News Best investment for children: Stay away from expensive offers

News Best investment for children: Stay away from expensive offers

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Tuesday, 20.10.15 , written by Juliane Wellisch With low interest rates, finding the right investment for children is more difficult than ever. In the process, more and more parents and grandparents want to make provision for the next generation so that they will not have any money worries when training or moving into their first home. But when saving for the child, there are also investment products, which are one thing above all else: expensive. >  Investment for children: In 2015, low interest rates are driving returns

The best investment for children has been sought by Stiftung Warentest for the magazine Finanztest (4/2015). It shows that those who want to save for their own child, should stay away from so-called training insurance . Although these are designed specifically to help the child, most products are bad value for money. Above all the high costs have a negative effect. But since at the same time the classical investment is often not very lucrative , the experts of Stiftung Warentest check possible alternatives.

Provision for the child: investment with good return opportunities

Parents and grandparents, who are willing to accept certain risks when investing to raise a higher return, should resort to index funds (ETFs) . These are investment funds that track specific stock indices such as the DAX. Since an index fund does not have to be actively managed, the costs are usually limited. ETFs can also be used as savings plans for investment. It is not a one-time high contribution, but one agrees as savers a monthly payment .

For index funds, parents need to be aware that capital market turbulence can lead to losses in value. On the other hand, the return expectations are also correspondingly high when the shares are flying high . As the investment for the child is not a short-term investment, losses in value can usually be compensated.

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Saving for the child: investment particularly safe with a deposit

Parents who want to play it safe are well advised to invest in a child’s money account. However, this form of investment currently offers only low interest rates. However, the savings thanks to the Deposit Guarantee Fund are absolutely safe . In addition, parents and grandparents can decide for themselves when to deposit money and how much. When choosing a suitable time deposit account, it is important to pay attention to the agreed interest rate: direct banks usually offer the best conditions.

Service: Now you want to ensure the financial security of your child? Request a non-binding offer for investment and find the right investment form.

Stumbling trap interest income

The Stiftung Warentest warns when investing for the child from a costly pitfall. Because offspring is covered by the parents in the statutory health insurance for free family insurance, the monthly interest income must not exceed the threshold of 405 €. Otherwise, health insurance contributions will have to be paid for the child.

Pay attention to investment flexibility for the child

Savers need to be careful with fixed term accounts at maturity: For example, if a term of five years is compatible, this will be extended at maturity depending on the terms of either one year or another five years. Forgetting parents to cancel the time deposit account in time , the capital in the worst case at the beginning of training or when moving into the first apartment is not ready. As an alternative to fixed-term offers, according to Stiftung Warentest, there is also savings through cooperatives. These offer, for example, savings accounts whose interest rates are well above the level of savings accounts at banks or savings banks . Here it pays to ask local housing cooperatives for savings.

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  • Juliane Wellisch
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The mayor of Montellano defends his management and blames the previous government for payroll defaults

The mayor of Montellano defends his management and blames the previous government for payroll defaults

  • The mayor of the Municipality of Montellano, Curro Gil Malaga (PSOE), said that, during 12 months of government, the payroll owed by the previous Consistory to the officials, such as the extra of December 2014, has been paid. April to December 2015 (including the extra June) and 70 percent of the payroll of January this year, "more than 1.6 million euros", so it has been clarified that only the February payments are due as of June 2016, amounts that have accumulated "due to late payments" prior to his term.

Speaking to Europa Press, and in reference to the strikes that the workers of the City Council will take place on July 7 and 8 due to the late payment of the payroll, Gil Málaga explained that an active communication is followed, subject to numerous meetings, for keep the workers informed, since "it is true that there are backlogs and we understand that they have the right to go on strike, but the point of departure must be taken into account".

Likewise, it has indicated its intention to pay the outstanding payrolls, something that "will depend" also on the money coming from the Participation in the Taxes of the State (PIE) and of the Provincial Agency of Economic and Fiscal Assistance (Opaef), "without forgetting other expenses of utmost importance, such as light, telephones to carry out negotiations, etc. "

In addition, it has made a distinction between the civil service, which "directly affects this situation" and the rest of the workforce, "whose payments are up to date", since that money comes from subsidies, as is the case of the Law of Dependency, home help, the Social Work Unit (UTS) or the Rural Employment Plan (PER), paid directly by the Provincial Council.

According to Gil Malaga, an "important" adjustment plan is being carried out, where "financial expenses" have been lowered by "almost half a million," and he has clung to the imminent exit of the new management fund, "since one of the problems that The Consistory is the debt, since loans are being paid at five or six percent, very high loans. " According to his words, the ordination fund that the Ministry of Finance and Public Administration will draw "could allow refinancing the debt and lengthen it in installments".

In addition, he clarified that another problem has been a debt with Social Security of 2.6 million, so "there was a risk of losing aid and subsidies offered by the Provincial Council and the Board, because if you are not day with the Treasury and Social Security, you lose those rights. " "This led to having to propose an agreement to finance and Social Security made a deferral to eight years, which we now pay," he added in reference to the agreement they signed at the end of December 2015.

In this sense, Gil Malaga recalled that the previous corporation took refuge in an ordination fund and requested a one-year PIE advance, "1.3 million that the State anticipated to the City Council in exchange for its commitment to do an adjustment plan and the return in three years ", so from 2014 to 2016" we have 33 percent of the PIE funds withheld ". However, he assured that the advance is still being returned, which means that "the income of the Consistory will decrease".

On the other hand, the mayor has shown his commitment to continue maintaining all services, in reference to the agrotourism fair criticized by CCOO in a statement, and that the president claims to be "an economic engine, which also had the help of the Deputation".

Gil Malaga has also spoken of austerity and has qualified that he is dedicating almost 70 percent to the payment of personnel, removing superfluous expenses, but "when the backpack that you carry is fat, it costs a lot". In this regard, he wanted to record the pride he feels for the workforce and is confident that with external aid and the refinancing of the debt "we will be able to get out of this situation".

For the moment, he has asserted that "no external contracts are being made and adjustments are being made to keep the whole world". According to the data that has contributed, in 2012 the debt of the City council "was of about 7.4 million in 2012" and has lowered the same "to seven million in 2015, about 400,000 euros more or less".

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News Care: If pension and assets are not sufficient for the care costs 

News Care: If pension and assets are not sufficient for the care costs 

Thursday, 26.09.13 , written by Christian Hafler In the show “Marktplatz” Deutschlandradio has today dealt with the topic care and long-term care insurance. Children have to fulfill a maintenance obligation towards their parents. If the parent’s pension and assets are insufficient, the children must pay the nursing home costs. When it comes to parenting, terms such as well-being and retirement assets are 

 Deutschlandradio über Pflege und Elternunterhalt: Schonvermögen und Co

Not enough money for the nursing home: children have to step in financially

It has long been known that the statutory long-term care insurance is far from sufficient to cover the actual care costs for long-term care. As Deutschlandradio reports, people in need of care in the nursing home have to pay at least 1,000 to 2,000 euros per month despite state support. If one’s own pension and assets are no longer sufficient to pay for the care, the welfare office will initially help. This may then demand the money back from the children. But there are many open questions. For example, do parents have to sacrifice their entire possessions for the nursing home? And which assets are taken into account when calculating the so-called parent maintenance. Deutschlandfunk and its experts tried to find answers to these and other questions on Thursday in the program “Marktplatz” together with experts.

Care: What counts in the case of parental maintenance as a pension fund?

Consumers are particularly often wondering what the welfare office is allowed to consider when calculating parental maintenance. For example, there is the pension fund that can not be touched. Ulrike Börger, specialist lawyer for family law, explains to dradio that this corresponds to five percent of the annual gross income over the entire working time. Expert Martin Wahlers, who has worked on the parenting guide, explains that consumers need to multiply the years they have worked by five percent of their current gross annual income to calculate their retirement assets.

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Beauty: car, house and condominium

Another important term in parenting is the ability to protect. These include various allowances that the social services office may not take into account. These include, for example, costs for new glasses or for a new car, says Wahlers. Recently, an up-to-date judgment of the Federal Court of Justice has also stipulated that owner-occupied property should also be regarded as a property of natural beauty.

Heritage and donation: what can the social welfare office reclaim?

If people in need of care were given a donation to their children within ten years of becoming dependent, the Social Welfare Office has the right to reclaim it from the dependent children, explains Wahlers. If this is not possible for the persons concerned, they may have to make a compensation payment to the Office.

With respect to an inheritance, the Office may not apply the amount retroactively. In this particular case, a listener had told dradio about his mother, who has been receiving around € 700 in social assistance every month since 2004, so that the nursing home costs can be paid. In between, the woman inherited. The Office now wanted to use the legacy retroactively to cover the costs until 2004. However, the experts Börger and Wahlers point out that this is not possible. The inheritance may be considered only from the period from which it was obtained.

Private long-term care insurance: protect yourself and children with care

Those who want to avoid a high financial burden on their children and for themselves as a parent can take precautions. Because children only have to pay for their parents if they can not pay the costs out of their own pocket. With the conclusion of a private long-term care insurance, the benefits of the statutory long-term care insurance can be increased. Consumers, for example, can close the financial gap in the case of long-term care with a foster care insurance “, reports Stiftung Warentest.

Long-term care insurance: avoid financial burden on children

The magazine Finanztest has calculated how many married couples have to pay for their parents living in the nursing home. With a net disposable income of € 2,000 a month and an income of € 1,500 from the spouse, the breadwinner has to pay € 195 each month for the care of his parent. For comparison: The private long-term care insurance from HanseMerkur, rated “very good” by Stiftung Warentest, costs 85 euros per month for a 55-year old insured person. Not only will the costs be reimbursed in the nursing home in the different care levels, but also at home care. The insured is thus optimally secured in the case of long-term care.

Our service: Get a personal offer for long-term care insurance here.

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  • Christian Hafler
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