Geld Leben Looman: So gelingt die Vermögensanlage ohne teure Berater

Dear readers, you may need assistance in deciding where to invest your money. However, I have both good and bad news to share. Let us start with the less appealing one. Unfortunately, finding competent and neutral financial advisors in Germany is scarce. You must accept responsibility for this situation. You may find it hard to believe, but trust me, ask a lawyer or tax advisor instead.

They will confirm that many people resist paying reasonable fees for good advice and proper implementation. Companies are not charitable organizations, but businesses focused on their profits. Like other sectors, those who shop at Lidl for cheap prices should not expect special treatment at Edeka. Mercedes owners don't receive advice on healthier biking or better BMW cars.

The same principle applies to the money industry. In Germany, there are three types of advice when it comes to money. Classic investment, financial, and wealth management consulting is the most significant. Two parties meet for "free" and "non-binding" discussions. When discussions turn into sales, it is not really advice but a straightforward sales pitch intended to close deals.

That's not real advice at all. The neutral advice many investors seek is only possible on a fee basis. Lawyers, financial planners, notaries, pension experts, tax advisors, and asset managers sign individual service or work contracts with their clients. These agreements, based on Articles 611 and 631 of the Civil Code (BGB), obligate the advisors to provide certain services and promise to prioritize the clients' interests.

To avoid any temptation, the legislator already stated in Paragraph 667 of the Civil Code that the agent must disclose everything received for the completion of the task, including any benefits obtained during the performance of business services. If an investor hires a "real" advisor to support them in managing their assets, the professional can charge up to 5,000 euros, including statutory value-added tax.

However, if commission fees amount to 10,000 euros during business services or mediation, these funds belong solely to the client. Advisors violate three laws when retaining commissions: Paragraph 667 of the Civil Code (Disclosure Obligation), Paragraph 266 of the Criminal Code (Bribery), and Paragraph 370 of the Tax Code (Tax Evasion).

Lawyers, notaries, and tax advisors also face conflicts with their respective professional codes and guidelines, leading to loss of reputation and even their licenses. The third type of advice is a questionable mix of advice and brokerage. Some advisors demand low fees for their services but charge high commissions for later mediation or administration.

In some cases, they combine honoraria and commissions. The main issue with opaque commissions is that they are often passed on directly or indirectly through a company owned by the advisor's spouse or friend. Companies, investment trusts, and insurance providers may even present new luxury cars to such "advisors" discreetly or invite them on Sahara trips.

Let us now turn to the good news, dear investors. You have attended school, learned to read, write, and do arithmetic, and completed an apprenticeship. If you consider yourself reasonably intelligent, you can manage your own wealth. Don't tell me you need special knowledge for that. You didn't need special knowledge when you got married and had children, yet you managed to navigate those challenges successfully.

Therefore, I can only shout at married couples with two children in the middle of their lives: Wealth management is not witchcraft! Each spouse needs a checking account, three liability insurances—one for the family and two for the family cars—along with health insurance and wills, one for males and one for females. If a family owns a home or apartment, it will not be available for investment.

This also applies to statutory pensions, as repayment of mortgages typically has a higher interest rate than after-tax interest on savings. You need only two index funds for managing stocks and bonds, which translates to 13 or 14 contracts if I haven't counted incorrectly. If your inventory shows 25 or 30 contracts, my advice is to reconsider your approach.