After much confusing hassle, I’ve opened a special account called a Vermögenswirksame Leistungen (!), which is an account that lets me capture a small sum of monthly money my company contributes. I will also need to contribute, but how much is still yet to be determined!
This money will stay in the account for 7 years before I can touch it, which is a good time frame for my long term investment goals.
While most people open 0% savings accounts that have 100+ EUR opening fees (no kidding), I chose to open a free VL trading account that has low transaction fees. Through my broker, I can buy ETFs too.
So I’m choosing to buy iShares DivDAX UCITS ETF, a passively managed fund that tracks 15 dividend generating stocks trading on the DAX (Frankfurt stock exchange).
They hold companies such as BMW, Siemens, and Volkswagen.
I’m pretty excited to get started!
As I’ve mentioned, it takes a long time to sort through everything here, especially since I don’t really know German (and don’t want to bombard Mr. German with things he is not interested in).
Even choosing the above stock was a bit of a blind rush, but based on the main criteria (index ETF, dividend generating, dividend aristocrats, managed passively), it fits with my overall investment strategy.
It is definitely more difficult for me to invest here than in an English speaking country, but that is no excuse to not do it at all.
Mr. German may also open a VL account soon with the same brokerage, and I will do more legwork to help him choose the right fund. He just has to iron out with his HR department whether they contribute VL money.