Berlin – With daily and fixed-term funds as well as index funds, investors can make profits without being market experts. But the most important rule for investing money is: Protect your everyday life, then invest.
Securing goes before investing
The most important rule: “Securing goes before investing”, explains Hermann-Josef Tenhagen, editor-in-chief of the magazine “Finanztest”. Before a customer decides to invest money, he must first ensure that he has enough funds to be able to finance repairs to the car or a new washing machine. At least two net monthly salaries should be paid by investors on a call money account in order to cover themselves for emergencies. “At a good provider, they currently receive two to three percent interest.” Second, a consumer must make sure that he can pay for his insurance. If this question is also settled, “they can think about putting it on.”
Split money into multiple offers
If a sum is available for a fairly short period of time, say five years, a fixed-term deposit is the simplest option, says Tenhagen. Up to four percent interest can be achieved here if you invest your money for up to four years, he estimates. Can investors take more time, about ten to fifteen years, is more possible. “This raises the question, how much risk do you want to accept?” explains Tenhagen. For example, if an interested party has 10,000 euros at his disposal and at the end wants to get at least the money he has invested, it is advisable to split it up into several offers.
For example: He puts 2000 euros on a savings account, which he can access at any time and creates 5000 as a time deposit. He could invest the remaining 3,000 euros in so-called index funds, also called exchange-traded funds. Index funds replicate an index such as the German stock index as closely as possible. Even if an investor incurs losses on the equity funds, he can compensate them by the guaranteed interest on the time deposit and the savings account, Tenhagen says.
Keep an eye on costs
With such a business, however, the effort increases. It is important, for example, to ask about the costs. Administrative costs, transaction costs, acquisition costs – all this can be considered. Not always an expensive offer is however bad, a consultation – and thus an increasing expenditure – necessarily to be recommended.
Annabel Oelmann from the consumer center North Rhine-Westphalia in Dusseldorf recommends a similar approach. At certain points in his life, it makes sense to think about his finances, such as when he starts his first job, before a wedding or when children are planned. “It is important to seek independent advice,” emphasizes Oelmann. “With every cell phone contract, the German takes a lot of time, which should also apply to facilities.”
“Stay away from stocks, if you have little idea”
Like Tenhagen, Oelmann sees opportunities in investments of up to five years, especially in overnight money or short-term time deposits. “However, interest rates are currently low, so the consumer should not commit for more than one to three years – anything else is currently not worth it,” says Oelmann. For investments of more than ten years duration, she also sees the opportunity in a diversification on different options. But you have to be honest with yourself: “Even an index fund can mean too much stress for a person with a low risk appetite.”
“Stay away from stocks, if you have little idea,” advises Silke Wolf, Managing Director of the Bavarian Banks Association in Munich. Any form of stock was only for people who could bear losses on the one hand, on the other hand, wanted to deal more intensively with the matter. “If you have little time and little idea, you should focus on a fixed rate product,” says Wolf. The contracts can be concluded by the customer over the Internet or the telephone and thus have little effort.
The “good old German savings account” is better for doubt-conscious customers than securities, if only because here the deposit insurance. Shares are not protected by the deposit insurance. Of course, deposits, savings accounts and savings accounts would have a disadvantage: the return is low.