Investing isn't an end in itself. Whether for retirement, for your children or for a home of your own: investing toward concrete goals improves your chances of actually reaching them. And with quirion, it's easy.
When the word "investing" comes up, many people first think of specific products. Maybe overnight deposits. Maybe funds or ETFs. Maybe individual stocks, Bitcoin or gold. "Some people don't want any price fluctuations, others want to get rich as fast as possible," observes Philipp Dobbert, our Head of Asset Management. "But thinking in terms of products and returns usually leads you down the wrong path." The consequence: missed opportunities or far too much risk in your portfolio. "In the end, investors are left with disappointing results."
It's better, when the word "investing" comes up, to first think of something entirely different: namely, what you want to do with the money. That's the core idea behind "goal-based investing." The focus is on the question: What goal do I want to achieve with my money — and when? This turns investing from something abstract into concrete support for your own life planning.
"Goal-based investing makes it easier, for example, to stay consistently on track," Philipp emphasizes. There's always advice coming from somewhere about which trend you supposedly absolutely have to be part of right now. "Anyone who only thinks about products or particular returns is more easily thrown off course from what really matters — their personal investment goal."
Investing with a goal in mind
Topping up your emergency fund. Building wealth to fulfill your individual wishes. Providing for your own retirement. Giving your children an easier financial start in life.
"Every goal has its own risk profile," Philipp explains. As a general rule, the following applies to all of them: "The longer your time horizon, the better you can take advantage of return opportunities."
But to actually reach your wealth goals in the end, you should always aim for an optimal balance between opportunities and risks. Aside from the emergency fund, a mix of stocks and bonds is generally advisable. "Broad diversification is essential in any case." Only with the right systematic approach do you avoid leaving your investment success to chance.
With quirion, investors don't have to grapple with the details at all: just head to "Goals," select one, tick off a few questions — and you'll get a suitable investment proposal.
The ETF portfolio from quirion
Being financially secure in retirement: that's surely one of the most important investment goals today. Ultimately, we all know that the state pension alone won't be enough to maintain our standard of living in old age. But if you're investing for retirement, there are a few basic rules to keep in mind. For example, avoid expensive guarantee products. High fees benefit the product providers, not those saving for retirement. That's what Germany's state-subsidized but failed "Riester pension" showed: out of disappointment, millions of people have since terminated their contracts early.
Anyone who systematically takes advantage of the long-term return potential of the capital markets can spare themselves such disappointments — and turn even small monthly savings amounts into considerable wealth. "During the savings phase, the focus should initially be on return opportunities, in order to build up as much wealth as possible," Dobbert explains. "As you get older, the assets should gradually be secured."
With quirion's ETF pension, this happens completely automatically. Along a glide path, the mix of stocks and bonds is adjusted step by step. The ETF portfolio is available as a savings plan starting from just €25 a month. Investors need no prior knowledge and don't have to take care of anything else themselves.
More about our ETF portfolios you'll find here.
