Living modestly despite millions

Instead of a villa with a pool, he still lives in a small house in Staten Island. It became famous through his legendary appearance on “MTV Cribs” – a modest two-bedroom house with charm. Although his fortune is estimated at around ten million dollars, Redman deliberately lives simply, despite blockbusters like How High. He says himself that family, friends and memories are more important to him than status symbols.

Back in the days…

Legendary! Redman at MTV Cribs

Wow! Shoebox full of cash!

The truth about MTV Cribs

His properties and retreats

In addition to the house in Staten Island, Redman also owns a colonial house in Newark, surrounded by greenery and tranquillity. There he enjoys spending time with his family, far away from the media and the stress of touring. His home is a reflection of his personality: honest, down-to-earth, warm.

His cars: less is more

• Smart ForTwo – small, practical, urban
• No flashy fleet like other stars
• Proof of Redman’s grounded lifestyle

His heart beats for the community

With Method Man, he regularly organizes charity events such as “No Jive Turkey Day”, where food is distributed to the needy. He also supports educational initiatives in Newark. For him, success also means responsibility: giving something back to the community and leading by example.

Social commitment with impact

Redman is not only involved with donations, but also personally. He uses his platform to draw attention to social problems and motivates fans to get involved too. He focuses on education, social justice and youth development.

• Food banks in Staten Island
• Educational projects in Newark
• Workshops for young people

Private life: Father with responsibility

Let me take you inside Redman’s family: he is the father of five children, three of whom are with his partner. Despite his rapper past, he maintains clear boundaries at home: no smoking in front of the kids, open conversations about drugs, LGBTQ+ and social issues. His aim is to pass on respect, education and self-confidence to his children – without pressure, but with a clear attitude.

Values that he exemplifies

Redman talks honestly with his children about difficult topics. He doesn’t want to forbid, but rather inform and empower. It is particularly important to him that they can make their own decisions – with the necessary knowledge and support from their family.

• No drug use in front of the children
• Education instead of bans
• Respect and openness in the family

Redman: From DJ to world star

Let me take you back to Redman’ s early years: born in 1970 in Newark, New Jersey, he grew up in a musical environment. At 16, he dropped out of university and ended up living with his mother – only briefly, as his path soon led him to the clubs as DJ Cut Killa. There he attracted the attention of Eric Sermon (EPMD), who signed him to Def Jam. His debut album “What? Thee Album” (1992) put him directly on the rap map. With his unique blend of humor, wordplay and flow, it was clear that he was an exceptional talent.

• 1992: What? Thee Album
• 1996: Muddy Waters
• 1998: Doc’s Da Name 2000
• 2001: Malpractice
• 2009: Blackout! 2 (with Method Man)

Conclusion: Authentic, committed, unforgettable

Redman remains an exceptional phenomenon in hip-hop. Authentic, socially committed and dedicated to his family. He shows that true success is not measured by gold chains and mansions, but by character, attitude and the ability to remain true to oneself. A legend who still impresses today.

Buying a house: High cost, high risk

The dream of owning your own home – for many, this is a life goal that needs to be achieved. Besides many positive aspects, owning your own home also has its downsides. When you buy a family home, whether for your own use or as an investment, you are always 100% responsible for the costs incurred. Read more about the risk of buying a house here.

(Alb) – Dream: The pitfall of home ownership

For many, the former dream of owning their own home often quickly becomes a nightmare. Many use a building savings contract to pay off a house until retirement age, with the intention of living rent-free. However, the assumption is usually deceptive and you still get into debt, as you are responsible for 100% of the costs incurred. So one is never completely rent-free.

• 100% investment costs
• 100% self-responsibility for costs
• Even after paying off the loan not quite rent-free

3 mistakes when buying a house

There is a lot to consider when buying a house. What many people forget are the mistakes that can be made when buying a house. Here we have the most important points for you, why we advise against a house as a first property.

Error 1

The costs incurred for the house always remain, for which you yourself are 100% responsible. You are never really rent-free with a property for pure personal use.

• Management and maintenance costs of the house remain forever

Solution – For a truly carefree life, it is advisable to maintain a second and third property that you rent out. With the proceeds from these properties you can pay the management and maintenance costs of your own property and, depending on the return, pocket the rest as profit.

Error 2

The property you bought when you were young is not suitable for your old age later on. Sooner or later, the property will have to be remodeled to meet the needs of the elderly, which will incur additional costs.

• Property is not suitable for old age later
• Costs for age-appropriate conversion
• Property sooner or later becomes too big

Error 3

Your credit rating at the bank is reduced by a property with owner-occupancy and without an additional capital investment. Through the self-use of the property, you suddenly have more current expenses than income, the running costs are also always 100% your responsibility. In the event of a job loss, the bank of you additionally has no coverage, because this means loss of income and rent for you and thus a higher risk for you and the bank.

• More running costs, less spending
• Costs 100% personal responsibility
• Job loss means loss of income and rent – risk

Source: Real Estate Types/ Real Estate Experience.com

Multi-family house: high equity, high costs

So owner-occupancy is the most expensive way to live. The situation is different with investment property. Here the tenant and the tax office more or less pay off your debts. Therefore, we now come to a multi-family / multi-party house. But real estate beginners are warned! This area is more for experienced people.

So when should you think about buying an apartment building? When you have enough equity to cover the purchase price, management costs, maintenance costs and modernization costs. Despite the ongoing rental income, here, as with owner-occupation, they are 100% responsible for all costs incurred.

Here again in brief summarizes the disadvantages of a multi-family house:

• High equity required to cover costs
• 100% of the costs must be borne by the owner himself as the owner

Residential and commercial buildings (WGH)

WHGs behave similarly to multi-family houses, but are nevertheless much riskier to invest in. Since they are equipped with commercial space in addition to residential units, they are vacant more often than residential units. The area must be maintained nevertheless, whereby additional costs result. This in turn means that you have to raise more equity.

• High risk due to vacancy
• Even higher equity required
• Vacancy must be kept in operation – More costs

Condominium: High yield & cost sharing

The solution for your first property? A condominium! The big advantage? When you buy a condominium, you are part of a community of owners, so you don’t have to bear the costs of a house all by yourself. The costs for maintenance, repair and modernization are shared among all owners. Regardless of whether it is for your own use or an investment property, the running costs are always lower than in a house where you are the sole owner.

• Part of a community of owners
• All costs incurred are divided by the number of owners

A short example: Let’s say we are talking about a heating system for 16,000 euros. You are part of an 8-part apartment building, with 1 condominium. The costs are divided by 8, so you pay -14,000 less and only 2,000 euros for the new, modern heating system.

Commercial, special real estate and monument protection

You should take a closer look at properties with commercial use, listed buildings or properties for a special purpose before buying. Why, you will learn here in a short overview!

Commercial property

• Nothing for beginners
• Subject to different legal framework than residential
• More frequent vacancies than for residential space (fluctuation)

Special real estate

Villa, farm, winery or even workshop and shopping center, all these are special real estate.

• More difficult financing due to high risk for banks
• Rather buy in A- and B- locations, as a rural location carries too high a risk

Real estate under monument protection

Real estate with historical value and special status (rights, obligations, taxes and subsidies).

• Tax incentives
• Higher costs for repair
• Restrictions on structural changes

Conclusion: What should I invest in at the beginning?

If you look at our comparison, you can clearly see that every property, except condominium, has disadvantages. Therefore, our conclusion is: condominiums are the easiest way to get started in real estate. Here again briefly our most important points at a glance:

• Self-use is the most expensive way to live – you are responsible for 100% of the costs yourself
• Ideal case for entry: condominium, for rent (investment), with good return!
• If it is to be owner-occupied, then directly with 2nd or 3rd property as an investment.

The next step: how to build your assets?

Are you interested in real estate to secure and build up your assets? Then read on here: Everything on the subject of investment, value investment and inflation.

Price: How expensive is jade? Gram, carat and kilo

Jade is the name given to a group of different gemstones. How expensive a jade stone is depends on the color intensity and whether it is jadeite or nephrite. Nephrite has been losing its place on the market for a few years because there are many imitations and is accordingly no longer as price-intensive. Jadeite with a pure, strong color is the most valuable and smooth, evenly colored stones are the most expensive. Especially the coveted emperor jade acts as a store of value for investors.

In fact, each stone is valued individually. The price is set by dealers, jewelers and auction houses. But if we consider the example from above, then you would have the following selling prices.

Example calculation (Jade Fund in Myanmar)

210 tonnes > 210 000 kg

170,000,000 / 210,000 kg

809,52 USD / Kilogram

4,05 USD / carat

0,81 / gram

Price comparison gold / jade

Tip, read more about buying gold here.

• Gold per gram: 61 USD
• Jade per gram: 0.81 USD

Jade production in the year

Here are official figures from Myanmar (Government):

Average price: export to China

Increase in value after export to China

Mexican name origin

The term jade is derived from piedra de ijada = loin stone. This comes from the fact that it used to be regarded by the indigenous people of South America as a healing stone for loins and kidneys. However, it received its name only in the 16th century, during the conquest of Mexico by the Spaniards. Jade, or yu, the term commonly used in China, is actually a generic term for two different gemstones: Nephrite and Jadeite.

Exceptional composition

Originally, it was assumed that all jade objects were made from the same material. However, in 1863, a Frenchman, Alexis Damour, discovered that the material known as “jade” could be divided into two distinct minerals: Jadeite and Nephrite. Because these two materials are difficult to distinguish, and because the word “jade” is so ingrained in the common language, the name jade is still commonly used in many societies, industries, and academic disciplines.

Designations of the materials

In this article, the word “jade” is used for undifferentiated materials. “Jadeite” or “nephrite” is used when the identity of the material is known. The word “nephrite” is also an imprecise term. It is used for materials composed of the minerals actinolite and tremolite.

Jadeite, Nephrite and Science

Jadeite and nephrite have distinctly different mineral compositions. Jadeite is an aluminum-rich pyroxene, while nephrite is a magnesium-rich amphibole. However, the two minerals have very similar physical properties to the eye of the average person. Only trained observers with considerable experience are able to reliably distinguish between them without mineral testing equipment. For this reason, jadeite and nephrite were not properly distinguished by scientists until 1863.

Origin of the distinction

Unknowingly, Chinese artisans had distinguished jadeite from nephrite and valued it enough to pay a high price for jadeite. However, they did not have the knowledge and equipment in chemistry and crystallography to formally distinguish them.

Rarely did Chinese artisans encounter fine-grained jadeite with a bright translucency and a rich, uniform green color. This beautiful material was given the name “Imperial Jade” and was considered the stone of the highest quality. At that time in China, the possession of imperial jade was reserved only for the emperor. Now, anyone who can afford it can own Imperial Jade. The best specimens can cost more per carat than high quality diamonds.

• Chinese craftsmen first found out the difference
• However, did not have tools and knowledge to further investigate him
• Imperial jade was only allowed to be owned by the emperor in China

Still in great demand: Jade in China

The Chinese value jade much more than any other people. For thousands of years, jade has been the most popular gemstone in China. Chinese emperors desired excellent specimens of jade, and they traded or waged war with distant nations to acquire them. In China, gifts of jade are given at almost every important station in life, such as birthdays, anniversaries, weddings, and other celebrations. It is also a commonly used material for making religious art. China is the country where the importance of jade is the highest.

History of the green gems

Jade has been known since the Stone Age and was a highly sought-after mineral, especially in ancient China, where at times it was valued almost as highly as gold, but also worldwide. Since as early as 3,000 B.C. it has been regarded in China as a yu, a “royal gemstone”. It had always had a very special significance in the long history of art and culture. It was used for the finest objects and cult figures as well as for grave goods for high-ranking members of the imperial family. Even today, this gemstone is considered a symbol of the good, the beautiful and the precious.

Early use of jade in tools

People have been using jade for at least 100,000 years

The earliest items made from jade were tools. Jade is a very hard material and is used as a tool because it is extremely tough and breaks to form sharp edges. Most jade does not have the color and translucency that one would expect from a gemstone. However, when early humans found these special pieces of jade, they were often inspired to make them into a special object.

Toughness is the ability of a material to resist fracture when subjected to loads. Hardness is the ability of a material to resist abrasion. Early toolmakers took advantage of these properties of jade and shaped it into cutting tools and weapons. It was used to make axes, projectile points, knives, scrapers, and other sharp cutting objects.

• Used for 100,000 years
• Earliest items: Tools
• Very tough and hard

Tough, in the context of gemstones, means: Ability of a material to resist breakage. Hardness means: ability of a material to resist abrasion.

Today’s use of jade as a gemstone

Jade is a durable, colorful material that can be worked into shapes and polished to a high shine. These properties make it a highly desirable gemstone. Jade has been used to make a variety of jewelry items such as pendants, necklaces, rings, bracelets, earrings, beads, cabochons, tumbled stones and other items.

These jewels are often made of solid jade, combined with other gemstones or set in settings of gold, silver or other precious metals. In addition to jewellery, jade is also used to make small sculptures, ornaments, religious art and small functional objects.

Jade trade: Video

Danger of confusion!

Maw sit sit

Maw Sit Sit is a rock composed of jadeite, albite and kosmochlor (a mineral related to jadeite). It has a bright chrome-green color and can be polished to a bright finish. For these reasons, it is used as a gemstone. Maw Sit Sit was first correctly identified in 1963 near the village of Maw Sit Sit in northwestern Burma in the foothills of the Himalayas. This is the only place where it has been discovered so far. It is used for cutting cabochons and making small sculptures. Because of its scarcity and low production, it is rarely used in jewelry.

• Rock consisting of jadeite, albite and cosmochlore
• First identified in 1963 in the Himalayas, near the village of Maw Sit Sit.
• So far the only find
• Only rarely in jewellery

Similar materials

A number of other minerals and materials that are commonly cut and polished are easily mistaken for jade. All of these materials can have a color, luster, and translucency very similar to jade – so similar that the average person cannot recognize them. These materials are often used to make cabochons, beads, and other items in the same style as jade. They sometimes come on the market with and without disclosure. They are often labeled “jade” or one of many misnomers.

Chalcedony

Chalcedony is a translucent variety of microcrystalline quartz that comes in a range of colors similar to jade. Chrysoprase is a light green, chrome colored chalcedony that when cut into cabochons, beads and small sculptures looks very similar to jade. Chalcedony comes in a variety of other translucent colors such as black, lavender, yellow, and orange that can look like the color variations of jade. Chalcedony can look very similar to jade as a gemstone. It can be distinguished from jade by its lower specific gravity and by a variety of instrumental methods.

Serpentine

Serpentine occurs in a variety of wonderful translucent to almost transparent green and yellowish-green colors that look very similar to jade. It is a metamorphic mineral that often occurs in the same geographic areas and the same rock types as jade. Serpentine is much softer than jade and also has a much lower specific gravity.

Vesuvianite, also known as idocrase, is another jade-like mineral that is very difficult to distinguish from jade without laboratory testing. It has a similar hardness, specific gravity, and physical appearance. It is not nearly as tough as jade and breaks more easily – but that requires destruction of the sample.

Jade types, treatments and tips for purchase

For thousands of years, the people who make and sell jade objects have found many ways to improve their appearance. Heat, wax, dye, bleach, acid, polymer injection, and other treatments have all been used to improve the color, luster, and stability of jadeite and nephrite. Although many of these treatments are part of the traditional jade manufacturing process, today’s serious jade buyers want to know about all the treatments that have been used in the manufacturing process.

Classification into type A, B and C

Commercial jadeite objects are classified into three “types” depending on the treatments used during the manufacturing process. They are referred to as Type A, Type B and Type C jadeite.

A jade locket: the deep green color jumps right out at you:

Jadeite type A: Treatment with wax layer

Type A jadeite objects have been treated with a wax coating. This is the most traditional jadeite treatment. It is expected and accepted by serious buyers and generally does not affect the value of a jadeite object. In this treatment, manufacturers boil finished jadeite objects in water to clean and prepare them for wax application. The objects are then dried and dipped in melted wax. The wax fills all pores and fractures near the surface. When the objects have cooled, excess wax is removed and the objects are polished to a high gloss. The wax fills in surface imperfections and gives the surface of the object a smooth, glossy finish.

Jadeite type B: bleaching by hydrochloric or sulphuric acid

Type B jadeite objects were bleached by soaking in hydrochloric or sulfuric acid. The acid removes oxidation stains and leaches sodium. This lightens the color of many materials. The jadeite is then impregnated under pressure with wax or a clear polymer resin. The impregnation fills all pores and fractures near the surface and gives the object improved smoothness, luster and color.

Unfortunately, the appearance of type B jadeite objects can deteriorate after only a few years. Acid treatment causes some jadeite to become brittle, and polymer resins can discolor over time or with exposure to heat and sunlight. Because of these problems, the treatment of Type B Jadeite should always be disclosed when an item is sold, but many items are sold without disclosure. This lack of disclosure is due to the fact that Type B Jadeite objects usually sell for a small fraction of the price paid for a similar Type A object. Sellers often get away with non-disclosure because Type B treatments are difficult to detect. Testing in a gemological laboratory is often required to detect Type B treatments.

• Bleached by soaking in hydrochloric or sulphuric acid
• Impregnated with wax or polymer resin under pressure
• Appearance may deteriorate after a few years
• Treatment should

Jadeite type C: Individual colouring

Type C jadeite usually has all the treatments of type B jadeite, but the object has also been dyed a more desirable color. The dyes may fade over time or with exposure to heat and light. For these reasons, Type C treatments should always be disclosed.

Color treatment can often be determined by examination with a microscope, spectroscope or gemological filters, but this examination should not be required – the seller should disclose the full extent of treatment for each object sold. Disclosure is not always made, as Type C jadeite sells for a small fraction of similar objects with Type B treatment.

Type C objects should be purchased at a price that assumes temporary use for a few years. Anyone spending the considerable money on jade should know the difference between jadeite and nephrite, have a good knowledge of jadeite treatments and how they affect value and future durability and appearance.

• More desirable colour than type b
• Type C treatments should always be disclosed
• Price that assumes temporary use of a few years

Retirement: Avoid mistakes and follow tips

Here you will find everything you need to know about pensions. With our book recommendations, you can really get smart and avoid mistakes when concluding the pension. Whether you’re a beginner or an advanced reader, we’ll show you the best and most helpful books.

Here’s another tip for you (external). What’s the best way to protect yourself from poverty in old age due to low pensions? The answer is: turning taxes into assets. Tax avoidance means building knowledge yourself. Online you can find a lot of (free) articles and tips on Lukinski.de: From real estate as an investment by renting to asset management to saving taxes with real estate (external). Everything free of charge from the expert.

Tip! Overview Wealth Building XXL – Book, Video, Tips & Tricks

If you want to build up private wealth and create financial reserves, there are a few things you should keep in mind. In addition to the tips you get in this article, you might also be interested in our extensive overview page. There you will find an overview of articles, as well as book and video tips with successful and helpful books and videos on the subject of wealth accumulation – including tips and tricks from professionals and experts.

• Book & Video Tips Overview: Wealth Creation XXL

Retirement for beginners

Rating: 4.6 / 5.0 (557 ratings)

For decades, you showed up for work every goddamn workday. Always dutiful, often on time, and usually in a good mood. You put up with no grumbling about missing raises, countless hours of overtime, and merry Christmas parties. You never thought about what it would be like when it was all over. And then suddenly it’s here: retirement. And now?
This book helps you prepare for the new phase of your life and is an indispensable companion for the time after work! Because in the huge, pitch-black hole into which you inevitably threaten to fall after your last day at work, there are plenty of pleasant surprises waiting for you!

• Buy at Amazon

Retirement in sight: Your financial guide to retirement

Ratings: 4.3 / 5.0 (10 ratings)

Well positioned for the third stage of life:

• What needs to be considered with regard to statutory pensions and occupational pension schemes?
• Tax liability and saving taxes: What applies to different incomes in retirement?
• Making the most of financial investments: How the transition to retirement influences financial strategy
• Health insurance, long-term care insurance and other insurance policies: This is how the insurance portfolio is reorganized
• Enjoying retirement abroad: What to consider when it comes to pensions, property and insurance? Pensioners and retirees are in a special financial situation: income, expenses and time horizon have become more manageable. Restrictions apply, for example on loans, and special rules apply, for example on taxation. In addition to retirement income, many men and women aged 60 and over have to take care of other financial areas, such as reducing investment risks or making well-considered arrangements for their estate.
• Buy at Amazon

My pension – Planning for retirement – Early retirement options

Ratings: 4.2 / 5.0 (5 ratings)

The new guidebook from Stiftung Warentest clarifies all the important questions using many clear practical examples: How do I manage to have enough money available after my working life? What can I do as an employed person to collect more pension points? What do part-time work, self-employment, child-raising periods and maternity pensions, mini-jobs, periods spent abroad or divorce mean for my pension provision? How can private pension provision supplement the state pension?

• Your personal roadmap: How to make the right decisions for more retirement at key life junctures
• Work and family: getting more out of life as an employee, self-employed person and in family times
• The pension in front of your eyes: Increase your pension with voluntary payments, find the right date to jump ship
• Buy at Amazon

You don’t get retirement for free, you have to earn it!

Ratings: 4.7 / 5.0 (122 ratings)

Your father, a friend or a colleague is retiring? Then give the retiree in Spe with this small gift book a farewell gift with a wink. The booklet is an amusing substitute for a greeting card on retirement. It also makes a wonderful addition to a bouquet of flowers or a monetary gift. The combination of colourful illustrations, funny texts and wise words give the retirement gift that certain something.

• Buy at Amazon

Private old-age provision: Provision requirements – Financial roadmap

Ratings: 4.5 / 5.0 (8 ratings)

Close the pension gap. Start your retirement planning now and time will work for you. Every year, the Finanztest experts test more than 10,000 products on the subject of old-age provision. Make more of your money – despite low interest rates. This guide shows you which investments you can use to build up a comfortable financial cushion even in times of low interest rates. Determine your individual pension needs and develop your personal financial roadmap.

• Personal roadmap: How to get to the optimal provision step by step
• Statutory pension: What you can get out of it
• Pension provision with state assistance: Which offers are worthwhile – and which are not
• Private pension provision: How to find top providers
• Practical examples: Which investments fit your life situation
• Buy at Amazon

The pension consultant

Ratings: 5.0 / 5.0 (2 ratings)

The expert guide to all pension issues and retirement provision (including Riester pension and Rürup pension). The book includes all legal changes through the latest pension package, the new regulations, the Flexi-Rente.

• When can I retire without deductions?
• How much will my pension be?
• What are pension deductions?
• Which periods are taken into account for my pension?
• What can I earn in addition to my pension?
• Buy at Amazon

State Pension Practice: The expert guide

Ratings: 5.0 / 5.0 (3 ratings)

When can I retire?, How much is the pension?, What are pension deductions?, Which periods are taken into account for my pension? The book provides answers to these and many other questions. The authors place great emphasis on the connection to practice.

• 55 years of reforms in the statutory pension insurance
• The three pillars of old-age provision
• Periods under pension law
• Minijob and Midijob
• Insured persons’ pensions
• Survivor’s pension claims
• Pension equalisation and pension splitting
• The most important facts about pension calculation
• The tax treatment of pensions and contributions
• The insurance account and information
• Private old-age provision in the form of a Riester pension
• Private pension provision in the form of the Rürup pension
• Company pension scheme
• Basic income support in old age and in the event of reduced earning capacity
• Buy at Amazon

Further links

We have more helpful video and book lists for you on topics that might interest you. Below are some helpful links for you.

Retirement provision

The topic of old-age provision is one of the most important issues Germans are concerned about. Already at a young age, one is made aware of the need to provide for later. But how exactly do I do that? When do I start with the old-age provision? Which mistakes should I avoid? Where can I get tips? And why do I need a pension at all? We answer all these questions and more here.

• Video tips on the subject of old-age provision
• Book recommendations on the subject of old-age provision

Tax return

Why, why, why are tax returns so important? Not only professionals, but also students or pensioners can benefit from a tax return. If you have never deducted anything from your taxes and have no previous knowledge, you can get super informed in our tax return guide. We show you tips and tricks on how to avoid mistakes and provide you with tutorials that will help you with your first or next tax return. If you want to know even more, then we have a great article on the tax basics: income, sales & Co.

• Video tips on the subject of tax returns
• Book recommendations on the subject of tax returns

Buying real estate

With our book and video list on buying real estate, you can’t go wrong with your next real estate purchase. Our book tips cover all topics from the right inspection to the closing and the possible resale. What do you have to pay attention to? How do you finance your purchase? How do you evaluate a property? And how do you conclude the contract? You will find the answers here.

• Video tips on buying real estate
• Book recommendations on the subject of buying real estate

Advisor Wealth Accumulation XXL: Finance, Investment & Co.

Who wouldn’t like to build up their own assets? Whether you want to be able to afford something or would like to generate a financial buffer for old age, asset accumulation is a relevant and, above all, sensible topic for virtually everyone. But what options are there for building up assets? Life insurance, retirement planning, or investing in real estate? Here you will find an overview of articles, as well as book and video recommendations on the subject of asset building. From saving taxes to passive income to tips on successful investing – experts and professionals share their know-how in their videos and readings and answer all questions about wealth accumulation.

• Book and Video Tips: Wealth Building XXL

Understanding pensions and avoiding mistakes: Tips and tricks for more pension

Here you will find everything you need to know about pensions. With our video tips, you can really get smart and avoid mistakes when concluding the pension. Whether you’re a beginner or advanced, we’ll show you the best and most helpful videos.

Here’s another tip for you (external). What’s the best way to protect yourself from poverty in old age due to low pensions? The answer is: turning taxes into assets. Tax avoidance means building knowledge yourself. Online you can find a lot of (free) articles and tips on Lukinski.de: From real estate as an investment by renting to asset management to saving taxes with real estate (external). Everything free of charge from the expert.

Tip! Overview Wealth Building XXL – Book, Video, Tips & Tricks

If you want to build up private wealth and create financial reserves, there are a few things you should keep in mind. In addition to the tips you get in this article, you might also be interested in our extensive overview page. There you will find an overview of articles, as well as book and video tips with successful and helpful books and videos on the subject of wealth accumulation – including tips and tricks from professionals and experts.

• Book & Video Tips Overview: Wealth Creation XXL

The pension system

How does the German pension system work and what options are there to provide for retirement? This and much more you will learn in this video!

How much pension do you get?

You’ve always wondered how much pension you can expect later on? Learn in the video, based on an example how you can easily calculate your pension amount.

Pension information: What the numbers mean

Social security contributions (health insurance and long-term care insurance) and taxes may still be deducted from the gross pension. In this video, the information in the pension information is explained to you based on an example and clarifies what pension you can really count on. Net comes out significantly less than I imagine that many.

Calculate pension

The video shows you how the pension formula works and which decisive factors influence the pension amount.

This is how pensions are taxed

Whether it’s the statutory pension, benefits from a Riester contract or a company pension scheme, anyone who receives a pension these days will almost certainly have to pay tax on it. A big problem is that every year more pensioners become liable for tax and do not even notice this at first and are also obliged to file a tax return. Pensions are taxed in Germany, but there is no single rate for this, but for many forms of pensions there are separate rules. We have summarised these and tried to explain them simply – so that you do not experience any nasty surprises when you retire.

Avoid pension errors

Apply for a statutory pension. And it’s very simple. That’s what this video is about. You don’t get your statutory pension just like that. Here, too, you have to make an application. And as always, when you make my application, you can also make mistakes. How you do not make mistakes in your pension application and what options you have for applying for a statutory pension, you will learn in the video.

Tips for more pension

More pension from the statutory pension insurance? Who wouldn’t like that? In fact, there are a few ways you can boost your state pension. However, very few people have heard of these possibilities.

Investment option: Riester pension explained

There are various pension options. One of them is the so-called Riester pension. You can find out how it works and what it actually involves in the video.

Fear for the pension

Many people worry that there won’t be enough money in retirement. Everything is getting more expensive, but the pension level is falling. Many people do not have a private pension. Do we have to work until we drop? What is the best way to save for retirement?

https://www.youtube.com/watch?v=5_m142HVh3s

Further links

We have more helpful video and book lists for you on topics that might interest you. Below are some helpful links for you.

Retirement provision

The topic of old-age provision is one of the most important issues Germans are concerned about. Already at a young age, one is made aware of the need to provide for later. But how exactly do I do that? When do I start with the old-age provision? Which mistakes should I avoid? Where can I get tips? And why do I need a pension at all? We answer all these questions and more here.

• Video tips on the subject of old-age provision
• Book recommendations on the subject of old-age provision

Tax return

Why, why, why are tax returns so important? Not only professionals, but also students or pensioners can benefit from a tax return. If you have never deducted anything from your taxes and have no previous knowledge, you can get super informed in our tax return guide. We show you tips and tricks on how to avoid mistakes and provide you with tutorials that will help you with your first or next tax return. If you want to know even more, then we have a great article on the tax basics: income, sales & Co.

• Video tips on the subject of tax returns
• Book recommendations on the subject of tax returns

Buying real estate

With our book and video list on buying real estate, you can’t go wrong with your next real estate purchase. Our book tips cover all topics from the right inspection to the closing and the possible resale. What do you have to pay attention to? How do you finance your purchase? How do you evaluate a property? And how do you conclude the contract? You will find the answers here.

• Video tips on buying real estate
• Book recommendations on the subject of buying real estate

Invest successfuly

Successful investing is a dream of many people. But unfortunately, it is not as easy as it seems. How can you start as a beginner in the investment industry? What do you have to consider and which mistakes should you try to avoid? What is worth investing in? And what does the term “investment” mean anyway? We present you the best books on the subject of investment!

• Video tips on the subject of investment
• Book recommendations on the subject of investment

Advisor Wealth Accumulation XXL: Finance, Investment & Co.

Who wouldn’t like to build up their own assets? No matter whether you want to be able to afford something or would like to generate a financial buffer for old age, asset accumulation is a relevant and, above all, sensible topic for virtually everyone. But what options are there for building up assets? Life insurance, retirement planning, or investing in real estate? Here you will find an overview of articles, as well as book and video recommendations on the subject of asset building. From saving taxes to passive income to tips on successful investing – experts and professionals share their know-how in their videos and readings and answer all questions about wealth accumulation.

• Book and Video Tips: Wealth Building XXL

Buying real estate – tips and tricks for buying a house

Here you will find everything you need to know about buying real estate. From the search to the resale, we accompany you with our checklists and plans. Whether you are buying a house or an apartment, here you will find the information that will prepare you perfectly. The following books will surely help you with your first or next real estate purchase. Enjoy reading.

Tip! Overview Real Estate XXL

The world of real estate is complex and multifaceted. If you want to keep an overview and avoid making mistakes, you should prepare well and clarify as many open questions as possible in good time. No matter whether you want to build, buy and rent out a property or live in it yourself, or even use a property as an investment to generate passive income: The preparation is the A&O. Here you will find articles, as well as book and video tips with successful and helpful books and videos on the subject of real estate – including tips and tricks from professionals and experts.

• Book & Video Tips Overview: Real Estate

Buying mistakes

Buying or investing in a property is a big step. In the process, you can make a lot of small mistakes, but also bigger ones that can potentially cost you a lot of money. In these videos you will learn which mistakes are most often made when buying real estate and how you can avoid them to save as much money as possible on your real estate purchase!

That’s what you have to watch out for!

You want to buy a property but don’t want to make any mistakes when investing? The following video explains what you need to pay attention to when financing real estate, the location, type and size of the apartment, etc., and which rules you should absolutely follow for both owner-occupied real estate and capital investments! In addition, you will learn more about the risks of special real estate, how important the amount of the contractually fixed repayment and the consideration of your own future planning is!

9 typical mistakes when buying real estate

Making mistakes when buying real estate can have serious consequences. “What to look out for” is therefore a central question when buying real estate. How you can avoid mistakes is shown in this video.

• The first of many real estate mistakes is certainly that you are not purposeful in your site selection.
• Calculating correctly before buying is another point you should definitely take a closer look at.
• Have you found the right rental model?
• Do you consider interest rate risk before you buy?
• And have you found the ideal financing for you? A financing broker can help you with this question.
• The worst mistake we made when buying a property was not having any money in our bank account after the purchase. Reserves only build up after a certain time.

Buying your first own property

Have you been thinking about buying a house or an apartment for a while? Then you’ve come to the right place. However, buying a property is not as easy as it seems. Many things must be considered to really find the perfect property for you. Here you will find everything important about buying real estate. Our tips and tricks will help you get started with your first property.

Getting started with your first own property

Here we give you tips on what you need to buy a property in the first place. How much equity should you have for the planned investment? What does the bank expect from you as an investor? And how do I behave towards my bank advisor? You will learn all this and much more about this topic in this video!

Buying real estate step by step

In this video, the most important steps in buying real estate are explained to you. This will give you more clarity and allow you to go full throttle with real estate! Here you will be shown in which order the individual steps are to be carried out and what priority they have. Plus, you’ll be given some real-world tips for each step that will give you more confidence. Have fun with this video.

Procedure when buying a house

With the following video we would like to answer your questions about buying a house and give you a little guidance on what to do if you want to buy a property that you have viewed.

• What happens after the tour
• What do I have to do if I like the house
• How often can I visit the property
• What documents do I need for the bank and where to get them
• When do I get the key
• … and much more!

How to buy your first apartment

Becoming a real estate investor, buying and renting out apartments and living off the returns – that’s it! But how do you actually get started? How do you buy your first apartment? How you can take your first steps into the real estate business, tells you in this video real estate professional investor Gerald Hörhan.

Identifying the right purchase price of a property

In this video, you will learn what options you have to quickly value real estate, how to recognize the correct purchase price of a property and what special features there are so that you don’t pay too much for your property!

The right time to buy real estate

Buying a property is basically a good idea – but when is actually the right time? Does it make sense to buy a property as a trainee or student, or would it be better to wait? And is the real estate boom perhaps over again? Find answers to these questions here.

Buy property as a student or trainee

Is it possible to get a real estate financing as a student/pupil? Surely it will be difficult if you want to convince the bank as a student or trainee. Especially if your credit rating with these starting conditions is not yet so good and you want to approach a real estate financing with little equity or even completely without equity. Without the guarantee of a parent or relative, we say that it is even simply impossible. If you want to be successful with residential real estate, you need a lot of information, you need to know where and how to look later. Experiences and exchange offer you the optimal entrance into the real estate.

Still buying real estate now?

All of the studies conclude that the real estate market weathered the Corona Lockdown very well – except for one. In the video, we talk about how new evidence shows that there was definitely a price collapse in the market. Still, there are positive signs going forward that the German real estate market could continue to pick up. You can find all the details in the video.

Real estate financing

How do you finance your property in the best possible way? And ideally without equity? Should you buy or rather rent? Find answers to important questions on the topic of im

Buy property without equity

We usually recommend 100% financing or full financing. In principle, a real estate financing without equity. However, a full financing without equity or buy property without equity also includes that the incidental costs are financed. Since these are no countervalue, we see this approach, however, as critical if you do not buy particularly cheap. Such a property financing without equity has a significant impact on the return on equity of real estate. In this way you make optimal use of the leverage effect. That’s why we recommend financing no less than 80% of the purchase price as a rule.

Buy or rent?

Paying rent is money wasted. Whether there is any truth in this statement and what makes more sense from a purely financial point of view – buying or renting a property – is explained in the following video.

Related links around the topic Real Estate

Haven’t learned enough yet? We’ve covered many areas of real estate for you with our video tips. For example, areas such as: Real Estate Financing, Renting Property, Finding the Right Realtor, Passive Income through Real Estate and much more. Take a look and become a real estate professional!

Real estate investment

Real estate is considered a safe and profitable investment. But what is the best way to invest in houses or apartments? Whatever drives you to make a lot of money: Buying an apartment as an investment is the best idea you will ever make. If you want to invest successfuly in real estate, you need a good strategy.

• Video Tips: Real Estate Investment
• Book Recommendations: Real Estate Investment

Build property

To build or to buy a house? This question is on the minds of many prospective buyers. Here we show you the advantages and disadvantages of both options and offer interesting tips on financing. Both options have their advantages. A new building has the great advantage that you can determine the layout of the rooms according to your wishes. With an existing property, you don’t have to deal with the complicated construction phases and you can live in your own home much more quickly. Here you will find videos that will help you to finance your dream home and show you what you should pay attention to.

• Video Tips: Build property
• Book Recommendations: Building real estate

Overview Real Estate XXL: Investment & Co.

Here you get back to the overview of book and video recommendations on the subject of real estate in Germany. Investment cases, capital investment, passive income, house or apartment buy and rent and much more is explained to you here by experts and understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of real estate.

• Back to Book & Video Tips Overview: Real Estate

Back to the Capital Investment editorial.

Equity funds: advantages, disadvantages and risk

If you want to play it safe, you should invest in funds. Before buying, however, there are many questions to be answered.

• What is an ETF simply explained?
• What kind of funds are there?
• What are transaction costs for funds?
• What are the ongoing charges with a fund?
• How stable is the performance?
• What are the costs of an ETF savings plan?
• What are the best ETFs? – more on this at the end, with the top 3 funds

Facts about funds

The most important 3 facts about funds as an investment:

• Binding term (earlier exit associated with losses)
• Minimized risk through bundled individual stocks
• Purchase fees must be taken into account in the volume

For those who can put money aside, funds are an excellent alternative to individual stocks. Bundled funds are less sensitive because they contain many players that are more stable in the aggregate. The returns are accordingly more moderate than with shares, but as you can quickly see in our best practice of dividends, the investment is worthwhile. In the last 15 years alone, dividends have tripled, from 2004 to 2019, which is 15 years, brought an additional payout of 27.8 billion euros annually. An increase of 271.15% on the comparable year.

What is an ETF simply explained?

ETFs are pooled stocks, so risk (default, profit and loss spikes) goes down. The nuts and bolts of the trade-off. ETFs are associated with fixed maturities.

Maturity of ETF securities

If you are familiar with the classic account model, you can compare shares and funds with overnight money and fixed-term deposits. Call money is always available, there is no capital commitment. If you have opted for a time deposit model, your money is parked with a certain term. During this time you have no access to your capital. If you need it prematurely, you will incur losses.

So here you are weighing up, is it money that you may need or can you put your capital aside and tie it up for a period of time.

Let’s start with our usual assessment: advantages, disadvantages and risks of trading with funds.

Funds at a glance

Funds can be set up just like shares at any bank. Different investment portfolios are possible and so a corresponding gradation is possible according to the risk appetite of the individual investor. Of course, everyone knows the tax advantages that are possible with capital transactions. Due to the large selection of fund products, you can spread the risk well.

Each purchase and fund management costs fees. Your capital is tied up for the long term, and liquidation is only possible at a loss before the end of the term.

The current return of funds is medium (compared to the investment alternatives) and the risk of funds is absolutely manageable.

Advantages

• Simple deposit facility with banks
• Adaptation to your own risk appetite: different portfolio types are possible
• Tax benefits

Disadvantages

• Long-term capital commitment
• Dissolution only possible with loss
• Custody fees

Buy funds? Definitions and tips

Before buying your first securities, you should check which type of investment you are. Basically, you have two options.

1. Passive investor (ETF, index fund)
2. Active investor (share)

Passive (ETF) or active investor (stock)?

Both forms offer advantages. Trading individual stocks provides for higher price breakouts, thus potentially more profit (and loss). The risk increases. If you want to trade more cautiously, you can buy index funds (ETFs).

Passive investor

The word ETF portfolio stands for “Exchange Traded Fund” and is an exchange-traded index fund. This index fund tracks the performance of an index, such as the DAX in Germany or the NASDAQ in the USA. But these are only the best known representatives. As you will see in the list of the best, biggest and cheapest funds.

New York Stock Exchange

At their core, ETFs combine the advantages of stocks and funds into one product, so you can invest money directly in entire markets through ETFs. A real advantage.

Active investor

In contrast to funds with manageable risk, you can also act as an active investor in trading. As an active investor, you invest in individual stocks. This costs time, because it is about analyzing individual companies to determine which paper you want to buy.

As an active investor, you will be affected more quickly by price fluctuations. Even one piece of bad news in the morning about a single company can greatly minimize your capital if you don’t diversify.

Source: IhrHausverkauf.de(Buy Stock)

List: Best, Great, and Cheap ETFs (Index Funds).

As of: 12/31/2019

Best MSCI World ETF by 1-year fund return

Largest MSCI World ETF by fund volume in EUR

Cheap MSCI World ETF by Total Expense Ratio

Source: JustETF.com

How much does it cost to buy ETFs?

If you are interested in buying an ETF, you will find many different pricing models on the internet. Here, the individual prices per trade depend on the online broker. The standard fees are usually five to eight, maximum ten euros. In addition, there is a fee of 0.25% depending on the trade amount. The fee per purchase is typically limited to an upper maximum amount.

If you are online a lot, you will quickly find alternatives. For example, flat-fee offers from various established discount brokers such as onvista are attractive.

Equally interesting are promotional offers, where at certain times the volume-dependent fee or the entire fee is waived completely.

Fees and costs for ETF purchase summarized:

• Purchase fee of 5 – 8 Euro, maximum 10 Euro
• Trading amount mostly 0.25 % of purchase
• Tip. Flat-free offer like at onvista

Your first ETF purchase: invest a lot or a little?

Another unbeatable advantage of fund trading is that you can start with small investment amounts. While you have to present 10% – 20% equity capital to the bank when investing in real estate, which can quickly be 50,000 – 100,000 euros in major cities such as Hamburg, Berlin, Munich and Cologne. The entry into equity funds is often profitable with only 10% of the buzzer, about 5,000 – 10,000 euros per package.

Order quantity and purchase fee

Why shouldn’t you buy smaller packages? There is an order fee for every trade. If you buy a package for 100 euros, many banks directly 5-8 euros order fee. Accordingly, your portfolio shrinks directly to 92-95 euros in value. This means that you have already made the first 5-8 euros loss, which must first be compensated for by a corresponding increase in the price of the fund. This means a 5% – 8% loss in value directly at the time of purchase.

Purchase of 100 Euro Ø 6.5% loss
plus 0.25% trading fee

If you buy a package of 1,000 euros, the trading fee of our exemplary 5-8 euros is much less important. With a purchase of 1,000 euros, you retain 992-995 euros in value. Accordingly, the loss in value is reduced to only 0.5% – 0.8%.

Purchase of 1.000 Euro Ø 0.65% loss
plus 0.25% trading fee

With a package of 10,000 euros and an order fee of 5-8 euros, the loss in value is directly reduced to 0.05% – 0.08%.

Purchase of 10.000 Euro Ø 0.07% loss
plus 0.25% trading fee

That’s why it’s worth buying larger packages directly.

In addition, there is the aforementioned purchase fee of approximately 0.25% of the traded package.

Of course, the management fee for your portfolio is just as favourable. The more value you hold, the smaller the effect on your portfolio.

Selling funds: Sales Opportunities

This survey shows the expectations about the sales opportunities for funds from the perspective of the fund companies. Sales opportunities for funds from the perspective of fund companies in 2010 (in percent).

Find the best sales according to experts:

1. Equity funds
2. Mixed investment funds
3. Alternative investments
4. Pension funds
5. Convertible bonds
6. Real Estate Funds

Source: Statista

Back to the Capital Investment editorial.

Savings book: risk and return

Anyone setting up their first savings account will have many questions at first:

• Is a savings account at the savings bank free of charge?
• Which bank gives the most interest on savings accounts?
• What is the passbook?
• Can I transfer money to a savings account online?

The classic savings book is suitable for the steady accumulation of assets. You regularly pay in your monthly savings contribution, for example through your salary. Often, account management is free and every euro you deposit earns interest, albeit small.

A savings account is easy to set up for pretty much anyone. With the way to the bank or the online setup via a direct bank, possible for every saver. The flexible availability of the capital gives the small saver security. Due to the interest rates, however, the investment income is very low, there are almost no profits. The yield of savings accounts is very low and therefore there is almost no risk (also due to the usual bank protection by the government). As said, there is still the big disadvantage, the very low investment returns.

Savings book facts

Did you already know? The savings book is the most popular investment for Germans.

Source: Statista

The most important 3 facts about the savings book:

• Possibility to invest first capital stock
• No (extremely low) risk of default
• Available for everyone

The savings book offers a safe investment and is a good option, without risk, especially for people who want to build up their first, small capital stock.

Advantages

• Anyone can set up a savings book
• Direct banks or on-site in the district
• Safe investment with minimal risk
• Flexible deposits possible at any time
• No predefined term with most providers

Disadvantages

• Low interest rates on savings books, therefore almost no investment income and yields
• Little flexibility (outside availability)

Many young people no longer have their own savings book. But what happens when you inherit a savings book?

Inherited savings book, what to do?

Savings accounts are falling over, as previously mentioned, 223 billion euros are currently still on the books. One of the reasons is, for example, the fear of price losses, for example, on the stock market when trading shares, many investors want security above all. That is why many books are inherited.

To close a savings account at your local bank, you must present the following documents to the local advisor:

1. Passbook
2. Identity card
3. Death certificate of the deceased
4. Will with opening record(certificate of inheritance if there is no will)

Read more tips on inheritance & legacy here.

Statistics: Saving in Germany

The chart shows the proportions of households that invested in the following types of investments in 2019.