How to invest money in germany Today morning we had a very nice update sent out by trade republic to all of the customers which was that from now onwards you can also have a savings plan set up for individual stocks.
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| How to invest money in germany |
If you've been keeping up with investing in germany for quite some time now you must know already that it is still not as nice as you have in us because in u.S you have these completely commission free brokerage accounts but in german you don't have that you have some etoro you have trade 212 but these are still not german depots or brokerages that means anytime you have to do something with the freyja lungs of truck .
How to invest money in germany :
Which is like this yearly limit that everybody has till which no taxes have to be paid to the finance summit and that is for singles 801 euros per year and for married people it's double it's 1602 euros what german brokerages do is that as soon as you're getting your dividend payout they will already pay out the part of the text to the financial so that you don't have to do any kind of extra efforts when you're filling out the tax returns this is a huge benefit because you don't have to keep a track of at what rate you bought a specific stock and at what rate did you sell it and how much like total gain you made and you have to like make all of those calculations no .
So these brokerages do that for you now if you take a look at different kind of services you have com direct you have consorts bank and you have trade republic and of them all the cheapest is trade republic because you can set up savings plan for example every single month you have a specific amount that you can transfer from your normal current account to the trade republic account and from that the money gets deducted on the basis of how much you want to invest in a particular etf which is an exchange traded fund and otherwise you can just like .
How to invest small amounts of money in germany :
Also now have the possibility of making the same savings plan for stocks you were not able to buy fractional shares for example with tesla amazon apple whatsoever but now you can start with as little as 10 euros fractional shares was a feature which was not yet introduced into any of the german brokerages but now we have at least one of the brokerages which is offering that now this is also not as simple as you just going ahead and buying a stock at any time that still costs one euros on trade republic and on other platforms of course it generally costs more but now you have an option of automating those purchases and that is something you should definitely take a look into if you have some kind of specific goals for example you want to save in a specific company month after month .
So let me now take you to my trade republic account and show you how everything's looking like that so of course face id and everything and if you see like over the past few months i've added quite some money inside it like i've been saving everything i could and i'm just like trying to invest here um the core msci world etf i'm still saving i have around 11 000 euros there and my strategy this time has been to just like invest more in consumer staples because these are the products which are needed by the customers any single day .
So of course that is my plan you can just come up with your own strategy and start investing in that particular way for me because johnson and johnson has also been increasing dividends over more than 50 years that's why i decided to like put decent amount of money inside johnson and johnson then pepsico and then afterwards coca-cola atnt they also have a nice dividend yield and then american express was something that i bought in the starting and i'm like sticking with it so now let's talk about setting up the savings plan for stocks and the interesting thing like i said again you can start it with as little as 10 euros without any kind of extra fee and this is something which i like more because like in ets you still have some kind of total uh expense ratio if you take a look at the bottom .
Best way to invest money in germany :
So here for msci world you have the ter of 0.2 percent whereas in stocks of course you don't have any kind of ter that means if i want to go down i want to like start investing in apple i can just directly go to spa plan and when you go here you can either do it twice a month or per month basis or like every three months so again like it depends from person to person then either you can do in the starting of the month or in the middle of the month then i would generally say like starting of the month because you still have some salary and you can just directly transfer it there towards the middle of the month maybe you feel like you already went to a few places where you shouldn't have because you're saving money .
So here you can like just start with 10 euros and then it's as simple as that you just directly put all right i want to start and as soon as you do spa plan you're done and that's how simple it is and now if you want to cancel it you can go to the order manager and then afterwards you can just delete it that's also as simple as that now today for example my core msci world savings plan is going to be activated for this month and i'm still saving 500 euros a month without any kind of deviations there because if you've watched previous videos you know how much importance we give on dollar cost averaging that means if you're investing your money when it's up and when it's down towards the end generally you have a better return than you putting your money inside all at once at maybe a high time or lower time because you at the present moment cannot understand how the market is going to go forward .
So that's why investing regularly even if it's in small amounts it always helps you because this is the kind of money which is working for you this is the kind of money which is just going to give you our dividends and you don't have to do anything about it other than just saving the money aside and putting it in the companies you like now .
So i do not believe that you should just like start throwing in crazy amounts of money like right away but start slow start with the lesser amount 10 euros is something that you would be like wasting maybe going out to a restaurant or something and this could be the same money if you invest in stocks that could pay you dividends and can also increase in its value because most of the companies if they're doing well if they are not like scamming people or doing some shady stuff they'll be fine they'll be growing and most of the companies which have solid brands for example pepsico coca-cola and you have johnson and johnson unilever procter gamble all of these like different kind of companies which have been established for so long it's highly unlikely that some crazy thing is going to happen and like all of them are going to just directly go into the ground and because i've personally seen how much the money has grown even through the recession you take a look at the maximum on trade republic let me put it up yeah.
How to invest your money in germany:
So i show you the maximum so i have an additional profit of 1063 1064 euros because i've been investing regularly from the very starting i remember the core msci world right now it is at 56 euros i remember buying it also for 42 euros and at that time of course for the same amount of money you can buy a lot more stocks and then when they go up in value because things get back to normal then you have a nice profit on it so 1 000 euros in almost eight months just because you're investing it regularly it's really not bad this is why i say start small but start today so for the people who have an orphaned house detail you can directly apply for trade republic you can just go at the link below you can download the app and otherwise if you're having problems opening your account with trade republic you can go for consoles bank.
I'm also going to put the link for that in the description but in my opinion trade republic is really nice give it a try try to activate the depot because this is the cheapest depot out there which has the german level security that means 100 000 euros when you put inside this account at least they are secure in case they get bankrupt or something this is the german ein lagas issuing whereas if you talk about trade 212 or etoro or something like that this is not going to be covered by the german state because these are not german depots now .
So that's the main difference there uh i hope you get started if you have any questions whatsoever let me know in the comment section below and i'll make sure to address them thank you so much and i'll see you in the next one bye bye you.
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