Appointment at a well-known bank and problems with financing

Good evening everyone,
we were at another bank on Friday. They see absolutely no problem with the financing. Even more, since my Riester pension insurance brought in about €100 last year, the advisor came up with the idea of Wohnriester. However, the Riester contract would have to be converted and transferred. This involves a one-time cost of €60.

It is certainly worthwhile to visit several banks. Above all, most advisors bring in aspects that others have never considered.

Thanks to all readers and writers

Yes, I know that. "No problem at all. Everything looks great. €4,200 income per month, property, €60,000 equity, that can't go wrong," they said. And then they wanted, instead of one property and €60,000 equity, a full €90,000 equity. Just wait for the second valuation instance. I don't trust any bank people. They just sugarcoat things for you and explain everything with an optimal calculation.

Good luck moving forward

Good evening everyone, we were at another bank on Friday. They see no problems at all with the financing. Moreover, since my Riester pension insurance yielded about €100 last year, the advisor brought up the idea of Wohnriester. However, the Riester contract would have to be converted and transferred. This involves a one-time cost of €60.

Hello,

please have this confirmed again by an independent specialist. Wohnriester is currently the latest craze for many bankers (it was also recommended to us several times) but it does involve significant uncertainties. To give just one example, the tax treatment of this construct – today no reputable advisor can tell you how it will eventually be taxed. Anyone who claims otherwise also masters "creative accounting"...

Honestly, I am a banker myself and after thoroughly dealing with Wohnriester, I declined with thanks – the uncertainties are too great for me...

Unfortunately, I have to somewhat agree with Razorbacks as well; the second evaluation instance at the bank still counts more than the opinion of the advisor on the front line...

Best regards,

Dirk

Honestly, I am a banker myself and after thoroughly dealing with Wohnriester, I declined with thanks – the uncertainties are too great for me... k

Ha, same here!

Honestly, I am a banker myself and, after thoroughly dealing with residential Riester, I declined with thanks - the uncertainties are too great for me...

Hello Doc Schnaggls,
could you please explain the uncertainties in more detail?
My Riester pension contract is not yielding anything. With residential Riester, I see the deferred taxation in retirement as the crux. The problem is, when I retire in 30 years, who knows what the laws will look like then? What is great today might be exactly the opposite in 30 years.

With Wohnriester, the rules have changed several times in recent years and it is very likely that they will continue to do so in the future. So today, no one knows according to which set of rules Wohnriester will be handled in 30 years. There might be an extra high tax on it or the conditions might be tightened in some other way.

In 30 years, the mostly low-birth-rate cohorts of the 1970s will retire. They can hardly finance the flood of retirees that will retire in the next 10 to 30 years. I expect that by 2040 the pension funds will be completely depleted, until then pension contributions will be significantly increased, and the 1970s cohorts will still hardly receive an adequate pension. If by then the Riester funds are full or savings can be made elsewhere in the payout, the rules will be changed again. Hence my above-explained pessimism about Wohnriester.

One makes a contract into the unknown.

Therefore, for our company pension plan we decided on a long-term annuity. Wohnriester won't go away either. You can always still take out a building savings contract + Wohnriester in a few years if you have money left after paying off the loan (rather unlikely ;) ).

More beautifully than klblb has done, I could not have explained my concerns. I also think that the Riester contracts are heavily taxed when they become due. Therefore, we financed in a very classic and conventional way.