Should men or women manage the family finances

Many women still leave wealth management to their partners. Various reasons are given for this fact: disinterest, insufficient specialist knowledge and risk avoidance, to name just a few. In fact, women are even the smarter savers and investors. Although they make up less than 30 percent of stockholders, their returns are often more than 50 percent above the average returns for men. We have obtained expert opinions and will tell you how you can manage your money cleverly and why you should no longer give the financial helm out of your hands.

Secure your personal retirement provision

Often spouses or life partners organize the retirement provision of one of the two partners. Usually these are still the men of the household. It is not uncommon for this to be due to the fact that women earn less, take longer breaks from work in order to take on children or simply put their trust in their partner's (supposedly) greater knowledge of financial issues. This calculation can of course work out under certain circumstances. But what happens when a death or an unexpected breakup changes everything?

Often women, who also statistically have a higher life expectancy with often lower life incomes, find themselves in old-age poverty for these reasons. On average, women suffer financial losses of up to 40 percent after a divorce. The pension sums that bring a pension adjustment after the dissolution of the marriage or a widow's pension are in most cases too low to live on exclusively.

To avoid these problems, women should take their money into their own hands at an early stage. For working and salaried women, this means, above all, taking advantage of a company pension scheme at an early stage. You only give up a small part of your gross wage, receive additional subsidies from the employer and the state and can also save taxes and social security contributions. Self-employed women should also find out about private pension options at an early stage. In addition to voluntary payments into a private or unit-linked pension insurance, investments in bonds and stocks are particularly suitable.

Women who work in a restricted manner, for example because they are responsible for bringing up their children, caring for their parents or in-laws, or managing the household, should also forge private pension plans. In addition to investments in stocks and funds, models such as the state-sponsored Riester pension can be examined more closely, which can be particularly profitable for mothers and housewives. Of course, private pension insurance can also be taken out. Since payments are made flexibly and breaks can be calculated variably, this option is particularly suitable for women who are only temporarily employed.


Invest money properly

Women are currently achieving higher returns by investing in stocks and funds. Savings books and bank accounts are becoming less and less attractive due to the current and persistent low interest rates. You can secure higher, albeit lower, interest income in call money accounts of some foreign banks. Use, for example, overnight money comparison portals. While most German banks offer overnight money accounts at 0.01 to 0.05 percent interest, some banks from Norway or Sweden are currently offering offers of around 0.5 percent.

More risk takers should take a closer look at the stock market. Before you get into trading in stocks, however, you should do a thorough research. There are now great guides online that clearly explain what you need to pay particular attention to, which beginner mistakes you should absolutely avoid and how you can identify, buy and manage promising positions in a meaningful way. At www.nachgefragt.net, for example, you will find a lot of useful information on topics related to finance and trading, which will provide you with a great basis for diving into the world of ETFs and stocks.

Stock trading is no longer just for professionals. Many banks, especially direct banks, now offer their customers a free deposit, provide them with information and present the market in a clear manner. This way, anyone who is interested and has read beforehand can trade.

Another popular investment that is currently experiencing a certain amount of hype is cryptocurrencies. This is the term used to describe digital money that can be used outside of the conventional banking system to pay for products and services, both for business and private purposes. The most famous cryptocurrencies are currently Bitcoin, Ethereum, Ripple and Litecoin. The former has shown rapid growth, especially in recent years. That means: While you paid ten cents for a Bitcoin in October 2010, the price in the summer of 2011 was already 10 dollars. The currency, which was only launched in 2009, then peaked in December 2017. Those who invested ten cents in October 2010 could look forward to a profit of 19,290 dollars in 2017.
Such highly hyped products are of course subject to certain dangers and should only be handled very carefully and well informed. Those who prefer to invest in a more risk-averse manner will primarily fall back on large-scale and broad-based funds or stable stocks. If you are ready to invest a little more, you can of course set up a deposit at your trusted house bank and consult an advisor. When choosing the custody account or the respective bank, you should ensure that

  • Opening and administration costs
  • transaction costs incurred per trade
  • existing product range
  • Amount of deposit insurance
  • available savings plans on ETFs and funds
  • playable trading venues
  • Limitations on the number of tradable funds
  • Fees per fund trade

to compare and thus obtain the most important and most favorable conditions for you.

Build your own depot

After a deposit has been set up via the house bank or online, you can start. We would like to give you a few golden rules that women should always observe. First, spread your risk widely. So invest

  • in various asset classes, such as stocks, funds and bonds

  • global, not regional, in order to make sensible use of stronger growth markets than Germany
  • in different industries and company sizes
  • in many different individual stocks (ETFs, for example, often bundle more than 50 different individual stocks and are therefore considered safe investments)

In addition, invest your money for the long term. Be patient and don't let minor setbacks irritate you. Aim for a horizon of five to ten years. And finally, don't get carried away with trades. Depending on how risky you are, you should increase or decrease your equity stake. For example, more risk-averse traders have a higher equity quota than risk-averse investors.