Growing Gains

Today’s case study combines secure wealth growth with liquidity preservation.

The situation. Craig* and his wife are French tax residents with €790,000 in savings across a local bank account, Livret A (€22,000 each) and a Livret Bleu (€10,000). Planning a property purchase, they want to grow their money risk-free while maintaining liquidity.

Money masterplan. We developed a secure three-point solution:

1. Fill up on restricted savings (€88,500): Retain €44,000 in Livret A (maximum allowed); add €24,000 to Livret de Développement Durable et Solidaire (LDDS); and deposit €20,000 (€10,000 each) in Livret d’Épargne Populaire (LEP).
2. Leverage assurance vie (€500,000): €250,000 in money market funds for tax-efficient growth with accessibility, plus €250,000 in “fonds euros” with a 3.5% net return and 100% capital security.
3. Ensure flexible saving (€200,000): €200,000 in online bank savings accounts yielding 3.5% net returns, ensuring liquidity for potential reallocation.

Key takeaway. For British expats in France, combining assurance vie policies with strategic use of French savings products provides secure growth, reduced taxes and liquidity for future needs like property purchases. 

*Names and identifying details have been changed to protect privacy.