German financial expert Gerd Kommer breaks down the biggest mistakes young people make with money.
One, he said, is the belief that interest-bearing bank deposits will earn them a lot of money.
Wealth accumulation through interest-bearing bank depositsBelieving that wealth can be built through interest-bearing bank deposits is wrong, Kommer said.
Believing that capital-building life insurance policies are sensible wealth-building productsA capital-building life insurance policy is a form of life insurance where the policyholder pays regular premiums and, in return, receives a guaranteed sum at the end of the term.
There is also the risk that the insurance company may encounter financial difficulties, endangering the guaranteed payout, Kommer added.
Persons:
Gerd Kommer, —, Kommer
Organizations:
Service, Gerd Kommer Invest GmbH
Locations:
Germany, South Africa, United Kingdom, London