Hagiman2000
2016-02-14 00:22:44
- #1
I have had Wohnriester explained to me 10 times (I already have a Riester pension that I wanted to use for financing) and I still don’t understand it. Withdraw at least €3000 or leave at least €3000 in there, the withdrawn money is interest-bearing at 2%, and at retirement I have to pay taxes on the fictitious pension, etc., and so on. Transparent and simple looks different.
We have almost the same income and almost the same amount as a loan. We only have one loan with a fixed interest rate for 15 years. Indeed, not secured for as long as you, but with a loan from a bank. The installment is also about €200 lower, which can allow €36,000 in special repayments over 15 years (due to compound interest effect it is even more).
We also considered building society savings contracts, but with the currently so low interest rates... I don’t know. We were also offered options with 4-5 components, but that’s not really our thing. Even annuity loans + KFW loans were too annoying for us. KfW also makes no sense anymore. Just look at what banks demand for €50,000 with a 10-year fixed interest rate, it’s the same 1.51% that banks charge. So why still use KfW?
We now only have to talk to one bank, only have to pay attention to one term, and only refinance once. In addition, unlike with Wohnriester, there is no tax surprise at retirement.
I remembered a good piece of advice that applies to financing / loans and insurance: "Never sign anything you don’t understand!". That was the case with financing with 4-5 components or Wohnriester. Of course, that doesn’t have to apply to everyone.
We have almost the same income and almost the same amount as a loan. We only have one loan with a fixed interest rate for 15 years. Indeed, not secured for as long as you, but with a loan from a bank. The installment is also about €200 lower, which can allow €36,000 in special repayments over 15 years (due to compound interest effect it is even more).
We also considered building society savings contracts, but with the currently so low interest rates... I don’t know. We were also offered options with 4-5 components, but that’s not really our thing. Even annuity loans + KFW loans were too annoying for us. KfW also makes no sense anymore. Just look at what banks demand for €50,000 with a 10-year fixed interest rate, it’s the same 1.51% that banks charge. So why still use KfW?
We now only have to talk to one bank, only have to pay attention to one term, and only refinance once. In addition, unlike with Wohnriester, there is no tax surprise at retirement.
I remembered a good piece of advice that applies to financing / loans and insurance: "Never sign anything you don’t understand!". That was the case with financing with 4-5 components or Wohnriester. Of course, that doesn’t have to apply to everyone.