Questions about money
You will be answered by Helma Sick, independent financial expert in Munich.
Maintenance for the care of the father?
Helma Sick
My father is a nursing case, his pension is not enough for the home costs. Now the welfare office demands that I come up for it. But my dad made off after my birth and never paid maintenance. I do not see why I should help him.
You do not have to. Missing your father is so serious that you can not be expected to pay for it now. Inform the social welfare office about the facts. If the authority does not believe you, it can be confirmed by your father. This has no reason to lie, because he does not care who comes up for his maintenance. If he can not comment, you can name witnesses (your mother, siblings, other relatives or friends) or submit documents, such as: For example, about your mother's futile attempts to get support.
Increase insurance later?
I am self-employed and want to take out occupational disability insurance. Because I have little financial leeway right now, I can only secure the essentials; I would like to raise later. Is that possible?
Yes, but usually a renewed health check is required. Which can be difficult if in the meantime a disease has occurred. Therefore, make sure that the contract contains a so-called "post-insurance guarantee". First-class providers enable your customers to increase the insurance coverage without health check, if the insurance needs by higher income, marriage, childbirth, etc. changed. As a rule, the supplementary insurance is only possible up to the age of 45 years.
Withholding tax: What to do?
I am a pensioner and not wealthy, but I have already exhausted the interest allowance. Is there a way to avoid the withholding tax on my savings?
You can apply to your tax office for a "non-assessment certificate". This is issued if an income tax assessment is not eligible. For example, because only low income is achieved. In most cases, retirees, students and part-time workers. The certificate is valid for three years, provided that no changes occur in the meantime that lead to the income tax assessment. Please note that for each bank where you have invested money, you will need to apply for this NV Certificate, as copies will not be accepted.
Diamonds as security?
Recently, an investment adviser unknown to me called me and recommended the purchase of diamonds because our world economic system would collapse in the near future. They are in the case the safest plant ever. He was about to make an appointment to give me cheap gems through a direct source. I have not agreed yet, but I'm interested in the offer.
With the fear of the future people have always made good business. Good that you have not arranged an appointment. Who calls strangers and wants to persuade them to an appointment, is usually dubious. The offered "diamonds" are, according to experience, worthless or completely overpriced stones. I myself do not think much of the current doomsday scenarios. But if you're really scared, you might want to consider buying a property. Real estate also fluctuates in value, but they are crisis-proof and inflation-proof.
Is a Riester pension inheritable?
I would like to complete a Riester fund savings plan for me. But now I have heard that in the case of my death all the money was lost. Can that really be?
No, that is not correct. If you die before your retirement, the amount accumulated until then can be transferred to your husband's Riester contract. It is also possible to give it to another person. In that case, however, the fund's assets will be paid less the state allowances and the tax savings. For the death in retirement, the same rules apply, namely until the age of 85 is completed. However, if you die at the age of 86 or later, your heirs will run out of money. But until then, the accumulated money should be used up anyway.
Real estate funds as a pension?
I have received from my bank a prospectus on a closed real estate fund, which states that this investment is very well suited for retirement. I always thought that these are tax-saving models, which are often quite risky. What do you mean?
The tax savings funds you are addressing no longer exist because tax benefits were almost completely eliminated last year.The models now on the market are closed-end funds that are all about return. They participate directly in one or more commercial real estate, for example office buildings that are rented out on a long-term basis. As a rule, they receive a distribution once a year, which is largely tax-free. Closed-end real estate funds have terms of ten years or more. If it is a solid and experienced issuing house and a property with tenants of good credit standing, you can count on a stable additional income here. Another advantage: closed-end real estate funds are not as dependent on stock market sentiment as other investments. For this reason, first-class participation can certainly be a viable building block for retirement provision.
Book tip: "If I were rich once"
More tips on the topic of money can be found in the new guide of our financial expert. Helma Sick: "If I were rich once," 240 p., 8.95 euros, Diana Verlag.
The book in the ChroniquesDuVasteMonde.com shop: If I were rich once.
On the following pages you will find more ChroniquesDuVasteMonde woman tips from Helmas Sick:
Disability - not for artists?
I am an actress and I do not receive occupational disability insurance because the risk to companies is too high. Can not I secure myself?
Certain occupational groups are often denied access to occupational disability insurance. As an actress you are one of them because even a minor physical impairment or the loss of your creativity can lead to a disability. An alternative is provided by the basic disability insurance: When certain abilities such as seeing, hearing, speaking, walking, standing, driving, etc. are lost, the insured person is paid a monthly pension. It does not matter if they lose their skills through injury, loss of power or illness. The condition for a pension from this insurance therefore also exists if the care levels II and III are awarded. However, since this type of risk protection is not so widespread in Germany, an information discussion with an independent financial advisor makes sense in any case.
Pensions in bankruptcy?
I'm self-employed, but my business is not going well. Now I am afraid that in case of bankruptcy my savings and thus my pension plan will be seized. Do you know any advice?
For you, the new basic pension, also called Rürup pension, the solution. This special form of life annuity insurance is particularly interesting for the self-employed and freelancers, because it allows high tax savings. But that's not relevant for you at the moment. More important: The capital that you pay into a basic pension is not bankrupt in bankruptcy. By redeploying your investments into the basic pension, you could save your retirement savings. Important: The basic pension is paid exclusively as a lifelong pension. So it is not capitalizable and can not be inherited.
Mini jobs and pension?
In July of this year, the regulations for mini-jobs were changed. This should also bring benefits for the pension. Is that correct?
For jobs up to a salary of 400 euros per month you do not pay the social contributions, but only the employer - and since July 2006 flat rate 30 percent. Of these, two percent payroll tax, 13 percent health insurance and 15 percent for the statutory pension insurance. The acquired pension entitlements are very low, but can be increased by another innovation cheap: mini jobbers can pay out the difference from the employer and the full contribution to the pension insurance (currently 19.5 percent) out of pocket. Instead of 7.5 percent, it is now only 4.5 percent. This means: With 18 Euro additional payment per month (previously 30 Euro) you will get a full pension insurance. In particular, women who have not yet fulfilled the condition for the so-called women's old-age pension (ten years of contributions after the age of 40) can virtually "buy" them with the increase. In addition: Who wants to provide additional private, is entitled to the state supplement to the Riester pension by the increase in premiums. In addition, entitlements to disability pensions and medical and professional rehabilitation will be maintained or substantiated for the first time. Before concluding a contract, however, you should seek the advice of experts of the German pension insurance.
Time deposit with risk?
A Dutch bank gives just about five percent interest on fixed-term deposits for six years. However, this special account is not covered by the Dutch Deposit Guarantee Fund and is to be serviced "subordinated" in the event of a bankruptcy of the bank. What does that mean?
Subordinated means that in the bankruptcy case, only the other creditors of the bank receive their money. So you take the risk that in case of doubt, there is not enough capital to satisfy your claims. As so often, so here is the supposed bargain associated with a hook.
Loans for the elderly?
You wrote some time ago that older people who are no longer working have a hard time getting loans from banks. Is that the same with building societies?
Building societies are much more generous, although here of course the individual case is crucial. But beware: You can not buy a car from a building society loan, for example, but have to use it for your house or apartment - for modernization or for fixed installations such as closet or parquet. But the money can also be used for the purchase of a holiday home or as a deposit for a retirement or nursing home. Incidentally, it may be more difficult for banks to refuse loans for reasons of age in the future. The General Equal Treatment Act, which came into force in August, aims, inter alia, to protect against such discrimination.
Is a holiday worth it?
I recently got a life insurance policy. My pension is good enough and I have a financial cushion too. I would like to buy a holiday apartment in South Tyrol. I have been dreaming about this for a long time. But earlier my husband, who had since died away, advised me now, and now my bank adviser, because such an object would not yield anything. Is my wish really so idiotic?
Not at all. I do not see the term return as narrow and not just in euros or cents. In your case, as a return, I would above all see the quality of life that you gain when you fulfill your heart's desire. Your livelihood is secured. So do not hesitate long, so that the dream soon becomes reality and you still enjoy it as much as possible.
Health insurance on your own?
Several women in my circle of acquaintances fall as self-employed from the compulsory insurance and are in a club, which sees itself as a countermovement to the health insurance. Each member pays 20 to 50 euros per month. 60 percent of them go to an account for personal health costs, the rest remains in the so-called emergency fund. Anyone who receives money from this fund in the event of a serious illness decides the group together. What do you make of it?
What an absurd idea! Would you like to let other members decide whether you should receive money in case of illness or not? What happens when several become ill? Who will get money then? The oldest? The youngest? Second: Obviously, these people do not know what a prolonged illness or hospitalization plus rehabilitation costs. Your acquaintances pay 600 euros a year. 60 percent of it is 360 euros, which is just enough for the treatment of a cold. Third, the association opposes a central achievement of the welfare state, the solidarity principle. It just causes that the individual is no longer dependent on the arbitrariness of others. Even if there is a need for reform in health insurance, the basic principle is sound: those who earn little pay little, but are entitled to the same benefit as those who pay more because of higher incomes.
How long will the compensation be?
I am now 55 years old and will become unemployed. The company pays me a compensation, which amounts to 80,000 euros after tax deduction. Unfortunately, I have never saved and because I probably will not find a job anymore, I have to live on this money until reaching legal retirement at age 65. How much money can I expect monthly?
Without savings, you can not make big leaps. You can not apply for unemployment benefit II because of the severance pay. If you achieve a five percent average return, you can borrow 840 euros per month for 10 years. In these low interest periods, however, you can only achieve five percent if you divide your capital among various assets: bond funds, open-end real estate funds, mixed funds with different proportions of shares.
Pay pension annually?
I have heard that it would be better to pay the pension contribution annually rather than monthly. Does this also apply to a unit-linked pension insurance? I invest in five different equity funds.
With your unit-linked insurance it is better to pay monthly. After all, you invest in equity funds that are subject to fluctuations via the insurance. If you transfer the same amount each month, you will receive different amounts of shares depending on the price level: If prices have fallen, you will receive more shares, and correspondingly less with higher prices. That's the so-called cost-averaging effect you use.
Last will?
My aunt, who is very old, has very precise ideas about how her funeral should take place. Apparently, she does not trust us relatives so completely that we then implement their will. How can we calm her?
Her aunt can sign a funeral contract with a funeral home. In it, the quality and equipment of the coffin, the flowers, the music, the process of the funeral, even the desired clothing and subsequent entertainment of the deceased are determined, as well as all the details of the grave stone and the care of the grave for any length of time. Your aunt pays - depending on the claim - a few thousand euros. The money is invested at interest on a savings account at a bank or savings bank.Her aunt knows for sure that her wishes will be fulfilled.
More maintenance from the ex-husband?
After our divorce, my ex-husband, who at that time earned 4000 euros net, financed the study of our two children. They each got 500 euros a month, I had 1200 euros maintenance. I had and do not have my own income. Now the children have finished their studies, but my ex-husband does not want to pay me anymore. Reason: Since then, his salary has increased only insignificantly by 200 euros net monthly. Do I have to accept that?
No! You are entitled to a higher maintenance. You can apply to the court to amend the previous maintenance agreement or the maintenance judgment. Theoretically, you can do it yourself, but I advise you to hire a lawyer. With your small financial resources you will probably receive legal aid. A change is always possible if the circumstances that played a role in the calculation change significantly. These include the income of the ex-husband and his then maintenance payments to the children, which are now eliminated. In my estimation, you would now have to receive about 1800 euros monthly maintenance.
