The Full Spectrum
By Spectrum IFA
This article is published on: 26th May 2014
Having recently started working for the Spectrum IFA Group I thought it time I start a weekly Newsletter covering issues important to all of us, one way or another. Especially for expats who have made Italy their home/spend much of their time here. The main thrust/focus of my Newsletter is to impart in an easy-to-understand, but not too lengthy outline, important matters and up-to-date information to expats residing in my area on matters such as investments, tax and general financial planning issues. And being part of the Spectrum Group means I also have access to professionals in various fields of expertise.
So, taking the above into account, I thought a very good and apt place to start would be to give a broad overview of current happenings in world markets, as we are all affected one way or another, especially with the speed at which events are communicated.
Probably 95% of people I have assisted or advised has had or still has capital in the markets in one way or another. There are many ways this could occur, viz a Pension Fund, a Money Market Fund, an Insurance Policy, Unit Trusts (Mutual Funds) or direct Share Investment.
Markets go up and down, and likewise interest rates. And then we have inflation to factor in. We may not be affected by these movements in the short-term, but are almost certainly going to be in the longer term (five years onwards).
Hence the extreme importance of reviewing your finances on a regular basis, at the very least once a year, in order to ensure your investment aims and objectives are still on course. We are all told to have a thorough medical check-up once a year so as to ensure all our parts are functioning correctly. And we are willing to pay for this because we can appreciate the need – after all, we want to be on planet earth for as long as possible.
Likewise the common sense of having a proper financial check-up at least once a year. And in most cases this involves no fee but at the end of it one wants to walk away knowing everything is alright but, if not, then to be able to change the doctor’s prescription! And this gives us peace of mind.
Unfortunately many are the cases where we come across people who consult an advisor, but then forget to review or the advisor disappears and they fail to take remedial action to consult another.
There is so much “doom and gloom” about these days, so it is wonderful to read of or hear about news filtering through regarding the economies of the UK and EU which are quite positive, and this augers well for investors who have experienced a bit of a bumpy ride over the last 18 months and which offers potential for new would-be-investors or those who have been waiting. Matthias Thiel, market strategist at Hamburg-based M.M. Warburg, which is bullish on southern European assets. “The recovery story is playing out as expected,” he said.
The European Commission had, inter alia, the following to say in its Economic Forecast for EU countries……
- United Kingdom: Recovery takes hold, fiscal imbalances still sizeable
- Italy: A slow recovery is underway
- France: Recovery remains slow amid sizeable budget deficits
- Germany: Accelerated growth in the offing
- Portugal: Gradual economic recovery
- Greece: First signs of recovery
- Spain: The recovery becomes firmer while the re-balancing of the economy continues
It is very important to remember that markets experience upturns/good times (good times) as well as downturns (negative periods).
And economic experts never all agree! So when times are prosperous, out of, say, 100 experts, a third will have a certain view or opinion, a third exactly the opposite, and the remaining third will be neutral. And all will have convincing arguments to prove their respective outlook. But true, experienced economists, when asked what they think about a certain economic outlook will be honest enough to simply say “I do not know!”
Economies throughout the globe are all intrinsically linked together, and what happens in one country can impact on another, even if they are miles apart. Like that old adage “If America sneezes we in UK or Italy catch cold.
So, in conclusion, there is much to be positive about but with it comes a caveat: Do not put all of your eggs in one basket but spread your resources across the various asset classes.
In my next Newsletter we will focus on the different asset classes and what it means to diversify.
Until next time, ciao!!
Le Tour de Finance in France
By Spectrum IFA
This article is published on: 22nd May 2014
After a hugely successful run of events in Italy and Spain, Le Tour de Finance has come home to France for a run of 9 events throughout the country.
The first 5 legs of le Tour are taking place from 20th – 23rd May. The final 4 events are taking place towards the end of June from 17th – 20th.
These informal events are a great opportunity for expats of all ages to get those unanswered financial questions clarified in plain English.
The range of professional speakers is varied and will cover a multitude of subjects from; Pensions & QROPS, Currency Exchange, French Wills, Tax Efficient Investing, Estate Planning & Tax Advice in France.
These sessions are free, you’ll get to meet other expats in your area and can finish the morning with a complimentary buffet.
For further details on future events please click here.
Swiss British Classic Car Show in Morges
By Chris Eaborn
This article is published on: 20th May 2014
On the doorstep of our two Swiss-based advisers, Chris Eaborn and Robbin Davies, is the lakeside town of Morges on Lake Geneva, where for the past 21 years The Swiss Classic British Car Meeting has built to become one of the leading classic car events in Europe.
The brainchild of one man, Keith Wynn, a British expat, it attracts around 1,500 classic and special interest British cars and around 20,000 spectators every year. The event is non-profit, fuelled by Keith and other supporters’ love of some of the most evocative names in automotive history, and the thrill of seeing them driven to the event and displayed along the shorefront for all to enjoy.
The Spectrum IFA Group is a main sponsor and proud to be associated with such a delightful event that brings many visitors to the region and is so popular with the community in which we have many clients.
Entry is free to both drivers and spectators and the location is easily accessed in 20 minutes by train from Geneva Airport.
Maybe you fancy an excuse to visit Switzerland and at the same time visit the show this year on October 4th?
For details of the event, and helpful planning tips such as hotels and transportation, visit www.british-cars.ch
Spanish Mortgage News
By Chris Burke
This article is published on: 17th May 2014
In the last two months, we have seen some incredibly positive things happening in respect of mortgage lending for non-residents. This affects not only product conditions (see below), but also service standards.
In March, two of the main lenders contacted one of our mortgage brokers us to ask us if they could meet decision makers in their banks to understand how they can compete for and win more non-resident mortgage business. They met with two members of the Board of Directors of one of the largest banks in Spain and last week we met two senior officials from another of the largest banks.
At these meetings we advised that to compete effectively banks need to offer at least 70% of purchase price, with no compulsory life assurance, without a minimum rate (“suelo”), for all nationalities, and to improve the efficiency and turnaround times for approvals.
We have also advised that debt-to-income ratios could be increased to gain more business from rivals, but this seems to be something that is harder to get banks to change. Many banks are currently using a 30% debt-to-income ratio, so monthly debts (including the new Spanish mortgage) must not exceed 30% of overall net monthly income. Some banks are using 40%, but these banks are not offering the best conditions. It is worth noting that the 30% rule is often relaxed slightly for high-earners.
We anticipate that changes will be made one step at a time, but have been very encouraged by the results of these meetings. Here are some new conditions we have been involved in negotiating:
- 70% now available for most other nationalities (case-by-case basis for non-Europeans)
- Low interest rates from annual Euribor + 2%
- Products without compulsory life assurance
- 30-year terms available
- Fast-track approval with decisions in 1-2 weeks from submitting all requested documents
For Scandinavian clients, as most agents are already aware, Nykredit has often been the preferred bank to use because they offer attractive conditions and 70% for Scandinavian nationals (up until recently they offered up to 80%, but this is now very difficult to achieve with them). We are getting more and more Scandinavian clients coming to us telling us that Nykredit has declined their mortgage, is taking an eternity to approve it or requires them to invest large sums to get approval for 80%. What is clear is that Nykredit is purposefully slowing down its lending for Spanish property purchases. This now appears to be in contrast to the leading Spanish banks. Nykredit has also made clear that it is not keen on self-employed applicants, cheaper properties, non-touristic areas and even some very popular holiday destinations such as Ibiza.
| MAXIMUM LTV |
Fiscal Residents – 80% Non-residents – 70% |
| EURIBOR* | 12 month (annual) – 0.549% |
| EXCHANGE RATES |
1 GBP = 1,1952 EUR 1 EURO = 0.8367 GBP |
Data correct at the time of writing
* Based on purchase price or bank valuation (lowest of the two)
** All non-resident mortgages are now based on the annual Euribor with a loading of 2 – 4%. The margins now vary considerably depending on the bank in question and the customer profile and some banks have minimum rates
Reflections on the recent ‘French Property Exhibition’ in the UK
By Spectrum IFA
This article is published on: 16th May 2014
For the first time The Spectrum IFA Group participated in this regular UK event on the 9th – 10th May as part of Le Tour De Finance Roadshow (www.letourdefinance.com)
Organised specifically for those UK residents looking to purchase property in France as either a second home or for a permanent move, the event brings together a range of experts to help delegates further their plans & aspirations.
Amanda Johnson & Bérangère Chabenat represented The Spectrum IFA Group this year, with the aim of providing attendees information on financial planning & mortgages which would assist potential buyers in their longer term financial situation.
The event was very well attended & many delegates took the opportunity to enter our free prize draw, the winner receiving a hamper containing some of the Loire Valley’s excellent sparkling wines, champagne flutes in which to enjoy it & local confiture de vin.
Le Tour de Finance was of great interest to many attendees, with eight people signing up to attend the events in June & several others expressing a wish to be informed of future seminars.
After a full day of manning the stand, Amanda & Bérangère found the opportunity to network with other exhibitors in the evenings over a glass of wine.
A good time was had by all.
Click here for information on Le Tour de Finance events during May and June 2014
Who is “Ask Amanda?”
By Amanda Johnson
This article is published on: 15th May 2014
As it has been over 2 years since I introduced myself to Deux Sevres Magazine readers, I thought a reminder of who I am would be helpful:
Along with drawing on the resources of The Spectrum IFA Group, one of Europe’s leading independent intermediaries, I have 25 years of experience in financial services.
For over 15 years I have specialised in personal financial planning. Whilst in the UK I worked for several UK high street banks as a financial advisor, attaining the following Certificate for Financial Advisers (CeFA®) qualifications: C.E.F.A I, C.E.F.A II, C.E.F.A III & CEMAP
After a permanent move to France in 2006, I have been addressing the unique financial planning needs of expatriates and those with cross-border interests. I have a detailed knowledge of the French rules & regulations for tax efficient investments, pension organisation, Inheritance planning & French mortgages.
In making recommendations we have access to some of the world’s most respected international banking, investment management and insurance institutions, bringing customers a widespread range of services.
There are no consulting fees for providing you with advice or ongoing service. Our Client Charter outlines how we work and what you can expect from us. Please do not hesitate to ask for a copy of this.
Whether you want to register for our newsletter, attend one of our upcoming road shows (June 17th & 19th) 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 web: https://spectrum-ifa.com/amanda-johnson
Umbria Expat – Financial Surgeries
By Gareth Horsfall
This article is published on: 14th May 2014
- How do the latest Italian tax laws affect me?
- What are my financial obligations as a resident in Italy?
- How can I reduce the amount of tax I pay on savings and investments overseas?
And what taxes do I have to pay on these in Italy? - What is the retiree tax allowance in Italy and am I eligible for it?
- Are there other money saving opportunities that I can take advantage of in Italy?
If you would like to know the answers to these questions relating to life as an expat in Italy then Gareth Horsfall from The Spectrum IFA Group (Italy) will be holding a FREE, drop in, financial surgery on the following dates and times during the months of May and June 2014.
- 10:00AM – 1:00PM Friday 23rd May at Bar del Castello, Castiglione del Lago
- 10:00AM – 1:00PM Wednesday 28th May at Antico Caffè Giardino, Umbertide
- 10:00AM – 1:00PM Tuesday 3rd June, Bar del Castello, Castiglione del Lago
- 10:00AM – 1:00PM Wednesday 11th June, Antico Caffè Giardino, Umbertide
- 10:00AM – 1:00PM Tuesday 17th June, Bar del Castello, Castiglione del Lago
- 10:00AM – 1:00PM Wednesday 25th June, Antico Caffè Giardino, Umbertide
Addresses:
Bar del Castello,
Viale Belvedere 1,
Castiglione del Lago.
Antico Caffè Giardino,
Via Garibaldi 14,
06019 Umbertide
There is no charge for this service
If you would like to take advantage of Gareth’s availability on these dates then you can contact him in advance on gareth.horsfall@spectrum-ifa.com or on cell: 3336492356 or just pop along and feel free to pick his brains!
Le Tour de Finance in Spain
By Spectrum IFA
This article is published on: 9th May 2014
Le Tour de Finance arrived in Spain on the 5th May in Girona, Catalona. After further events in Mallorca and the Costa Blanca Le Tour is now ready to move eastwards to France.
Commenting on the 3 events in Spain, Jonathan Goodman from The Spectrum IFA Group said “We’ve seen an increase in attendance in Spain with some really great input from the attendees. The range of expert speakers has been wonderful and from general feedback, the events have been a massive success”.
Le Tour de Finance is now preparing for the French leg with a total of 9 locations being visited from the end of May and then into June. If you’re interested in joining us for any of these events, please contact us to find a location near to where you live.
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Tax Returns, Pensions & Seminars
By Spectrum IFA
This article is published on: 28th April 2014
What do the above have in common? Well nothing really except they are all topical now! Let’s start with tax returns ……..
I was really surprised to receive the French tax forms so early this year and then I realised why. The date for submission of paper returns has been brought forward to 20th May or if you submit your declaration over the net, then you have until 27th May to do this. Does this mean that we are going to get our tax demands a week or two earlier this year and perhaps with an earlier deadline date for payment? Well I guess that we will just have to wait and see.
No-one should ever try to second guess the Fisc or think that they can out-manoeuvre this government department. I hear some interesting stories of people being contacted and questioned about why they are not registered in the French tax system. You would be amazed at what is used to check – telephone bills, utility bills, etc., etc. How long will it be before our use of cash machines and our bank and credit card transactions in shops might be used to verify how much time we spend in France? Scary thought and actually they probably don’t need to go that far, as we can be tracked through our mobile phones and probably also our internet use.
Are you convinced now to register in the system? You’re still not sure if you are resident? OK, call me and with just a few questions, I will be able to tell you.
For those of you completing French income tax returns, don’t forget to include a list of foreign bank accounts and life assurance policies. You don’t have to declare amounts (unless you are subject to wealth tax), only the existence of the accounts and policies. If you don’t, the penalty is at least €1,500 per undisclosed account/policy or €10,000 if the bank account is in one of those uncooperative States or territories that have not concluded an agreement with France to exchange information. So even if it is an account that does not pay interest and there is very little in the account, declare the existence or risk the penalty!
Moving on to the other ‘hot topic’ of the day ……… I am already hearing about lots of people who are being cold-called about the UK pension reform. Apparently, these calls are being made by people operating from Spain or Cyprus or perhaps some other place. Typically, they are offering to liberate your UK pension plans now. What do these people know about the French tax system and the implications for you? For that matter, do they even understand the UK tax implications for you?
Rob and I have both written articles on this subject and I hope that we are sending out a strong message of the need to exercise caution. Every case will need to be considered on its own merits – there will be no ‘one size fits all’. Anyway being able to cash in large pension pots is only a proposal at the moment. We will have to wait for the result of the consultation and then probably a few months more to know the outcome. So if you get any of those calls coming from outside of France, my advice is to tell them not to waste your time!
The final thing that I want to mention is our client seminars – Le Tour de Finance. This is a tour that travels around France, where we bring ‘experts to expats’ and we are now taking bookings for the Spring tour for which there will be presentations on the following subjects:
- Assurance Vie (two of our favoured providers will be presenting)
- QROPS & Pension Investing (very topical)
- Currency Exchange (is this a good time to exchange Sterling to Euros?)
- Health Insurance (are you affected if the UK stop issuing S1s to early retirees?)
- Wills in France & UK (are you affected by the EU succession rules from 2015?)
- International Banking (do your current bankers meet your needs?)
- Tax Advice in France (do you need help with those tax returns?)
Spectrum advisers will also be on hand at all events to answer questions. Maybe you need to have a more in-depth review of your financial situation. If so, we can arrange this with you.
As always, there is no charge for any of our seminars and the speakers’ presentations are followed by a buffet lunch/refreshments. The dates for the local events are:
- 21st May – Hotel La Villa Duflot, 66000 Perpignan
- 21st May – Hotel Abbaye École de Sorèze, 81540 Sorèze
- 22nd May – Côté Mas, 34530 Montagnac
- 23rd May – Montpellier Massane Golf & Spa Hotel, 34670 Baillargues
Each event starts at 10.00 am with a welcome coffee and ends at 2.00 pm after a buffet lunch, with the exception of Sorèze, which starts at 5.30 pm, finishes at 9.00 pm and refreshments will be served. The seminars are always very popular and so early booking is recommended.
If you would like to attend one of the seminars or you would like to have a confidential discussion on your financial situation, please contact me by telephone on 04 68 20 30 17 or by e-mail at daphne.foulkes@spectrum-ifa.com.
The above outline is provided for information purposes only and does not constitute advice or a recommendation from The Spectrum IFA Group to take any particular action on the subject of investment of financial assets or the mitigation of taxes.
Why expats should be wary of new pension rules
By Spectrum IFA
This article is published on: 16th April 2014
There are tax implications for Britons overseas who choose to cash in their pension money under new rules announced in the Budget.
British expatriates with UK pension pots who believe they can cash them in tax free from next April are in for a disappointment, according to pension experts.
Rob Hesketh from The Spectrum IFA Group comments in a case study within this Telegraph Newspaper article, please click here to read more