How tradespeople can financially prepare for old age

Business leaders who plan their retirement early are acting wisely – not only in their own interest, but also in the interest of their descendants. An expert explains what they can do.

Early enough about his retirement Thinking about and planning for the future is not only in the interest of the business owner, but also of their family. If children later have to assume financial obligations towards their parents, it helps if they have made arrangements for their retirement in good time. This can significantly reduce potential burdens.

Planning in several steps

A well-thought-out retirement plan begins with an honest one. inventoryThis includes all previous entitlements from statutory and occupational pension insurance schemes as well as accumulated savings. credit from older life or pension insurance policies. Annual Inventory notifications The providers offer initial guidance, which should be supplemented by realistic forecasts. Conservative assumptions are crucial, rather than "overly optimistic" calculations, to avoid later corrections and costly refinancing.

Non-personal or anonymized information remains protected by tax secrecy. Disclosure to third parties is only allowed if no identification is possible and both states confirm that no harm to tax administration will occur. Real Estate Whether owner-occupied or rented out, properties are part of a sound retirement plan. Ideally, they should be debt-free by retirement. This is further enhanced by the potential proceeds from a later sale. Factory sale. Equally important is a sufficient Liquidity reserve, For example, to finance renovations without a bank loan.

However, many business owners do not have debt-free real estate or sufficient reserves because they regularly invest available capital back into the business. In such cases, additional private pension indispensable.

The personal risk profile 

Professional retirement planning requires one's own To realistically assess the risk profile, who shares and Funds Anyone who is skeptical should reconsider their stance. Without higher-yielding investments, long-term wealth accumulation remains difficult to achieve. This doesn't mean that speculation has to be the focus. Rather, it's about establishing an individual, adjustable equity allocation that takes the need for security into account. Furthermore, investors should define their investment goals and Performance regularly . Ideally, this should be done two to three times a year. Tax advisors, your bank, or other financial partners can help with this, ideally providing an objective assessment.

The "magic" of investing

The ""Magic Triangle" Investment remains central: Security, return and Availability These two factors are in direct tension. High returns almost always come at the expense of security, while short-term availability usually means lower returns. Entrepreneurs who understand these relationships create the foundation for sound investment decisions.

Invest sustainably

Sustainable investing is gaining importance, but is still fraught with uncertainties. Several factors play a role in this. Environmental, social and corporate aspects (ESG criteria) play a central role – for example, climate protection, fair working conditions, and responsible corporate governance. Those who share these values ​​can... sustainable funds or bonds Invest and combine returns with social benefit. However, each provider may interpret sustainability differently. Ask specifically whether their Criteria to align with your beliefs. Your bank can help you define your sustainability preferences and identify suitable investment options.

Checklist for your planning

• Clearly define the level of speculation you are willing to accept. 
  
  
• Determine your investment horizon – ideally three to five years for speculative investments. 
  
  
• Request balanced offers, also from your bank's competitors. 
  
  
• Clarify all costs associated with buying, selling, managing, and storing your assets. Consider opening an additional online bank account if necessary. 
  
  
• Be aware of the correlation between high returns and increased risk, even with trusted providers.
  
  
• For investment funds, ask the provider to show you the best products of the last five to ten years in the desired category: a valuable guide for your decisions. 

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