When it comes to alternatives to life insurance, it must be made clear that this refers to the accumulation of assets. In many life situations, the death benefit of term life insurance
is the most sensible option for providing financial security for surviving dependents. However, due to the current low interest rates, endowment life insurance is no longer recommended and there are more sensible concepts for asset accumulation.
The most frequently used private pension insurance in the past was the Riester and Rürup models (basic pension). They offer tax advantages with which the state supports private pension provision. When choosing the appropriate model, it depends above all on your professional status: Are you an employee or self-employed? This determines the amount or possibility of the subsidy.
Depending on the investor's risk behavior, Riester and Rürup contracts can be concluded as unit-linked variants / unit-linked policies. This allows the investor to benefit from gains on the stock market.
A company pension scheme (bAV = betriebliche Altersvorsorge in German) is defined in Germany as the building up of a supplementary pension through the employer from contributions of the employer, the employee, or both combined.
Since 2021, employers have been required to offer all employees the option of a company pension plan. If the employee uses this option, the employer must pay at least 15% of the savings contribution. For employees, the company pension scheme is the most sensible model of state-subsidized retirement provision.
Buying real estate has always been an investment option. Before investing, the current interest rate environment and the real estate market should be considered. Especially for this long-term investment, which requires a high monetary investment and financing
by a bank, experience and knowledge of the region is important.
An investment property in the wrong place can quickly lose value, but in the right region it can increase immensely in value. For investors, properties with tax advantages are particularly interesting, such as listed properties or investments in redevelopment areas.
Investing money on the capital market is an important asset class for asset accumulation today. The market offers almost endless possibilities and through numerous online brokers such as TradeRepublic, Scalable and Co. access to a securities account is very easy.
When investing in the stock market, you should distinguish between shares, ETFs and funds. The purchase of individual shares represents the highest risk, as you always have a complete risk of default here. ETFs and funds, on the other hand, are more broadly diversified. At CRCIE, we only offer investment in ETFs or funds and select them based on your long-term investment strategy.