A person just starting their career should study the different investment strategies thoroughly. After all, someone starting out has more time when, for example, weak market periods need to be ridden out. It is also important to ignore traditional products, such as the Sparbuch – anyone who wants to grow their money should invest in stocks, for example via CMC Markets, invest.
Always remember to plan for your retirement!
Even though it may still take decades before one finally reaches retirement age, it is nevertheless important to make provisions for the time after working life already at the beginning of one's career. The extremely long savings period and the compound interest effect sind excellent conditions, so that an attractive sum can be accumulated with very low monthly contributions. Recommended here are, for example, state-supported options such as the Rürup or Riester pension schemes or company pension plans. But of course it is also important to take care of the lower building blocks of the investment strategy. This includes, for example, the liquidity reserve, which can be kept in a savings account or a fixed-term deposit. Anyone who would like to own a home one day would not be wrong to choose a Bausparvertrag (home-saving contract), which can also be easily used as a form of savings.
70 percent may be invested in equity funds or bonds.
Because someone just starting their career still has many working years ahead in which they can set money aside, their investment strategy looks different from that of a 40- or 50-year-old, who may already have to invest large sums in safe products to achieve an attractive return. Thus it is no problem for the career starter to put around 70 percent of their savings into equity funds, bonds, or certificates. About 20 percent should flow into company pension schemes (betriebliche Altersvorsorge) or the Riester-Rente, and 10 percent into a Bausparvertrag. Even when planning for the future, the liquidity reserve must not be overlooked — the rule of thumb is that at least three net salaries should be available as a buffer. Someone earning €25,000 net per year should therefore have at least €5,500 stored in a Tagesgeldkonto. It is important in this case, however, to also take one’s personal situation into account — for example, someone who does not own a car does not need large reserves for repairs, but should simply ensure they have enough money set aside in case defective appliances need to be replaced. Caution is advised with Festgeldkonten: although banks offer better interest rates here than for a Tagesgeldkonto, the money is “locked” — that is, even if €5,500 is available in theory, it is only theoretical because it is practically used by the bank. Anyone who nevertheless speculates with a Festgeldkonto should therefore be sure in advance that they will not need the money for the chosen period or opt for a relatively short term, i.e. three or six months.
Pay attention to government grants and premiums
Initially, it's about taking out a Bausparvertrag and the Riester-Rente so that government premiums and subsidies can be used as effectively as possible. If there is money left, it should be invested in a broadly diversified equity fund, in bonds, or in certificates.
