Which is why you should rather manage your assets yourself in retirement

Those who manage their assets themselves in old age can save a lot of money. (Symbol image)
Image: dpa

If seniors simply carry their assets to the bank, they need not be surprised that the bank wants to earn money from it. However, those who become active themselves can save high administrative costs.

D.he wealthy seniors whine when it comes to their good money, in many cases at a high level. This starts with the fact that many investors overlook their lavish pensions when structuring their private wealth, and it ends with loud complaints that the advice given to banks has become miserable in recent years. The ranting about the young advisors in the institutes is understandable, but the insight that some troublemakers have considerable complicity in this misery does not want to grow with the best will. Actually nothing has changed when I look at the situation. Bankers are honorable merchants who care for their own benefit, and seniors are honorable people who like themselves. However, love is blind, as the vernacular knows, and it is no wonder that seniors pay too little attention to the composition and cost of their wealth. The impact of the chaos in retirement can be seen in the following example.

A senior executive retired is 70 years old. The man is widowed and in many ways a good match. He’s educated, he’s gotten around the world, he’s got a sense of humor – and he’s got money. But he is not interested in capital. It’s there and that’s enough. The assets are between 1,600,000 and 2,590,000 euros, depending on the valuation of the components. Beginners get the low sum because they add up the cash (€ 800,000), the bonds (€ 300,000) and the stocks (€ 500,000). More advanced people capitalize the monthly company and state pensions of 5,000 euros at 2 percent per year, let the man live for another 20 years and increase their assets by the capital value of 990,000 euros. But the numbers only come to life through the events of the past few weeks.


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