In order to oppose the impending poverty of old age, only one thing helps: provision, and privately! If you are currently dealing with retirement provision, you will always come across ETFs.
But what exactly are ETFs and how can I use it for my age? We clarify the most important questions about the topic.
ETF: Simply explained
At aExchange Traded Fund, kurz ETF, it is a passively managed fund that reproduces a certain stock index, such as the DAX. Passively managed means in the case that itthere is no fund managerthat selects the shares and intervenes in the event of possible losses. Instead, the ETF behaves like the index that it reproduces. Therefore, the ETF is affected by the same price fluctuations.
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As an ETF investor, you not only invest in a single security, but in a whole series of securities. The easiest way to use the example ofMSCI World Indexexplain. ThisIndex offers a particularly wide scatterbecause there are over 1,500 companies.
However, the companies are not immediately distributed. In the MSCI World, for example, Apple and Microsoft, together with almost 10 %, make up the largest share. If these companies get into a crisis, this would also have a negative impact on the ETF.
Nevertheless: The average return of an ETF has been 9 %since 1975.
Before you invest in an ETF, you should always be aware that there can be losses here, depending on the market situation. In an economically difficult phase, it is therefore not worth selling your ETF because you have to expect losses. Therefore, you should be sure that you can sit out of weak phases or even crises because they can extend over several years.
However, the risk of ETFs can be assessed as low overall because it is not an actively managed fund.Another advantage: ETFs are inexpensive and the running costs are low. You can invest in an ETF as a one -off system or set up a savings plan.
But what makes sense in relation to private pension? Should I invest in ETFs or is that too risky?
Retirement provision and ETFs
The concern of poverty in old age is great and unfortunately justified. The average pension of the Germans is 1,543 euros a month after at least 45 years of insurance. Women in particular threatens to live in the subsistence level in old age. According to a current oneYouGov study on behalf of AxaToday 63 % of women are more afraid of the topic of old -age provision than before. 47 % of women and 37 % of men state that they are currently putting the topic of pension provision on the long bank, even though they know about importance.
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In order to secure yourself for the future, you should therefore start early enough to make privately. But many find it difficult to do with it. No wonder, because there are many different forms of old -age provision. One of these forms is an ETF savings plan. This makes you flexible and there are only low costs. You can find out how exactly an ETF savings plan works, what you should consider and what you should start first here.
ETF savings plan: What do I start?
A cost-effective and flexible ETF savings plan makes the most sense for old-age provision. Here you save in your ETF similar to a savings book every month. To start with your retirement provision, you only need a depot. This is free of charge with many providers. For example with theINGor with theConsorsbank.
If you have chosen a depot, it is time to think about the monthly savings rate.
How much should I save every month for pension with my ETF?
How much money you invest in your ETF every month primarily depends on how high your pension gap is and to what extent you want to fill this gap. It is also crucial how much you can invest at all. It is best to use both points and decide on this for a savings amount. However, since you can adapt it to this every month anyway, you will stay flexible.
With the help of a household book (there is here at Amazon)* you have a better overview of your income and expenses. This means that you can also calculate how much money you can deduct every month. But don't think too long. Because you should start saving as early as possible to benefit from the compound interest effect as early as possible.
Make adjustments shortly before the pension
Shortly before you reach your retirement age, you should consider how much you want to have the money paid out of your ETF monthly. To do this, create a payment plan in which you stipulate how much money you need every month next to the statutory pension.
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You should also put a certain amount on a call money account so that you can get your money at any time. So you can also plan the time when you take your money out of the ETF. In addition, depending on how high the price fluctuations are at this point, you can also adapt the amount. The rest of the money can then remain in your ETF and work for you.
Savings plan, pension scheme, stock investments-dare to dare and actively deal with your finances. Read up and get advice. So you get the best out of what you have. Your financial freedom is in your hand.
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