Are you wondering which investment is worthwhile at the moment? You are not alone with your thoughts, because this question is quite justified. There is hardly any interest on most safe investments at the moment. Price increases are eating away at your savings, and stocks and funds are subject to risky price fluctuations. You have to weigh up between security and a good return.
Fixed-term deposits, overnight money and the like are still among the safest investments. The good old savings book also falls into this category. You don't have to worry about your money disappearing overnight. However, the deposited amount loses more and more purchasing power in the course of inflation. The devaluation of money is gradual.
Even though interest rates have recently started to rise again slightly, they only partially cushion the losses caused by inflation. The safest investment is therefore not necessarily the most lucrative. You can often achieve a good return with other forms of investment.
Which investment is the right one depends on your plans. Do you want to achieve a good return on your investment or just keep your money safe? The safest investment is still the bank account. The deposited amount will not be reduced and ideally you will receive interest.
However, there are also banks that charge custody fees and thus reduce deposits. In this context, there is often talk of so-called minus interest. The Product test foundation therefore offers a current account comparison that provides information on the respective conditions.
If your goal is to see your money grow over time, it's best to look for an alternative. Stock funds carry risk, but statistically yield higher returns if you hold them over a period of years. If you're unlucky, a lot of money is lost.
For many investors, security comes first. That makes sense, because if you put all your eggs in one basket and speculate with large amounts, you run the risk of losing everything. That's why it's best to always invest a large part of your money safely, even if the return is lower. But what is a safe investment anyway? Clearly: time deposits and safekeeping in a bank account.
Financial experts recommend spreading your money widely. This means that you keep part of it safe in your account and invest another part in funds, shares or precious metals. In this way, you benefit from safe investments and at the same time take advantage of the opportunity to make substantial profits. If prices fall and your shares go bust, you still have your savings account as collateral.
Secure investments give you the opportunity to save enough money to buy a property for your own use, for example, or to purchase that long-awaited car. When the going gets tough, you use the money you put aside to cover your living expenses.
In today's world, more and more people are concerned about their livelihood. Many savers also focus on financial support for their children and grandchildren. In short, secure financial investments are like a hammock that catches you and your loved ones in an emergency.
Who Money worries is of course rarely in a position to invest money. Nevertheless, it can be very worthwhile to accumulate at least small amounts. Just a few euros a month can often go a long way. This gives you a good feeling and over the years you will accumulate an attractive sum.
Your bank offers you the safest investments. Savings accounts, call money, time deposits, savings bonds and fixed-interest securities are safe investments. The advantage of a savings book and a call money account is that you can access your money at any time. With a savings account, the withdrawal amount is usually limited to 2000 euros per month. With a call money account, you have access to the entire balance. The interest rates are variable and usually higher than with a savings account.
In a fixed-term deposit account, you invest an amount of money for a specific period of time. You are bound to specific terms and periods of notice. Savings bonds are similar to time deposits. However, they usually have a term of several years and end automatically without prior notice.
Fixed-income securities, such as mortgage bonds, bonds and debentures, also usually have a term of several years. You receive a fixed interest rate and are repaid 100 percent of the nominal value when you return the bond at the end of its term.
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Safe investments offer relatively low returns. In return, you get the assurance that your investment will not be affected by price fluctuations. A short time ago, interest rates were close to zero. Nowadays, there are more attractive conditions, especially for first-time investors, but they are nowhere near the interest rate levels that were common a few decades ago. You can expect interest rates of around 0.5 to a maximum of 2 percent.
That depends on your financial situation. The more money you have available, the more you can invest in safe investments or speculate with riskier forms of investment. A golden merchant's rule from the 19th century says that you should invest one third in real estate, one third in cash and one third in gold. Indeed, many people rely on precious metals such as gold and silver in difficult times like these. However, this form of investment is also subject to price fluctuations.
In general, safe investments should not be missing from your portfolio. If you are smart, you will invest about half of your money safely. If your financial situation is rather lukewarm, then safe investments are even more important for you. In this case, you cannot afford a high risk.
If you bet on the wrong investment, you run the risk of losing most or all of your money. Stocks are affected by price fluctuations, but so are investment or real estate funds and precious metals.
If you invest in a company that slides into insolvency, your investments are often lost as well. This is the case with shares if the public limited company falls too deeply into the red.
If you put all your savings into one type of investment, you risk a total loss or minimize your chances of making a profit. Therefore, diversify your money and spread it over different investments with different maturities.
If you choose a safe investment with too long a term, you may find that urgently needed money is not available. It is then virtually frozen and you cannot access your finances.
Only invest as much as you can really invest and always keep one to two months' salary aside as security. A realistic assessment of your financial situation is especially important when investing in risky forms of investment.
The bank pays the so-called final withholding tax on interest income to the tax office. However, there is a lump sum for savers, which amounts to 801 euros per person. Up to this maximum limit, your interest income is tax-free. However, you must submit an exemption order for investment income to the bank.
There are some tips that will help you in safe investing. These are:
Choose your form of investment carefully and always pay attention to security. But also keep an eye on the return and weigh up how much risk you can take. In this context, we would like to remind you once again of the free masterclass from Greator to the heart. You will get valuable tips for your safe investment.
