Child savings: German Bank(sparkasse) officer recommended private pension insurance. Is this a nice way to go?

[allforhisglory]

@goitsemang Or use A2PKXG if you want an accumulating ETF.

 

[dixieheart]

@goitsemang

discount brokerage account

You mean, IBKR, Degiro, Scalable Capital etc?

 

[lukemac17]

@dixieheart I would use DKB or scalable, because they are easy and take care of the taxes in Germany. I'm not sure IBKR does that, and it could be a hassle.

 

[ahsgjhhkjh]

@dixieheart IBKR

 

[bethanya]

@dixieheart Banks' investment/pension plans are a scam.

 

[resjudicata]

@dixieheart if possible, invest the money in your name, but name the child as beneficiary (or don't). It's all very noble to put the money in his name but it usually has no real benefit. You lose control over money you don't know you might need in the future and are giving it to a person you don't know (do you know how the relationship with your child will be in 16-23 years? We all hope it will be good, and if it is, you can just gift him the money)

 

[britmark]

@dixieheart Go open a child depo account with comm direct under your child's name. Each month invest the kindergeld in an etf world tracker by iShares or vanguard. When they turn 18 they will be thankfull you listened to a stranger on the internet.

 

[goitsemang]

@dixieheart Not all brokers will open accounts for minors. Try scalable, traderepublic, just trade or smart broker. Maybe even ING.

 

[masill]

@dixieheart He probably gets a nice commission if you buy this product. Costs for these kinds of insurance policies tend to be high. Do you have any information on the annual fees as a % of the invested capital? At any rate, as many others have said here: just open a brokerage account for your boy and buy the ETFs yourself.

 

[dixieheart]

@masill Good point. I'll ask about the fees

 

[marcelineabader]

@dixieheart 100% VWCE and chill.

 

[fairytailskillet]

@dixieheart There are ways where this actually makes sense but DEFINITELY not from Sparkasse. Their conditions always suck in comparison. In pension plans, on insurances of all kind. They live off their banking customers and need to hit quota. They will still try to sell you a Bausparvertrag even. Even as a bank it’s a big phase out.

 

[bini11]

@dixieheart But bitcoin

And cancel Sparkasse

 

[rm13]

@dixieheart I saw a site that handles this sort of thing for foreigners in Germany: www.affluen.de

 

[rich4u2]

@rm13 Old post I know, but have you any experience with Affluen?

 

[rm13]

@rich4u2 They helped me with getting my money sorted in general, and were very competent in the German social security and tax reducing investments area.