Stock pension – this is how funded old-age provision works

How to invest a private stock pension

In principle, there is an active and a passive way to create a private stock pension. The passive way is to hire a bank or wealth manager to build a capital stock for you. You don’t have to deal with the selection of investments yourself, but commissions, management fees and profit shares can be relatively high.

Of course, you can also take charge of your funded pension scheme yourself by buying shares yourself. You should focus on titles that start with a long investment horizon to be in harmony. So first of all Companies that can come up with promising business ideas, but are perhaps a little undervalued at the moment. This investment strategy is called value investing and has already led star investors like Warren Buffett to success.

It could also make sense to buy bonus stocks rather than common stocks. Benefit stocks promise higher dividends, but you give up your potential voting rights — which most of the time doesn’t matter that much to most individual investors anyway. It’s also not a problem if you don’t currently have a large amount of capital. You can already establish a share savings plan for your portfolio with regular small share purchases. You may even benefit from the cost-average effect and perform better than with a large one-off investment. If you are already retired, you may also have time to deal intensively with day trading and thus polish your wallet a bit on the side.

Our recommendation: It is important that you rely on a broker who charges low order and custody fees. at finanzen.net zero1 these two cost items are completely eliminated, which is why the broker is particularly suitable for creating a share savings plan.

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