Some company is trying to sell me financial products where there are 3 funds:
Apologies that it's in German. Rough translations:
- Left one: This fund secures the selected guarantee.
- Center one: This fund catches daily capital market fluctuations and secures the selected guarantee together with the "Deckungsstock" (left fund).
- Right one: This fund offers chances for yield.
The product is of Die Stuttgarter and the company that's trying to sell me the product is Horbach.
I'm a university student in Germany, I work a bit (I make more than I need), have no debt, and around 40 000 Eur on my checking account (thus far I focused on making it through my studies and making some money, not on actually keeping my money; I realize I keep losing money to inflation and want to stop that; I realize I'm stupid for not having thought about the financial part of my finance earlier).
One of the products is for government-subsidized pension (Rürup-Rente), the other one is for private pension, and their idea is that I put equally much into both. But both documents they sent me look virtually identical. I guess the difference is only the government stuff.
I can see that I should have some setup that involves a company to get those government subsidies. But I don't really see an advantage in having a retirement plan that involves that model. I don't think it'd be smart to use the left one (I can decide how much is put into the left one) because whatever is in there seems to be at 0% interest (so actually negative, thanks to inflation). I might as well have that amount on my checking account, as far as I can tell. Whatever the center one does sounds like it cannot work. The right one seems like just buying an index fund.
They guarantee that I will get at least 10% of the money I give to them. But accounting for inflation, that's probably more like 5%. So I don't see how that would be of any significance.
Furthermore, they insist I pay the same amount of money each month. Each year, I can choose whether or not I want to pay 5% more that year (compared to the year before). This doesn't seem to line up with my situation. I have money now that I want to invest all at once.
Is there any advantage to being a customer of such a company or should I just go buy some index fund shares? I can just buy some index fund shares and sell them at any time in case I need some money, right?