I have 20K in checking account (festgeld)

14 posts in this topic

Posted

Ok, so I am not really the finance guy. I just get my salary and never even bother looking at my bank account. And it seems now that I have some good amount of money in there but I don't seem to be doing anything with it. My account is with Deustche Bank so no interest rate whatsoever. I did a quick research and found about Tagesgeld and festgeld but I still don't know if I should put all the money in both or either of them. Or if there is a better way to invest the money? I would like to buy an apartment one day (since I thought may be it is the best way to invest?) may be but 20k obviously isn't even half what it costs to get something in FFM.

Also regarding tagesgeld, is it ok if I transfer the whole some to MoneyYou (say if I choose them for tagesgeld) or is that a bad idea? Is there any risks involved?

Would appreciate your thoughts or any idea what would be best to make use of the money instead of having it just sitting there.

Cheers!

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Posted

Would appreciate your thoughts or any idea what would be best to make use of the money instead of having it just sitting there.

Give it to me ;)

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Posted

Rather than getting financial advice from random strangers off the internet, I would advise getting in touch with a financial broker who has experience dealing with expats. TT member Starshollow springs to mind, or maybe he can recommend someone in your neck of the woods.

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Posted

I would immediately move to open a demand deposit (Tagesgeld) account with moneYou or similar and get my money into it to at least stop letting Deutsche Bank having my money for free!

You can then seek professional financial advice at your leisure (if you need it).

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Posted

Rather than getting financial advice from random strangers off the internet, I would advise getting in touch with a financial broker who has experience dealing with expats. TT member Starshollow springs to mind, or maybe he can recommend someone in your neck of the woods.

Shouldnt he use the search function or TT Wiki or something?? Come on woman.. you are Slacking!!

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Posted

I would put it in Franklin Mutual Global Fund (MDISX) or in Oppenheimer Developing Markets (ODVCX) which have earned me 35% and 25% respectively. Or split it between the two.

Thing is, I have no idea how they will perform from today forward.

You asked.

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Posted

Some to me please. :)

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Posted

Hi someguysomewhere (near Darmstadt!),

having just taken a quick look at the other posts you have so far made on TT, I see they are all closely linked - the one mentions tax problems, somebody advises you to get a tax advisor; the next thread is "how do I find a tax advisor?", and so on.

seriously, TT is full of helpful people who are ready and willing to help each other, but so far, all I see is you "taking" advice and never giving.

One thing you really should get used to doing is using the search function on here - failing that, try looking back through your own threads to find out who the financial advisors on TT are!

Oh, and if you really are stuck as to what to do with your money, I will gladly give you my bank details - you can "donate" it to me! :P

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Posted

I'm also no financial expert, but am quite opinionated so here's my 2 cents!

Generally I wouldn't consider that buying an apartment in Germany is a particularly good investment. However, having your rent go towards purchasing your own property instead of just lining your landlord's pockets isn't a totally stupid thing to do.

If your job is nice and secure, then maybe you should ask your bank about how much it will cost you you borrow enough money to buy an apartment now. I was advised recently that now is a very good time to borrow money (read, low interest rates).

At the same time, now is a completely miserable time to save money in a safe way (fixed interest accounts). Go ahead and put your money into festgeld or tagesgeld if you definitely don't want to spend it and don't want to risk speculative investments, but if you're lucky enough to get 2% interest (which you probably won't find), that's just €400 per year on your 20K.

And if you have 20K in your account I'm guessing €400 isn't too hard for you to come by... so are you really interested in a long term 2% interest savings account?

I swallowed all the hype of Tagesgeld from a certain tartan toting British based bank a couple of years back. Started pouring my money in monthly, attracted by 2.8% or something in that ballpark, and generally forgot all about it. Last time I checked the interest had fallen to 1.6% and of course I wasn't notified of the changes... I just should have kept myself up to date. End of the day though, 1.6% or 2.8% is all peanuts when you're starting out at saving money. You should boot up your spreadsheet software and make some ballpark calculations to check if borrowing will be better than saving in the long term. I did, and for me it is, but ONLY if I don't move house for 10 years or so.

(edit: you pay something like 10%-20% of property price as a sales tax, so buying and then moving costs you €€€)

Don't know if that helps you at all, but possibly something to consider if your long term goal is anyway to own property.

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Posted

I would put it in Franklin Mutual Global Fund (MDISX) or in Oppenheimer Developing Markets (ODVCX) which have earned me 35% and 25% respectively. Or split it between the two.Thing is, I have no idea how they will perform from today forward.You asked.

Really? With a Buy and Hold strategy or are you doing a market timing model? The 10 year return for MDISX was 10.6%

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Posted

Yes, I say invest as soon as you possibly can. Your future depends on it. I am assuming your young and a litte naive. So, now we have that out of the way. I have invested my entire working savings into this swampland in the state of Florida, USA. If you can come up with another, oh, say 5k more I will let you in on the absolute best investment around. PM me for my Niigerian account information to transfer your funds. Really looking forward to giving you the business. Um, from a business perspective of course.... ;)

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Posted

@ rhody

Yes, buy and hold. I've had both for many years. Anyway, my post was a wind up - telling someone how to invest their money as if I'm qualified.

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Posted

They are still good funds though. ;) Although MDISX is closed to new investors...

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