1Wk·

Call money

Hello everyone, I have a question.

I save 500 daily allowance every month for house renovation.

But as interest rates are constantly falling, I'm looking for alternatives but can't make up my mind.

Should I $MUV2 (+1.65%) or $HNR1 (+1.44%) take a bond.

Or would I prefer an etf or bonds?

Thanks in advance

22 Comments

Pascal@Finanzios

1Wk

Since your money should be invested safely, as you need your money relatively quickly, I would continue to rely on overnight money.

Please only invest money that you don't need for the time being. 👍😊

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Sebi@Seebi

1Wk

@Finanzios exactly, and now wait until trump has calmed down anyway

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Pili@market_genius_559

1Wk

@Finanzios ok would only need it in 3 - 4 years

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Pascal@Finanzios

1Wk

@market_genius_559 but then shares still make no sense. Imagine that just before you need it, the market crashes and you lose your profits and even more money. Then you're left with far too little money.

Do it safely on overnight money, fixed-term deposits or ETFs that invest in bonds. @Epi knows a lot about this. 👍😊

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John@Transporter

1Wk

$XEON

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Oleg@ScorpionfromBW

1Wk

@Transporter is the same as overnight money, except for special assets

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Ikey@Ikigai

1Wk

@ScorpionfromBW with the best possible interest rate based on the €STR + 0.85!

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Oleg@ScorpionfromBW

1Wk

@Ikigai hmm, 8.5 basis points is not 0.85% for me, but 0.085%

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Ikey@Ikigai

1Wk

@ScorpionfromBW Correct. But it doesn't matter, what I wanted to get at is that you directly take the prime rate minus 0.1% TER and don't have to pay discounts to the bank for call money accounts. It also makes a difference whether it is a special asset or not. :)

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Oleg@ScorpionfromBW

1Wk

@Ikigai well, but basically it's the same as I wrote at the top anyway. Special assets. The interest rate is the same, for the 0.085% more you pay 0.1% TER

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Stuttgarter81@Moneymoney

1Wk

So if this is a serious question, then you should really take another look at the subject of financial investments before you invest another euro! ...Munich Re fell by more than 80 percent in 2001 - really not a comparable investment to call money. The only alternative to call money is short-term euro bonds with good credit ratings.

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Heiko@Schalk77

1Wk

I have both. Both are doing very well, with the first up 6% and the second up 2.7%. The tendency is towards the first.
Lg.

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CenkAltun@CenkAltun

1Wk

Hi Pili,
I don't know when you need the money, but for me the point that I probably need the money in the near future (6-18 months) would be reason enough not to invest it, because of the risk of loss... BUT, if you still say I want to do it so that it multiplies you could put it in a high yield etf like: Global X NASDAQ 100 covered call (IE00BM8R0J59) has at least currently a div yield of 12% and pays out monthly or global Equity premium income (IE0003UVYC20) approx. 7% also monthly div.
This would allow you to cash flow faster and increase the money if necessary.

All of course at your own risk and NO INVESTMENT ADVICE and so on.

I hope I was able to help you a little ✌🏼

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Norman R.@Heisenberg2107

1Wk

Bondorra or Moneyfit

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HyFive@HyFive

1Wk

@Heisenberg2107 rather Bondora for fast availability. Seconds fast transfer there and back. Daily distribution at 6% p.a. But no recommendation! Because I would never go this route under the circumstances.

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Norman R.@Heisenberg2107

1Wk

I have no problems with either of them money is always there within 3 hours moneyfit even 8% and also daily payout

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Dussel D.@DusselDuck

1Wk

I would definitely recommend (also from my own negative experience) that you continue to rely on call money!

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Pili@market_genius_559

1Wk

@DusselDuck in 3 or 4 years

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Pedi@Pedi

1Wk

It should still be considered short. The problem with short-term investments is that if the market has bad months/years, you CANNOT "buy&hold". You can't wait until it's better and then sell if necessary. The problem is that if you need the money and everything is down in that period, you would have to close with little profit or even losses and you can't just sit it out. If you are aware of this risk, keep it simple with $VWCE or $ACWI or a similar world ETF

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TotallyLost@TotallyLost

1Wk

When do you need the money?

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Pili@market_genius_559

1Wk

@TotallyLost in 3 or 4 years

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TotallyLost@TotallyLost

1Wk

@market_genius_559 Then take a look at iBonds.
$IBE7 These are bond ETFs with a fixed end date, so you have no interest rate risk if you hold until the end.

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