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Expat Investor : August 2009
NEWS ROUND-UP Offshore fund supermarket opens savings. Internaxx estimates that an investor making an average of five investment fund trades per year with an average of €10,000 will save more than €1,000 per year. Internaxx is also guaranteeing no redemption fees (for commissions held more than one year) or trading commissions. Internaxx points out that ‘no Expat investors can now benefit from Internaxx’s latest offering in the offshore investment fund markets – namely a scrapping of entry fees and an open architecture fund supermarket. This Luxembourg-based online, offshore bank, which specialises in offshore access to international markets and is a subsidiary of Aaa TDBank, says it has designed the offer in response to investors looking for new homes for money previously held in equities, hedge funds, cash or savings accounts. The claim is that investors with significant funds in search of dividends can make substantial entry-fee’ promotions have been offered by local brokers on traditional, limited investment fund ranges. Offshore, high fees and limited fund ranges are the norm, with traditional private banks charging up to 5% entry fees for access to a limited range of in-house offshore funds. This is the first time no fees have been applied to international offshore funds, on a permanent basis, claims Internaxx. Managing Director Robert Recession erodes family inheritances Glaesener, says, “All Internaxx clients get maximum exposure at minimum cost. “Our active investors are perfectly at home in volatile markets, but for our conservative investors who take a long term approach, we have expanded our range of online banking with discounted access to top global investment funds, among which fixed income and money market segments are proving increasingly popular. “This is the next generation of fund supermarkets. This new service is the right product for today’s market.” Investors can choose from more than 400 funds from 18 leading fund groups such as HSBC, Henderson, ING, Morgan Stanley and Fidelity, catering for all investment tastes from money markets to real estate. not even considered yet how they will fund their retirement. With fewer than four out of 10 adults (38%) having spoken to their families to see if an significant inheritance is on the cards, this lack of communication could lead to a shortfall between inheritance expectations and realities. If an inheritance wasn't received, nearly four out of 10 (37%) adults would feel negatively about this, with men significantly more so than women. Despite these negative feelings, nearly half of adults (49%) believe people should spend their money enjoying themselves rather than worrying about providing an inheritance. The research also identified the rise of the‘retired relatives’ with increased longevity meaning many families have two generations of retirees. The research showed that 20% of people aged 66 plus also have parents who are still living. Had they hoped an inheritance would fund their retirement, with their parents still alive and spending, they could be in for a financial shock. Martin Palmer, Head of Corporate Pensions Marketing, says, “Whether people realise it or not, the concept of inheritance is changing. People may still hope that an inheritance will fund their retirement years but our research shows this can no longer be relied upon. And with more than half of Britons admitting to not saving enough for their retirement, their future comfort is in jeopardy. “With an over reliance on Nearly one in three British adults is banking on an inheritance to help fund their retirement, despite many having never even discussed the issue of inheritance with their parents, according to new research released today. And if the economic turmoil continues the inheritance could be 10 EXPAT INVESTOR ? significantly lower than expected for many. The findings by Friends Provident reveal that despite expecting to be left an average inheritance of £64,000, 44% of adults are not concerned about the recession affecting their inheritance pot and retirement savings. July/August 2009 But independent figures show average house prices have dropped by £42,500 since August 2007 – which would impact on the 61% of Britons who think of property as inheritance. In addition, despite high expectations when it comes to predicted inheritance amounts, only expatinvestor.com 14% of adults have actually discussed their inheritance with their families and are clear about how much they’ll be receiving. Of the 31% of Britons relying on an inheritance to help fund their retirement, more than a third of them (36%) expect it to fund 50% or more. And 15% of all adults have property, the credit crunch has wiped thousands of pounds off the value of imminent inheritances, and a lack of communication within families around inheritance could also cause a reality or expectation gap. “In the current climate, it is more critical than ever for people to review their pension savings and be realistic about what finance will be required to fund their retirement. We are urging families to plan for their financial futures now.”
May June 2009
September October 2009