Archive July 2019

Do you opt for saving, investing or both?

Savings in the Netherlands are still growing every year, but due to the low interest rates, investing is gaining popularity. Do you opt for saving, investing or both?

When do you choose to save?

When do you choose to save?

Despite the low interest rate on savings, savings in the Netherlands continue to grow every year. By saving on a savings account, you opt for security.

Your money is safe with the bank, you receive a little interest and you can withdraw your savings at any time. Savings in a savings account are ideal as a buffer for unexpected expenses and if you want to make a large purchase in the short term.

Low savings interest disastrous for purchasing power

Low savings interest disastrous for purchasing power

A major disadvantage of saving is the low savings interest rate at the moment. As a result, the return on savings is nil. Taking into account inflation and capital gains tax, you can buy less with your savings every year.

If you want to repair something of your return, you can deposit a portion of your savings in a deposit for a number of years. You retain the certainty, but are limited in the freedom to withdraw your savings at any time.

When do you choose to invest?

When do you choose to invest?

Due to the low interest rates, investing is gaining popularity. Investing can give you a higher return. We say can emphatically. The higher return on investing is associated with more risk. A negative return is also possible.

You therefore invest for the long term. Your investment is then less sensitive to price fluctuations and the risk of a negative return becomes smaller. If you choose to invest the return you also make you build up capital faster and you can expect a nice final amount.

You therefore also invest with savings that you do not need immediately. 

Choose a suitable investment product

Choose a suitable investment product

If you have decided to invest with part of your assets, it is important to choose an appropriate investment product. Topics to consider are:

  • Investment horizon: how many years do you need the assets.
  • Investment objective: you are happy to invest with regard to the final amount for your child’s pension or study. With other spending goals you might take a little more risk.

How do you want to invest?

  • You invest yourself through a broker.
  • If a professional wants to invest for you, choose fund investing.
  • As a supplement to your pension, pension saving is suitable and tax-friendly.
  • Crowdfunding is a relatively new way of investing. You then invest with a group of investors in private and corporate projects.

Conclusion: by combining saving and investing, you go for certainty and a good return in the long term.

Insurance for Families

 

To ensure that your existing insurance policies really meet the hedging needs of a family , you should put them to the test before the birth of your first child. We give you the most important information about which insurances are suitable for you and your family and how you can best secure your loved ones.  

In our first part of “Insurance for Families” you have already learned what a private liability insurance for your family and why a term life insurance is important for young families.   In the second part of “Insurance for Families” you will learn today how the disability insurance protects you and your family from loss of income and how the sickness allowance insurance can close a possible income gap in case of incapacity for work.

The disability insurance – compensate for loss of income  

The disability insurance - compensate for loss of income  

If, due to illness or accident, you are no longer able to practice your current occupation, a disability insurance can cover you. Especially for families whose livelihood depends on the income of a parent, occupational disability insurance is very important. In this case, the main earner should take out the insurance. The same applies of course to single parents .  

Even if it may surprise you, the risk of occupational disability is not limited to people in higher risk occupations. The most common cause of early retirement is serious mental illness or neuropathy .  

Even if you receive a disability pension from the state, keep in mind that it is barely more than a third of your last gross salary, if any! The conditions for admission to the statutory disability pension are much more difficult than for the private occupational disability pension.  

When does occupational disability insurance pay?  

When does occupational disability insurance pay?  

Whether your inability to work was caused by an accident or illness , the disability insurance pays you a monthly pension once you are no longer able to work at least 6 months to 50% of your job.  

Occupational disability insurance is one of the most important insurance policies, especially for families, as the disability pension and supplementary social benefits are usually insufficient to meet the needs of a family. If the main earner also financed the home , would fall in an emergency, not only the income, but also the home.  

You should only refrain from occupational disability insurance if you and your family can adequately cover their losses with existing reserves. Since disability insurance is quite costly, you should check in advance to see if you can and do afford this insurance financially. Talk to us on the disability insurance, your Goodfinancial partner will be happy to advise you! The topic of occupational disability insurance with your relevant health issues and choosing the right company is complex and should never be completed without an independent broker .  

The daily sickness insurance – to secure lost earnings  

The daily sickness insurance - to secure lost earnings  

To prove your disability, you must submit a large number of documents to your insurance company. These include, for example, medical reports and descriptions of your current job, and usually a diagnosis of “disability” occurs over a very long period of “disability”.

Until your application has been assessed and the incapacity for work is determined, a longer period of inability to work usually goes into the country. However, the entitlement to a continued salary payment lasts for a maximum of six weeks. From the statutory health insurance you would receive from this time the sick pay , but this is lower than the net salary. To close this income gap, it makes sense to take out a daily sickness insurance. Especially employees above with a gross salary above the income threshold should close this gap.  

 

For whom is sickness allowance insurance useful?  

Whether it makes sense for you to take out daily sickness insurance depends on your employment.  

  • Statutory Employees:  

If your salary is below the income threshold, the sickness benefit is approximately 20 percent lower than your previous net income. In order to close this gap and make a living, you should think about sickness allowance insurance.  

  • Privately insured employees:

If you are a privately insured employee, you will not receive sickness benefit after the six weeks of paid wages. Therefore, you should take out daily sickness insurance to cover your monthly expenses.  

  • Officer:

Civil servants do not need sickness allowance insurance because their benefits continue to be paid in the event of a long-term illness without a specific time limit. In the event that you can no longer work in your profession, it is possible to take out a disability insurance. 

Builders should take more time to look for a loan

Building is back in fashion: many Germans use the low mortgage rates to build their long-awaited home. Precisely because the building money is so low, even larger loan amounts can be taken up without automatically generating a very high interest burden.

Real estate loans have become so cheap

Real estate loans have become so cheap

Especially because real estate loans have become so cheap, there are increasingly more builders who do not want to deal with the issue of financing closer. Often this is perceived as a very dry matter, which limits enthusiasm and interest. Instead, they prefer to engage many builders with technical issues. Especially the construction planning is often devoted a lot of time.

However, this behavior does not lead to the best possible results in terms of funding. Just because construction money is cheap, does not mean that you can complete a favorable loan at any bank. There are still at least some significant differences between the interest rates of individual banks. If you want to finance cheap, you must make sure. The time for a financial comparison should be taken necessarily.

Can lead to considerable additional costs

Can lead to considerable additional costs

Unfortunately, this is often not done. Many people turn to their bank and finance directly there. As a result, higher interest rates are often accepted. These do not always seem big, but one should not be fooled: Already 0.1 percent can lead to considerable additional costs, which amount to several thousand euros.

Favorable loan to offer

Favorable loan to offer

Incidentally, finding cheap lenders is not at all difficult. Thanks to our mortgage lending comparison, the market is quickly examined. Our experts take away almost all the work from clients and buyers. How to determine which bank has the right or a particularly favorable loan to offer, so that the property is financed at the end of cheap.