From the author:
Find the right investment
You have gained an overview of revenues and expenditure, your financial planning and the iron reserve, or you have made the first steps on this path. So it's time to think about investing.
Before you think about stocks, funds or real estate before you invest, you should understand how our money system works - you become the money-sovereign. Only then can you make a responsible decision for your investment.
Why banks do not help
Unfortunately, banks are not a reliable consultant here, as an economic company is the sale of one's own or for the bank particularly lucrative products in the foreground. Do not worry, you do not have to graduate from business studies, the basics you can acquire, a little time and energy to help you read a guide. I would like to give you a first overview of the various financial investments.
Your short-term capital is best invested in overnight or term money. But better not abroad, where the risks are high and the legal situation is uncertain, as I know from my own painful own experience. Also to concrete gold, so I advise real estate only if they are used by themselves or are profitable in terms of location or price. In both cases, however, the own capital is unfavorably bundled and thus exposed to a "cluster risk".
The most important forms of investment in view
In the following, I would like to give you a brief overview of the various forms of investment, so that you can gain a better understanding of the possible investments and gradually become the money-sovereign.
- Passbook: There are special accounts for these investments. They only allow two types of payment: deposits and withdrawals. The good old Sparbuch, in which the cash deposits are recorded and which the customer takes home, has lost its former function as a safe and profitable investment medium. At the moment, there is only a minimal interest rate on deposits. In many cases there are periods of notice and maximum amounts for availability.
- Daily allowances: Instead, there is the electronic scrapbook, which can also be used as a daily money account. Daily money is money that is spent only for a few days.
- Appointment and time deposit: Term money is created up to a certain, fixed time. Time deposit is another name for term money. All other forms of investment are investments because they involve an entrepreneurial risk.
- investments: Under the heading "Capital investments", a participation in a company, a closed fund or similar is generally understood.
- False bank participations: We already "participate" by opening an account at a bank. With our money we are creditors of the bank. In effect, the private holder of an account at the bank becomes a lawless entrepreneur with high risk.
- Real participations in partnerships and corporations: Real investments are possible in partnerships and corporations. A participation in a company differs from the loan by the entrepreneurial commitment. While you as a lender have only the right to the agreed interest and the repayment of the capital, a participation includes the right to vote or the right to profit or loss participation.
- Loan: Loans are available in any type and form. In legal terms, it is a contract of indebtedness in which the lender grants the borrower money or objects for use for a certain period of time. Customary forms of the loan are physical loans or money loans with the variants of final loans repayed at the end of the term with an amount of annuity loans in which the amount of interest and repayment to be paid annually remains the same because the accrued interest is used for the repayment. In the case of redemption loans, the redemption amount remains constant; interest is calculated from the residual amount. This means a declining amount to be paid, since interest rates are reduced with every repayment rate. Mortgage loans are secured with a real estate right on a property. Mortgage loans
- Certificates: Certificates are debentures, ie loans to the bank. Instead of an interest rate agreement, you close a bet.
- derivatives: Derivatives are highly speculative art products in the form of contracts which derive their economic value from a reference value. This can be securities, raw materials as well as financial art figures.
- Government and corporate bonds: Bonds are interest-bearing securities. The issuer, ie the borrower, obtains foreign capital in order to be able to implement certain projects. Whether old debts are repaid or investments are made or the money is simply spent on working capital loans - these questions usually remain unanswered. Issuers may be states and Company his. If the issuer is a state, it is called government bonds. They have a huge volume and are therefore very liquid. They are rated by rating agencies. Issuers with first-class credit ratings receive the best rating (eg "AAA", the "Triple A" from Standard and Poor's). The better the rating, the lower the interest rate.
- Fixed and floating rate bonds: In the case of fixed-rate bonds, the investor receives a fixed interest rate fixed for the entire maturity. The floating rate bond has a floating interest rate that is linked to a reference interest rate. Investors are offered a broad range of options such as convertible bonds, warrant bonds, inflation-indexed bonds or linkers, zero-coupon bonds, redeemable bonds, annuity bonds, coco bonds (contingent convertible bonds) bonds), currency bonds are available from both states and companies. From high-quality to highly-risk bonds, called high-yield bonds, everything is available.
- State funds: The fund is similar to bonds. They are as numerous as paving stones on the street and in as many forms. Funds are entities that collect, invest and manage capital. State funds hold a global capital of far more than 4 trillions of dollars. Whether wanted or unintended, they influence the financial markets. This fund is not available to private investors.
- Open Funds: Investment funds are a special form of investment with different objectives. They function as large "money-collecting tanks" in which many investors deposit their money to build it together. The "money collecting tank", the investment company bundles the deposits in a special fund, that is, the funds must be strictly separated from the assets of the company. The investor becomes a co-owner of the fund's assets and participates in the performance (both in profit and loss). For his deposits, the investor receives share certificates, which are traded every trading day. Fund managers manage the money and place it according to the fund's orientation. In stocks or bonds. The principle of risk diversification applies, ie the entire fund assets are invested in many individual stocks, shares or bonds. Scattering the money reduces the risk. Diversification is the term for this. Typically, these managed funds, as they are called, incur costs: the front-end load, management fees, custodian bank charges.
- Funds of Funds: Funds of funds do not invest in individual products but in mutual funds. Under their "umbrella", a large number of investment funds are united. For open real estate funds, it is important to note a special feature: Here, the investment company owner of the property and registered as such in the land register. Through this design, the small investor can participate in real estate.
- Closed funds: The investor participates in a company (usually GbR or KG) by acquiring units. The company is planning one or more projects. If the required capital is available (drawn), the issuance of shares is closed (closed). The projects are of various types. The most common are real estate, ships, airplanes, containers, solar systems and also films. The advantages are an above-average and regular return over a long period of time. However, there are some serious drawbacks. As a matter of principle, the investment is subject to an entrepreneurial risk. This can lead to a total loss. As a co-contractor, you are liable.
- Capital Life and Pension Insurance: The life insurance includes two insurance policies: a life insurance policy that is due on the death of the insured person. When the agreed expiry date is reached, the accumulated capital is due for payment. In most cases a disbursement can also be chosen as a pension. She was the German dearest child in the investment, the taxpayer model of the little man. There are still millions of contracts on 90. However, for some time it has lost its importance as a result of the resolved taxation and the low-interest policy, which has positively evaporated the returns on the savings share. That is not enough, the legislator has continually lowered the guarantee rate over the last ten years. The pension insurance does not cover the death penalty. The risk insurance covers only the death of the insured person.
- Precious metals and others: Among the precious metals, gold is the most popular investment. All others follow at a great distance. They have one thing in common: they do not yield any returns. In this respect it is not for me a real investment. Precious metals are mostly acquired by fear and are intended for emergency purposes.
- Property: The biggest dream of Germans is their own home. The overwhelming majority would like to see it, but very few are ambitious about the goal. This desire is difficult to achieve with its own resources alone. A thorough analysis of the financial situation is imperative: what is available in terms of financial resources? Which are realistic expected? Which revenue will be available in the future? Which monthly load is acceptable? With a simple formula, you can calculate the monthly charge: For an annuity of 6% (5% interest, 1% repayment) you divide the amount of the loan amount by 200. As an example we take a loan amount of 300.000 €. Divided by the factor 200 results in a monthly burden of 1.500 €. The factors are 4% 300, 5% 240, 7% 171,43, and 8% 150. With the help of the budget plan, you can quickly find out what kind of burden is more than your previous rent. There are three things to consider when considering a property as a returnable property: location, location, location. That's the winged word in the industry and it's right. Please keep in mind that there may be a risk of lumps here. You will never invest hundreds of thousands of euros in a single other investment, but always divide the amount among several investments.
- Capital formation with the state: The employee savings allowance (ANSpZ) is, as the name suggests, only granted to employees. The state subsidy is intended to promote the accumulation of wealth in the hands of employees. Like all state support measures, it is linked to bureaucratic hurdles. A Housing Premium (WoP) can be used in addition to the capital contributions. The Riester pension is a privately funded and funded by allowances and special deduction pension. Basically, it is designed according to the statutory pension insurance, ie it may only be paid as an annuity. The Rürup or basic pension, as it is rightly called, was introduced to 2005. It is intended for persons who, for lack of compulsory insurance, have not earned a pension in the statutory pension insurance. The difference to the legal insurance is the financing. It is not pay-as-you-go, but financially funded according to actuarial principles. Unlike private pension insurance, a capital payment is not possible.
- Investment income and taxes: What happened in this area in the Federal Republic since the so-called "reform" to the 1. 1. 2009 plays, can confidently be called a perfidy. The capital gains tax is a form of income tax. As a withholding tax, it is withheld from the capital gains and paid to the tax office. With the fundamental taxation of the price gains all stockholders are stamped as speculators. Dividends and price gains now carry a double burden. An example should clarify this. A profit of 100 € is burdened with trade, corporation tax and solidarity surcharge of around 30 per cent. So only 70 € remains for the distribution. This will be subject to 25 percent withholding tax and 5,5 percent solidarity surcharge. Just 51,53 € remain for the shareholder. That's not all, the state continues to enrich the shareholders with the tax traps share split, spin-off and withholding tax.
- Personal Loan: A personal loan is only given on the basis of the creditworthiness of the borrower, ie without additional collateral. If the creditworthiness is insufficient, the guarantee of another person or the transfer of property by way of security may occur. The material loan is secured by assets or property. Short-term loans are the disposition credit, called Dispo, the installment loan and the frame loan. The disposition credit is a credit granted on the current account for processing payment transactions. The installment loan corresponds to the annuity loan.
- Consumer and Investment Loans: There are both personnel and material. Consumption is z. For example, a loan that is taken in the private sector for a vacation trip. In the business area, the working capital loan is comparable, which is not included for any specific investment.
- Leasing: A particular form of financing is leasing. In this case, a lease agreement is concluded, ie an atypical rental agreement. It differs essentially from the rent through the transfer of the maintenance and repair obligation to the lessee.
- guarantees: Bürgen means to be liable for the fault of a third party, if the latter can not fulfill an obligation to his creditor. Should you receive a guarantee, you must expect it to be claimed.
- Liabilities: are colloquially referred to as debts. Liabilities are repayment obligations to a third party. They are the opposite of fortune. Liabilities naturally sounds much nicer than the word debt. It contains the word guilt, implying something unpleasant, something humiliating, because there is a commitment to a third party.
It continues with stocks
With this extremely brief summary you have received a first overview of the capital market. Wait, there's something missing, you mean? Quite right, the topic of stocks.
Price increases do not come by chance. The earned profit is only distributed in part as a dividend (usually it is thirty to forty per cent). The rest remains in the company and thus increases the price. The fluctuations on the stock exchange have no effect on this. They are due to hysteria and speculation. Just let them pass. Do not run after each flow. Fashions and trends are also present in the financial world. Once you have doubled, correct the error immediately. The longer you wait, the more expensive your correction will be.
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