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Wealth accumulation: seven golden rules for private investors

Valeria Nickel, January 5th, 2021

Before you start building up your assets in the form of investments and thus tie up your assets for the longer term, you should make sure that you have sufficient funds Liquidity reserves own for unforeseen financial bottlenecks and expenses. Basically an amount of two to three monthly net income to be recommended as an “iron reserve”. The best way to save the money is in a call money account.

Also plays the validation play an important role in liability, household effects, unemployment or accidents. You should bring the relevant contracts together before you start building up your assets.

In addition, all debts and the associated loan interest should be settled before starting to build up assets.

2 | Avoid fees

Asset accumulation is not free of charge: Fees for buying or selling a financial product, transaction fees on the stock exchange, sales charges on funds or the investment account itself cause costs. Depending on the provider and broker, these are sometimes higher and sometimes lower or are even partially waived.

Since such fees reduce the return on your investment and slow down the accumulation of assets, you should be well informed about them and that choose the cheapest offer.

You should also consider your securities not constantly redeploying. Many transactions generate new costs every time. This diminishes earnings and harms wealth accumulation. It is better to think about a good investment strategy in advance that you will pursue in the long term and only then invest money.

Tip: A good investment strategy for asset accumulation also includes well thought-out risk diversification. If you compensate for price losses on an investment by generating capital gains with other investments, the risk can be spread. In this way, you can also invest in risky and high-yield investments and you will get closer to your goal more quickly.

3 | Regular adjustment

Constant shifting is a mistake - however, you also leave the accumulation of assets to yourself after the initial portfolio compilation. Over the years, for example, personal risk appetite may change or the investments chosen may develop differently.

Clever investors keep adjusting their investment strategy, for example by selling shares or buying gold. In order for the wealth accumulation to succeed, you should have your securities account once a year put to the test.

4 | Ignore taxes

In the long term, it is of no use when building wealth to be guided by tax advantages when choosing an investment strategy. Because Tax laws can change every year. You should therefore not make your return dependent on the political will of a government.

Investors who invested years ago in media or ship funds, for example because of attractive tax loss carry-forwards, were often not recognized later by the tax office. What counts above all is the return on the investment itself - you can safely ignore tax advantages when building up your wealth.

5 | Know the investment horizon

When building up your wealth, be aware of how long you should save your money, i.e. how long you can do without it at all. For most investors, more than 10 years is not an option at all.

Almost all humans underestimate however, the length of your actual investment horizon - to your own disadvantage. Statistics show that a long investment horizon minimizes the risk of loss and stabilizes returns. Because if you don't want to achieve your goal for many years, you can sit out losses. "Every hurricane is followed by a calm" - this is how you can take higher risks when building up your wealth.

A long-term investment horizon is therefore particularly useful when building up assets for old-age provision. Yet here is too Danger required:

A young investor should bear in mind that his life and work model can often change in the future. Partnership, starting a family, self-employment, increasing expenses due to a higher standard of living or new goals in saving such as retirement or real estate financing can confuse the investment and provision strategy for wealth. Therefore the concluded contracts should be variable.

6 | Choose the right type of investment

One of the most important questions is which form of investment is suitable for building up wealth. Investors are spoiled for choice.

Due to the ongoing zero interest rate policy of the ECB (European Central Bank), classic options for saving, such as overnight or fixed-term deposits, currently have such low interest that the income on the invested money can hardly compensate for inflation. So savers have to look after high-yielding alternatives look around in order to be able to record successes in wealth accumulation.

Especially at the beginning of asset accumulation and the associated ones Savings phase high returns and a high passive cash flow are necessary to increase your wealth as quickly as possible. Asset classes with attractive returns or high interest rates are particularly suitable for this.

Build long-term wealth with savings plans

Basically an investor is well advised to build up wealth with pension, fund or stock savings plans, into which he pays a small sum every month.

Share or Stock fund savings plans offer as part of a long-term strategy through dividends highest potential for returns for your own assets - but also involve a high level of risk. Price fluctuations due to intermittent price declines in market events are to be expected at all times.

A inexpensive alternative Instead of equity funds with active fund management, passively managed funds are used to build up wealth Index funds (ETF). There are no sales charges for ETFs. In addition, the annual management fees are very low, as there is no fund manager whose income the investors have to pay for.

In addition to a savings plan, there are also other ways of structuring your wealth accumulation. Instead of paying monthly amounts, you can regularly a new form of investment choose one that is adapted to your current life situation.

The most popular investments of the Germans

Especially in times of low interest rates, equities are increasingly coming into focus. According to the "Vermögensbarometer 2020", an annual study by the German Savings Banks and Giro Association (DSGV), investors currently consider gold and precious metals to be the best way to invest their money. Real estate and land ranked second in the survey, followed by investment funds and real estate funds.

On the other hand, the respondents consider overnight money accounts as well as savings accounts and savings accounts to be less suitable for accumulating wealth. Those surveyed in 2020 see investment in shares as the most unsuitable. While this type of investment was still one of the front runners in the previous year, it will slide to last place in 2020 due to the Corona crisis.

Real estate investments via BERGFÜRST

Who is ready for higher return opportunities Taking a greater risk, but at the same time keeping an eye on the stable value and current popularity of real estate, is in good hands with real estate crowdinvesting.

With crowdinvesting, many small investors come together on the Internet via a platform such as BERGFÜRST in order to jointly invest their assets in projects. The funding threshold for the projects is achieved through the large number of micro-investors - the “crowd”.

For private investors who are interested in building up their wealth through real estate investments, this opens up a new opportunity apart from traditional forms of investment. The investment products brokered by BERGFÜRST have short terms from one to five years. The platform also has a trading platform. About this Secondary market you can easily sell your investments before the end of the term.

This makes this type of investment extremely flexible. The greatest advantage is provided by the high interest rates on the invested assets of up to 7.0% p.a.that you receive with crowd investing - despite the current zero interest rate policy.

In the meantime, there is also the option of gradually investing in real estate investments with the BERGFÜRST savings plan and thus building up assets fully automatically.

Real estate crowdinvesting - € 10 free starting credit!

7 | Take advantage of high interest rates

What a big difference even a small change in the interest rate makes, it shows 72 rule. With the 72 rule, which was derived from the compound interest formula, you can quickly and precisely calculate how long it takes to double the capital employed.

Calculation example for rule 72

The interest rate is 0,4 %, for example with a call money account, the invoice is:




 = 180

To double the money invested are in this case 180 years necessary.

With average annual returns of 6,0 %, for example on the stock market or in real estate crowdinvesting, the bill is:




 = 12

Small difference in return - gigantic effect. A return that is only a few percentage points higher - also thanks to the compound interest effect - serious differences in the necessary investment period As a result: Instead of 180 years, investors only invest 12 years to double the money invested.

Successfully complete wealth accumulation

The closer the investment goal gets, i.e. the wealth accumulation is completed, the more conservatively and therefore more risk-skeptical the assets should be invested. Because towards the end the assets must be secured and preserved - especially if you are saving for private old-age provision. With a strategy in mind, anyone can successfully build wealth.

Image copyright: Maciej Bledowski /

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