Guidance requested for investment in Germany

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Dear Altruists, I am an expat working in Germany for couple of years in aerospace industry. I believe it's high time for me to start thinking about investment. I am talking about small investments. Like at a time I like to invest 15K euro and then may be every month 1 - 1.5K euro. For such small investments, I am looking for suggestions from the experienced investors in Germany. Can you please advise the best way to risk-free/minimum-risk investment in Germany as of in 2020?

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6 hours ago, ahammed said:

Dear Altruists, I am an expat working in Germany for couple of years in aerospace industry. I believe it's high time for me to start thinking about investment. I am talking about small investments. Like at a time I like to invest 15K euro and then may be every month 1 - 1.5K euro. For such small investments, I am looking for suggestions from the experienced investors in Germany. Can you please advise the best way to risk-free/minimum-risk investment in Germany as of in 2020

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Sorry- posted too quickly!

What are your goals/ aims? Over which period of time? 
I am not sure, based on your post, whether you mean you have been working in Germany for a couple of years already or for a couple of years more.

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58 minutes ago, john g. said:

Sorry- posted too quickly!

What are your goals/ aims? Over which period of time? 
I am not sure, based on your post, whether you mean you have been working in Germany for a couple of years already or for a couple of years more.

Hi, I have been working for last 2 years. Probably will stay and work for many more years. Aim is to have some benefits and preventing money being idle at bank. May be after 5-10 years will invest in bigger opportunities.

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If you want „ risk-free „ - invest in debt!😂 ie lend money to the banks ( savings accounts), to the State ( Govt bonds etc) or to companies ( Corporate bonds ) and get „ risk-free „ virtually nothing back and not inflation-adjusted, either.

 The longer you invest, the „ more „ the „ risk „ becomes less of a risk if you spread your investment widely into several different mutual/ equity funds and read up on the benefits of monthly ups and downs/ fluctuations ( the so- called Cost Average Effect.“)

I used to be active in this area from the early 90s onwards but have reduced my activities in that regard. Have enough to do as it is and need more time to live!

For current expert advice, why not contact @ Starshollow on this forum, who is an active investment specialist?

 

By the way, does your company also offer Vermögenswirksame Leistungen (VL) as a „ perk „? Up to 39 euros a month from an employer for you to choose an investment on the open market.
Just for fun- I used to work at Airbus in Finkenwerder in the early 90‘s and many of the engineers there bought their VL off me- just had a look at the last ten years-  https://www.boerse.de/fonds/DWS-INVESTA/DE0008474008

 

Disclaimer: I‘m an independent insurance broker and authorised advertiser on TT.

 

I am a professional independent insurance broker and authorised advertiser. Contact me.
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If you are a US citizen, that will play a major role since US tax treatment of many garden variety German investments may make them prohibitively expensive both in terms of tax and compliance burdens.

 

 

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Bangladeshi, according to the profile, Straightpoop. But you never know- sometimes, profiles are not correct or updated..

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@john g.

 

Thanks for the tip.  I'll check next time.

 

But . . . my caution also applies - with qualifications - to US lawful permanent residents ("Green Card" holders).

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On 6/28/2020, 8:53:13, john g. said:

Bangladeshi, according to the profile, Straightpoop. But you never know- sometimes, profiles are not correct or updated..

I am a professional independent insurance broker and authorised advertiser. Contact me.

@john g., I am a Bangladeshi. My father is American citizen. Not sure if it helps.
One of my colleague today suggested me to buy ETF. Guess that's what you suggested me also.

But thank you for the important suggestions.

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On 6/30/2020, 11:05:26, ahammed said:

My father is American citizen. Not sure if it helps.

 

@ahammed

 

Depends upon what you mean by "helps":

 

Your father's citizenship may have made you a US citizen at birth:

 

8 USC §1401. Nationals and citizens of United States at birth

The following shall be nationals and citizens of the United States at birth:

(a) a person born in the United States, and subject to the jurisdiction thereof;

(b) a person born in the United States to a member of an Indian, Eskimo, Aleutian, or other aboriginal tribe: Provided, That the granting of citizenship under this subsection shall not in any manner impair or otherwise affect the right of such person to tribal or other property;

(c) a person born outside of the United States and its outlying possessions of parents both of whom are citizens of the United States and one of whom has had a residence in the United States or one of its outlying possessions, prior to the birth of such person;

(d) a person born outside of the United States and its outlying possessions of parents one of whom is a citizen of the United States who has been physically present in the United States or one of its outlying possessions for a continuous period of one year prior to the birth of such person, and the other of whom is a national, but not a citizen of the United States;

(e) a person born in an outlying possession of the United States of parents one of whom is a citizen of the United States who has been physically present in the United States or one of its outlying possessions for a continuous period of one year at any time prior to the birth of such person;

(f) a person of unknown parentage found in the United States while under the age of five years, until shown, prior to his attaining the age of twenty-one years, not to have been born in the United States;

(g) a person born outside the geographical limits of the United States and its outlying possessions of parents one of whom is an alien, and the other a citizen of the United States who, prior to the birth of such person, was physically present in the United States or its outlying possessions for a period or periods totaling not less than five years, at least two of which were after attaining the age of fourteen years: Provided, That any periods of honorable service in the Armed Forces of the United States, or periods of employment with the United States Government or with an international organization as that term is defined in section 288 of title 22 by such citizen parent, or any periods during which such citizen parent is physically present abroad as the dependent unmarried son or daughter and a member of the household of a person (A) honorably serving with the Armed Forces of the United States, or (B) employed by the United States Government or an international organization as defined in section 288 of title 22, may be included in order to satisfy the physical-presence requirement of this paragraph. This proviso shall be applicable to persons born on or after December 24, 1952, to the same extent as if it had become effective in its present form on that date; and

(h) a person born before noon (Eastern Standard Time) May 24, 1934, outside the limits and jurisdiction of the United States of an alien father and a mother who is a citizen of the United States who, prior to the birth of such person, had resided in the United States.

 

Whether this is a curse or a blessing will depend on your circumstances.

 

 

 

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While (g) may entitle the OP to US citizenship it doesn’t mean that he automatically has it.  It must be applied for, and until/unless it is applied for and approved one does not have it.  My grandchildren are in category (g).  
 

In other words, the burden of proof to fulfill the complex requirements is on the applicant.  

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@BethAnnBitt

 

You are exactly right.

 

Until the qualifications are affirmed by the issuance of a US passport in response to an application for same, the OP is in no US tax and compliance danger.

 

However, if at some time in the future the possibility of having guaranteed entry to the US starts to look irresistible, he can always make the application (provided the law has not changed - again - in the meantime).

 

 

 

 

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