7Mon
Great contribution. I'm also wondering whether I should pause my current contract (not a fee-based plan) or let it continue. I've already paid in for 15 years and still have 20 to go.
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7Mon
@Epi Repurchase 21619
Guaranteed capital 63313
Where can I find the costs?
Guaranteed capital 63313
Where can I find the costs?
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7Mon
@Noobster Yes, the costs. Have fun searching. If you don't find them immediately transparent, they should be 3-4%pa 😅.
Otherwise, the decision is yours: Let it continue or cash it out and invest at the market yield.
If a buy-back is still possible at all (not really possible with a company pension scheme, only if the amount is lower), you will have to deduct 30-40% from the buy-back value, as you will have to give back the social security contributions you have saved. With the net capital, you should no longer reach the guaranteed capital via the market return. So it's better to let things run their course.
Take another look at what this guaranteed capital means for you in the end. So what is the de facto additional pension that you will receive? And then compare that with a dividend or bond ETF.
There may be only one option left: you could try to improve the conditions within the insurance, e.g. reduce the guaranteed capital to the minimum (I think around 20%) and let the rest run dynamically. Because it is mainly this guarantee that is so expensive. The insurance company has to generate the guaranteed return with bonds and forward transactions, and then it is usually as expensive as the return itself, i.e. the 3%pa.
Otherwise, the decision is yours: Let it continue or cash it out and invest at the market yield.
If a buy-back is still possible at all (not really possible with a company pension scheme, only if the amount is lower), you will have to deduct 30-40% from the buy-back value, as you will have to give back the social security contributions you have saved. With the net capital, you should no longer reach the guaranteed capital via the market return. So it's better to let things run their course.
Take another look at what this guaranteed capital means for you in the end. So what is the de facto additional pension that you will receive? And then compare that with a dividend or bond ETF.
There may be only one option left: you could try to improve the conditions within the insurance, e.g. reduce the guaranteed capital to the minimum (I think around 20%) and let the rest run dynamically. Because it is mainly this guarantee that is so expensive. The insurance company has to generate the guaranteed return with bonds and forward transactions, and then it is usually as expensive as the return itself, i.e. the 3%pa.
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•7Mon
Hey thank you very much!
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