Ten questions about money
New rules for foreign accounts?
We have inherited a securities account in Switzerland. All quite legal, with tax evasion that has nothing to do. Supposedly there will be any other provisions for foreign money soon. When would that be - and then what do I have to expect?
You are probably referring to the EU Savings Tax Directive, which enters into force on 1 July 2005. In order to avoid tax evasion, EU Member States can exchange information with each other in the future. Investors have the choice between an automatic withholding tax deduction or a transfer of the data. And this also applies to Switzerland.
If you decide in favor of a control message, the bank will report the account number, name and address as well as the amount of the interest income to a Swiss authority, which in turn will inform the German tax office. If you choose automatic tax deduction instead, the initial tax rate is 15 percent. From 2008 to 2010, it will rise to 20 and from 1 July 2011 to 35 percent. This can later be offset against the German income tax.
Taxes on private pension?
Many years ago, I completed a private pension insurance. It will be paid monthly as soon as I'm 65. But now the pension is to be taxed at 50 percent. Is that correct?
Incidentally, this taxation, which gradually increases over the years, concerns only the statutory pension, the new basic ("Rürup") pension and pensions from occupational pension funds. Private pensions, on the other hand, will continue to be taxed on the so-called revenue share, which is now even much lower than in the past. That means: At 65, only 18 percent of your pension is considered as taxable income. (By the way, this applies to old and new contracts.)
For example, if you receive an additional 1000 Euro pension, you would only have to pay 180 Euro for it. In addition, since you still have allowances, in most cases, there is no tax for this pension.
Is the apartment too expensive?
I'm single and live in a debt-free small condo. Although I save the rent, but have high additional costs. In eight years I get just 700 Euro pension. I do not have investments or insurance because everything went into the apartment. Was that really smart? Can I do something now to make ends meet later?
You could sell the apartment and look for a cheap rental apartment. If you invest the proceeds well, you have additional income from interest and distributions. Or you can pay the money into a private pension insurance, from which you then receive a lifelong pension.
Another possibility: You sell the apartment for a lifetime annuity and can be granted a right of residence. With your demise, the apartment then passes to the buyer or the buyer. The difficulty, however, is to find someone who is willing and able to fulfill the commitment you have made while you live.
Gold or money?
After the 9/11 terrorist attacks, I bought gold bullion as a precautionary measure because I did not know how to proceed. Although the gold price is rising now, I hardly make a profit. Does this plant make any sense for me at all?
The gold price is calculated in US dollars. And with the leaps in the value of the American currency, the possession of gold coins and bullion for Europeans is in fact not very profitable. On top of that, you do not have regular payouts like interest or dividends, and you need a safe for storage, which also costs rent. Maybe you should consider a sale.
More lucrative are funds that invest in gold mining stocks, or special commodity funds. Here you have a large spread, and the - generally quite good - dividends bring you at least some profit.
Benefits through partnership?
My girlfriend and I registered our civil partnership with the registry office a few weeks ago. Will this affect our pension later, for example?
The same applies to you as to married couples: If a registered civil partnership is dissolved, there is a so-called pension equalization. For example, if you have fewer entitlements than your partner during your partnership, you will be compensated from their retirement account. In addition, the supply equalization can optionally transfer waiting months. If your partner has a child that you are currently training, this may also count towards your pension. And in the event of death, you are entitled to a survivor's pension if the conditions are met.
Hedge mortgage rates?
The fixed interest rate for my home loan expires in three years. Now I'm afraid that interest rates will rise until then. Is there a way to keep the favorable contract running?
With a so-called forward loan, you can also secure today's interest rates for follow-up financing. In vain, however, there's no such thing: you have to expect an interest surcharge of approx. 0.02 to 0.03 percentage points per month of residual maturity.
Problem-free investment for 50,000 euros?
I (49) raised three children, so I was never employed and later did not receive my own pension. Now my father has given me 50,000 euros, which I should invest. But the conversation at the bank has totally confused me. I do not know what funds are and fixed income securities and all that. Do you have any advice for me?
I would park half of the money on a time deposit account; This is a savings account where the money is fixed for example four weeks. If you do not cancel it, the system automatically renews for another month. So you always have a reserve if you need money at short notice. The other 25,000 euros you should invest in my opinion in federal treasury notes; These are completely risk-free federal securities with a term of six years. During this time, the interest rate increases from 1.75 percent in the first to 4 percent in the sixth year. For a year, the money is initially fixed; then you can resell the Federal Treasury notes at any time, but each month only worth a total of 5,000 euros. With these risk-free and manageable investments you drive for the time being best. As soon as you are able to, you should learn more about investments. For example, in the business section of the newspaper, in books for beginners or through folk high school courses.
Serious ad?
I saw a great offer in a large daily newspaper. Starting at 2500 Euro you are involved in the super profits of an Internet casino - with more than 40 percent return per year! That's certainly serious when a renowned newspaper prints the ad, right?
You can not necessarily go for that. Advertisements are placed independently of the editorial part - without substantive and qualitative review. The involvement you write about is called frivolous by consumer advocates. Leave your finger on it, or check in advance with a consumer center.
Canada - a good location?
I was offered a stake in a closed-end real estate fund in Toronto. That sounds very interesting, but what about the economic situation in Canada? Similar to the US?
Canada, one of the traditional commodity countries and one of the most important economies, is doing much better. Unlike the United States, the Canadian government has succeeded in reducing public debt in recent years; the foreign trade balance is positive. And Toronto, Canada's largest office real estate market, is considered an excellent business location. But of course, what matters most is the property in which you want to invest - for example, the location, age and condition of the building or the tenants' creditworthiness.
Keep to the end of life?
My husband would like to have a second child (our daughter is now five) but would like me to give up my job. As a civil servant with secured incomes, in any case he would be obliged to pay maintenance not only for the children, but also for me. Maybe even to the end of my life. Can I really rely on it?
No, you can not. For example, if a divorce determines that you are solely responsible for the failure of the marriage, at least your own maintenance claim may be canceled altogether or reduced to a minimum. It always depends on the age of the children; It is conceivable that a time limit for the period in which the children absolutely need your care. Your maintenance claim can also be dropped if you live after the divorce for about three years in a solid non-marital union with another partner - regardless of whether your new partner can take care of you or not. If none of this applies, you will receive maintenance as long as the children have to be cared for, as long as they are 15 or 16 years old. You have real security in case of divorce only through your own income. As a civil servant, your husband is entitled to part-time employment because of the children, which he can extend to a full-time job at any time. Maybe it would be a temporary solution if you both go into a part-time job.
