Invest your money longterm
With inflation at 2,1% (as of December 2018) and interest rates close to zero, your capital will not grow without help. Hoarding cash at home or in a savings account is a waste of potential.
Time for a rethink! As a woman, it’s especially important to to take your financial future into your own hands.
Our advice: Invest your money globally in different investment strategies. These can be shares, bonds, funds or even ETFs. It’s really important that you stick to your investment strategy. Don’t let the media drive you crazy, don’t get jumpy and sell too fast, and above all – don’t be seduced by emotional investment strategies. It is completely normal for the financial market to fluctuate from time to time. Just take a long, deep breath and you’ll more than likely be rewarded with a higher return. Let your money work for you, be patient and trust in your economic decisions. Emotions are not always helpful when it comes to money!
But where should you invest? What are the best markets? We recommend you take a closer look at future-oriented industries. An essential part of this is finding information about relevant companies and industries: Regularly read annual reports, study companies’ market potential and explore their future prospects. Incidentally, global tech and health sectors in emerging markets are still the most popular among fund experts.
Well-managed funds let you as an investor benefit from the opportunities of the equity markets without excessive risk. Plus, as of 2018, tax returns will be more straightforward for many investors, thanks to a change in the system.
A pension is not financial security.
If you think your pension is secure and enough to protect you in old age, you’re sadly mistaken. Currently, pensions are going in one clear direction – downwards. For women, the situation is particularly dramatic. Due to the career constraints imposed by family planning, parental leave and part-time jobs, our pension is considerably lower. According to Spiegel online, women receive an average of 53 percent less per year in pension than men.
So as a woman, you need to start thinking as early as possible about how you want to safeguard and maintain your lifestyle in old age. The state-subsidized “Riester-Rente”, for example, can be a good way to close the pension gap, at least temporarily.
Even better, though, is to create yourself an additional financial cushion, regardless of what the state can provide. For example, a 25-year-old woman who puts aside €100 a month and invests it in diversified stocks, will see returns of around € 111,320 by age 55 – now that’s a promising investment!
It’s worth saving even €50 a month
Saving and investing just €50 with ETFs is well worthwhile. With an ETF savings plan, you can invest in an index and participate in its performance at every market stage. Many banks today already use over 900 ETFs for just a single ETF savings plan.
The important thing about saving is to adjust to your salary and age. For a start, €50 is enough, but as you earn higher and accumulate, think about increasing it to €100 or more.
The team at FinMarie wishes you peace, joy and prosperity throughout the coming year.