The stock markets have been plummeting since the Ukraine war. A financial expert explains how entrepreneurs can organize their financial provision for old age in these uncertain times.
–
The terrible events in Ukraine have also made it clear to those responsible for operations just how quickly stock exchanges in loss zones that were previously unthinkable. to be added uncertainties in the future interest rate development, which also play their part in amplifying imponderables on the stock markets. If then forms of investment such as shares or investment funds with a corresponding share weighting are an essential building block to supplement the later financial ones old-age insurance represent, entrepreneurs as investors are faced with challenges that should not be underestimated.
Six inventory questions
The proverbial patent solution for dealing with these uncertainties or even largely avoiding them does not exist here either. Nevertheless, those responsible for operations should have some basic rules and think about alternative courses of action in order to do everything possible to ensure the smoothest possible transition later to a carefree and largely economically secure one, despite financial imponderables retirement to reach.
It would make sense to consult the financial institutions involved, such as banks and investment companies and work out a joint solution. Such is one inventory of equities and investment funds held in custody with a focus on the following to ask to recommend:
- Which securities currently held in custody have an ultimate in earnings over a period of at least ten years stable performance achieved?
- Are these securities offered by reputable financial providers and accordingly professionally managed?
- Are the total costs such as management fees and front-end loads at a reasonable level or are they the ones achieved so far increases in value reduced above average?
- Is the share located at sharesi.e. in the participation of individual companies, in a reasonable Quote to Investment fundswho try to reduce the investment risk as much as possible by investing in a large number of different stocks?
- Must have one scattering of the previously preferred investment alternatives should be considered?
Such a spread can, for example, relate to an increase or decrease in the country borders – such as stocks or investment funds from companies or fund managers operating worldwide instead of domestically or across the EU -, the investment focus (alternative investment options to conventional areas such as raw materials, renewable energies, medical developments, nutritional aspects, etc.), but also on risk diversification in different areas currencies instead of or in connection with the euro. - Does the investor have the nerve to literally “sit out” a period of falling securities prices or does it wear off negative developmentwhich is part of it, ultimately depends too much on your own self-confidence and stirs up a certain unrest almost every day?
Personal investment profile with risk diversification
Another important aspect should not be forgotten when taking stock: since professional risk diversification should go hand in hand with each personal investment profilethe question regularly arises as to whether the total volume of assets structurally balanced is or requires verification. Fundamentally risky financial investments such as stocks and investment funds should not strain the personal “pain area” of investing in these forms of investment.
So who later, for example, with safe annuity or pension payments and/or with rental income can calculate, should ultimately tolerate a larger proportion of risky securities than those responsible for operations, who almost exclusively rely on shares or Investment funds need or want to set. Here, too, the personal Willingness to take risks play a significant role. In most cases, however, it becomes dangerous when the personal willingness to take risks is consciously overridden and an attempt is made to achieve additional returns through more speculative forms of investment at almost any price.
How high is your own risk tolerance?
Here should first be extremely careful weighed whether such readiness actually exists or whether it only arose due to the current or similarly difficult situations. This is all the more true when the money invested is used later retirement benefits connected to a certain extent. As a result, it is certainly not easy to ask yourself these questions. However, before you even think too hastily about selling, it can be worthwhile to take a sober look at your own situation first analyze and then to initiate possible consequences.
Such a consequence can also consist of leaving most things as they have been and for one thing stabilization of the respective courses. However, this should not prevent those responsible for operations in the future from increasing in value or price gains once “take away”so through sales to realize and then with the appropriate serenity to invest again.
Extratipp
Depending on the financial and banking institution, there is the possibility of own shares or investment funds comparable Securities with a similar investment and risk structure, especially in terms of increases in value and costs to face. Financial providers usually have these technical options for increased transparency and can therefore offer investors other interesting options alternatives bid on their own securities. These comparisons can of course also be carried out before intended purchases.
finance Crisis? Bank customers should pay attention to this signal! > Read more here!DHB now also digital!Simply click here and register for the digital DHB!
