Comparison between a fund policy and a fund savings plan

A fund savings plan has no sales charge. So there are no closing costs. In addition, there is no annual management fee and therefore more flexibility. The withholding tax essentially influences the decision whether to resort to a fund savings plan or the fund policy in the old-age provision. The so-called final withholding tax applies from the year 2009. Thus, profits on church tax and solidarity surcharge are taxed at 25% per fiscal year.

When does a unit-linked pension plan pay off?

On the other hand, unit-linked pension insurance is more favorable if no payment is made before the age of 60 or the term is at least twelve years. With a personal tax rate, only half of the investor's income will be taxed.

Check the policies

Before concluding the contract, investors should scrutinize it because there can be huge differences in ancillary fund policies that, at first sight, are not immediately apparent due to lack of transparency. In the first few years, investors must pay some of the high administration and termination fees that are often included in many insurance policies. Even though they generally offer better after-tax returns, the investor escapes high interest rates in this insurance variant.

If you invest in so-called fund of funds you will often pay three times the fees, especially for fund policies. These include the administration and distribution fees, as well as the management fee of individual target funds.

It should not only be considered in the decision on the pure cost. Also, the selection of offers, on which he can fall back with his insurance, is an important criterion. The more funds available to the interested party, the better he can put together a coordinated portfolio tailored to his personal needs.

Unit-linked insurances are interesting if a longevity risk is to be covered by the saver. With a fund savings plan you can often fall back on a large range of funds, which shines through their variability. As deposits vary from year to year, a fund plan is more appropriate because in the meantime the savings plan can be suspended without incurring drawbacks because the expense ratio for this insurance model rises, while the initial charge on fund savings is only the attributed to each paid installment. The depot thus grows faster at the beginning, because there are no existing closing fees.

An example

If a stock fund pays $ 100 per month for 20 years and thus earns a return of eight percent per year, assets of $ 47,920 will be earned after deducting withholding tax under existing tax law. If the 100 EURO are instead paid into a unit-linked insurance, the saver receives, after deducting taxes, 51,130 Euro in the same investment period and with the same return.

What's the best option?

The decision for or against a product depends on running costs and the calculated return after deduction of the tax. Due to tax treatment, the fund policy is slightly ahead of the pack, while generally higher return opportunities are achieved by a fund savings plan.

Fast weight loss with reduction diets?

Losing body weight with a reduction diet

Find your right diet plan

Origin of the term diet

The term diet comes from ancient Greek δίαιτα díaita and was originally used in the sense of lifestyle and the way of life itself. Dietetics is still scientifically concerned with the "right" diet and lifestyle. In the German-speaking world, the term refers to certain diets and diets that are intended either to weight loss or increase or to treat diseases. In the English-speaking world, diet is understood as the everyday diet of an obese person, regardless of weight-related or illness-related diets. Colloquially, the term in Germany is often equated with a reduction diet for weight loss. It is thus a synonym for slimming diet.

Types of diets

Since Hippocrates diet is a special diet of humans, in the longer term or permanently a special selection of food is consumed. The diet is either a short-term change in the diet for weight loss, for example to fight obesity or to remove belly fat, in some cases also to gain weight like anorexia or a longer-term to permanent dietary change to supportive treatment of a disease (like in celiac disease, lactose intolerance, fructose intolerance. Fasting, on the other hand, means the temporary abandonment of food from religious (in Ramadan Islam, pre-Easter Lent in the Christian church) or health motivation for fasting.

Any form of diet, whether for weight loss or supportive disease treatment, is based on a reduction or increase in the relative proportion of a nutritional component (carbohydrates, fats, proteins, vitamins, minerals and preservatives) over the others and / or a reduction or increase in the intake total energy and, if necessary, a balanced change in fluid intake.

A more holistic approach is cognitive behavioral therapy used by psychologists in clinics to treat obesity. In this method, dysfunctional behavioral routines and eating habits are identified and retrained. In case of severe obesity and eating disorders, it is the most sensible method of weight loss in the long term.

Fast weight loss with a reduction diet

A reduction diet aims at losing body weight. There are numerous reduction diets, some of which differ considerably in their methods. Only a few diets have been scientifically tested. The development and promotion of the reduction diets is not only subject to changes in scientific knowledge but also to fashions and worldviews. Some forms of diet are even considered harmful to health in medicine.

Reduction diets should be given only for a short time (and for extreme forms only under medical supervision). The general consensus is that a reduction diet can only be successful if it is followed by a permanent change in diet in which the energy balance of the body is balanced, d. H. in which no more energy is supplied via food than the body needs. A change of life towards a full-fledged diet and increased physical activity is recommended. When relapsing into old eating habits and habits, it usually comes back to a rise in body weight, the so-called yo-yo effect, because you fall into old eating habits that are not adapted to the new lower body weight.

There are numerous diets with different concepts. These are for example low-carb, low-fat, food combining or glyx diet. In a study of mice conducted by the Institute for Nutritional Research, there is a connection between the consumption of fructose and obesity, which is not based on the increased energy intake, but on the fact that fructose affects the metabolic activity and thus the accumulation favored by body fat. The selfish brain theory, which also includes an approach to explain obesity, does not question the short-term effects of reduction diets, but their long-term success in principle.

Does fast weight loss with a reduction diet work?

In short it pretty much depends if the person really wants it. There is no wonder pill. The person has to work on it. The own will needs to be strong enough to go through it. Otherwise there is no weight loss, only losing the fight.