Spaargids.beWould you rather let your vacation money come to fruition than eat it? we are from Spaargids.be Together with Christel Boyesen, investment specialist at Immotheker Finotheker, they searched for the best options at the moment. We also look at what such an investment could mean after 1, 5, 10 and even 40 years.
By Tom Dejonghe, in association with Spaargids.be
Let’s start with some very important questions. This way you know immediately if you can go into savings or investment options sooner. For ease of calculation, we assume an amount of €1,000 in holiday allowance available.
1. Do you have enough buffer for unexpected expenses?
“If not, you’d better put your vacation money into a savings account,” says Christel Buijsen. “In case of major unforeseen costs, then you have immediate access to your savings. Do you have enough financial reserve? Then you can take other paths to grow your vacation money. Read: A more or less risky investment.”
Are you looking for savings accounts with higher returns? Our overview will help you on your way.
2. How long can your money last?
The thing is: If you are looking for a higher return for your money, you have to go for the long term. This way you can make up for any temporary losses. In specific terms: You should therefore invest for a sufficient period of time. The stock market moves up and down, and strong declines are 20% or more is also common.
Can you only lose your money for a limited number of years, even 5 to 8 years? Then the difference in the final capital will not be large enough to take a lot of risk and it is better to go for the investments with which you will definitely get your capital back and possibly enjoy a guaranteed return. Do you have more time? Then you can invest in a riskier way and may bring a higher return in the long run.”
Up to ten percent and more (a lot): An overview of the returns of periodic investment plans in banks.
3. You don’t have much time and you don’t take much risk?
“In this case, it is better to invest in Branch 21 and Branch 26 products. The return on Branch 26 products is now much higher than in previous years, even up to 2% of the total and more. Moreover, you do not pay any insurance taxes. Also, there are no entry, exit and management costs, if you choose the right products.”
The payout on Branch 26 products is often known in advance and you can always get out if other opportunities arise. In the case of early admission, check if there are any costs involved. You pay 30% withholding tax on your trip anyway. Overall, this makes tak26 a good alternative to a savings account.
Today, Branch 21 also offers a wide range of new and not-so-new products with guaranteed returns. Yield can rise again to a total of 2%, with the opportunity to share profits. If you wait at least eight years to get out, you won’t pay the withholding tax. Be careful when you go out after less than eight years. Then you pay 30% withholding tax on a theoretical yield of 4.75%. But by taking out death cap, you still avoid withholding tax in the event of an early exit.
In addition, insurance companies charge a penalty if you get out early, which can be quite high. With some Branch 21 products, they sometimes remove the penalty and exit costs, but only in certain circumstances. For example, if you retire early because you lost a job, or you are able to buy a house… Inform yourself in advance of this and don’t just seek the highest returns.”
Are you interested in the tak21 savings insurance policy? These are the current products with their net returns in recent years and now guaranteed rate of interest.
What if you invested 1000€ per year with a net return of 2%?
4. Do you have enough time and want to take a risk?
“Then you go to get shares. It has more risk, but you level it out by distributing your investment. Invest 100 euros month after month, instead of 1,000 euros once a year. Follow the investment plan you deposit at the beginning of the month. Then keep going.” That is, even if the stock market goes down.This way you buy at higher and lower prices, spreading the risk more evenly.
You can of course also spread out by not buying a single stock, but by buying a stock fund or ETF. You can often combine different boxes. If you want to completely remove the burden, choose a fund of funds managed by an asset manager.”
You can also choose Tak23 investment insurance. Branch 23 is an investment product that invests in bonds, stocks, and real estate, among other things. There is no guaranteed return, so you risk more, but at the same time you don’t owe any withholding taxes.
Compare minimum (additional) deposits and entry costs of different branch service providers 23: do it here.
What if you invested 1000€ per year with a net return of 6%?
Read more at Spaargids.be:
This article was brought to you by our partner Spaargids.be.
Spaargids.be is an independent comparator of bank products and looks for competitive pricing and better interest rates.
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