"The best return is to pay off debts'
Hermann-Josef Tenhagen, chief editor of "financial test" over investment strategies in crisis
- Europe is mired in economic crisis. The rating agency Moody's threatens to downgrade Germany, the markets are nervous, investors have lost confidence. But you should stay calm and allocate their money in safe investments and equity funds, advises Hermann-Josef Tenhagen, editor of "financial test". Eva Lindner spoke to him about investment strategies, from when it pays off to invest in real estate, and whether it makes sense to stash cash at home.
Berliner Morgenpost:
Mr. Tenhagen, if you currently have available 100,000 euros, what would you do with the money? Spend or invest?
Hermann-Josef Tenhagen:
I would not spend it. As I investing depends on how long I have it available. In any case, it is important to spread the money. If I did not need the next ten years, I would invest 70 percent of the money in fixed deposit for three years. Among the banks that perform well at the moment with us, I get 3.25 percent interest. The remaining 30 percent of the money I would invest in the best equity fund with an admixture emerging markets. Our tests have shown that in recent years have brought higher returns at comparable risk. For smaller sums of 10,000 or 25,000 € is basically the same.
Many people are unsure whether an investment is not promising at all. If you currently do not more of it to go on a world tour with his money?
If the job is secure and we have no financial problems, you can also spend the money of course. But you should have about two monthly income on the money market account, so you do not have in the MRP, if refrigerators and car break down at the same time. Disposable pull the smooth, I think is very important because the banks, especially in Berlin, too high interest rates to take it. The best return is always to pay off debts.
Is it worth investing in to, in real estate?
In real estate there are two criteria: The most important thing is location, you have to consider very carefully whether that is good and wants to live there in 20 years someone else. Second, the purchase price must not be too high if the property is to be an investment. That has to count through good. If you buy a condo, at which the net cold rent 500 €, it should not cost more than 120,000 €, so it's worth it.
What is the situation with overnight?
This is obviously a good idea if I need more quickly rankommen the money. Then you can currently create it for about 2.4 percent for two years.
Does it make sense to be seen whether the financial position improved in the fall?
No, wait makes no sense. And in six months, the crisis is not over. I have here no fear for the savings of the Germans, not even to my own, but rather about the economic impact and the consequences for exports and jobs. Currently, we are benefiting from the crisis, too, currently you can buy cheap cars from Italy or Spain or get construction loans.
Some Irish and Scottish banks with extremely high interest rates attract federal funds. Suppliers from abroad are trustworthy?
We try to list the banks that have deposit insurance and the EU are credible. The pitfalls of the contracts do not have to take care of you must get the bankruptcy case to return the money. 100,000 euros have been because we can. With banks that are found on the Internet, but one should be careful.
Of which investment would you advise now?
I would not invest over a long period of time in interest rate products, because you do not know whether the inflation for ten years, but not too strong. And I would not buy shares at very short notice, this is only speculation, it quickly becomes a gambler, and has to be very close attention to the individual companies.
Some banks advertise with premium-saving offers. Are those recommended bait?
No, because you should look on it and compare well. Sometimes there are good deals, but after a few months you would have to again become active and take care. Many have it but do not feel like it's not worth it. Anyone who puts his money on a good money market account gets usually more interest.
Not only the Greeks, but also many German bunkers money at home. Is that wise?
No, not at all. The Greeks, I can still understand, they say, comes back when the drachma, my Euros are worth more. When in Germany of € wegkäme, I hope not because of the risks to jobs, it would tend to be more the case that the German currency would be revalued, then you do so with the loss of €. In addition, money under the mattress is very risky, because of course at home very quickly everything can be stolen.
What is the situation with bunds?
They are great sure, but still have absolutely no return. As a taxpayer, I am sure that the federal government offers no interest for investors is obviously bad.
Disturb the statements by Moody's?
No, Moody's says yes nothing new. They have now just realized that in Germany a financial equalization and money flows are. As one newspaper reader knows that the current economic situation is not rosy, but we need a rating. One must not always complain to these agencies, their business models are made politically. Decades ago, seemed sensible legislation that enforce such assessments by rating agencies. Today you might consider even know if they are still necessary. People should remain calm. There is no new information, a need would irritate sustainable, capital restructure, therefore, you definitely do not.
Would you still recommend today to take out life insurance?
With pension insurance, we stop at "financial test" is still a good idea in principle. We grumble but often because the costs that drain the insurer, are much too high. Anyone who has a contract for some time should definitely hold on to it. Funded pension schemes can also be locked again, to sign a new classical life insurance, but I would advise against it. They're expensive in their sales structure and need, until they throw off returns.
