Geld Leben Looman: So gelingt die Vermögensanlage ohne teure Berater

Dear readers, you may need assistance in managing your wealth. Here is the good and bad news. First, the unfortunate reality: competent and unbiased financial advisors are scarce in Germany. This is your responsibility. Skeptical? Ask a lawyer or tax specialist instead of a doctor or pharmacist. They will confirm that many people resist paying reasonable fees for good advice and solid implementation.

Financial institutions, including banks, savings banks, investment companies, and insurance providers, are not charitable organizations, but businesses focused on their own interests. They are not in the business of altruism. There are three types of wealth management in Germany. The most significant is classic financial, investment, and wealth management, which involves two parties having "free" and "unconditional" discussions.

When discussions turn into sales pitches, this is not genuine advice, but a sales pitch aimed at closing deals. However, you should be aware of the true cost of these meetings. True, neutral advice is only available on a fee basis. Lawyers, financial planners, notaries, pension experts, tax consultants, and wealth managers sign individual service or work contracts with their clients.

These contracts obligate the advisors to provide specific services and promise their clients to exclusively represent their interests. German law requires that a representative disclose all information received during the performance of the contract, as well as any profits obtained from business transactions. If an advisor earns a commission of 10,000 Euros during the business arrangement or mediation, that money belongs to the client only.

Advisors violate three laws when retaining commissions: paragraph 667 of the Civil Code (obligation to disclose), paragraph 266 of the Criminal Code (treachery), and paragraph 370 of the Tax Code (tax evasion). Lawyers, notaries, and tax advisors also face conflicts with their respective professional regulations and guidelines, leading to the loss of their status and licensure.

The third form of advice is a questionable mix of advice and brokerage. Some advisors charge low fees for their services but charge high commissions for later mediation or administration. In some cases, they combine fees and commissions. The real issue with opaque commissions is that they often funnel directly or indirectly through a company owned by the advisor's spouse or friend.

Similarly, it is possible that real estate firms or insurance providers bribe such "advisors" with a new luxury car or invite them to a lucrative business trip. So, what can be said about all of this? Let us now turn to the good news, dear investors. If you have completed school, learned to read, write, and do math, and completed an apprenticeship, you possess normal common sense, as it is called in Austria.

Therefore, you are capable of managing your own wealth. Please do not tell me you need special knowledge. You did not need any when you got married and had children. Yet, in most cases, you managed – or not? Consequently, if you are married with two children and are in the middle of your life, I can only say: Wealth management is not witchcraft!

You need one checking account for each spouse. You need three liability insurance policies, one for the family and two for the family vehicles. Do not forget health insurance and wills, one for each gender. If you own a home, whether a house or an apartment, that money will not be available for investment. This also applies to statutory pensions.

Mortgage repayments take precedence over wealth investments, as fixed interest rates are usually higher than taxed interest rates. To manage bonds and stocks, you only need two index funds. That's 13 or 14 contracts if I'm not mistaken. If you discover 25 or 30 contracts during an inventory, I can only advise you to refrain from panic.