Inflation devalues savings. If you want to increase your money, you have to try even harder. “Finanztest” tells you the best way to do this.
The inflation rate has risen to more than seven percent. This means that you can buy less and less from the savings in the account. Unless you manage to invest your money in such a way that the return beats inflation. It’s not easy, especially in the short term. The most common options and what they are good for:
Most experts see equities as a particularly good long-term investment, even in times of high inflation. “Finanztest” also considers equity funds “one of the best ways to combat inflation” because of their potential returns. But that only applies if you don’t have to get the money in the near future. Because in the short term, the stock exchanges harbor risks with their price fluctuations. But if you can invest for ten years or more, you will very certainly end up in the black and even have the best chance of beating inflation.
Consumer advocates generally recommend private investors to rely on ETFs because of the low costs and the balanced risk. “Finanztest” recommends a savings plan on the world stock index MSCI World.
Like stocks, real estate is a tangible asset and particularly resistant to inflation. The only problem is: The prices are enormous, so buying a property usually involves a great deal of financial effort. “Finanztest” is therefore critical of buying real estate as a pure financial investment, and you shouldn’t pay more than 30 annual rents. The considerations are different again if you want to live in the property yourself, because then it is not just about the return, but also about the practical use over many years.
Gold is also considered by many to protect against inflation because it survives all currency crises and is always worth something. However: The performance of gold also fluctuates and a return is therefore not guaranteed. “Finanztest” therefore recommends the precious metal only as a supplement to other investments, the share of the portfolio should not exceed ten percent.
If the euro and dollar are becoming less and less valuable, then why not simply bet on the cryptocurrency Bitcoin? Anyone who does this is making a bet with an uncertain outcome, because the Bitcoin price fluctuates extremely. For the “Finanztest” experts, Bitcoin is not a protection against inflation, but a pure object of speculation.
Interest rates are still very low at the moment. You can’t beat inflation with call money and time deposits. “Finanztest” recommends these investments as a “safety component” for the depot, not as a source of income. Things are looking a little better for bonds, but interest rates on government and corporate bonds are also below the current rate of inflation. Inflation-protected bonds can be worthwhile, but they do not guarantee a positive real return, writes “Finanztest”.
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