The sufferings of the young millionaires

Those who inherit larger amounts today have to deal with negative interest rates and decide where the money is best invested. Our expert makes three suggestions that at first glance have nothing to do with money.

What to do with all that money  Maybe buy a yacht.

EEmbassies are no longer what they used to be. Anyone who inherited a unit 20 years ago, as one million is described in specialist circles, did not have to worry about lean and penalty interest rates. If, after weeks of pondering, he couldn’t think of anything better, he bought a federal bond with a term of 30 years and has enjoyed annual interest rates of 6.25 percent since 2001. The income of 62,500 euros per year has lost a third of their purchasing power to this day, but the “old hands” are still in a splendid position compared to today’s heirs. They have to grapple with negative interest rates, they have to see what else can be made of money, and they have to see how they can cope with the devaluation. The suffering of the young M (illionaries) becomes clear in the following example.

Today’s protagonist is 50 years old and has been a two-time millionaire for three months. His parents not only paid him his inheritance, they also paid the taxes. The man is single and has no children. He is a commercial employee, earns 5,000 euros gross per month and lives in a rented apartment on a small footing. That should be enough to make you aware that the legacy can be compared to “winning the lottery”. The man made money overnight. But he is overwhelmed with the gift. I can only ask you to refrain from malicious comments, because such excessive demands are also possible with 50,000 or 100,000 euros.