Repayment options for risk-averse people

I'm kind of stuck. I don't know anything about investments at all..

The credit interest rate is higher than the one for the financing, but the invested money is also definitely less than the original financing amount, so you don't get as much interest for your credit as you pay for the financing?!

If you made a special repayment, I would shorten the term or save more interest than I would get..

See #7. Eventually, the situation flips. The 10 years just aren't enough for that. :)

Let me have a quick look... all stock indices are down 20% this year. Clearly, daily money accounts outperform... People probably hate their money ;)

It looks even worse with cryptocurrencies (reduced to about 1/3 for me, for example :( :eek: :mad:o_O). Fortunately, I only invested "play money."

But back to the topic. If I want to invest about 150-180K (which I will probably receive soon), but need about 120K fixed in 7.5 years.

From the entire amount, I would also like to withdraw 750€ monthly for almost a year. (I am selling an old house, so of course the rent will no longer be due. The above-mentioned sum will then roughly replace the current net yield of the house.) I only need this for 10 months, then I will have enough left monthly for everything without this sum.

So far in my life, I have never been in the situation to have such an amount "left over" :oops: Aside from diversifying into various eco ETFs, I can't think of anything :eek:

Alternatively, there is also the option of simply taking out about 8K for the 750€ monthly...

I would invest in ETFs. I don't understand how anyone can recommend a savings account. Do you hate money?

An equity ETF is just not for the risk-averse.
Especially in the current times, stocks can go downhill at any time, even if I bundle many of them in an ETF.

If you prepay the loan, you shorten the term or save more interest than you would earn..

If you put the same amount into a savings account as you would prepay, the interest rates directly compete against each other (minus capital gains tax).
This is independent of the loan amount and term.

So if you took out a loan at 1%, you can go into savings or fixed deposits with relatively low risk if they yield at least 1.33%.
But that (still?) doesn’t exist at the moment. So continue to diligently use prepayments.

If you put the same amount in a daily allowance savings account as you would use for special repayments, the interest rates compete directly against each other (after deducting the withholding tax).
This is independent of the loan amount and term.

So if you took out a loan at 1%, you can go into a daily or fixed-term deposit with relatively low risk if it yields at least 1.33%.
But this is currently (still?) not the case. So keep using the special repayments diligently.

Thanks for the explanation :)

I had actually compared the interest payment of the main loan p.a. with the interest income of the investment p.a., and not the part of the interest savings through the special repayment with the investment.

Let me take a quick look... all stock indices are down 20% this year. A clear outperformance for daily money... People must really hate their money ;)

But you are looking at a 6-month period...

You are now looking at a 6-month period...

And you probably only the rosy times without pandemics, without wars, without droughts and whatever else may come. Sure, it can go well, but stock ETFs are simply not for the motto "risk-averse people".