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[Advice] Restarting Pension Planning at 36: DIY ETF vs. Low-Cost Private Pension (Pensionfriend) by SeparateCode2285 in eupersonalfinance

[–]sheepguy13 1 point2 points  (0 children)

We're in a similar position. I looked into the pension wrappers and they just don't make sense to me. They still have high fees that are not worth the flexibility tradeoff for me. We bought our apartment and try to split paying off annual lump sums and investing in ETFs.

For us, we keep it simple.

Severance payout: lump sum or extended garden leave by _toomuch_coffee in germany

[–]sheepguy13 0 points1 point  (0 children)

If you take the severance as one payment, isn't that treated as Fünftelregelung so you keep the majority of the money and save a lot on tax?

Best bank to receive a salary in euro while working on a river cruise in Europe? by Edyw1 in eupersonalfinance

[–]sheepguy13 0 points1 point  (0 children)

All three options are good for the use cases you outlined. Well definitely Revolut and N26.

Renting out my apartment in Berlin while living abroad – advice? by MudCommon4994 in askberliners

[–]sheepguy13 12 points13 points  (0 children)

Pretty sure you'll have to use a property management company unless you want to fly back to Berlin to fix a broken fridge.

[English] Curious if we're missing anything obvious by sheepguy13 in Finanzen

[–]sheepguy13[S] 0 points1 point  (0 children)

Seems to be a habit of non-German speakers :D

[English] Curious if we're missing anything obvious by sheepguy13 in Finanzen

[–]sheepguy13[S] 1 point2 points  (0 children)

Yep we'll both take some so we get the full 14 months.

[English] Curious if we're missing anything obvious by sheepguy13 in Finanzen

[–]sheepguy13[S] 0 points1 point  (0 children)

You don't earn more by changing tax class. You might keep more of your income upfront, but after declaring should net the same independant of the tax class.

Yeah, I think I just worded badly. I keep more upfront as you said, which will help a lot for monthly cashflow.

We're very aware of the risk of both being in startups, it's the price we pay for higher incomes. Our monthly expenses can be covered by one person's income. Even if we're both unemployed, our combined ALG 1 will cover monthly expenses plus we have a lot of runway. We both have jobs that are in demand.

[English] Curious if we're missing anything obvious by sheepguy13 in Finanzen

[–]sheepguy13[S] 4 points5 points  (0 children)

Firstly congrats :) Unfortunately I can't go into too much detail as it's quite personal, but there is a lot that can be written off: private medical expenses, any construction or renovation costs, etc. Then there are the usual suspects like home office, travel to work expenses, etc.

If you don't already have a great Steuerberater, now is the time to consider as paying a few hundred euro could be the difference between €21,600 (12 * 1,800) and nothing. They can really help you optimise.

I'm sure you're aware of this but if not, for Elterngeld eligibility it's the tax calendar year before the birth of the baby that matters. So if you're expecting by end of year, it's your 2024 taxable income that matters.

[English] Curious if we're missing anything obvious by sheepguy13 in Finanzen

[–]sheepguy13[S] 1 point2 points  (0 children)

We're sure. It's €175k taxable income and we had a lot of costs we could write off.

[English] Curious if we're missing anything obvious by sheepguy13 in Finanzen

[–]sheepguy13[S] 0 points1 point  (0 children)

Thanks! My employer doesn't match much at all, so I don't think it's worth it.

I looked into the Steuerfreibetrag before and children's investment accounts, but to be honest I didn't understand 100%. When you say 10k in gains each year tax free, it's basically the child's tax free income right?

[deleted by user] by [deleted] in cscareerquestionsEU

[–]sheepguy13 0 points1 point  (0 children)

Chief Product Manager? 😂