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Uff, 115 pages of draft legislation for €100 per month old-age provision.
The will seems to be there. But this threatens to create another bureaucratic monster. Why keep it simple when you can make it complicated?
The will seems to be there. But this threatens to create another bureaucratic monster. Why keep it simple when you can make it complicated?
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@Epi Exactly! You can also do something like this with the 10-point plan of the then FDP under Lindner (which is also much more capital market-friendly) in a maximum of 15 clear pages.
Every 10 pages more costs returns that disappear elsewhere in the bureaucracy instead of with the end user. No thanks
Every 10 pages more costs returns that disappear elsewhere in the bureaucracy instead of with the end user. No thanks
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@BockaufDividenden Yes, I also found Lindner's 15 pages likeable and understandable. Now I'm lost. 🤷
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@Epi Fact check: The FDP draft had 102 pages.
https://dserver.bundestag.de/btd/20/140/2014027.pdf
https://dserver.bundestag.de/btd/20/140/2014027.pdf
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@randomdude yes, of course, but a clear poster explained everything sufficiently
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@randomdude That is also too long, of course.
But, as always, it's down to German bureaucracy
But, as always, it's down to German bureaucracy
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@Epi German problems require German solutions 😅
But seriously, if that happens, bureaucracy or not, it's a huge step in the right direction.
And what you shouldn't forget is that this is really about bringing small savers into the capital market.
Unfortunately, in our bubble we often forget how few there are.
If this thing happens, I say good job Germany, hopefully we'll get something like this in Austria too.
And now let's wait and see what it really looks like in the end, because there's not only room for upside but also for downside. 😘
But seriously, if that happens, bureaucracy or not, it's a huge step in the right direction.
And what you shouldn't forget is that this is really about bringing small savers into the capital market.
Unfortunately, in our bubble we often forget how few there are.
If this thing happens, I say good job Germany, hopefully we'll get something like this in Austria too.
And now let's wait and see what it really looks like in the end, because there's not only room for upside but also for downside. 😘
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@Epi Yes, it is complex. This is partly due to the housing subsidy, which is not a sensible contribution to retirement provision from a commercial point of view.
However, the retirement savings account allows the following model, for example:
If you start in the first half of your 20s and save 40 years with the subsidized amount in a world ETF, you will accumulate 540,000 euros. This results in a safe withdrawal rate of EUR 30,000 in the first year (taxable at the personal tax rate), which works over a 30-year payout phase and can be indexed for inflation.
This is a quantum leap compared to the previous insurance shells, is very simple and meets the needs of 95% of employees.
However, the retirement savings account allows the following model, for example:
If you start in the first half of your 20s and save 40 years with the subsidized amount in a world ETF, you will accumulate 540,000 euros. This results in a safe withdrawal rate of EUR 30,000 in the first year (taxable at the personal tax rate), which works over a 30-year payout phase and can be indexed for inflation.
This is a quantum leap compared to the previous insurance shells, is very simple and meets the needs of 95% of employees.
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I am in favor of doing everything possible to bring the general public into the capital market.
But please without too much bureaucracy and focus on the essentials.
But please without too much bureaucracy and focus on the essentials.
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@BockaufDividenden The example I gave is absolutely essential. It couldn't be simpler with today's range of products offered by the financial industry and today's knowledge of the capital market.
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@randomdude The simplest thing to do is to register with a broker, invest via a savings plan and make additional deposits. Have it declared as a retirement savings account so that the money can only be withdrawn or annuitized TAX-FREE under certain circumstances. End
Similar to the Trump child custody account, 1,000$ dollar at birth, deposits 5,000$ p.a. Possible, even half through an AG.
Quite simple actually
Similar to the Trump child custody account, 1,000$ dollar at birth, deposits 5,000$ p.a. Possible, even half through an AG.
Quite simple actually
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