Follow-up Financing 2030 Prepare Now Building Savings Contract/Special Repayment/Fixed Deposit

But it is simply wrong to say that on average you have a higher chance of winning than losing something. You also just have to be lucky to have invested in the right stocks. Because just tell the investors of wirecard that you only have such a low risk of loss. With Wirecard, investors even lost -99.9% of their assets. That worked out well...

And that is why you should always diversify your money and not bet on a single horse, but on several. And for that, broadly diversified cross-sector funds that invest in different regions of the world are suitable. The chance that simultaneously all economic sectors worldwide go bankrupt is practically zero. Or put differently: If that happens, then we have much bigger problems than stock prices or interest on fixed deposits.

Regarding your single example: I personally traded Wirecard regularly. It was a really good business. Whenever bad news came out, the price fell by 10-20%. I regularly bought then and sold a few days later. That gave a higher return within one year than any fixed-interest bond in 50 years.

Again, about your single example: If you had bought Apple shares for 1,000 euros in 2000, you would have about 136,000 euros today and 960 euros dividend per year. Or put differently: Your investment would have a dividend yield of an amazing 96% per year and it would have gained 135,000 euros in value!

What do I want to get at? In my view, investing in individual stocks only makes sense if you have enough money to diversify broadly, i.e. to buy more than 10 individual stocks with a volume that makes purchase fees negligible.

There are home savings contracts available for under 1 percent, specifically for 0.95 percent loan interest. You can conclude up to 150,000 per home savings contract. That would fit perfectly.

I would do it that way.

We have also been offered a building savings contract for follow-up financing from our financing savings bank.

Somehow I don't really understand the system.

Fee saving phase one-time + annual (recently discontinued?)
Mini credit interest of 0.01%
Fee payout one-time
Agio
Risk life insurance

I have calculated the model over 10 years with the saving phase pa with fixed deposit 2% for 4 years until the end of the building savings amount. Then the difference building savings amount vs. fixed-interest saving phase with 4% loan interest and my building saver becomes 5k more expensive until 2045.

If interest rates fall, I get less on fixed deposit but also have to pay less interest on follow-up financing.
If interest rates rise, I get more on fixed deposit but can pay up to 5k more interest.

I would refrain from doing this today. Am I overlooking something, apart from the purchased security?

Saving something only makes sense if you now get more interest than you expect for your follow-up financing in 2030. If the expected interest rates are higher than what you get now for saving, then only the special repayment makes sense.

So you would have to go into stocks; everything else yields far too little return.

I would refrain from doing that today. Am I overlooking something, aside from the purchased security?

No, building society savings contracts are a construct that rarely really pay off.

Building savings contracts are available for under 1 percent, specifically for 0.95 percent loan interest.
You can conclude up to 150,000 per building savings contract. That would fit perfectly.

But the repayment installments are simply enormous and that would knock me out for 5 years.


That would be a solution... To the savings rate here, certainly another 250 euros monthly ETF would be added and over the 7.5 years surely an increase there as well.
That is currently one of my ideas with Schwäbisch Hall...

I also have to correct the original post a bit. I suddenly have 30,000 saved. I had forgotten something. Accordingly, I am at 156K-30K, which would have to be "earned"...
If I were to inherit during that time, as foolish as it sounds, the problem would be solved. But you can't plan that, or rather, you don't want to plan it :)