Investment strategies for retirement planning

Financial experts provide guidance for individuals approaching or in retirement on how to manage and invest assets. To assess retirement readiness, Niels Nauhauser of the Verbraucherzentrale Baden-Württemberg recommends categorizing assets into four distinct groups: security-oriented investments (such as savings accounts, bonds, and annuities), stock market-linked products (including individual stocks and ETFs), real estate, and commodities like gold.

To optimize a portfolio, experts suggest reviewing annual costs and contract durations, potentially divesting from high-cost, low-yield products. Kevin Kronauer emphasizes the importance of reducing risk through proper weighting and maintaining a liquidity reserve. This reserve should cover anticipated expenses for the next five years—such as living costs, healthcare, and home modifications—and should be kept in accessible accounts that offer more than minimal interest.