Hi all, after lurking here for quite a bit, I would need some of your advice as well:
Background:
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31-year old German native that recently graduated from a MBA and is now working in consulting in Germany.
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Annual income: 105k € base plus 30% bonus and some sign-on money in year 1.
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Current debt: 40k from MBA @ 3% p.a.
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Current expenditure: 850 rents & bills, 1200 food & drink, 500 on travel, 500 on the loan, 300 health insurance. No car, transport is paid by employer.
Tax situation in Germany:
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MBAs and any other second part of tertiary education is fully tax deductible including all expenses and I currently have a tax shield worth roughly 100k of income
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My loan payments are fully deductible as well
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I am awaiting a full income tax return for 2016 right now, should come down to about 18k having worked only a couple of months during the summer and some paid-out over time from my previous employer
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Investments into mutual funds, stocks or any other financial income is taxed flat at 25% with an annual tax-free allowance of 801€
My investment questions:
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I have a brokerage account with a German investment bank (Comdirect) – they offer a selection of roughly 50 ETFs for free purchase and a free depot if you purchase regularly on a savings plan. My current idea is to invest in as few titles as possible to lower costs of eventually selling them. Now my question is if I go with a passively managed FTE linked to the MSCI world for 1000 € per month, would you hedge this with another investment into fixed income titles?
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I could save another 500€ extra each Month that could be invested into more risky or more long-term products, what would you recommend looking at?
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Does anybody have experience with personal wealth management specific to Germany? I would be especially interested in trying to use all legal means of reducing taxation on my long-term savings. I plan to buy property over the mid-term horizon (5 years) but nothing planned yet.
Thanks for taking time out of your day for this!
Edit for formatting.
Submitted July 30, 2017 at 07:54AM by finance_throwaway_55 http://ift.tt/2vbDlbb
