1Settimana·

A Quick Update

For someone my age (21M), it’s rather unusual to be saving so consistently for retirement. Hardly anyone I know takes advantage of the saver’s tax deduction, especially not in my age group. But I belong to a generation that has to reckon with a potentially collapsing pension system, and perhaps there won’t be any government pension left for us in the end. That’s why I have no choice but to start taking a serious look at retirement planning right now.

I’d be interested in hearing your perspectives on this, especially from those of you with more life experience.

What would you do differently today, or how would you act now?

Just a quick note about my comparatively high cash position of 5,900€. (Apparently, you can’t upload that amount here anymore.)

I’ve intentionally set this aside as a cushion for a potential market crash—so I can buy more shares afterward—and at the same time as a nest egg or equity for my first small apartment or for moving out of my parents’ house.

I’d appreciate any feedback $

7 Commenti

1Settimana

I’m actually seeing the opposite.
I think that thanks to the work of numerous finfluencers and access to free educational content on YouTube, etc., it’s not at all uncommon anymore for people your age to be interested in retirement planning.
(At least that’s what I’ve seen.)
You’re definitely doing it right—starting early.
With your investment horizon, it “almost” doesn’t matter whether a market crash happens or not. Just keep investing your savings every month.
Good luck!

•

Ini@KALANKA

1Settimana

@IBilly I'll keep saving at the same rate; I'll just keep—or even increase—my cash reserves to help with moving out of my parents' house or as a down payment on a small apartment…

••

Ini@KALANKA

1Settimana

@IBilly I get what you're saying—that more young people are investing in ETFs or stocks—but the problem is that they're often people who don't really have anything to worry about anyway. Most of my generation are spendthrifts and either save just 100€ in their checking account or set it aside for their annual vacation 😅

••

FairValue@FairValue

1Settimana

I would prioritize the present and the near future much more than retirement and old age.
After all, we might be wiped out by Megatron in 20 years.

•

Wealth-Accelerator@Wealth-Accelerator

1Settimana

I think the idea behind Coast Fire is really exciting—especially when you get involved at such a young age 👍🏼

••

NichtRelevant@NichtRelevant

1Settimana

I think it’s great to start thinking about financial matters very early on. Personally, I don’t like to refer to it as “retirement planning” or “saving for retirement,” because that sounds a bit negative to me. I find the term “wealth building” much more motivating.

To be honest, I don’t have much faith in the government pension system at all. The younger you are right now, the worse it’s likely to get. And it’s not exactly great even now—not even for people who are just retiring. If I were part of the younger generation, I’d mentally “write off” the pension—that way, at least you won’t be quite as disappointed when you reach retirement age yourself. In my view, the pension is neither secure nor stable. Even worse than the meager “return,” I find the lack of flexibility to be a major issue. I don’t want anyone telling me how long I have to work. Maybe I enjoy my job, I’m healthy, and I want to keep working well into old age. Or maybe I’ve made a fortune by the time I’m 50, I’m fed up with it all, and I want to move to the south of France with my girlfriend—who’s 20 years younger than me—and do absolutely nothing. The statutory pension system is ill-equipped to accommodate unusual life paths, and that alone is totally unsatisfying.

What were my biggest mistakes when building my wealth?
> When I transitioned from college to the working world, I signed up for a number of insurance and pension plans. I was poorly informed; I thought I was doing the right thing and securing my future. In reality, I was primarily securing the future of my insurance broker. The products had a tiny return, but maximum administrative and structural costs. I later canceled almost all of those contracts (Ouch!).

What was the “game-changer” in building my wealth?
> For me, it was the decision not to register as an architect. Because I went into business for myself relatively early AND didn’t register with the Chamber of Architects, I wasn’t required to contribute to the statutory pension insurance. I also never had to contribute to the Chamber’s pension fund, since I never became a member. So I created the conditions for myself to build up my own private “pension” completely independently—without legal requirements, without pension points, and without age limits.

What did I invest in?
> We’re in a stock market forum here. Unless you’re taking a purely speculative approach, stocks and ETFs are certainly the least stressful way to build wealth. I started with stocks and bonds (back when there was interest), but around 2005 I shifted my focus largely toward real estate. I wanted predictable rental income, protection against inflation, and the potential for capital appreciation. That’s worked out great over the past 20+ years, but it’s certainly not for everyone. Of course, my professional background has helped me here as well.

I wish you every success on your path to financial freedom. There are many roads to Rome, but relying solely on the government pension will make for a very bumpy ride. 😉

••

Ini@KALANKA

1Settimana

@NichtRelevant Thank you so much—that was a great insight 🙏🏻👍🏼

••