FINGESFinancial basics
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.
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
Sooner or later interest rates will rise again
The only interest rates that are slightly rising at the moment, are construction interest rates. Interest rates have been very low for more than seven years by now. Low interest rates or zero interest rates are not a short-term phenomenon, they will accompany us and probably our children for still quite some time. Rethinking money investments is called for. One needs to adjust his own approach and mindset to the current financial trends. We have gotten used to the fact that life in general has become faster, more and more digital, only when it comes to our attitude to money, we stick to outdated conservative views.
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.
I always listen to my gut feeling
Do that, please!
We firmly believe that it helps to make the right decisions if one is in a relaxed state of mind and is able to follow his intuition. This has proven to be true in many life situations. When it comes to investing money, it is definitely worthwhile to listen to your own gut feelings as well, and only invest in something that you truly feel comfortable with. However, we also believe that one should not be tempted to make decisions with long-lasting consequences based on a temporary feeling of elation. Seek for a second opinion before you invest your money, consult an expert! Just as you should spread your investments, you should spread your responsibilities. Don’t just go it alone, ask for help and advice, make use of other people’s insights and expertise.