Let's be honest: when it comes to money, the fun stops. Or does it? The research institute YouGov has published a representative study on the topic of "We Germans and Our Money" (Edel Books 2016). The findings sometimes bring a smile to your face. For instance, three percent of respondents keep their cash in the fridge, and one percent even in the microwave. And 39 percent would go a whole year without sex if a good fairy gave them a million euros in return.
But the study also takes a more serious turn. Our personal financial future in particular worries many people. 49 percent fear poverty, 38 percent are anxious about their statutory pension shrinking, and 26 percent are afraid of becoming unemployed. Only 18 percent say: "I'm not afraid."
All the more surprising: when it comes to handling their savings, Germans take a conservative stance. 32 percent put their money in a savings account, and 30 percent in an instant-access account. This means their sympathies lie, of all things, with investments that will earn little to no interest for the foreseeable future. Factor in inflation, and investors are effectively burning their money over the long term. Responsible wealth-building looks rather different.
The problem: only 12 percent dare to venture into stocks and funds. That's a mistake. Because it's precisely in the international markets that enormous earnings opportunities lie waiting to be seized. Long-term studies by the University of Chicago show that you can achieve around eight percent in annual returns – provided you invest in the global stock and bond markets with broad diversification.
Money doesn't belong in the fridge or the microwave – it should be invested in stocks in a sensible and profitable way.
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With a digital investment advisory service like quirion, you can reach this goal cost-effectively and with full control. You set your risk profile once and then invest your chosen amount in broadly diversified portfolios of stocks and bonds. You don't have to worry about anything else. And you certainly don't have to follow stock prices or the financial news. The experts in asset management make sure the structure stays in line with your chosen risk-return balance. There is strength in staying calm. That's especially true when it comes to your investments.
The bottom line: money doesn't belong in the microwave. Money belongs in the economic cycle – through sensible and profitable investing. This benefits everyone involved. With well-considered investments, companies are supplied with the capital they need to work productively. In this way, the global economy can grow sustainably. And you as an investor benefit from an appropriate return – your reward for taking on risk.
Infographics: Edel Germany GmbH/neubaudesign.com
