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When we save our money, many of us think in terms of two categories. First, there are short-term savings goals, such as our next car, an upcoming vacation or refurnishing our apartment. These goals can be achieved over a short- to medium-term period with few changes to our everyday life. For example, we can cancel subscriptions we no longer need, buy less expensive items when shopping or eat out less.

Saving is more difficult when it comes to long-term goals such as owning your own home or building up your private retirement assets. Many people find it difficult to achieve their goals without an appropriate strategy and an investment plan for attaining it. Yet, in the long term, wealth accumulation can be easy to master with the right preparation and the right product.

Investment plans are a good choice if you want to build up your assets over a longer period. Savers can also be flexible with an investment plan. Because they can decide themselves how much to deposit and how often. The fund, too, can be selected depending on the saver’s risk profile and investment strategy. For example, investment funds with a high proportion of equities have the best prospects of good returns. But at the same time, equities are also subject to big price fluctuations and therefore require greater risk tolerance than other funds.

Many investment plans are a mix of different asset classes such as ETFs, index funds, equities and others. Despite their diverse nature, they can be divided into two categories: The first consists of plans that build up savings over the medium to long term and help to realize major financial projects such as owning your own home. The second consists of plans that build up retirement assets in the second or third pillar. It’s therefore advisable that you know whether you want to save for retirement or for other important projects when you’re drawing up the strategy.

Investment fund account

In the case of a fund account, you can invest your savings that are already in a savings account in various investment funds. Unlike a savings account, funds offer more attractive returns and thus the opportunity to build up assets more quickly. With this type of investment plan, you decide for yourself how much money you invest in which fund and when. With a ¶·Å£ÆåÅÆÔÚÏß Investment Fund Account, you also receive fund recommendations that match your risk appetite. Unlike a savings account with a rather low average interest rate, over the long term investors in an investment fund account benefit from the usual interest rate on a ¶·Å£ÆåÅÆÔÚÏß Savings Account plus an interest bonus.

Mandate

With a mandate, you define the framework conditions that govern how experts manage your assets. By delegating to experts, you benefit from their know-how and expert overview of the financial market. Your investment plan is continuously aligned with your strategy and adjusted as necessary. With ¶·Å£ÆåÅÆÔÚÏß Manage, your strategy is aligned with your financial situation and risk appetite. The investment plan aims to minimize your risk by constantly monitoring your investments. A mandate enables you to define the guidelines for managing your assets while delegating the management itself to our experts with their wealth of specialist knowledge. This gives you the security of expert support.

Investing pillar 3a assets

Investing your pillar 3a assets can be an appropriate investment plan for your retirement provision. With the right plan, you have the option to invest your accrued assets in a staggered manner and over a desired time frame, meaning you benefit from long-term growth opportunities. The financial plan ensures that you continue to build up your retirement assets and make the best possible use of private pension provision. With ¶·Å£ÆåÅÆÔÚÏß Fisca 3a, your fund units will be transferred to a ¶·Å£ÆåÅÆÔÚÏß Custody Account free of charge when you reach retirement age.

Investing vested benefits

If you take a career break or move abroad for a specific period, you can transfer your assets in the second pillar to a vested benefits account. Vested benefits accounts usually have a preferential interest rate and are therefore more profitable than a normal savings account. In a vested benefits account, the assets, the interest and the investment income are tax-free and are kept safely until they are paid out. It is even possible to make an advance withdrawal to build or buy property or renovate your home.

With the right investment plan, you can also invest your vested benefits to get even more out of your assets. With solutions such as the Investment plan ¶·Å£ÆåÅÆÔÚÏß vested benefits account, you have the option of adjusting how much you invest and the investment period to suit your needs. In addition, you can freely choose from various investment funds and manage your investments independently.

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How you pay your assets into an investment plan is up to you. You can decide yourself how much to deposit and how often. The following rule applies: people who regularly pay a consistent amount into the investment plan benefit from the cost-average effect. This smooths out fluctuating market prices: when prices rise, savers automatically purchase fewer fund units. By contrast, in a weak market environment, savers benefit from the fact that they can buy more fund units at a lower price. In this way, consistent deposits over a longer period lead to an average purchase price. The risk of buying units at the wrong time is reduced.

Many investment plans involve making a monthly deposit, while others also allow you to invest quarterly or semi-annually. In any case, it’s worth having a detailed plan here too, rather than acting on the basis of news reports, trends or gut instincts. Whether you invest your assets at intervals or all at once, and how much these amounts are, greatly depends on how much money you have to invest and your strategy. The following differences apply to one-time and repeated investments.

Investing is always associated with risks that are based on influences that you cannot control.

In general, there is a risk of loss at all times – i.e., there is a possibility that the asset class will lose value. There can be many reasons why this happens and it is very difficult to predict or control. It’s important to know that every asset class will incur losses at some point. However, it’s not one particular moment that matters, but how things develop over a longer period. This applies even more in the case of long-term savings goals. When it comes to financial market investments, all asset classes are subject to the general market risk. This is mainly determined by all-encompassing changes such as a recession or crises relating to economic policy.

Global financial markets are subject to price fluctuations. The diversification of an investment fund counteracts such market and foreign exchange risks. Because funds comprise several different securities, the risk is spread over various asset classes, regions, investment styles and investment instruments. In this way, potential losses can be offset by gains from other securities. The broader your portfolio is, the easier it is for you to mitigate negative price developments for individual investments through other investments, for example. Moreover, a long-term savings goal is more suitable for achieving higher returns than a short-term one. This is because poor phases can be more easily offset over time.

However, if you keep your money in a savings account, there is also a risk it will lose value over time due to inflation. Selecting the right strategy can make investing your assets more profitable.

You should weigh up the decision carefully and talk to experts about how well your risk appetite matches your savings goal.

If you want to save over the long term, an investment plan is a promising alternative to a savings account. This will help you clarify how long you need to achieve your savings goal and how much you need to invest. The investment plan should always be based on the right strategy that takes into account your goals, your risk appetite and the investment horizon. As an investor, you can decide whether you want to save for long-term goals such as buying your own home or for your private retirement provision. When it comes to long-term savings goals, we recommend that you get expert support. You also always have the choice of whether you want to manage your investments yourself or rely on the know-how of experts.