Questions about money
1. insure household contents necessarily?
I am in the process of reorganizing my insurance affairs. Now I'm wondering if a home insurance is absolutely necessary. What do you mean?
Who can exclude with 100 percent certainty that it burns in the apartment once? That the bathtub overflows? That lightning strikes, a window breaks in a storm? Or that someone breaks in and destroys half of the facility in search of valuables? Therefore, I consider a household insurance, which intervenes in all these damages, quite useful. With an insured sum of 50,000 euros, you pay just under 80 euros a year, even less in rural areas. Incidentally, the purchase value of damaged or stolen objects is replaced, ie not just the current time value. In the case of valuable furniture, clothing or jewelery, it is best to make an inventory list with the purchase value, photograph the individual pieces and keep all documents safe, eg. B. with friends or in a bank safe.
2. Direct insurance for early retirement?
My employer completed a direct insurance in 1977 for me. It runs until May 10, 2009 - when I turn 65. Now my boss quits his operation at the end of the year and I retire. What is there with the direct insurance?
Your employer must transfer the contract to you so that you can have it yourself in the future. Either you continue to pay the insurance or you make it non-contributory. You can only dissolve the insurance if you receive a statutory pension. But since this is already the case with you from 1 January 2006, then the termination would be a conceivable way. The best way to contact the insurance company as soon as possible is to figure out what you would receive in the event of termination - and how much you would expect to receive in 2009 if you continue to take out the insurance free of charge. That will certainly make your decision easier.
3. Rip-off by e-mail?
Recently I (42, self-employed) got a strange e-mail. As an Egyptian merchant writes that he suffers from esophageal cancer and will not live long. Now he wants to send $ 18 million he has on a cash account abroad to charitable organizations. Because he has been betrayed many times in his country, he is looking for Germans who help him with this. For that you would get 15 percent of the sum, so $ 2.7 million! Have you ever heard that? Definitely all nonsense, right?
What you are describing has been practiced by the so-called "Nigeria Connection" (an international swindler gang) for many years in all possible variations. The idea is always to get rid of millions of dollars that are supposed to be stored on foreign accounts for a high commission. If you respond to this email, you'll soon be getting the next one: There are difficulties in completing the transaction, so you're urged to bring forward a certain amount that the "merchant" is supposed to pay for transfers, attorneys' fees, taxes, or even for kickbacks. That can be $ 1000. Of course, whoever pays the money never sees the money again. There are actually people who fall for something like that. Apparently, the greed is so great that the mind exposes ...
4. Delete the mortgage now?
The credit for our condominium is paid off. Should we now also delete the land charge, which is registered on the flat?
I advise to let the mortgage pass. Because you can use them as collateral if you ever need a new loan. This is particularly cost-effective, because for a mortgage-backed loan you pay significantly less interest than a installment loan.
5. What is "effective"?
If I conclude a contract for capital contributions through our employment office - can I take any financial investment there?
No, but at least you have the choice between several options: Bank savings plans (currently between 2.5 and 3.5 percent, but the interest can be changed at any time) and home savings contracts (individual building societies guarantee interest of up to 4 percent) , However, selected funds for capital-efficient services, as offered by each fund company, are also interesting. If you are entitled to the employee savings allowance (up to € 17,900 in taxable annual income, married couples double), it must be equity funds in any case. Only there is the state support.
6. Help with pension issues?
Regarding my BfA pension, I still have a lot to clarify. Who should I contact best?
Of course, you will get all the necessary information at the next information and advice center of the German Pension Insurance Association (formerly: BfA). Less well known, but highly recommended are the so-called insured advisers (formerly insured elders) - competent volunteers and helpers with questions about the statutory pension. For example, they provide assistance with applications for account clearing or when completing pension applications. You can find insurance consultants in your area at www.deutsche-rentenversicherung.de - or call: 08 00/333 19 19 (free hotline).
7. Splitting instead of divorce?
My husband and I separated, but he pays me maintenance because I never worked. Actually, I wanted to file for divorce after the end of the separation year in February 2006. Now my husband has suggested that I renounce it. So he could keep the splitting advantage of the joint tax assessment, and for me it would have the advantage of getting more upkeep. But I have a strange feeling and would like to know if that is legal?
Your doubts are justified: a joint investment not only requires that you are married. Condition is also that in the calendar year at least partially lived together. As of 2006, you are therefore no longer allowed to file a joint tax return - even if you remain married for years to come. In this case, there is the so-called "limited real splitting" as compensation. This means that your husband can claim maintenance payments to you in the amount of a maximum of 13,805 euros per year as a tax special issue. In return, you have to tax the maintenance, but this - relatively small - sum back demand from your husband. Most of the time this pays off, because with a high income, your husband generally saves more taxes than what he has to reimburse you.
8. exchange or sell bonds?
In March 2000, we bought (both in our early 40s) on advice from our bank for 40,000 D-Marks Argentina bonds. The should bring 8.5 percent interest. Unfortunately, Argentina declared itself insolvent at the end of 2001. Interest was no longer paid, the repayment suspended. I joined the Securities Ownership Association, which has achieved the following for investors: Converting the bonds into new ones with a maturity date of 31/12/2038 (!) And a measly interest rate of 1.2 percent by 2009, down to 4.74 Percent from 2029 onwards. If we sell the bonds, we would currently get 7755 euros - plus 1.2 percent interest from 31.12.2003. What should we do?
If you accept the exchange offer, your money is 33 years old - with a very low interest rate. And you do not even have the guarantee that Argentina can actually pay the interest on an ongoing basis. Sell the bonds, but realize a big loss. But then you have the opportunity to invest the money well and thus make up for lost capital over a longer period of time completely or partially. For example, if you invest the money in a traditional equity fund by 2038 as well, you could achieve the following: about 39,000 euros with an average yield of 5 percent per year, about 72,000 euros at 7 percent, and 10 percent (that is at So long investment with equity funds quite in it) you would even get around 180 000 €.
9. Building savings contract for inheritance tax?
My godfather inherits his family house with land. Because we are not related, a lot of inheritance tax is due. The problem is that I do not have that much cash. But I still have a home savings contract. Is it possible to do something with it?
Yes of course. What many do not know is that you can use a home savings loan for the payment of inheritance tax - provided that the heir is a property with a residential property. That's not the case with commercial real estate.
10. Small investment tip?
I am 45 years old and will soon receive 20,000 euros from a life insurance policy. Do you have a tip for me, what could I do with the money?
Unfortunately, no. Reputable financial professionals do not give "tips" because you are not served with them. In order to advise you competently, for example, these questions must first be clarified: Which investments do you already have? What does your life situation look like? What short, medium and long term goals are you pursuing with your investment? After all, it's important to know whether you are undergoing a period of transition in your private or professional life, whether you're saving on a new car or a property, or if it's your retirement plan. So I can only give you one good "tip": Contact independent experts, describe your personal situation - and let us advise you on this basis!
