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Financial world

How Germans invest their money & what we can learn from it

A survey by Forsa – a German institute for social research and statistical analysis – shows, how Germans are saving and investing their money and manage their retirement planning.

Which investments are particularly popular with Germans?

Classic and low in risk investments (savings accounts, life insurances and retirement policies, money and term deposits, real estate) are still part of the trend among German depositors and investors – in spite of very low interest rates.

Investments in funds or company shares keeping also with current trends. Almost one in four Germans invest in these securities and bonds. However, the regular investment in shares or funds is neither an option nor a perspective for many depositors (57 percent) and is seen as “totally irrelevant” or “rather uninteresting”.

The younger generations appear particularly uninformed at these types of investments and each fourth (25 percent) between 18 and 29 years old doesn’t know this type at all.

Wealth creation for younger generations and young families as well as retirement provision are in Germany despite the favorable economic trend difficult for depositors and investors. The reason lays not only in low interest rates for a long time by now.

Germans feel not properly informed

More than every second German (52 percent) regards himself as not enough informed about the opportunities to invest. The tendency continues noticeably (58 percent) at households with a net income of less than 1 500 euros.

“Not so much” or “not at all” informed consider themselves about every fourth (24 percent).

How to boost savings in this context?

Anyone who wants to invest today can no longer count on risk-free creation of financial assets through savings deposits and life insurances. Savers and investors need at least to accept a certain risk. This underpins the importance that investors need to take self-responsibility to proactively inform themselves and to find ways to get this information. Leaving this domain of knowledge only to banks is no longer enough when it comes to the creation of financial stability. The informed investor gets more and more in focus of today’s financial world – identical to the informed consumer at times of eCommerce and online shopping.

The informed investor finds in crowdfunding the opportunity to invest differently

Besides traditional forms of investment, crowdfunding offers a complementary alternative. Only the saver/investor decides according to his or her preferences, areas of interest, and values, in which type of investment (equity, lending, real estate, bonds, royalties...) to invest or to lend money. And all of this in accordance with his/her financial capability and chosen risks to invest.

Crowdfunding offers more in return than just financial gain with regard to investments or capital loans. The investment in a company (shares) is like a ticket to board an entrepreneurial adventure alongside the entrepreneur. Loans allow additionally to participate in the challenge of market launches of new products, services or innovations or simply grow a company's activity. Investors regain furthermore their own decision-making power to invest in local, national or international economy and hence its sustainable development.

Author: Dominique B. Matzutat – hubokee

Via which crowdfunding type would you invest? Click here for more about crowdfunding and its different investment opportunities

Crowdfunding lexicon – Learn and understand the vocabulary and expressions of crowdfunding

Source: info.Bild.de  Forsa survey for the Targobank, 1000 respondents, from December 5 to 13, 2017