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Spring cleaning your finances

By Claire Cammack - Topics: Financial Review, France, Pensions, UK Pensions
This article is published on: 22nd April 2021

22.04.21

“When the dust settles on Brexit!” has been heard many, many times over recent months and even the last couple of years. But what of it? With the UK and some former EU partners enduring a bitter relationship, and the UK’s Prime Minister seemingly giving free rein to his ministers, it is difficult for many to see a clear direction. Though a clear direction is coming, according to the financial expert sector – and it may not be welcomed by expatriates! Generally, it is accepted that the UK will introduce hard measures to hang onto funds and to introduce punitive tax penalties for those funds that leave the kingdom.

Brexit seems to be “done and dusted”, yet where are we all? The global pandemic has clouded the issue but has forcibly created time for us to tackle the things that had been put off for too long. So what better time for a spring clean in your financial affairs.

Pensions will be hit first, according to the experts, then lump sum investments, if not simultaneously. It will not only be the UK taking measures. France, particularly, will be looking to gather what they can from expatriates living in France. 

Pensions health check

You don’t have to sit back and wait for governments to take action – and endure stress in the process! There are actions that you can take now and the first is to book a financial review with your Spectrum adviser who has a wealth of experience and resources available and at your disposal. We can quickly identify opportunities to bring your finances under your control and maximise investment and tax efficiency.

It’s not too late to act now to firm up your overall living status and ensure that all is in apple pie order for your peace of mind. Contact your Spectrum adviser for an expert appraisal of your situation.

Why do I need a Financial Adviser?

By Philip Oxley - Topics: Financial Planning, Financial Review, France, Occitanie
This article is published on: 21st April 2021

21.04.21

Top 10 reasons!

As 2021 progresses and hopes of a better year than the last increase, I thought I would write about a question that arises for me occasionally in social situations. From time to time, I am asked, “Why do I need a financial adviser?”, or sometimes it’s simply an assertion, “I don’t see the point of having a financial adviser”. My usual response is to give a brief overview of what I do, however, depending on the circumstances, I don’t always offer a thorough response and then subsequently regret not having taken the opportunity to fully outline the benefits offered from the work my peers and I do.

I appreciate that in terms of popularity and reputation, my industry is not at the top of the pile – sometimes being undermined by the disturbing stories of people being scammed (particularly in the field of pensions), and also a small minority of advisers who are exposed as either not qualified/licensed to operate, or who fail to act in the interests of their clients.

However, I know from the feedback that my colleagues and I receive from many of our clients that the work we do is appreciated and valued by many – sometimes for quite different reasons. So, I thought I would outline the benefits of why, if you do not currently have an adviser, you might want to consider exploring whether your finances could benefit from professional advice and ongoing support.

This list is not meant to be exhaustive and I have tried to avoid a generic list, instead drawing upon feedback and anecdotal evidence from individuals – some clients, some not…yet! Hopefully, my list provides a selection of reasons why I believe the work we do can be of significant value to many.

1. Saving money/growing money

The fundamental purpose of my role is to help my clients save money, and to grow and protect the money they already have. Such savings can be made through lower fees, reduced currency exchange risk, tax-efficient investment structures, and ensuring the best pension scheme for the client is selected. These same actions can also have a positive effect on the growth and protection of a client’s money. By choosing the right investment, an impact can be made on reducing inheritance tax liability for loved ones. Furthermore, if the worst happens to you, by selecting the best pension structure, you can ensure that your loved ones can be beneficiaries of your entire pension, in accordance with your wishes.

2. Greater choice of options

Of the financial solutions that I can offer my clients, few (if any), are available through banks or insurance companies – schemes offered directly through these organisations are usually the company’s own in-house products. I am not suggesting that these options are not suitable, but the advantage of using a financial adviser is the breadth of choice and the ability to select the best available products that most accurately suit the individual. Also, whilst some financial products are available directly to the consumer, many are not and can only be provided in conjunction with professional advice.

3. Sounding board

Sometimes in life, it is nice to have someone to discuss important matters with. People often turn first to their spouse or partner, friends, and sometimes work colleagues. I often speak to people who believe that they have their financial affairs in good order, but they value having a professional and independent “financial health check” to confirm that they are on track, or to provide an objective perspective on some of the areas that might need some attention.

4. Acting as your better conscience (or encouraging people to do what they know is right!)

Let’s be honest, most people enjoy spending their money – whether it’s on their home (often, but not always, a good investment), clothes, food, entertainment, cars (virtually guaranteed to be money-losing, unless classic/vintage cars are your thing!), and holidays.

It is not always easy to take a portion of your regular income and set it aside for the medium to long term, and of course, not everyone has the luxury of having a surplus at the end of each month.

However, a good comprehensive financial review doesn’t just analyse your assets (e.g., pensions, investments, savings, property), and liabilities (e.g., mortgage, credit card debts, car, and business loans), but also reviews your income/expenditure and your long-term wants/needs, to help assess whether there is the capacity to save, and how much.

A good financial adviser will encourage you to think about the long term and help you to take the right steps towards financial security.

Do I need financial advice

5. “I have no money to invest” / “I can’t afford to use a Financial Adviser”

This is a response I occasionally hear, however, irrespective of financial situation – whether the individual’s money is invested in their business or home, or they live on a low income – I am always happy to conduct a financial review. I can usually share some valuable insights, even if the person does not subsequently become a client. Do not let these reasons put you off speaking to an adviser – my confidential financial reviews are free of charge, and there is no obligation to accept my advice (although, I am pleased to say, most people do!).

6. Protection and risk

Many people associate financial advisers with pensions or investing/growing wealth. However, a crucial part of good financial planning is about protecting any wealth that you already have, and making contingency plans for all possible disruptive events that might come your way. When conducting a confidential financial review, I always ask if such matters have been considered, and whether arrangements are in place to provide financial protection in all eventualities. Life insurance is not always necessary, but a will is essential – I can put people in touch with English-speaking professionals in France who can assist in both these areas.

7. No time

For those whose lives are extremely busy (I think many of us can relate to this category!), they simply do not have the time (and/or inclination – see point 9!) to look after their financial affairs. Often people know they should be devoting at least some attention to their long-term financial security, but just never seem to get around to taking action. Sometimes, these people are well-informed and know very clearly what their financial objectives are, but do not have time to implement their plans and would rather a professional undertake this work on their behalf.

8. Retirement planning

In this area, the work we do is not just about advising individuals on the importance of saving for the future or selecting the best scheme for their individual needs.

For British nationals living in France who have private pension schemes in the UK, a proper analysis should be conducted to decide if it is best to leave their pension schemes where they are, move them to a UK-based SIPP, or possibly offshore into a QROPS. There is no one correct answer and I am not going to get into the detail of this now – it was the subject of my last article!

The second critical element of this work is to forecast what level of income someone will require in their retirement once other sources of income reduce or cease, and to then plan how that need will be met through rigorous financial planning.

retire

9. No interest in financial affairs

Of course, this is one that I struggle to understand! I have a relative, who will remain anonymous, who encapsulates the example perfectly. This is someone who is financially comfortable, but genuinely finds the subject of savings/investments (or anything to do with managing their money), of absolutely no interest – to quote, “Boring”!

As long as their money is secure and providing some growth, then they will quite happily entrust as much of the decision making as possible to their financial adviser. The key to this working is to get to know the individual very well, understand their risk profile, and be clear on the circumstances of when they wish to, or must, be consulted on decisions.

10. Knowledge/expertise

The final reason to use a Financial Adviser (and I accept this is obvious, but I needed a tenth!), is for the knowledge and expertise they can offer on available products (relevant to the country in which they work). The good ones will ensure that they thoroughly understand their clients, establish solutions that align with the individual’s aspirations, risk profile, and ethical stance. It is important that your adviser is permanently based in France, works for a French company, and is properly licensed with the relevant regulatory authorities. Above all, make sure they are someone you feel a connection with, who understands you, and who you feel confident in establishing a long-term working relationship with to support your financial goals.

In conclusion, last year was incredibly challenging for many people – both financially and emotionally – and whilst some of the restrictions we have all lived within have eased, realistically, it will be some time before life resumes with some sense of normality. Whilst everyone’s health – physical and mental – must always take priority, I honestly believe that knowing that your money is protected and growing tax efficiently, and that you have taken the necessary steps towards your long-term financial security, is one less thing for you to worry about and makes a small but important contribution towards peace of mind.

Top 3 Financial questions after BREXIT

By Andrea Glover - Topics: Assurance Vie, BREXIT, Financial Planning, Financial Review, France, QROPS
This article is published on: 1st February 2021

01.02.21

We asked Andrea Glover & Tony Delvalle – What are the current top three ‘hot topics’ with clients, particularly affecting retirees?

UK State Pensions
Andrea commented, “The withdrawal of the UK from the EU has obviously been an area of concern regarding UK State pensions. Now the Withdrawal Agreement has come into force, it is reassuring that those covered by the agreement will continue to benefit from aggregation of periods worked in the UK and EU, and those not yet retired will have the same benefits as current claimants.”

Tony went on to say, “UK State Pensions will be uprated every year whilst residing in France. This will happen even if you start claiming your pension after 1 January 2021, as long as you meet qualifying conditions.”

UK Properties
Many people coming to live in France often decide not to sell their UK home, instead renting the property out to supplement their pension income. Tony explained, “We are frequently asked if this is sensible as a form of investment. Whilst there is often an emotional tie to a former home, or perhaps a client wants to keep the option of returning to their UK home, there can be punitive tax consequences to such a decision, should they then decide to sell the property as a French tax resident.”

Tony continued, “The sale of a UK property has to be declared in both the UK and France. Although under the UK/France double tax treaty you receive a credit in France for any UK tax paid, French residents can also pay social charges on gains arising on the disposal of a UK property. There are also new rules effective from April 2020 in the UK, making such a decision even less attractive.”

Andrea summarised by saying “It really is important to speak to a Financial Adviser, particularly if you haven’t yet made the final move to France. Dependent on personal circumstances, it may be more beneficial to sell their property and invest in a more tax efficient investment vehicle such as an Assurance Vie.”

qrops

Qualifying Recognised Overseas Pension Schemes (QROPS)
Tony told us that many of their clients have taken advantage of a
QROPS, which enables consolidation of UK pension policies and which has attractive tax and inheritance tax advantages for French tax residents. QROPS can also offer multi-currency flexibility.

Andrea commented, “Many clients currently considering moving their pensions are querying if there are to be any changes in QROPS legislation, in view of Brexit. Our stance on this is that we believe it is highly likely that the UK Government will, after the transition period, impose a 25% tax charge on future transfers to a QROPS, making them less desirable. So, although they may not be suitable for everyone, don’t risk leaving it too late or you may face the 25% charge.”

As featured in BUZZ

Can we learn from the past?

By Jeremy Ferguson - Topics: Financial Planning, Financial Review, investment diversification, Investment Risk, Investments, Spain
This article is published on: 24th April 2020

24.04.20

Long periods of growth in the world, followed by a creeping in of greed, have normally caused previous stock market ‘tumbles’. This time, however, something completely unprecedented has caused it, wiping large fortunes from people’s pensions and savings, for the short term at least.

This latest situation is another great example of the fact that no one really knows what lurks around the corner. Investment managers may be clever people, but it’s simply impossible to accurately predict the timings of markets taking a tumble when events such as this take place.

‘Investing is for the medium to long term’ is something you will always hear about from people like myself. If you have a time horizon that’s very short, it’s normally fraught with danger; investments need time for you to reap their rewards. So my question is, how has the world faired on this front over the last century, and what we can learn from the past?

invest for the long term

The first ‘event’ was the Great Depression in the US, which started in the late 1920’s. What caused it?

The early part of the decade was full of exuberance, people borrowing money to buy cars, new houses, and even borrowing to make investments in the new world of the stock market.

Everyone was doing so well, then the whole thing fell apart and nearly 13% was wiped off stock market values. For those people who had borrowed heavily to invest, it was enough to wipe them out. They lost everything, as they couldn’t repay their debts, and then followed the Great Depression. This lasted roughly 12 years until the massive manufacturing effort of WWII kick started the recovery.

Next up, after many years of growth following the end of World War II, was the famous 1987 crash. This was the largest fall in stock market values at that point in history, with a 23% fall. So what caused this? It was similar to the 1929 crash, with the addition of the speed at which people could trade shares in the modern world.

People were borrowing money, leveraging investments with the money, and then things started to go wrong. This time fear took over, with panic selling ensuing, and people lost fortunes very quickly. At that point it was the single biggest one day fall in history.

dot com bubble

This was then followed by a 12 year recovery period, with everything being a little more controlled, until the Dot-Com bubble started to inflate. It was a frenzy of over valued companies,

people buying shares they would never have normally bought. It was all so easy to make money. Everyone was involved. Greed fevered a frenzy of madness! Then it all fell apart. The bursting of the Dot-Com bubble in 1999/2000 pushed stock markets down 23% again, but many shares fell almost 100% in value.

And off we went again… over the next 8 years, behind the scenes there was the growing greed that always seems to be lurking. Easy borrowings, people buying houses they couldn’t really afford, remortgaging the ones they had to buy more ‘things’. Banks were selling on loans to other banks.
Easy money was everywhere, seemingly fuelled by greed again. And then, you guessed it, bang! The start of the 2008 Financial crisis as it became known. The American banking system almost collapsed entirely. Never before had greed almost toppled a country. 12 years of recovery followed (sound familiar?) and 2020 is the next focal point! What more is there to say? Another large ‘tumble’ in values again.

So where am I going with this? Every time this has happened in the markets before, afterwards there ensues a protracted period of recovery and growth. The important thing is the ‘line’ keeps going up, albeit in a rather rugged manner.

The below graph is an example of 50 years growth of the 500 largest companies in the US up to the 2008 crisis. It is all over the place, but if you were invested for the medium to long term, the ‘line’ goes up and up, which is why people invest their hard earned pensions and savings. To profit!

500 largest companies in the US

This recovery is going to be tough, and in a new and changed world. It will come from companies that are agile, well financed with flexible long term objectives, and who are able to adapt quickly to the ever changing world.

Never has this been so obvious as it is now. If you have money invested, make sure as best you can it is exposed to investments that are most likely to be part of the recovery. A recovery that history has taught us always happened in the past.

Lockdown is a great opportunity to dig out your files to see what you are invested in, and if you need any assistance or a second opinion, I am happy to help. I can be contacted at :

Jeremy Ferguson
The Spectrum IFA Group
Sotogrande, 11310, Spain
Office: + 0034 956 794409
Mobile: + 34 670 216 229

jeremy.ferguson@spectrum-ifa.com
www.spectrum-ifa.com

Longer Term Perspective

By Chris Webb - Topics: Financial Review, Madrid, Spain
This article is published on: 22nd April 2020

22.04.20
The Show Must Go On

One of my favourite songs is, ‘The Show Must Go On’ by Queen, arguably one of the best bands ever. How apt the opening lines sound now. It’s day 41 of our lockdown as we bunkered down on the 11th of March, a little earlier than the national lockdown came into force and I wont lie and pretend its been plain sailing. Having two children home schooling and trying to run our businesses from home at the same time has been quite a challenge, but the overriding feeling has been and still is that the show must go on…

Emotionally this might just be the toughest period that we all have to go through. Every day is a new challenge. But as we all know, we can’t just sit and stare at the walls and feel sorry for ourselves.

All of us will have had different emotional barriers to face. They might be the feeling of confinement and reduced work capabilities; they might be a feeling of panic and anxiety trying to deal with the unknown situation we are in; they could be dealing directly with this virus, either having caught it themselves or having a loved one infected.

It doesn’t matter what the factor is, it’s guaranteed that we have all been dealing with emotions far more during the last 5/6 weeks than we have ever had.

On top of dealing with our own family’s emotions, I am having daily conversations with my clients about their investments during this period and the emotional impact it is having. All it takes is to watch the news channel to clearly see how volatile the markets have been. This is an additional emotional crisis for some, particularly if they aren’t experienced investors.

All my clients will know that I talk a lot about the different hats you need to wear when investing in the markets. There is the investment hat and the emotional hat. The investment hat is the exciting one that drives your investment decisions; the emotional hat is the one that pulls you back a little and makes you consider your choices. In my opinion the emotional hat is the most important one. It only lets you make decisions that you are happy with and have thought through.

Here are my top tips for dealing with the emotional side of investing; hopefully it will help steer you through the coming weeks.

stay invested

The Rational, Irrational and Emotional Struggle
It is a challenge to look beyond the short-term variances and focus on the long-term averages.

The greatest challenge may be in deciding to stay invested during a volatile market and a time of low consumer confidence. History has shown us that it is important to stay invested in good and bad market environments.

During periods of high consumer confidence stock prices peak and during periods of low consumer confidence stock prices can come under pressure. Historically, returns trended in the opposite direction of past consumer confidence data. When confidence is low it has been the time to buy or hold.

Of course, no one can predict the bottom or guarantee future returns. But as history has shown, the best decision may be to stay invested even during volatile markets.

Declines May Present Opportunities
An emotional roller coaster ride is especially nerve-racking during a decline. However, the best opportunity to make money may be when stock prices are low. Buying low and selling high has always been one of the basic rules of investing and building wealth. Yet during these emotional and challenging times it is easy to be fearful and/or negative, so let’s turn to the wise advice of one of the world’s best investors, the late Sir John Templeton:

“Don’t be fearful or negative too often. For 100 years optimists have carried the day in U.S. stocks. Even in the dark ’70s, many professional money managers—and many individual investors too—made money in stocks, especially those of smaller companies…There will, of course, be corrections, perhaps even crashes. But, over time, our studies indicate stocks do go up, up and up”

upward stockmarket trends

Watching from the Sidelines May Cost You
When markets become volatile, a lot of people try to guess when stocks will bottom out. In the meantime, they often park their investments in cash.

But just as many investors are slow to recognize a retreating stock market, many also fail to see an upward trend in the market until after they have missed opportunities for gains. Missing out on these opportunities can take a big bite out of your returns.

Euro / Dollar Cost Averaging Makes It Easier to Cope with Volatility
Most people are quick to agree that volatile markets present buying opportunities for investors with a long-term horizon. But mustering the discipline to make purchases during a volatile market can be difficult. You can’t help wondering, “Is this really the right time to buy?”

Euro / Dollar cost averaging can help reduce anxiety about the investment process. Simply put, Euro / Dollar cost averaging is committing a fixed amount of money at regular intervals to an investment. You buy more shares when prices are low and fewer shares when prices are high, and over time, your average cost per share may be less than the average price per share. Euro / Dollar cost averaging involves a continuous, disciplined investment in fund shares, regardless of fluctuating price levels. Investors should consider their financial ability to continue purchases through periods of low-price levels or changing economic conditions. Such a plan does not assure a profit and does not protect against loss in a declining market.

financial check-up

Now May Be a Great Time for a Portfolio Check Up
Is your portfolio as diversified as you think it is? Meet with me to find out. Your portfolio’s weightings in different asset classes may shift over time as one investment performs better or worse than another. Together we can re-examine your portfolio to see if you are properly diversified. You can also determine whether your current portfolio mix is still a suitable match with your goals and risk tolerance.

Tune Out the Noise and Gain a Longer-Term Perspective
Numerous television stations and websites are dedicated to reporting investment news 24 hours a day, seven days a week. What’s more, there are almost too many financial publications and websites to count. While the media provide a valuable service, they typically offer a very short-term outlook. To put your own investment plan in a longer-term perspective and bolster your confidence, you may want to look at how different types of portfolios have performed over time. Interestingly, while stocks may be more volatile, they’ve still outperformed income-oriented investments (such as bonds) over longer time periods.

Believe Your Beliefs and Doubt Your Doubts
There are no real secrets to managing volatility. Most investors already know that the best way to navigate a choppy market is to have a good long-term plan and a well-diversified portfolio. But sticking to these fundamental beliefs is sometimes easier said than done. When put to the test, you may begin doubting your beliefs and believing your doubts, which can lead to short-term moves that divert you from your long-term goals. To keep from falling into this trap, call me before making any changes to your portfolio So that’s my tips for fighting your way through the emotional impact of investing. I hope it is beneficial to you. The main point to take away from this is that THE SHOW MUST GO ON.

Stay calm, stay invested, don’t make crazy rash decisions and in a short time, this will be a blip in the past. If you want to discuss the risk element or have a second opinion on your investments, I am happy to conduct an initial consultation and present any recommendations free of charge. You can get in touch using the contact details below.

Don’t delay your financial plans. For planning, yesterday is better than today, which is better than tomorrow

Health, Wealth and Happiness

By Victoria Lewis - Topics: Financial Review, France, Inheritance Tax, Succession Planning
This article is published on: 12th April 2020

12.04.20

During the current lockdown in France, I have seen a noticeable increase in the number of my clients wishing to review the beneficiaries of their investments. This could have been prompted by the daily depressing news of covid-19 deaths around the world, or it could simply be because of the extra time available to get their financial plans in order – working through the ‘to do’ lists.

Whatever the driver behind these reviews, it is a responsible part of financial planning to think about how and to whom you wish your investments to be distributed after your passing.

Inheritance planning is a key feature of the well documented ‘assurance vie’ in France – a simple and efficient investment vehicle available to French tax residents. In the next article I will remind you of the assurance vie benefits.

For the moment, I will focus on the title of this ezine. As a Financial Advisor, I am clearly not in a position to advise you on health matters. But as it happens, during this covid-19 confinement period, my own personal health has come under review! With the extra time I now have as I am not travelling to see my clients face to face, I have been able to spend 20 mins every morning exercising via an online personal coach. I will to continue this when normal life resumes.

I am, of course, able to help you with your wealth matters; and it does matter. Perhaps during this time of global lockdown, we can all reflect on our financial plans. Should I change my spending habits? Could I afford to retire earlier than planned? How can I stay financially motivated given the financial and economic forecasts? We can all lose focus from time to time, but it’s a financial adviser’s role to help you keep focused and to bring your financial plans back on track.

Please use your spare time constructively – why not contact me for a review, either over the telephone or via a video call. We will discuss many different areas such as life insurance, pensions, savings and investments, inheritance and wills, mortgages and education fees. We do not charge you a fee for our discussions, our follow up work, our regular reviews or our reports and you are under no obligation to follow our advice. Simply put, if you agree with my recommendations and I then arrange for you for example, an assurance vie or a pension, we are then remunerated by the companies we recommended.

When the daily news is worrying, it is understandable to get absorbed about the here and now impact. We are, after all, thinking about things like the latest restrictions, food shopping and how to keep the family occupied. However, when it comes to your financial plans, it is really important to stay focused on your key objectives.

I believe that if you have your health, an abundance of family and friends, a plan for your wealth then happiness will naturally follow.

To discuss further, please contact me on 06 62 50 70 21 or email Victoria.lewis@spectrum-ifa.com

There’s never been a more important time to speak with your IFA

By Alan Watson - Topics: Financial Review, France
This article is published on: 24th March 2020

24.03.20

I have a routine I have followed for many years. Every day, after walking the dog and eating breakfast, I get up to date on the markets, currency movements and global financial news. CNBC is my favourite, but things are changing and I now find it harder to concentrate with the worrying growth of people contracting COVID-19. It gets worse by the day. Northern Italy is barely three hours’ drive away which is nothing for today’s connected planet. But the tempting solution of ‘Bury your head in the sand; it will go away, it always does’, could cost a great deal in our current global situation. The answer is to take action and deal with it.

Over the past week, I have spoken via telephone and Skype with many of my clients. All of the conversations were intense and based around worries about what will happen next. Clearly, the need to protect what you have built up over the years and prepare for a potentially uncertain future is paramount.

One client quizzed me over the pros and cons of buying property in Lyon; we got into a deep conversation analysing all aspects, from the French property purchase costs to the insurance quotes (some were just too high; one was clearly sensible and produced by somebody who knew their business).

skype

Another Skype meeting demanded the analysis of the greatest market crashes, discussing the question, ‘Could we now be at the bottom?’. This client wanted not only the potential to buy into a rather cheap market, but also to gain the benefits of doing this via the French Assurance Vie: discounted markets plus serious tax advantages.

Other calls were long and varied in content, but all focused around ‘what if’ questions. Good old Brexit still keeps raising doubts and concerns and I always enjoy explaining how we have been confidently prepared for this roller coaster for years. We only deal with large and secure internationally minded companies who made their preparations years ago. Brexit is not and should not be a point of worry for Spectrum clients; flexibility is always our primary tactic.

Many of us are now sitting at home; working, but getting a little bored. I would suggest this is an ideal time to talk, to discuss everything, get your worries off your chest. Preparation reduces stress; this is what we do – and if last week’s conversations are anything to go by, I believe I did a pretty good job. If you would like to chat, contact me to arrange a call with the details below.

The luxury of your own local financial adviser

By Alan Watson - Topics: Financial Review, France
This article is published on: 17th March 2020

17.03.20

To say we are living in volatile times could be somewhat of an understatement. The French stock market, the CAC 40, experienced its largest ever one day fall last week, over 12% in just one trading day!

The market crash in October 1987 was severe, the dot-com boom and bust caused great misery, a global banking crisis in 2008 even caused the mighty Lehmans to fall. Why am I reciting this? Because, like most of my colleagues, I witnessed all of these events.

Covid-19 now appears to be at its most prevalent exactly where all Spectrum advisers work: Europe. The French Prime Minister has declared that all non-essential shops, offices, cinemas and restaurants should now close, and as I write this my mind wonders about the next weeks’ market activities, especially as traders and brokers will most likely decide to work from home. We have a very long climb to recover from the exceptional falls of late.

When I make initial telephone contact with a person who has requested information from our website, or maybe a personal referral, or interest from our advertising, it quite often happens that they appear surprised just how local I am, “Oh, so you’re not based in London, you live in Chambery? But that’s so close, you must be a keen skier,” and this opens up a very important conversation, mainly because the person on the other end of the phone has rarely spoken with a financial professional who has 25 years of experience in this region of France. At this stage the conversation explodes, “Where did your children go to school? Can you suggest a good one? Do you know a good company to insure my car with? How do you start to build a pension in France?” The questions are many, and I consider it my personal duty to assist, after all what is all the experience worth if you cannot help your fellow expatriates?

In the last few days such local contact has taken on a whole new meaning, “Could we meet up soon? I need to decide on my new fiscal residence, the UK tax year is so close, but due to Brexit my old UK adviser cannot help me.” Or, “I have so many UK based investments, they are all severely beaten down, but the phone lines are blocked, nobody can update me, and the annual statement is eight months away.”

And this is what Spectrum is all about; we, the advisers who live close to you, all have not only many years behind us in financial services, but equally importantly have lived, worked and paid taxes and social charges in France for many years. We know how the system works, the good and the not so good bits. We know the better accountants, the real ones who actually work for you, the client, not administrators/book keepers who collect for the system. We are supported by some of the world’s best investment houses, insurance companies and trust companies. Our knowledge is vast, and often a short car trip from your home or office. There is no cost or commitment in meeting up for an initial discussion, but the luxury of having so much available experience on your own doorstep, and in your own language, makes us a unique financial services company locally.

The concern currently is real, the media has caused Europe to panic (I just tried shopping with my wife, high stress levels everywhere). We are close, capable and can at least put your mind at rest during these testing times.

Try us, you will be amazed how quickly we respond, arrange a meeting and help to guide you through this rather bizarre period.

Moving to Spain – When should I take financial advice?

By David Hattersley - Topics: Financial Planning, Financial Review, Moving to Spain, Spain
This article is published on: 2nd March 2020

02.03.20

For the majority of those who move to Spain, speaking to a qualified financial adviser, who is regulated where you plan to live, is something which happens after you have made the move. But, talking to one before you embark on the journey can help avoid some of the issues that expatriates can find themselves encountering.

Many UK based advisers are not fully regulated to offer advice for Spain and may not be aware of the most current regulations or tax efficient solutions for your needs. A Spanish regulated adviser can ensure you are financially prepared for your move in terms of any investments, savings and taxes which can be due on both income and windfalls you may be expecting after your move. A local adviser will also be able to clarify the potential impact of Spanish succession tax.

An additional complication in Spain is the variety of laws in each autonomous area. The classic example is the differing laws between Andalucia, Murcia & Valencia, so it makes sense to deal with a regulated adviser who is based in or near the autonomous area you are moving to.

Many people buy in Spain with plans of using their new Spanish property to retire to, either now or eventually. If it is the latter, in the interim period the property may be used to produce rental income, either via summer rentals or long term rentals, so there will be tax considerations. Depending on how long you are planning on living in Spain each year, residency may also become an issue. When holding property both here and in the UK, “Cross Border” regulations and differing types of tax are applicable to each country. Having a “Partner“ relationship brings its own complications.

Everyone’s situation is unique and there is no single ‘recipe’ that we can give to navigate buying a property in Spain. A regulated local adviser has no vested interest in which property you buy, yet will have a long history of experience of the path you are undertaking and will be able to help you create a plan to fit your own specific circumstances.

Investing an hour of two of your time to go over your project with an adviser before you make the move to Spain can provide direction, peace of mind and financial comfort when planning your new adventure. Rules and regulations can change. The potential impact of Brexit provides an example of how quickly this can happen, so consider taking action sooner rather than later.

Why don’t you contact me to arrange a free, no obligation discussion of your plans – either you will get confirmation that everything is in order, or perhaps some points will come up that you hadn’t thought about. 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 that we provide.

Why should I review my finances

By Amanda Johnson - Topics: Financial Review, France
This article is published on: 14th January 2020

14.01.20

Very little has changed in my life during the last 12-18 months; why should I review my finances?

When and how often you should review your financial position is a question I often get asked by people attending my financial surgeries. There are several questions which I feel are important to consider when looking at whether you are due for a financial review:

When did you last sit down and fully review your finances?
If you have not had a review for 12 months or more, you may not be aware of legislation changes or new opportunities which may be open to you.

Have your personal plans and aspirations changed since your last review?
Are you now looking at retirement closer or wish to look in more detail at inheritance planning? Perhaps you are looking at downsizing and want to make any surplus monies work efficiently for you?

How are any investments or savings you hold performing against your expectations?
When you took out an investment or savings plan, it is likely you looked at how they had performed, and this past performance made a sizable contribution to your choices. That information is now out of date and replaced by more recent information. Reviewing this new data is vital in ensuring your money is still working for you to its best ability.

Just because your last year feels standard, you should not underestimate how external factors can influence your financial security and your ability to make the best use of any money you have worked hard to earn.

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.

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