Fully financed property or pay in full

But of course you have to be careful that the advisor doesn't just push you what brings him the most commission. Even if he doesn't do that, many simply recommend their standard funds, etc. You can invest the money better yourself with minimal effort, since no one involved is also trying to make money off it (see e.g. Finanztip on ETFs).

We also invest in ETFs and read the Finanzip. I like the magazine, but as a layperson, I can't really assess whether the tips in it are well-founded or not. For us, it's about smaller sums and first forays into the stock market. If I had such a large sum of money at my disposal, I would certainly get individual advice. Probably as Joe says, on a fee basis, to get the most objective opinion possible.

But of course you have to be careful that the advisor doesn't just push you what brings him the most commission. Even if he doesn't look for that, many simply recommend their standard funds, etc. You can invest the money better yourself with minimal effort since then no one involved wants to earn something from it (see, for example, Finanztip on ETFs).

And again the typical German fear of other people who do something professionally for a living, that they only want to rip you off and are fundamentally bad, and that as a layperson without proper training you can provide the same service at least just as well and also save costs.

There are professionals with expertise whose experience I like to rely on, even if it costs me a bit. It was quite nice that my wife cut my hair during the lockdown (the result was really okay and didn't cost anything) and still I now gladly go back to professionals who have learned it and pay for this service.

With financial advising, it's ultimately like with a turnkey house or a house with a lot of own work. One costs more but means less time effort for the builder. The other is cheaper but the builder has to invest a lot of time. What you tend to prefer is purely a matter of personal preference.

As everywhere, there are professionals who master their craft and those whom is afraid of.

What the apartment in the holiday park was in the 80s could become the care property in the future (There are nice examples in the Bavarian Forest, e.g. Predigtstuhl Resort, some apartments have been renovated and are top modern, others are original like in the 80s with 12-inch tube TVs. Which one you get is a matter of luck). Sure, you don’t have to worry about anything and initially have quite decent returns. But when the contract with the care facility expires, they like to move on to the next fancy new building or demand extensive remodeling that has to be borne by the owners. If one of the owners doesn’t agree, the place quickly stands empty and becomes unrentable. That’s why I consider age-appropriate (elevator, no steps, floor-to-ceiling shower) apartments without an operator to be a more sensible long-term investment. But initially with lower returns, presumably with better residual value or appreciation.

Yes, exactly, you have to examine very carefully how and whether it is profitable. What risks are inherent in the respective form of investment. I already had both (garages/care property) in preliminary discussions. The garages would have been purchased in a forced sale in my case. I was able to see the garages; they are fully rented at €40/unit, centrally located, etc., etc. In the end, the bank did not want to finance the ancillary costs, which is why I did not attend the appointment. I don’t know for how much the park was sold then. It looks different when a expensive plot of land has to be purchased first. Whether it is then profitable is highly questionable. I withdrew from the care property because overall I did not agree with the contract design. There was a 20-year guarantee; the company was well-known and financially solid. The same applies to everything: you have to check and calculate (or have it calculated) exactly whether it is worth it. How big is the risk, should the money be quickly available in case of emergency, over which period must it be invested and am I flexible. And also: do I want to have to deal with it or not? For apartment(s), I either manage them myself or hand them over to a management company. That lowers the return. Does the apartment need renovation/refurbishment? Do I do it myself or pay a company for it? And so on and so forth...

This has nothing to do with German anxiety. I have simply had to experience far too often that in many areas people do not properly master their craft and I can manage it at least just as well (with a bit of reading). I'm not saying that all financial advisors are bad. But one should be careful, because there are many bad apples here as well and in the worst case you only realize it afterwards when the money is invested incorrectly. My husband used to develop such products, so we have a pretty good idea of who is pocketing the money. That’s why my advice is to educate yourself, then you’ll realize it’s not actually that complicated. That is rather the risk: the German fear of the stock market.

This has nothing to do with German fear. I have simply had the experience far too often that in many areas people do not properly master their craft and that I can do it at least just as well (with a little reading). I'm not saying all financial advisors are bad. But one should be careful, because there are many bad apples here too, and in the worst case you only realize it afterwards when the money is invested incorrectly. My husband used to develop such products, so we know pretty well who is lining their pockets in the process. Therefore, my advice is to educate yourself, then you realize that it is not that complicated. That is actually the danger: the German fear of the stock market.

If your husband used to develop financial products himself, then you are well acquainted with the subject. Personally, I find it too exhausting to read up on all areas. Where do I start and where do I stop? My car shows an error: do I now read through technical literature and internet forums or do I trust my workshop? The landscaper is redesigning our roof terrace and takes care of everything from planning, purchasing materials to implementation. Of course, I can buy the materials cheaper and read up on how to install it myself. But does that make sense? Wealth management is a very sensitive topic and a lot of money can be lost here. Whether a fee-based advisor is better or worse than a salaried one is another matter – there are all sorts of people everywhere. As with the trades in a house, it’s also about whether I can trust and rely on my service provider. If I want to invest a million today, I don’t open the Yellow Pages or google "wealth management." Usually, within my peer group, there are people with a similar background who will surely tell me about their experiences with various consultants, and I am firmly convinced that they know a decent one and will recommend them to me.