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Systematic wealth planning - Successful saving through regular investments

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Building wealth through structured saving

It is common knowledge that traditional savings products such as savings accounts, money market accounts, and fixed-term deposits do not offer an efficient way to build wealth due to their low interest rates. Those who want to accumulate assets for future needs or other financial goals over the long term should instead focus on high-yield investment options. A savings plan proves to be an attractive option for investing and growing capital over an extended period. Even with small amounts, effective wealth accumulation is possible.

What exactly is a savings plan?

What is a savings plan?

A savings plan is not a new concept and has been offered for some time. The principle is simple: The investor pays in a fixed amount at regular intervals to accumulate capital and generate a return.

There are various types of savings plans: ETF savings plans, bank savings plans, or fund savings plans. Savings plans with funds, ETFs, or stocks are particularly suitable for long-term wealth accumulation. While bank savings plans were popular in the past, they are now rarely offered or requested due to low interest rates.

With a savings plan, the investor regularly invests money, for example monthly, in funds, ETFs, or stocks of their choice. The amount of the monthly contributions can vary depending on the provider and the investor's financial situation, starting from as little as €25. It is also possible to choose other savings intervals, such as quarterly or semi-annually. The advantage is that no large lump sums need to be invested, as is the case with many investment products on the stock market. Instead, one can save for the long term with manageable, regular contributions.

Functioning period of an ETF savings plan

The popularity of ETF savings plans is steadily increasing in Germany. Financial experts predict around nine million such plans by 2025. This trend is due to the fact that building wealth with an ETF savings plan is possible even with small amounts, making it accessible to everyone.

With an ETF savings plan, investors regularly invest money in so-called exchange-traded funds (ETFs). These are index funds traded on the stock exchange that track the performance of a specific index, such as the DAX. A major advantage is that no active fund management is required, which makes ETFs significantly more cost-effective compared to traditional funds. Due to their broad diversification, ETFs are also safer than direct stock investments. Therefore, ETFs offer attractive returns with comparatively low risk.

In addition to personal contributions, employee savings plans can also be invested in a savings plan. Employees are entitled to employee savings plan contributions of up to €40 from their employer, provided they deposit the money into a savings account.

Steps to an ETF savings plan

Define strategy
Start by setting your savings rate and the investment term. Savings rates can start as low as one euro per month, although most brokers require a minimum of 25 euros. Also determine the frequency of deposits and the duration of the savings plan, especially if you intend to use the capital for your retirement. Remember: the longer you save, the better. Compound interest works in your favor, so it's advisable to reinvest your profits immediately.
ETF selection
Choose your ETFs carefully. Many investors prefer broadly diversified indices like the MSCI World, which invests in approximately 1,600 stocks. You can also choose sector-specific ETFs. Make sure the fees are low by comparing different providers. Our BKC advisors are happy to assist you with this.
Starting to save
The first savings installment will be debited on the date you specify. Subsequent deposits will be made at regular intervals, for example, monthly. Depending on the provider, you can adjust, increase, or decrease the installments at any time to adapt them to your financial situation. You can track the performance of your portfolio online.

It is advisable to have the terms of your savings plan regularly reviewed by experts. A good savings plan is characterized not only by reasonable long-term returns, but also by low costs and flexibility.

The advantages of a savings plan

Opportunity to save with small monthly contributions
Good return opportunities
High flexibility
Savings rate can be adjusted if needed.
Partial withdrawal of capital is possible
Option to suspend payments

A key advantage of a savings plan with ETFs, stocks, or funds is its flexibility. Depending on the specific plan, savers can not only adjust their regular savings amount but also withdraw money as needed. For example, you could access capital in a few years to buy a car or build a house. Furthermore, savings plans can usually be paused and resumed at any time.

Furthermore, savings plans are also aimed at consumers with limited financial resources. While a larger sum of money would be required for a pure stock investment, a savings plan allows participation in the capital market with smaller monthly contributions.

Investing in ETFs is also considered moderately safe. The broad diversification minimizes risks, while the potential returns are higher compared to fixed-income products. ETFs therefore allow you to achieve an attractive return with relatively moderate risk.

Which savings plan is best suited to your needs depends on your individual preferences, financial resources, and goals. For example, if you want to be able to withdraw money at any time, you need a product with high flexibility and the option of partial withdrawals. For retirement savings, however, the possibility of withdrawing capital may be less important.

The best savings plan is the one that suits you and your needs while also having low maintenance costs. Experts particularly recommend broadly diversified savings plans when investing in ETFs, in order to benefit from global economic performance and minimize risk.

Systematic wealth building – we support you! With a savings plan, you can take advantage of the opportunities offered by funds, ETFs, or stocks, even if you don't have large sums of money. Monthly installments bring you closer to your goal in the long term – whether it's building wealth for retirement, buying a home, raising children, or other aspirations.

We're happy to help you find a suitable savings plan. The optimal investment depends primarily on your wishes, goals, and risk tolerance. Our BKC advisors are familiar with the pitfalls and opportunities of the capital market and are available to answer all your questions to support efficient and needs-based wealth accumulation.