Savings Account Or ETF For The Children? What Parents Should Know
ETFs (Exchange Traded Funds) are the modern alternative to the good old savings account. This was originally the preferred method of saving money for the children’s future. But if you think realistically, you will soon realize: Given today’s interest rates, the child can access either 20,000 or 100,000 euros at the age of 20.
ETFs are particularly attractive from this point of view. They can be seen as the modern version of a savings account – with the difference that they are traded on the stock exchange. “Many parents think that stock market trading is too risky or requires special knowledge. But there are numerous ways to take a low-risk approach – with the right strategy,” says Dr. Carmen Mayer. She became a millionaire through stock market trading and also uses her expertise to save money for her children for the future. Below, Mayer explains what parents should bear in mind for the stock market savings account 2.0.
An exchange traded fund (ETF) is a type of investment fund and a financial product that allows investors to invest in a wide range of assets such as stocks, bonds, commodities or other asset classes. ETFs are traded on stock exchanges like shares and can track the value of an underlying index, asset class or commodity. They are considered a much more sensible alternative to the classic savings account. There are many reasons for this:
Diversification: ETFs offer broad diversification as they hold a variety of assets within their portfolio. This helps to spread risk and minimize the potential for losses due to the failure of individual investments.
Stock market trading: ETFs can be bought and sold during trading hours on stock exchanges like shares. This allows investors to enjoy flexibility and liquidity as they can trade their shares at current market prices.
Transparency: ETFs publish their portfolios daily so that investors know exactly which assets they are investing in. This transparency allows investors to make well-informed decisions.
Low costs: ETFs generally have low management fees, also known as expense ratios, compared to active investment funds.
Flexibility: ETFs offer investors the flexibility to invest in different asset classes or sectors, depending on their individual investment objectives and strategies.
Liquidation: ETFs can be sold at any time – if the provider is chosen correctly – so that investors can quickly access their invested capital when they need it.
However, in order to really benefit from the advantages of ETFs, you should not invest blindly.… weiterlesen
C&C-Autorin aus München
Im Anschluss an ihre Karriere als promovierte Biochemikerin entschied sich Dr. Carmen Mayer für die Aktien- und Börsenbranche. Innerhalb kürzester Zeit etablierte sie sich hier ohne Vorerfahrung mit einem hochprofitablen Geschäft. Heute konzentriert sich Dr. Mayer darauf, ihre Erfahrungen und Strategien mit anderen Menschen zu teilen.
