expect your financial affairs to fully comply to French laws and this may mean you are presented with an extra tax bill for any non compliance.
by Amanda Johnson
Whether you want to register for our newsletter, attend one of our road shows or speak to me directly, please call or email me on the contacts below & I will be glad to help you. We do not charge for reviews, reports, or recommendations we provide
Amanda Johnson Tel: 05 49 98 97 46 or 06 73 27 25 43 E-mail: amanda.johnson@spectrum-ifa.com www.spectrum-ifa.com/amanda-johnson
The Spectrum IFA Group With Care, You Prosper
The Spectrum IFA Group is a registered trademark, exclusive rights to use in France granted to TSG Insurance Services S.A.R.L. Siège Social: 34 Bd des Italiens, 75009
Société de Courtage d'assurances R.C.S. Paris B 447 609 108 (2003B04384) Numéro d'immatriculation 07 025 332 - www.orias.fr Conseiller en investissements financiers, référence sous le numéro E002440 par ANACOFI-CIF, association agréée par l’Autorité des Marchés Financiers
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