Investment opportunities: Invest in what?

Investing money right - Thanks to the current zero-interest policy, this can be a big challenge.

The crisis triggered by the coronavirus has forced the ECB to act quickly. It provided the central banks with extensive cash injections, bought bonds in record amounts and granted favourable loans to companies.

An end to the cash injections is currently not expected. On the contrary. The ECB will increase its financial support by another trillion euros, the volume now amounting to 1.35 trillion euros (one thousand three hundred and fifty billion euros). The fact that this will cause the money supply to grow more and more and that this will trigger inflation is worrying, especially for investors.

Zero interest rates, inflation and penalty interest rates ensure that your assets are constantly diminishing. This massively counteracts the savings goals of investors.

Nevertheless, we would like to look to the future with a positive outlook, because - as always - it depends on how you deal with the circumstances. Hoarding your money under your pillow or leaving it in the bank is no solution. Especially in these times you should not leave your money lying around.

If you currently have 5,000/10,000/20,000 euros or more at your disposal, you should be well informed about how to invest this money and how you can even cleverly use the current situation to achieve your own savings goals. With this article we would like to give you some assistance.

Legal notice: This article is for information purposes only and represents only our assessment of the various investment possibilities. Our explanations are expressly not investment recommendations.

Invest in what?

If you are wondering how and where you can currently invest your money, certain criteria should be kept in mind.

In our current assessment we consider the following criteria:

• Return on investment
• Security
• Flexibility
• Complexity
• Future Opportunities
• Green conscience
• Suitable phase of life
• Credit rating
• save taxes

The return is the return you achieve with your Investment achieve. In most cases, the return on investment interacts with the criterion of security. If you choose a safe investment, the level of return is usually limited. If you want to achieve the highest possible return, you should not place too much emphasis on security. A high return is usually also associated with a high risk.

In terms of flexibility, we refer to the availability of your assets. What does that mean? Well, you can sell a stock in a matter of seconds. If you invest your assets in time deposits, they are not available for you for a certain period of time. This means that when you are considering how to invest your money, you should be aware of whether or not you need to get your money in the foreseeable future.

The complexity should also always be taken into account, as not every form of investment is suitable for beginners. If you have not yet had any experience with investing, then you should avoid overly complex financial products or at least approach them step by step.

We also pay attention to the future opportunities of the individual investment forms. Which investment is likely to generate profits in the future?

Especially in recent years, the green conscience has increasingly appeared on the list of requirements for a suitable capital investment. People are living more consciously and sustainably and expect precisely these qualities from their financial products.

Which investment opportunity is the right one for you also depends strongly on your current phase of life. Are you a student? Do you have children? What phase of life are you currently in? And for how long do you want to invest your money? If you still have your life ahead of you, it makes sense, for example, to think long-term and invest smaller amounts every month.

Investment opportunities can also be differentiated in terms of creditworthiness. For example, there are investment forms that require a sufficiently good credit rating, whereas this is not necessary for other investment forms. Here, too, it is important to know what financial situation you are currently in.

As a final criterion, we look at the tax aspect of an investment. Where are there possibilities, Save taxes (e.g. with real estate)?

In our assessment we concentrate on the most common forms of investment: call money/fixed-term deposits, government bonds, shares/funds/ETFs, gold and real estate.

Depending on the amount of capital available, different types of investment or portfolio mixes are possible. In the following, we will show you with which sum you have which possibilities.

invest 5,000 euros

Invest in what if I have 5,000 euros at my disposal? 

Real estate:

With 5,000 Euro it is already possible to Direct investment in a Real estate to be realized, if you pay the purchase price of a bank finance and use the 5,000 euros as equity. With this amount you could use for a small real estate bear any additional purchase costs. Please note that you must Do not use the property yourself, but rent it out. Your tenant would pay off the bank loan for you and you could be in some years, you own a paid-off real estate that you can use passively income and usually even a value increase over the years.

Evaluation: ⭐⭐⭐⭐ (4/5)

Government bonds:

Government bonds generally only make a profit at a higher Capital investment makes sense. But then you would have a "secure" position in Your portfolio. However, you would have this security with a weak performance.

Evaluation: ⭐ (1/5)

Equities/funds/ETFs:

Shares, funds and ETFs can be suitable forms of investment. However, it might be more sensible to set up a savings plan and not to make a one-time investment. In this way avoid buying at an expensive entry point Possibly the acquisition of a property in combination with a share- or ETF savings plan are conceivable.

Evaluation: ⭐⭐⭐⭐ (4/5)

Gold:

The situation with gold is similar to that with government bonds. With larger investment sums, it might make sense to invest a gold share in the portfolio.

Evaluation: ⭐ (1/5)

Call money/fixed-term deposits:

An investment in overnight money or time deposits is currently only likely to achieve a weak return. However, call money scores points with Topic flexibility, because your money is available every day. Also your fixed-term deposit account, you may be able to open a cancel the term and have the money paid out, but such an approach would be very costly and involve a loss of interest connected.

Evaluation: ⭐⭐⭐ (3/5)

Invest 10,000 euros

What are the possibilities to invest 10,000 euros?

Real estate:

A Real Estate Investment makes the most sense when, with this level of investment is made. The additional purchase costs can be be borne in full by it. This has a positive effect on the interest rate, the property can also be sold at 10,000 euros equity already be a little more expensive. With 10,000 euros of available capital, real estate is therefore an important part of the answer to the question: Invest in what?

Evaluation: ⭐⭐⭐⭐⭐ (5/5)

Government bonds:

Even at 10,000 euros, government bonds would not be a lucrative investment.

Evaluation: ⭐ (1/5)

Shares/Funds/ETFs:

In principle, real estate would be more attractive from a return perspective make sense (keyword: leverage leads to significant higher return on equity), but investors who are more interested
If you want flexibility, you might be well advised to invest in equities.

Evaluation: ⭐⭐⭐ (3/5)

Gold:

An investment in gold in this asset class is equivalent to an investment in in government bonds is the same: with a higher investment value have a greater benefit.

Evaluation: ⭐ (1/5)

Call money/fixed-term deposits:

In both cases the return would simply be too weak. Investors could fall back on better alternatives and thus possibly Avoid opportunity costs. The only advantage could be in high flexibility, but this could be the case with fixed-term deposits - such as
mentioned above - cause further costs.

Evaluation: ⭐⭐ (2/5)

invest 20,000 euros

Invest 20,000 euros - invest in what?

Real estate:

20,000 euros could be the perfect budget to create to implement sustainable real estate investment in two properties. As with a capital of 10,000 euros, the Equity capital in the amount of 20,000 euros for ancillary purchase costs can be used. With the difference that you can use two could acquire real estate.
The purchase price would again exceed a Bank financed and your tenants would take out the loan for Pay them back. This type of investment could be a make up the main component of your retirement provision. With this Asset class could also consider diversification by investing a partial amount additionally in shares, ETFs, government bonds and/or gold. Real estate would be represent the safest form of investment in this portfolio.

Evaluation: ⭐⭐⭐⭐⭐ (5/5)

Government bonds:

With an investment sum of 20,000 euros, the following could be achieved government bonds can be seen as a certain safety anchor.
However, this amount could still be considered too low would probably only make sense if there was a free
equity amount of 25,000 euros, so that 5,000 euros ingovernment bonds could be parked.

Evaluation: ⭐⭐ (2/5)

Equities/funds/ETFs:

In the long term, this asset class would presumably be more likely to offer Rewarding investment in real estate. There are also considerations to consider, that, in the case of shares, you would not be able to take advantage of the tax advantages that a real estate offers.

Evaluation: ⭐ (1/5)

Gold:

Whether an investment in gold at 20,000 euros is a good option could be doubted. In principle, an admixture of gold into the investment portfolio from 20,000 euros + a reasonable It's a move.

Evaluation: ⭐⭐ (2/5)

Call money/fixed-term deposits:

In this asset class, your money might not be so multiplied as you wish. Both daily and Time deposits offer little to no interest. It could be much better Give alternatives to invest your money.

Evaluation: - (0/5)

invest 30.000 Euro

What does the investment look like at 30,000 euros?

Real estate:

At 30,000 euros, it could make sense to start off as 20,000 euros to proceed. That means buying two properties, which are financed through a bank. 20,000 euros will be Equity capital was brought in to cover the incidental costs of the purchase. The Credit would again be paid off by the tenants. To hedging the investment, the remaining 10,000 euros could be invested in government bonds or gold. Alternatively, the 10,000 Euro also as additional equity in the real estate financing can be brought in to raise the interest rate at (the higher the equity, the lower the interest rate, the lower the return on equity).
If an investor wants to accept a higher risk, he could also invest this proportion in equities. However, this would require the ability to ride out a crisis, as the courses can collapse sharply, especially in times of crisis. With the corona crisis the DAX, for example, lost almost 40% at times, while Investment properties suffered almost no loss of value.

Evaluation: ⭐⭐⭐⭐⭐ (5/5)

Government Bonds:

Anyone in this asset class (30,000 euros) who wants a safe haven could be found in government bonds.

Evaluation: ⭐⭐ (2/5)

Equities/funds/ETFs:

Equities could make sense. However, the investor would have to be very be willing to take risks. It might be worthwhile to consider investing in stocks with the acquisition of a property. In this way the real estate offers security and the investor could be able to invest a part of invest his money risky in stocks.
On the other hand, those who do not have to take a risk, his real estate investment would probably more likely to be combined with government bonds or gold.

Evaluation: ⭐⭐ (2/5)

Gold:

Gold would be a good choice as a small component of the investment. The remaining assets could be invested in real estate.

Evaluation: ⭐⭐ (2/5)

Call money/fixed-term deposits:

Due to the negligible interest rates investors significantly more profitable alternatives to the Order.

Evaluation: - (0/5)

invest 50.000 Euro

How could 50,000 euros be lucratively invested?

Real estate:

With 50,000 euros, an investor can build up a real estate-oriented portfolio that can be supplemented by lower-yielding but default-proof components.
Thus, 2/3 of the assets could be invested in real estate. The procedure would be the same as for the 20,000 euros.
1/3 of the capital could be invested in government bonds or gold.
Those who want to take a higher risk could also invest this third in shares or ETFs. This would give the investor higher yield opportunities, but also a higher risk.

With a medium risk profile, it might also be considered to split this last third between crisis-resistant components such as gold and government bonds and riskier forms of investment such as equities or ETFs.

Evaluation: ⭐⭐⭐⭐⭐ (5/5)

Government bonds:

Government bonds are conceivable as an alternative to gold for Integration into a mixed portfolio.

Evaluation: ⭐⭐ (2/5)

Equities/funds/ETFs:

Here, an admixture in the portfolio of an investor could who has a medium risk profile.

Evaluation: ⭐⭐⭐ (3/5)

Gold:

Like government bonds, gold is a safe component of a mixed portfolios.

Evaluation: ⭐⭐ (2/5)

Call money/fixed-term deposits:

Because of the many more lucrative opportunities, neither day- nor time deposit much sense. Investors would only be investing money lose.

Evaluation: - (0/5)

Invest 100,000 euros

Investment opportunities with a capital of 100,000 euros - Here it gets more exciting.
With 100,000 euros you could create a diversified portfolio, with a focus on real estate.

Atmobility:

With 100,000 euros it is possible to purchase three to four properties as to acquire a capital investment. These properties could form the basis of a diversified portfolio that is either strongly gold and/or government bonds, or a more risk-oriented component in the form of equities and ETFs.

Evaluation: ⭐⭐⭐⭐⭐ (5/5)

Government bonds:

As mentioned above, government bonds could be used as a hedge of the portfolio.

Evaluation: ⭐⭐ (2/5)

Equities/funds/ETFs:

For risk-averse investors it would probably not be a sensible option, to fill the portfolio with shares. With a medium risk profile an admixture of shares or ETFs would be clever, if the real estate portfolio also through gold and/or bonds is secured.

Evaluation: ⭐⭐⭐ (3/5)

Gold:

Gold could be a good alternative to government bonds in order to to secure the real estate portfolio. Gold also shows a high security level, but the return on investment is limited. The Independence from crises makes gold a safe anchor for hard times attractive. When gold is bought, then possibly at best not as a certificate or similar but as "real" gold in the form of coins or bars. These have in a real value in the event of a crisis and can be used as an object of exchange can be used.

Evaluation: ⭐⭐ (2/5)

Call money/fixed-term deposits:

Still unsuitable for an investment in this asset class, as there's no interest here. Would you like a small part of the investments very flexibly, then it would be possible to Overnight money could be an option.

Evaluation: - (0/5)

Invest 150,000 euros

Invest in what when 150,000 euros are available? Anyone who has 150,000 euros of equity capital at his disposal can nowadays
have excellent prospects for attractive returns.

Real estate:

A large part of the portfolio could be based on properties that can be rented. This ensures a future passive income and generates a positive cash flow. In this asset class, up to ten properties could be bought because the equity investment per property at 8,000 to 12,000 euros and is therefore relatively low.

In order to avoid a clustering risk, it would be advisable to concept of the virtual apartment building. This Concept works as follows:
All over Germany various apartments purchased, which are managed centrally.
This concept works like an investment in a house with several apartments. However, the administrative effort is a virtual apartment building significantly lower and the investor benefits from the advantage of diversification, since the properties are different locations. If a location should be contrary to the expectation of a weak economic development direction the overall property portfolio has become more attractive thanks to the Dispersion very well secured. In combination with tax-saving concepts such as a GmbH, real estate could be the key to the success of the asset management on financial independence.

Evaluation: ⭐⭐⭐⭐⭐ (5/5)

Government bonds:

Part of the 150,000 euros could be invested in the long-term safeguarding of portfolios are invested through government bonds. Government Bonds do not generate attractive returns, but they are extremely fail-safe.

Evaluation: ⭐⭐ (2/5)

Equities/funds/ETFs:

Since the main focus of an investment is on a virtual apartment building, which already has a good quality of up to very good returns, the need for a
Investments in shares or ETFs are no longer possible. But who does not want to do without shares in this asset class, could at least a smaller part of the capital in a share investment to make his portfolio more colourful. An ETF Investment of an investment in individual share certificates would possibly be in order to benefit from the diversification.

Evaluation: ⭐⭐ (2/5)

Gold:

In this constellation, gold can be used to hedge the portfolio with government bonds, since gold can also be replaced by government bonds in times of crisis is stable in value.

Evaluation: ⭐⭐ (2/5)

Call money/fixed-term deposits:

In this asset class, too, overnight and time deposits would be of the non-existent interest rates, as a wealthy investors are likely to be more focused on to multiply money and not to have flexible access to it.

Evaluation: - (0/5)

Invest 200,000 euros

What possibilities are there for investing 200,000 euros? With an equity investment of 200,000 Euro there are investment portfolio, which has a strong focus on real estate and but with safe components such as
Government bonds/corporate bonds and/or gold integrated. So, in concrete terms: what do you invest in with 200,000 euros of capital?

Real estate:

As with 150,000 euros of capital, an investment in a virtual apartment building would be an attractive option for establishing a nationwide real estate portfolio.
The main advantage over the purchase of a conventional apartment building is that the individual apartments are located in various top German locations. However, they are managed centrally and are therefore considerably less expensive.

In addition, real estate can be used to Tax saving effects can be realized, which can be of great importance on such a scale and thus offer a further advantage over other types of investment.

Evaluation: ⭐⭐⭐⭐⭐ (5/5)

Government bonds:

Government bonds can also be used as hedging instruments in this asset class portfolio component.

Evaluation: ⭐⭐⭐ (3/5)

Equities/funds/ETFs:

Of course, part of the assets could also be invested in shares or ETFs can be invested. However, in this context no leverage is common, as is the case with real estate owned by Case is. This means that only the equity used for the investor works, which leads to a reduction in return - at relatively high risk.

Evaluation: ⭐⭐ (2/5)

Gold:

An investment in gold could be used to hedge the real estate portfolios are used.

Evaluation: ⭐⭐⭐ (3/5)

Call money/fixed-term deposits:

Once again, an investor would probably prefer to invest in high-yield want to concentrate investments. In this case, daily and Fixed-term deposits not considered.

Evaluation: - (0/5)

Invest 500,000 euros

500,000 euros are to be invested - but what to invest in? In principle, this is also a property-weighted investment,
diversified portfolio with applied tax saving effects on Hand.

Real estate:

It can be a great challenge for investors to build up a real estate portfolio over a period of several months or years that is diversified and does not present a cluster risk.

For this reason we have developed the concept of the so-called virtual apartment building. This concept combines the advantages that many small investments in individual apartments in different locations have with the advantages of a central investment in a larger property that has many apartments in one place.

In the case of a large property, special property and rental management is carried out centrally. However, there is a cluster risk in such a case, as all apartments are located in one location. With the help of the virtual apartment building, an investor can benefit from several top regions throughout Germany and at the same time have access to central management.

Investors can also take advantage of tax benefits compared to investing in shares or ETFs. On the one hand, there is the possibility of selling the property tax-free after ten years. On the other hand, a listed property can bring tax advantages, as large sums of renovation costs can be deducted from tax.

Evaluation: ⭐⭐⭐⭐⭐ (5/5)

Government bonds:

Investors who do not want to take a big risk can Include government bonds in its portfolio as a secure component. This building block could be either supplemented or replaced by gold will be.

Evaluation: ⭐⭐⭐ (3/5)

Ashares/funds/ETFs:

Like real estate, shares are tangible assets. So anyone who has already made a high-yield real estate investment would not have to invest in additional material assets.

Evaluation: ⭐⭐ (2/5)

Gold:

Both gold and government bonds serve to hedge the portfolios. Both forms of investment could be used as safe building blocks can also be combined with each other.

Evaluation: ⭐⭐ (2/5)

Call money/fixed-term deposits:

An investor who has equity capital of 500,000, is probably not in the situation, that he/she will be paid as soon as possible to an amount invested in call money would have to come. Therefore, the only advantage lost, namely advantage of flexibility, more and more in value and comes in this asset class tends to have less impact.

Evaluation: - (0/5)

Invest 1 million euros

What do I invest in if I want to invest one million euros? If you are in the fortunate position to ask yourself this question, you should already be aware that there are various possibilities and constellations.

At this scale, it is really necessary to consider all the circumstances and conditions. Please feel free to arrange a free consultation with us to ensure that your money is invested correctly.

Invest your money right: Conclusion and outlook

Invest in what? That depends largely on three things:

• From the amount of the available capital,
• the investor's need for security and
• the requirements for the liquidity of the investment

A property as an investment represents a sustainable investment with strong returns from as little as 5,000 euros - but in some cases only from 10,000 euros.

If a significantly higher amount of equity is available, hedging the portfolio with bonds or gold plays a major role.

Whether additional diversification through shares or ETFs is appropriate always depends on the investor's personal risk profile.

Basically, however, in the last decades it has turned out that real estate can prove to be the better alternative due to the possible leverage of outside capital and the not inconsiderable tax savings.

We would be pleased to advise you without obligation about your possibilities to invest in a yield property.