It's never too late 😜

After successfully changing jobs last year, I unfortunately cannot continue my company pension plan with my new employer and have shut it down.

At the new employer, there's the classic VL.

But the simply sink in the Bausparer very I currently no added value for me, which is why I have opted for Oskar VL save.

Thanks to the community I became aware of this type in the first place. Thanks goes out to @Koenigmidas for his post I think over a year ago.

So fix opened an account 😁 that's really fast.

Then off with the certificate to the payroll office so they know where to put all the money (irony 😂, but more like nothing so of course we do not want to complain). Incredulous looks 👀, Oskar? What is this? We have never had here (about 400 employees and all have that on the Bausparer 😜).

It's been running since this week. First receipt of money and today the first statements found in the app and of course immediately entered here🚀.

So the accumulation from Etfs will be fed by AG in the future. Well, I like that🚀.

#oskar
#vl

These are the ETFs that Oskar has now invested/selected ⏬.

Future Financing Act - The first sensible traffic light law to (significantly) improve capital-forming benefits?

With regard to the traffic light government and the Future Financing Act, one could probably aptly say: Even a blind, deaf and leg-amputated chicken sometimes finds a grain of corn.

I would like to focus on one (very positive) point of the bill in particular: Namely, the Amendment to the Fifth Capital Formation Act

Sounds boring? It usually is. The law forms the basis for capital-forming benefits.

Previously, you could invest 40 euros per month in capital-forming benefits. Up to the income limit of 17,900 euros per year, you were then also entitled to the so-called employee savings allowance.

If you invested in a securities savings plan, you could receive another 80 euros from the state (I'm leaving out other investment options such as a building society savings contract, as these are not to be changed by the law).

Calculation example (income under 17,900 euros):

• 40 Euro VL per month
• Investment in a fund or ETF (assumed return 7%)
• After 7 years employee savings allowance of 80 Euro per year
• Saved value: ~4,311 Euro plus 560 Euro employee savings allowance results in ~4,871 euros
• This would correspond to a return of ~10,4%

Calculation example (income over 17,900 euros):

• 40 Euro VL per month
• Investment in a fund or ETF (assumed return 7%)
• After 7 years employee savings allowance of 80 Euro per month
• Saved value: ~4,311 euros

What changes should the law bring?

• The income limit of 17,900 euros is to be completely eliminated - everyone is therefore entitled to the employee savings allowance.
• In addition, the limit of 400 euros will be increased to 1,200 euros per year.
• This will also significantly increase the maximum employee savings allowance. Namely from 80 euros to 240 euros per year
• Important: The regulations are to apply only to investment savings, not to building society savings contracts, bank savings plans,... - The aim is to promote share ownership

Calculation example from 2024:

• 100 euros VL per month
• Investment in a fund or ETF (assumed return 7%)
• After 7 years, employee savings allowance of 240 euros per year
• Saved value: ~10,779 Euro plus 1,680 Euro employee savings allowance results in ~12,459 Euro
• This would correspond to a return of ~11%

So if you continue to receive 40 euros from your employer, you would have to add 60 euros out of your own pocket. After 7 years, this would correspond to a personal investment of 5,040 euros.

In relation to the "own contribution", this would correspond to a return of over 25% p.a. correspond!

Of course, the law still has to be passed (probably in the 4th quarter of 2023) and there may well be changes.

Nevertheless, in my eyes this would be an extremely good start to promote the share culture by law.

A tax-free investment portfolio for retirement provision (as in many other countries) would also be much better for me, but I think this is a better or easier way to bring a large part of the population along.

What do you think of this proposal? And how have you been using your capital-forming benefits so far?

In my case, the VL are invested in an MSCI World. Unfortunately, I don't receive any subsidies, so I would be extremely happy if I could achieve a significantly higher return from 2024 onwards.

Source: https://www.bundesfinanzministerium.de/Content/DE/Gesetzestexte/Gesetze_Gesetzesvorhaben/Abteilungen/Abteilung_VII/20_Legislaturperiode/2023-04-12-ZuFinG/1-Referentenentwurf.pdf?__blob=publicationFile&v=2

#etfs
#aktien
#altersvorsorge
#vl
#vermögen

Capital-forming benefits

Good morning everyone,

most of us probably get "Vermögenswirksame Leistungen" from our employer. In which amount (mostly up to 40 €, everything else would be voluntary) remains to be seen.

Question to all of you. If you get any, how did you invest them?

Feel free to comment with

☠️ for "life insurance product",

🏠 for "home savings loan",

🚀 for "securities account / stock exchange (shares / ETFs)",

🤷‍♀️🤷‍♂️ for "no idea" and

🥶 for "not at all / don't get any".

I have been investing my VLs in the stock market for about 9 years now. I use the very good depot of "ebase" for this. I'm quite satisfied and the costs are within reasonable limits.

Which VL-Depot do you use or do you know?

I would simply like to sensitize again to invest this gift money, even if it is "small amounts", sensibly. I know so many people who do NOT do this, even from my work circle (industry: financial services...; no comment!).

Topic "Employee savings allowance"I leave now times away. But if interesting and especially "achievable", absolutely still take!

Glad about your feedback, maybe you have other great ideas, tips and tricks on this subject.

#finanzen
#sparen
#vl
#boerse
#aktien
#etf
#vermögen
#investieren
#passiveseinkommen
#geldanlage
#depot

The definition of insanity is doing the same thing over and over again and expecting different results

The Future Financing Act was passed yesterday, and to paraphrase Einstein: Insanity is having the hope again and again that the traffic lights will get something positive off the ground after all.

The law was passed by the cabinet, but unfortunately the very positive change in relation to the capital-forming benefits (higher preferential contributions, no salary limit in relation to the employee savings allowance) is no longer a component.

This means that everything remains the same, both in terms of the VL and the extremely poor performance of the traffic light government.

This is a great pity, as it could really have been a sensible way to (simply) strengthen the equity culture.

Next year, the reform of private pensions is on the agenda - but here, too, I no longer have particularly high hopes.

#vl
#etf
#altersvorsorge
#vermögen