Thanks to @George1
… … here’s some information which backs up what George has said and what I’ve been finding in days of searching for information on this vehicle.
Charges can often be hidden but 5% pa charges are not uncommon on AVs.
Keeping things nice and simple -
In this thread is it possible to put down if you’ve an AV and what the charges p/a are for the product?
The difficulty I’m having is
France vs French Fintech vs Irish vs Luxembourg
- all I’m after is a product which has 3 settings - low, medium and high risk, low charges, which is with a reputable provider and which is likely to support growth (ETFs) rather than ‘not’ (fonds en euro).
Also - I believe from SF - there are different tax rules on fonds en euro vs ETF style AVs in that I think tax/social charges are payable on ‘fonds en euro’ annually which I do not want.
Link - Yomoni ou Nalo : notre comparatif des 2 assurances vie
Yomoni ou Nalo comparatif?
Conclusion
Yomoni and Nalo have attracted many savvy savers in recent years. **These managed funds are so superior in terms of user experience and performance that it is difficult to separate them.
So SF lists Boursorama + Fortuneo + N26 frequently as high quality Fintechs
- and so for those of us that need more (E70k ceiling protected x 2 (wife)) - I’m guessing that these may?? offer AVs too.
—btw— and thanks to George1 again - it helps to know if the Fintech (like Boursorama) is connected to one of the 29 financial institutions which are too ‘big’ to fail. Wouldn’t be nice to lose our entire pension after all.
Why? As George says (!!) - storing >E70k may be OK in a Fintech AV affiliated to one of these 29.
- Bank of America * Bank of China * Bank of New York Mellon * Banque Populaire CdE * Barclays * BNP Paribas * Citigroup * Commerzbank * Credit Suisse * Deutsche Bank * Dexia * Goldman Sachs * Group Crédit Agricole * HSBC * ING Bank * JP Morgan Chase * Lloyds Banking Group * Mitsubishi UFJ FG * Mizuho FG * Morgan Stanley * Nordea * Royal Bank of Scotland * Santander * Société Générale * State Street * Sumitomo Mitsui FG * UBS * Unicredit Group * Wells Fargo
Née avec l’avènement du web, Boursorama est une filiale du groupe Société Générale.
Finally - I think this is true and might make a huge difference for people with a private pension - thinking of cashing it in at the 6.75% rate:
Personal pension and stakeholder pensions provided by UK regulated insurance companies are usually protected for up to 100% of the claim value should the company fail, whereas the protection for SIPPs is limited to a maximum of £85,000.
Is my pension safe? - Aviva.
— Summary —
I think that keeping the money in the UK and pushing the 25% tax-free lump sum into a French Fintech AV or several is my way forward.
That seems to be @George1’s approach (knowing smile)!!
Annual charges on my Aviva workplace pension = 0.18% (uncrystallized) but will add the cost of maintaining an Aviva crystallized pension after phoning them up to ask.
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I believe that we can pay 0 tax and either 0 or 3.8% or 6.6% CSG ie eliminate ‘tax’ as long as we’re able to force our draw down to a relatively low level (I’m going to start a thread on that in a few days).
Will include a mechanism of maximizing income and eliminating tax but with an emphasis on not living on next to nothing - since the 25% tax free lump sum if pushed into the French tax free accounts of LEP/LDD/LDA x 2 can supplement our income without being considered income tax.
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So in keeping with @ChrisMann
– is it possible to ask you guys for the AV you’ve chosen and the total annual cost for them?
– And please can I ask if it’s possible to take money out before the 8 years is up without paying a penalty?
I understand the tax situation of AV < 8 years thanks to @George1 of course and can link to his image (elsewhere on SF) which details this - what I’m asking is more that many AVs charge early termination costs:
… … but does taking an amount of money out from the AV constitute closure of the account?