Special repayments or investing in the market? Alternatives?

Reserve for unforeseen circumstances is managed separately and not included in the 30% on the daily allowance account. The 70/30 rule only applies to my portfolio for wealth building/retirement planning. The 30% simply represents my safe asset class to avoid being 100% invested. I could also use government bonds or fixed deposits instead. However, at the moment, I prefer the daily allowance account. I understand that the money there doesn't generate any returns, but it's not supposed to. ;)

Hello, the question itself is very good. The historical returns on the stock markets can also come to an end. Just look at the 60s...70s, sometimes it took 30 years at the peak to get your money back... We are entering a situation with high inflation; interest rates will probably only be able to rise moderately (The means of central banks are limited without plunging entire countries and most companies in the world into the abyss) but nonetheless, we are economically entering a different situation than the last 20 years, so please do not uncritically project the returns of the past into the future!!!! For example, high raw material prices pressure the margins of the much-loved consumer goods stocks, which may eventually no longer be able to pass on their price increases and then have to struggle with declining margins. This can currently be seen nicely in most stock prices, moving sideways and downward while the indices still have record highs. Do not misunderstand, I am significantly invested in the stock market, but one should find a healthy balance and not go all in on stocks as I read here; otherwise, combined with a possibly not-so-rosy real estate market (and inflation is no guarantee that real estate will continue to rise), it could lead to a nasty awakening, although I am optimistic about debt-leveraged tangible assets. I have financed everything only for 5 or 10 years and make sure to fully utilize the special repayments on my owner-occupied house every year. Everything left then actually goes into stocks. However, years before preparing for my own house, I had already started acquiring rental properties that easily finance my own house, so that a mid-four-figure amount remains monthly as cash flow for reserves, investments, and special repayments after all living expenses. A healthy mix makes it, and an important contribution here: listen to your gut feeling... you have to feel comfortable. There is nothing worse than the real estate prices crashing by 30%, your equity in real estate being eaten up, and you can no longer repay the debt portion of your house with a sale, and we have a stock market crash... if it is down 20..30%, inexperienced stock investors are quickly pushed out of the market at the lowest point... do not underestimate the psychology of the stock market!!

Thank you very much for this contribution… I join the warning

Very exciting topic. Just a question to get some ideas.

We are actively looking for a property (so if something interesting came up for purchase tomorrow, we would buy it) ... unfortunately for already 3 years. The equity capital "rotted" almost 100% in a daily allowance account and 3 building savings contracts (old, small contracts, but "only" 2% interest). Always with the aim of being able to access the money quickly and easily.
About 1.5 years ago I shifted about 60% of the equity capital into a securities account because I wanted/want a higher return.
Of course, I always have the risk that if the equity capital is needed, I find a property and have to dissolve the securities account. On the other hand, it can also take e.g. 3 more years and then I waste potential.

How did you handle this during the active search phase? Simply kept all equity capital safely in the savings book?
Thanks

How did you handle the active search phase? Simply put all equity safely into the savings account? Thanks

Yes. Everything else would have been too risky for us. But it is actually wasted potential. I briefly considered buying a 5k position in Plug Power at €2.55 during the Corona crash in March but was too risk-averse. If I had done that and stayed invested until early '21, that would have been 2000%. Even by summer 2020, nearly 400% would have been possible. But that's just gambling, and who has a crystal ball anyway ;)

Yes. Everything else would have been too risky for us. But it is indeed wasted potential. I briefly considered buying a 5k Plug Power position at €2.55 during the corona crash in March, but then was too risk-averse. If I had done that and invested until early 2021, that would have been 2000%. Just until summer 2020, nearly 400% would have been possible. But that's just gambling and who has a crystal ball ;)

Please don't misunderstand, I don't "gamble" with equity and I also don't buy penny stocks. About 90% of my investments are in "boring" companies (yes, even an Alphabet can dip, but that's rather unlikely). I want about 8 - 10 percent return; that's enough for me... but still always a weird feeling, what if I actually had to sell everything and my portfolio was then down 10 percent...