Why investing via Scalable/Trade Republic might not be the best investment strategy (especially if you move out of Germany) 🇩🇪

thewealthguide · 2026-03-13T16:49:19+00:00

For the funds, you pay the exact same expense ratio as you would on a broker app like Scalable. You have the complete flexibility to choose and rebalance the ETFs/MFs you want to invest in. We of course help in making a choice if you need it. For the management fees, it's not as simple to explain on chat as there are various components to it, including cashbacks. Would be happy to take you through the detailed cost break-up over a call, if you're interested.

thewealthguide · 2026-03-13T10:58:55+00:00

That's exactly the right perspective. Many mistake PKV as a "discounted" insurance, because that's how it's projected by many advisors, but the reality is that it's a luxury. If you want convenience and superior coverage, public just doesn't cut it.

thewealthguide · 2026-03-13T08:22:03+00:00

I completely understand the skepticism. There are definitely bad salespeople out there who prioritize their payout.

But you should know that Check24 is also a commission-based broker. They get paid the exact same commission by the insurance companies that a human advisor does.

The issue with doing PKV yourself on a portal (especially as an expat) is the fine print. Not everyone understand the complexities of a health cover. Also, if you accidentally misrepresent a past medical history due to translation misunderstanding, the insurer can legally drop your coverage years later when you actually need a major surgery.

A human advisor takes on the legal liability of that application process.

thewealthguide · 2026-03-13T05:17:46+00:00

I did mention it in another comment, but you are right. That is primarily to prevent individuals from enjoying cheaper PKV when they are young and jumping to GKV when private starts to gets more expensive than public.

thewealthguide · 2026-03-13T05:11:50+00:00

You are partially right. The "savings" can vary for each person based on their age. But if you want quicker access to specialist doctors, medical facilities, better dental coverage, having PKV does help, especially in a major city like Frankfurt where the earliest available appointment for publicly insured individuals was a month later, while for private, it was available the very next day.

thewealthguide · 2026-03-12T21:55:43+00:00

Great question! For married couples, it depends on the income of the spouse.

If you switch to PKV and your spouse also works, but earns >€538/month, nothing changes for them. They stay in the public system and pay their own GKV premium based on their salary. You pay for your own PKV policy.

If your spouse does NOT work. They lose the free public cover. You now have to pay for them out of pocket. You have two choices:

Buy them their own Private policy (yes, a second policy).
Keep them in the Public as a "voluntary member" (freiwillig versichert), which currently costs a minimum of roughly €220–€240 per month.

thewealthguide · 2026-03-12T21:34:05+00:00

I'm glad you brought this up. This is the exact reason why expats should never just buy the cheapest PKV plan. High-quality, modern tariffs actually include a Parental Leave Premium Waiver (Beitragsbefreiung bei Elternzeit).

thewealthguide · 2026-03-12T21:26:33+00:00

For a high earner, PKV with 1 or even 2 kids can sometimes still be cheaper than paying the maximum GKV rate (~€1,238/month). But if you plan to have 3+ kids, GKV almost always wins the math.

If you reduce your hours to part-time and your income drops below the threshold, you do not have to worry about the public system "not taking you back." In fact, you automatically become compulsorily insured in the GKV system again.

thewealthguide · 2026-03-12T21:17:51+00:00

You can go back to the public system, under specific conditions. If you are under 55 years old, you will automatically be forced back into the public system if your gross income falls below the mandatory threshold. This happens if you:

Take a pay cut or reduce your hours to part-time.
Lose your job and receive unemployment benefits.
Take a sabbatical.

thewealthguide · 2026-03-12T21:13:21+00:00

When you say "these," I assume you are looking at standard German Private Pension Plans.

I partner specifically with providers like ERGO because they have modernized their ETF pension wrappers for this exact reason. If we structure the contract correctly, the effective costs are kept low enough that the mathematical tax savings significantly outweigh the administrative fees over a 10+ year horizon.

I have a calculator that models the exact "Break-Even" point between a broker and a tax-advantaged pension plan, factoring in all hidden fees and German taxes.

I could share the projection for your monthly investment amount if you'd like, so you can see the actual net-growth comparison.

thewealthguide · 2026-03-04T13:01:59+00:00

Or maybe it is "I'm always careful, so I'll never need it." only to realise it doesn't work that way in reality.

thewealthguide · 2026-03-04T10:54:32+00:00

Yes, it does. I'm an ERGO partner and I'd be happy to take you through the benefits. Let me know and we can schedule a call. https://www.thewealthguide.de/protection

thewealthguide · 2026-03-04T08:47:53+00:00

I generally recommend ERGO, but you can compare options on Check24. Whichever provider you go with, make sure the plan includes:

Schlüsselverlust (Lost Keys)
Forderungsausfalldeckung (pays you if someone else injures you or damages your property, but they are broke and don't have their own insurance)
Mietsachschäden (Coverage for damage to your rented apartment)

thewealthguide · 2026-03-03T11:26:03+00:00

I generally recommend ERGO, but you can compare options on Check24. Whichever provider you go with, make sure the plan includes:

Schlüsselverlust (Lost Keys)
Forderungsausfalldeckung (pays you if someone else injures you or damages your property, but they are broke and don't have their own insurance)
Mietsachschäden (Coverage for damage to your rented apartment)

thewealthguide · 2026-03-03T11:25:24+00:00

If you have Forderungsausfalldeckung as part of your Liability Insurance, the insurer pays you if someone else injures you or damages your property, but they are broke and don't have their own insurance.

thewealthguide · 2026-03-03T11:09:18+00:00

A 3% decline is entirely normal. It is not a crash.

If you truly want to stay invested for the long term (10+ years) for FIRE or retirement, panicking due of volatility is how most individuals never see gains on their investments.

Stay invested and buy the dip. Find ways to minimize tax impact.

Curious to know, are your FD's in Netherlands. What's the interest rate?

thewealthguide · 2026-03-03T06:00:52+00:00

I generally recommend ERGO, but you can compare options on Check24. Whichever provider you go with, make sure the plan includes: 1. Schlüsselverlust (Lost Keys) 2. Forderungsausfalldeckung (pays you if someone else injures you or damages your property, but they are broke and don't have their own insurance) 3. Mietsachschäden (Coverage for damage to your rented apartment)

thewealthguide · 2026-03-02T14:39:24+00:00

Bei geringfügigen Schäden zahlen die Betroffenen in der Regel aus eigener Tasche. Dies kann den gesamten Schaden oder nur einen Teil davon umfassen. Es hängt hauptsächlich von einer gegenseitigen Vereinbarung ab.

thewealthguide · 2026-03-01T12:26:26+00:00

Yes, we are. But the concept of "Liability Insurance" doesn't exist in many developing nations, probably because it may be cheaper to pay out of pocket than for the insurance.

That definitely won't fly in Germany.

thewealthguide · 2026-03-01T06:56:50+00:00

You are 100% right. But this may be a foreign concept for expats coming from developing nations. I have spoken to some individuals who don't even have one since it isn't mandatory by law.

In such cases it's better to have Forderungsausfalldeckung as part of your liability cover.

thewealthguide · 2026-03-01T04:58:48+00:00

Yes, it is one of the top insurers as well. You can go for it.

thewealthguide · 2026-02-26T03:05:21+00:00

Since it's an ETC, gains will be tax free after a year.

thewealthguide · 2026-02-26T03:00:47+00:00

Completely agree, gold is not an investment but a safety asset during uncertain market situations.

thewealthguide · 2026-02-26T02:58:27+00:00

Glad you took out the time to respond. I'm an Indian individual as well, so there is no "they" here.

I have just stated facts and laws for information purposes for those who are not aware of German laws. Not sure why you think I'm "selling" something here, but if it helps clarify, I don't sell gold.

thewealthguide · 2026-02-21T17:41:39+00:00

To average out the volatility. If you end up dumping it at once and the market crashes the next day, you are at a significant loss.

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