How do I get the most government support for my savings?

Even at a record low interest rate, even professional investors are keen to look for savings that offer outstanding returns through tax breaks or government subsidies. Those close to retirement can choose from a variety of investments where they can turn their money around according to their own ideas, but many are putting a lot of money into apartment savings, relying on the explosion in property prices. Which one do we do best and what are our options for investing with the help of the state?

Up to 14 percent return on home savings is achieved without even taxing. This option can be attractive to anyone who doesn’t know where to save and has plans for a home. On the other hand, we do not have to wait a decade for our retirement savings to come to our savings.

Better than others?

savings loan

One of the cheapest forms of self-care is the retirement savings account. Account management fees and low transaction fees of up to $ 2,000 per year are typical and can be opened at several banks and investment service providers. The money held in the account can be invested in mutual funds, securities (stocks, bonds, etc.) and government securities. We will manage this money later, and we will decide what assets to put it in. After retirement, if ten years have elapsed since the account was opened, you will be completely interest-free and may retain state support in excess of our current payments, which will be in the form of 20 percent of your annual payment and a tax credit. The maximum amount of the latter is $ 130,000 per year, which means that it’s worth up to $ 650,000 a year if you have a decent income (due to the nature of the tax credit).

What is the average yield we can achieve with government securities, other securities, bonds, stocks? Is it worth waiting for our savings for 10 years or for our retirement years?

There are other options, of course, but different pension insurance and voluntary pension funds are available under roughly similar terms. In each case, there is an annual tax credit of $ 130,000, which adds to the value of our savings, but unlike the rest, we do not manage the amount invested.

We still have to confront the TBSZ account with home savings, which can also hold securities, but there is no state subsidy. However, there are interest tax and echo exemptions. We also summarized in a table the biggest difference between state-supported savings in some form.

How to trick your home cashier?

How to trick your home cashier?

Although “only” $ 72,000 in state subsidies per year for apartment savings, this can be doubled through family members, as the contracted amounts can be used jointly within the family. above.

However, it is a limitation that we have to use more than 6 million forints for housing purposes, which can be considered as another return on investment. In previous analyzes by RickyBank, we have already explored the topic that with such a large amount of savings and some credit, it can be a profitable investment to buy a home, even for investment purposes. The rent can even be used to supplement the pension.

The highest rate of return on all state-subsidized savings is to commit your savings in the shortest possible time. This is because our return on total capital is decreasing over the years as we only receive additional money after our current payments.


Home savings bring a much higher return than all other government-backed savings

Home savings bring a much higher return than all other government-backed savings

Not only because of the 30 percent subsidy amount, but also because of shorter maturities. The use of money, however, is limited, but anyone who is thinking of buying a home anyway, even for investment purposes, has no better alternative. With a maximum annual payment of $ 1.2 million, it is not possible to say that it is a small savings that you should not bend down at any time.


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