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Let's assume you need 21 years for the €400,000 (adjusted for inflation, i.e. today's purchasing power) (€14k starting capital; €700 savings rate, 6% inflation-adjusted return).

Then you will have paid in around €190k and made a profit of €210k. You pay tax on this profit at 26.375% withholding tax -> you then pay €55,300 in taxes. You can then only invest €345,000 in dividend-bearing securities.

In almost all scenarios in which you are not investing for tens of generations after you, it makes more sense to either a) make partial sales in the case of accumulation or b) go directly into dividends (growth).

Combining the two is not the best solution
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@KevinC Why is combining the two not the optimal solution? So either only dividend growth or therausierend?
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@Joris Sure, you can also take the accumulating ones and dividend growth. But it doesn't make much sense to do it one after the other. Of course you can (e.g.) save the $VWCE and $PG. The ETF can then be de-accumulated and the share can pay dividends.

It just doesn't make sense from a tax perspective to first retain everything for 30 years, then completely dissolve/tax it and then put it back into (e.g.) $PG.
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@KevinC Perhaps a stupid question, but let's assume I have €400,000. Why would I then have to pay €55,300 in tax before I switch to dividend shares? As long as I don't pay out anything to my current account, the profits have not yet been realized.
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@Diamondhandzz Let's assume that the value of your €400,000 custody account is such that you have invested €200,000 and €200,000 are capital gains. If you materialize these gains = sell your shares, taxes will be due on the €200,000 gains (25% plus solidarity surcharge = 26.375%).

You cannot simply "swap" the accumulating units (e.g. $VWCE ) for a distributing ETF (e.g. $VWRL ).

With the €200,000 profit share, you would therefore have to pay €200,000*0.26375 = €52,750 in taxes. Actually. In the case of ETFs and funds with an equity component >51%, the partial exemption applies, whereby 30% of the gains are not taken into account.
The calculation would therefore be: (200,000*0.7)*0.26375= €36,925 tax. You can reinvest the rest (400,000 - 36,925 = 363,075€), buy an apartment or a sports car or whatever you want. The state always wants its share of the cake.
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@KevinC perfect! Thanks for the detailed explanation. I think I will save in accumulating etfs and then have them paid out.
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@KevinC ok then I misunderstood. So now I thought theausierend and dividend growth together does not make any, but of course it makes no sense to put the capital in div growth in 30 years.
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