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Even more speculative investment options are important for retirement planning. Craftsmen should rethink this.
It's not enough to simply let speculative investments run their course and check their returns once a year. Instead, you should regularly review your total assets, considering the performance, costs, and quality of each investment, as well as the creditworthiness of borrowers.
With the help of your bank, also explore investment funds and stock indices that are expected to appreciate in value in the future . Whether this involves the DAX, which tracks German stocks, or the EuroStoxx , which represents European stocks, is a decision each investor must make individually. Investors with a more international focus will find suitable options in global indices and indices that include stocks from specific regions or countries.
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The Chambers of Skilled Crafts in Germany - HWK Münster
An interesting investment option that allows you to track stock market indices is ETFs (Exchange Traded Funds) , which are funds traded on stock exchanges. They aim to replicate the benchmark index (DAX, EuroStoxx, etc.). The generally low costs are a plus, but you should still be aware of and negotiate them. These costs primarily include buying and selling fees and recurring charges such as management fees.
Here, you can invest in a wide variety of securities with even small amounts . Instead of buying individual shares of well-known companies or bonds from countries with good credit ratings, the decision is left to the fund managers . This is intended to reduce the investor's risk. When choosing funds, you should ensure that they have a proven track record of at least five, ideally ten, years. While this doesn't guarantee future performance, it does indicate a general trend. Furthermore, the costs of each individual fund should be fully disclosed by the provider, usually your bank. Significant reductions are often possible, especially regarding initial sales charges. You should also check the funds' ratings beforehand. For retirement savings, you should only choose top-rated funds.
Those who prefer investment funds with a focus other than stock indices will find many alternatives. Fund managers invest in Commodities, currencies and companies of almost every size and level of popularity, in different countries and continents. open-ended real estate funds Investors' money is invested in buildings, mostly used for commercial purposes. This type of investment fund is particularly suitable for investors who are interested in the tangible value of real estate with relatively small amounts of money.
Michael Vetter is an economic consultant specializing in banking), Photo: © Sergey Nivens/123RF.com
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