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After an overwhelming response to my poll, I have launched a Video on How to Submit a Tax Return in Germany for Free using Elster! 

In my City which is quite small (population of 90.000), the Citizenship processing time is between 18 to 24 Months! Have you found out how long it takes in your city? 

Recently, I've seen a significant surge in the value of my crypto holdings. It now accounts for almost double the percentage of my total assets, making up 7% of my portfolio. Given the recent bullish trend, I've decided to keep this amount invested and plan to continue a strategy called dollar-cost averaging.
This means that if/when the crypto portion reaches 20% of my overall portfolio, I'll gradually start scaling back my investment to maintain a balanced approach and rebalance to about 10% of my portfolio. 

Ive been thinking of making a Video covering Tax Returns using Elster. Do you think I should make it? 

Hey everyone! 🌟



I had an interesting chat with a Young Professional who's been working full time in Germany for the past 2 years. We dove into the topic of making quick money with investing, and I wanted to share some valuable insights from our conversation that can benefit everyone. 💡




1️⃣ Investing and Trading are two different things: A recent study by the U.S. Securities and Exchange Commission on forex traders revealed that 70% of traders lose money every quarter, with most losing 100% of their investment within a year. 

😱 Unless you possess insider knowledge that the entire market isn't aware of, it's best to steer clear of trading, especially as a beginner. 🚫💸




2️⃣ Consistency is the key to financial success: I discussed my Scalable Capital Portfolio, sharing its performance since I began investing. The initial 19 months showed a loss, as depicted in the image above. 

However, this setback didn't deter me from consistently investing a set amount each month through the automatic savings plan option. This approach not only ensures consistency but also reduces the effort required to stay on top of my investments. 💪📈




3️⃣ Diversify, diversify, diversify: The stock market is an excellent tool for building wealth, provided you're patient and well diversified. Placing all your money in a single company can be highly risky. While a company may perform exceptionally well, it could also face bankruptcy. 

Therefore, diversification is crucial. Consider exploring Index Funds (Index ETFs) as they offer diversification and have low running costs. 🌍📊




This insightful conversation motivated me to share an update on my portfolio as well. If you're interested, you can check it out here [ https://youtu.be/Stb1q3rrXuw ]. 📈👀



Remember, considering everything and the current market performance, the best time to start investing may have been 30 years ago. However, NOW is the second-best time to get started! ⏰💰 

Which Investing App do you use? 

The deadline to File your 2023 tax returns is 

People with Tax Class I or Tax Class Combination IV/IV are not obliged to Submit a Tax Decleration in Germany 

🥨 GERMANY: The Land of Taxes ( Advance tax on ETFs)



💰💸 If your ETF or fund made a profit in 2023, you'll owe taxes on it. This is determined by the advance flat rate, which depends on the prevailing interest rates. In recent years, the advance flat rate has been zero due to low interest rates.


⏰ However, things have changed now. At the start of January 2024,investing app has automatically deducted the tax from your account. The advance flat rate is calculated as 70% of the annual base interest rate (2.55% for 2023) multiplied by the redemption price of your fund share at the beginning of the year.


📊 Let's take an example: Suppose you already owned a fund share in your portfolio on January 2, 2023, with a redemption price of 100 euros. The calculation would be: 0.7 x 0.0255 x 100 = 1.785. Therefore, the advance flat rate would be 1.79 euros.


💡💸 So, be aware that the advance flat rate will be deducted from your account to cover the taxes on your ETF or fund profits. 

What is the most common purpose for which you use your credit card?