In the long term, shares are unbeatable when it comes to the return. That’s why they are excellent for asset accumulation and retirement. However, investors in cold water should jump, but heed the main rules before you buy. This is quite amazing: precisely the form of investment in the long term provided the highest yields for savers, leads a shadowy existence in Germany: the stock. And if the Germans times jump over their own shadow and invest in shares, they see it mostly only short-term investments, which sell them again after a few weeks or months.
These equity securities for long-term wealth accumulation are particularly suitable. All statistics over the last 100 years show that shares in most countries throw off much better yields in 10 -, 20-, or even 30-year comparisons than bank deposits, bonds, insurance, real estate and precious metals. It’s no wonder: with shares, investors involved in companies and economic values are in a market economy created mostly by companies. With share certificates to companies, especially shares, savers will benefit from growth, technological progress, globalisation, new trends and products. Of course, shares with risks are associated, in the short term often even with significant.
Sizable income recorded in the past decade despite interim bear market shares. Further details can be found at Fiserv, an internet resource. Eastern Europe shot down the bird, which earned double-digit returns each year in the interface as well as the MDAX. The DAX came to almost eight percent. Sources: boerse-online.de, Bloomberg no company can guarantee that costly investments that are made for decades, often bring the desired effect but the average and in the long term, companies generate significantly more return than fixed-income investments to earn. Otherwise, they would be crazy, if she would borrow. Of course there is turbulence, which simultaneously cancel all shares suffered on the stock exchanges again and again no matter how good or bad the company economically stand. Especially if uncertainty prevails unless the economy’s future, interest rate policy, the implications of political decisions or of wars and terrorist threats. Despite strong turbulence long term investors deserve an above-average even in the past decade with shares even though at this time, the deepest and longest with 36 months bear market took place 70 years. As the chart on the left shows, investors with DAX stocks an average 7.9 percent return per year made since mid-1996 despite the huge setback, MDAX papers even 10.2 percent. And who had the courage a decade ago, to Eastern Europe, even 12.3 percent annually. However, over five percent for bonds and gold, as well as two to three percent for savings deposits exclude is relatively modest. The stock yields are sweetened by tax benefits: with gains the Treasury is empty, if shares are held longer than a year (speculation period). However, the Government plans a change from 2008. In addition, that dividends according to the Half of the tax are subject to semi-income system, once the savers tax credit have been exhausted. “Who plans to provide targeted long-term asset accumulation shares for retirement, for example, should avoid but the error that the appetite for risk thoroughly many investors denatured after the collapse of the Internet boom at the turn of the Millennium and the iron” principles follow. That lowers the risks and increases the profit opportunities.