ExcursionGood old money
If you direct a conversation on topics such as money, wealth accumulation, retirement or health plans, one can observe a certain discomfort in people. Who actually enjoys dealing with financial security, health and wealth plans? Especially since a mixture of myths and partial knowledge have probably manifested themselves in rigid beliefs already. Perhaps you will recognize one or two of your own beliefs here on this page? Maybe we can fill one of your knowledge gaps? In any case, we would like to dissipate some of your fear of contact and help you get interested in this topic. Because it is an incredible exciting field of knowledge – and worthwile investing in indeed! We believe that with a little more background, the right partner on your side and some initial success, it is easy to make financial decisions for the future.
Switching to another bank because of an interest difference of 0.2% or 0.1%? Not really the best advice. At times like these, one should really think about whether or not you really need to have access to all of your money at all times. Because if not, one could park it in a long-term investment that is actually profitable! So ask yourself “How much reserves do I really need?” The answer to this will quickly give you a very good idea of how much you should invest. We will do this calculation for you.
Everything was better in the good old days …
As far as interest rates are concerned, this statement is quite correct. In the past, one used to get interest for money he brought to the bank. Today, we even have to pay for this! A saving bank account or time deposits have proven to be out of date. In order to accumulate money, one needs investments whose returns are not fed by interest. These are primarily dividends and price movements like stock shares or share funds. But what about risks and security agreements? We are happy to talk to you about what we’d recommend.
Stock InvestmentIs it worth the hassle?
Many people still shy away from investing in stocks. Although we take this uneasiness serious, we also would like to relieve you from this restraint by means of knowledge transfer. Because if you take a closer look at the topic, you will find out that investing in stocks is not like playing Russian roulette. In the lack of alternatives to the current money destruction that’s happening for instance when putting money in a savings account at the moment, stocks are really an option you should consider. Investing your money in already successful companies and profiting from their economic prosperity is smart. But of course a careful review is worthwhile. For instance consider these facts:
DAX: 8% increase on average per year in the last 50 years – and this despite crises and crashes!
S&P500: Average increase of 10% per year since 1900.
As with everything else, it’s all about making the right choices. For instance, if you invest in companies that produce everyday commodities such as toilet paper, toothpaste or staple foods, products that are not connected to any trend but quite contrary will be needed in all living and economic conditions, it can be assumed, that the demand for such products will always stay more or less the same. As a result, these companies also make profits at times when other markets go down. One common mistake that you should avoid when investing in stocks, is to invest in business models that are beyond your own understanding. Instead: Follow a strategy and only invest in companies and sectors that you are really convinced of.
More Money Myths
If everyone does it, it will be a good choice
In some cases this might be true. On the other hand, it is often worthwhile to act – and especially invest! – anticyclical. For instance, if you buy your mountain bike in an off-season like in the winter time, you will most probably pay less than during spring or summer. Of course, this simple rule of supply and demand also applies to money and/or stock investments. If you merely follow current trends, you are likely to start buying stock shares too late. Namely at a time when you hear everyone talking positively about it and the price has risen to an all time high. Yet if you have patience to wait for things to develop, if you are able to apply more forward-thinking strategies and act accordingly, then you are likely to profit from bigger returns. As our customer you benefit from our know-how and our analysis.