This question might seem quite broad, but my intention is just to get some basic understanding of the investment options available in Germany considering the fact that I am new to the world of investments in general.

About my background, I am a 26 year old male living in Germany. I am working as a software developer since last 6 months. Since I began my career quite recently, I am not sure if it is the right time for me to start investing money, but sooner or later I will. Therefore, it is a good idea to start some research and explore all the available options.

So my question is, considering my background, what is the right starting point for me to began investing my money and what are the options available in Germany? In addition, are there any prerequisites that I need to know before I even start?

  • first secure a piece of real estate you can live in yourself (what about a small flat), so you'll have a mortgage, and somewhere "free" to live. this has spectacular tax and structural benefits. THEN worry about investing in bonds, stocks etc.
    – Fattie
    Commented Mar 8, 2018 at 21:49

5 Answers 5


There is no one right way to do investing. It always depends on the person.

1. Life goals

Before starting an investment you need the right mindset and you should be aware of your own goals. What do you want in life? Do you like traveling, are you planning to marry in the next few years, get a house and kids? Or do you want to be more independent and maybe switch between different jobs? Maybe a job in an other country? How long do you want to work? How much money do you need every month and how can you save?

Your money should support you in your life goals. Until than it's not bad to save your money in a save bank account with few interest ("Tagesgeld").

2. Get rid of debts and get a risk buffer

Before starting an investment you should get rid of your debts and save some money as a risk buffer. You may save three to six monthly salarys so a broken car, a dismissal or some problems in your household won't be problems for you.

3. How can money support your goals

Okay, you know what you want to achieve and how much money you want to save.

Do you have some financial goals you want to achieve in the next few years (like traveling, a weeding or buying a house)? Than save your money for that.

Do you want to get much money for your rent or to start an ealier retirement (can you save your money for more than ten years)? Than start some investments.

But don't forget, yield is always connected to risk. It's easy to say that you may get 7% yield in the stock market but the stock market is not save. You may get some years 10% years but lose to 50% in other years. Appartements may be a good choice but right now these are very expensive and also very risky for a young man.

Something you should always consider are the costs you have to pay. You want to get a house? Then you have to pay 10-15% for taxes and estate agent. Do you want to get stocks or fonds? Then you have to pay buy fees.

Something that could be a good option for you is a saving plan into a low cost diversified ETF. But only invest that much that you won't sell your shares if you lose half of your money, than you have good chances to get a good yield after at least ten years.

If you want to study some good free German lecture about that, try to read the blog of the German Finanzwesir.

Good luck!


Opinions on how to invest and what to invest in are as plentiful as the day is long and what suits one may not suit another. The simplest advice that I could offer is to read everything that you can about the financial markets. Start with general information books and then more specific ones about topics that interest you (stocks, ETFs, CEFs, mutual funds, options, etc.). It's like learning a foreign language and it takes time.

When I began investing nearly 40 years ago, it was a very different market. We were mired in a very long term bear and interest rates were off the charts, heading for 16%. I knew squat about investing. Money was tight due to 8 years of college loans so I started from scratch. I opened a few DRIP plans in banks and utilities that offering a 5% discount on reinvested dividends and some offered a 5% discount on new cash as well. Whatever extra money I had went into the most beat up one and I just kept at it, accumulating while I learned. Fast forward 40 years and my long term investments are now paying for everything that I need and will do so until I get fried. For the past 20 years, I have also been day trading as well.

I'm not suggesting that you open some DRIPs. Jeez, I don't know a thing about them now. What I am suggesting is that you start slow in something you understand and learn as much as you can as you go. Meet with RIAs and CFPs. Go to seminars. Read (participate?) online investment forums like this one, Silicon Investor, Elite Trader, Seeking Alpha, etc. Eventually you'll get to the point where not only will you have a decent understanding of the choices but you will figure out what suits your risk tolerance and you'll also enhance the sensitivity of your BS meter - there's a lot of crap offered out there. Good luck.

  • Well, it looks like I need to learn a lot before i start investing. Thanks for sharing the experience!
    – Boni
    Commented Mar 8, 2018 at 15:49

Always glad seeing young man commit to invest their money for better future. German has one of the best manufactur technology in the world and well known brand, like ADIDAS, BMW, etc. So you have many choices.

But it is wise for you to invest your time frist to learn about investing before you jump into stock market. Without sufficient knowledge, it is suicide mission.

here some point how you begin to invest

  1. You have to choose predictable industry: Some industry are just nightmare for investor, aviation industry is one of the example due to its high operating cost (pilot, sexy cabin attendant, expensive fuel, tight regulation, bleeding competition, cheap price, narrow margin). choose the best industry for you You have to choose best company among others in the same industry you have choosen at 1: some company may be at growth phase, they open new branch launch new product, acquire another company, integrate their business, yes, you have to choose this kind of company

  2. Understand company long term strategy: what will they do next years? how they set product position in the eye of customer? how good their pricing policy? what are they preparing for the competition?

  3. Is the price fair enough? see their future earning, compare with their market caps, is it cheap enough?

have a great investing


I recently was introduced to an investment option from Deutsche Bank called ROBIN. Its a managed ETF trading method, where you must start off with a min. 5k and then choose any monthly amount to put in. At the very offset of deciding how much you want to invest, Robin creates a profile of how the system should invest your money. The investor also gets the option to choose the risk level (how much of your invested+earned money are you willing to lose in a year) before bailing out of the investments. On top, the system automatically adjusts (manages) your entire invested money across various ETF traded sectors (like manufacturing, emerging markets, agriculture, etc) as it sees fit in the current trend of the market, and aiming to maximise your capital growth. Check with a banker from Deutsche Bank for details on this.


Perhaps it is to soon for you, but I would recommend to invest in Apartments in cities. One or two rooms. Equity ratio with about 25% (Eigenkapital) and 75% with external finance (of a bank for example). And it's important that you don't live in your investment. The renter pays the interest etc.

  • Thanks! This seems to me like pretty good option (although I need to wait until I collect enough money to even think about that) because living in central Berlin, I have already realize the importance of having your own property.
    – Boni
    Commented Mar 12, 2018 at 9:08

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