Prepayment Penalty for Loans vs. Current Interest Earnings

This is the typical German "suspenders, belt, and please staple it down tight" mentality, which is usually laughed at abroad. Sure, with one out of ten, the long-term investment in stocks fails because you have to sell exactly when it's unfavorable. For seven, it works quite well, and two can't sleep from laughing because they can pay off their house in cash after 10 years of stock investment...

Look at the trends of the last 20 years. There are very few scenarios in which you really would have stood there foolishly. And what else could happen? If there's a downturn when refinancing? You have the house as collateral; no one asks anymore for liquid equity that you have to bring in. Then you just finance a bit more, and when things improve again, you make special repayments or pay it off directly.

I’m telling you. Suspenders, belt, and staple it down tight.

If you want reasonable interest income from saving, you have to commit your money for a few years. But the risk of suddenly being left empty-handed when you need it... that is significantly higher than with stocks.

Well. That is a totally absurd logic. I’m just saying [Finanzkrise 2009]. Some people lost most of their entire assets then. Or also [Wirecard]. Or the great fund from Frank Thelen. It’s a gamble. You can be lucky or unlucky. And if you have money left over, that’s also okay. Otherwise, in my opinion, not recommended.

I'm really tired of the dumb stuff. You only lose money on the stock market when you sell your shares at a loss, which small investors unfortunately often do almost panicked during crises.
Those who invested in the MSCI World in 2007 would have lost 60% in 2008.

It's like with the "value" of a house. Your house is only worth 800,000 EUR when someone gives you that money. Until then, it is worth exactly 0 EUR, because you may own the money virtually. But REWE or Edeka do not accept virtual wealth to pay for a pack of cheese.

But:
You either sell at -10% or you stay in. Selling at -60% is just extremely stupid.

Those who stayed in got their money back a few years later and made a 120% profit in 2021. That’s an average of 9% per year, with the possibility to access your money ANYTIME. What interest have you gotten since 2008?

And no. It’s not gambling. Those who invest in broadly diversified indices or ETFs can hardly lose. Frank Thelen invests in technology. Laypersons should keep their hands off that; the TecDax is volatile, every stock market rookie knows that. Big chances, but also big risks.
With blue chips, however, you can’t really go wrong.

And in case the question comes up. I would love to invest in stocks... but unfortunately, after the construction, there’s nothing left to invest anymore...

Well. That is a totally absurd logic. I only say financial crisis 2009. Back then, some people lost most of their entire assets. Or also Wirecard. Or the great fund from Frank Thelen. It’s a gamble. You can be lucky or unlucky. And if you have money left over, that’s okay too. Otherwise, from my point of view, not recommended.

YES, money should basically be left over. But I cannot agree with the rest. Of course, if you bet on individual stocks (Wirecard) or if there is a person directly behind it (Thelen), you can lose a lot, but an ETF will probably always come out positive in the long run, otherwise we would have much bigger problems in the world. As many have already repeatedly mentioned, you have to look at it long term. In the case of an ETF, only those who get cold feet and sell at a loss or those who have to access the money at an unfavorable time will end up with a loss. With a savings plan, the risk is even lower, since you can buy more cheaply when the ETF is in a bad state.

By the way, the TecDax has risen by 300% from the pre-crisis high of 2007 up to today. That is an average of 25% per year. Not even luxury real estate in Munich Bogenhausen can keep up with that...

YES, the money should basically be available. But I cannot agree with the rest. Of course, if you invest in individual stocks (Wirecard) or if there is a person directly behind it (Thelen), you can lose a lot, but an ETF will, in the long run, probably always turn a profit; otherwise, we would have much bigger problems in the world. As many have repeatedly mentioned, you have to look at it long-term. In the case of ETFs, only those who get cold feet and sell at a loss or who have to access the money at an unfavorable time will end up with a loss. With a savings plan, the risk is even lower, as you can buy more cheaply when the ETF is down.

Show me the stock market crash where investors who stayed in lost everything. It’s nonsense that stock investment capital is "play money" and therefore "available to lose."

If you invest in knockouts or warrants... then the money has to be disposable, because there really is a risk of total loss. Or if you invest in penny stocks that could go bankrupt tomorrow.

But if I invest in the MSCI World, how likely is a total loss over a five-year perspective? If the MSCI World suffers a total loss... then we have other problems in the world beyond lost wealth, which is hard to imagine ;) This can basically only happen if we slide into a third world war.