Building Diversified Wealth
This guide refers to German law and the German tax system. It is a translation of our German original and does not replace individual tax or legal advice.
Whether you are employed or self-employed, building wealth is a task for everyone with a view to their personal future. With the range of investment decisions and information on the market, however, it is hard to judge: what is safe and generates the highest return? This article explains how wealth can be grown on the basis of data and facts, and what role external asset managers play in this. We also present two investment solutions that ensure sustainable growth in your portfolio. This puts you in a position to assess your investments critically and steer your investment strategy into safe waters.
Neo Capital supports entrepreneurs and high-earning employees in structuring their assets in the most tax-efficient way. As independent intermediaries, we rely on a financial-mathematical comparison of different investment products and advise our clients on the ideal investment strategy for building wealth sustainably. With more than 15 years of experience in financial advice, we know which measures lead to successful returns over the long term.
Reasons for individual asset management
Every investor pursues an individual goal with their wish to build wealth. Often it is security in old age or provision for their own children. The concept of wealth management (German: Vermögensverwaltung) is not new. For generations, wealthy families have pursued the goal of building financial security that extends to their children and grandchildren. Whatever your motivation: the strategies and approaches of the major banks are hardly accessible to private investors. That is reason enough to take a look at external asset management. With this form of management, clients benefit from the expertise of university-trained asset managers (German: Vermögensverwalter) who actively work on growing their wealth.
Risk management plays a decisive role when investing in financial products. Anyone who wants to achieve high returns inevitably takes on higher risk. This step can drive inexperienced private investors into heavy losses, which is why a distinction should be made in advance between high-risk and low-risk asset management. With a long-term strategy in mind, we rely on risk management for our clients that does without an increased probability of losses.
Asset management illustrated by the world portfolio (ETF)
The capital market does not forgive experiments: for this reason, we – like other renowned asset managers – act on the premise of following the world market as closely as possible rather than trying to beat its return. Specifically, we rely on a world portfolio which, in the form of broadly diversified index funds, covers numerous sectors, regions and developments. This approach allows us to align asset management for our clients with the global economy and to achieve a sound average return over the years until retirement. Within this average, we achieve interest income that rises year by year thanks to active management and factor investing. Not least, this is due to the compound interest effect, which plays a key role in building wealth over investment periods of several decades.
As the world portfolio covers the global economy, asset management involves no incalculable risk for clients. The asset manager's service is limited to active management, setting up savings plans and working together with the tax adviser. Especially when allowances are exceeded, it is important to design an attractive tax structure tailored to the individual situation, because taxes on capital gains are a cost factor not to be underestimated – often the largest cost item. We advise on this as fee-based asset managers, without building fees into the financial products themselves.
Neo Capital: financial services and asset management
Experience shows that managing your own assets works in the first few years. As day-to-day business grows and leisure time comes to the fore, the management of one's own investments is often neglected. To be on the safe side over years and decades, we offer our clients advice on and implementation of investment strategies, as well as classic asset management in the style of the major banks. Through our financial-mathematical analyses, ongoing support and university-trained experts in the field of financial investments, we deliver excellent results in our clients' portfolios.
Are you interested in having your assets managed by an independent expert? Benefit from our expertise and experience reliability, trust and returns in a new way. We advise you on your individual situation in cooperation with your tax adviser and develop concepts that can accompany you until retirement. Our expertise begins where the classic sale of fee-laden investment products does not lead to the desired results. Arrange a no-obligation consultation and find out first-hand which holistic tasks our asset managers can perform in managing your wealth.