A career starter who is just at the beginning of their career should thoroughly familiarize themselves with the different investment strategies. After all, a career starter has more time when, for example, weak stock market periods have 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 think about retirement planning!
Even though it may sometimes still take decades before one finally reaches retirement age, it is nevertheless important that arrangements for the time after working life are made already at the start of one's career. The extremely long savings period and the compound interest effectare excellent conditions, so that with very low monthly contributions an attractive sum can be accumulated. Recommended here are, for example, the state-subsidised options such as the Rürup- or Riester-Rente or the betriebliche Altersvorsorge. 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, for example, be stored in a Tages- oder Festgeldkonto. Anyone who would like to own a home one day will often not be wrong if they decide on a Bausparvertrag, which can also be easily used as a form of savings.
70 percent can be invested in equity funds or bonds
Because a career starter still has many working years ahead in which they can put money aside, their investment strategy looks different from that of a 40- or 50-year-old who may already need to invest large sums in safe products to achieve an attractive return. Thus it is not a problem for the career starter to place around 70 percent of the savings into equity funds, bonds or certificates. Around 20 percent should flow into occupational pension schemes or the Riester pension and 10 percent into a building savings contract. Even when planning for the future, the liquidity reserve must not be overlooked – the rule of thumb is that at least three net monthly salaries should be available as a reserve. Someone receiving a net annual salary of €25,000 should therefore have at least €5,500 held in a savings account. It is also important in this case to consider one’s personal situation – someone who, for example, does not own a car does not need large reserves for repairs, but should only ensure that they have enough money set aside in case defective appliances need to be replaced. Caution is advised with fixed-term deposit accounts: even if banks offer better interest here than for the savings account, the money is locked – that is, even if €5,500 is available, the money exists only in theory because it is practically used by the bank. Anyone who nevertheless speculates with a fixed-term deposit account 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.
Watch for government subsidies and bonuses
At the start it is about taking out a building savings contract and the Riester pension so that state premiums and subsidies can be used as effectively as possible. If money remains available, it should be invested in a broadly diversified equity fund, in bonds or in certificates.
