How can I invest at 50


Enjoying life and still putting something aside for retirement - is that even possible? Find out more here.

After all, almost every second German pays between 50 and 200 euros a month. At the same time, however, more than 70% of the risk-averse savings are made through fixed-term deposit and overnight money accounts - knowing full well that this type of investment currently hardly yields any appreciable interest. On the other hand, many Germans continue to steer clear of stocks and securities and thus forego an important component in strategic wealth planning. For fear of making the wrong decision and thereby generating losses, savers often prefer to forego investments in the stock market altogether and park their liquidity in accounts whose modest interest rate can at least be calculated.

Savings plans are particularly interesting in the long term

The worries and fears - at least in the long term - are largely unfounded. Since 1984 the German share index (DAX) has risen by an average of 8.7% per year, although there have been some stock market years with negative development in this period of a good 30 years. Hardly any other form of investment is likely to generate a comparable return over such a long period of time and thus have first-class arguments for an investment, even if past performance is not an indicator of future development.

Especially for investors who do not have a high level of liquidity, savings plans on securities in particular offer a good opportunity to build up a large fortune in small steps. With a monthly amount of 50 euros, investors can invest in one of ING-DiBa's 200 securities savings plans.

A matter of consideration

50 euros sound like a lot? If you take a closer look at the consumption habits of the German population, the monthly minimum savings rate of 50 euros should hardly matter for most savers. According to the latest analysis by the Federal Statistical Office, childless couples spend around 380 euros per month on food, beverages and tobacco products. 29 euros per month are for personal care items, 117 euros for clothing. After all, every private household recently spent 23 euros on sound carriers.

For a romantic evening at the cinema including popcorn and soft drink, you can easily spend 30 euros, even if the supposed blockbuster later turns out to be a tired canvas. But while the wallet for entertainment and a fashionable appearance is pulled out relatively quickly, investors are still surprisingly conservative when it comes to financial investments.

There are many arguments in favor of a savings plan

Continuous investment via a savings plan offers several advantages: Savings plans are very flexible and can be quickly adapted to the respective living conditions. If the tide is low on the account, the savings rates can be reduced or suspended. If the next salary increase or tax refund brings an unexpectedly large amount of money into the home, the installments can easily be increased. Should the financial situation change fundamentally, however, the acquired securities can simply be sold on the stock exchange.

Those who consistently pursue their savings plan in the long term benefit from one of the greatest advantages that such a savings model offers: the cost-average effect. Since the monthly investment amount of the saver is the same, more securities are bought with the money when prices fall, and fewer securities when prices rise. This absorbs market fluctuations and reduces risks. With regular deposits over a longer period of time, investors buy at a lower average price overall. If, on the other hand, you use your entire investment sum at once, you can quickly achieve a relatively high profit with favorable timing. On the other hand, it also increases the risk of an entry that is too expensive. Falling prices can then quickly lead to a larger loss.

Flexible and high-yield for assets

As part of a long-term and balanced strategy for asset accumulation, savings plans are very well suited to take advantage of the higher return opportunities of the stock market. And this already from monthly savings amounts with which anyone can easily dare to approach the topic of the stock market.

If you want to know more about securities, the ING-DiBa securities guide shows you why investing in securities could be worthwhile, gives you helpful tips and explains how you can easily invest.


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This guest post originally appeared on the Knowledge Value blog of ING-DiBa.

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