21 sats \ 4 replies \ @Signal312 8 Apr \ on: Fiat clown show: financial illiteracy impoverishes Europeans econ
I wonder how much of the difference in stock ownership is because in the US, people have retirement accounts like IRAs and 401k. Is there a similar situation in Germany?
It would be interesting to know how much shares people own, outside of retirement accounts.
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0 sats \ 3 replies \ @TomK OP 8 Apr
In Germany stocks aren't part of 401k-type retirement funds. There is a political debate on allocating funds into a type of a stare fund (of course) but no, there is no equity culture in Europe except of in rich families that are hiding this knowledge as good as they can.
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21 sats \ 2 replies \ @Signal312 8 Apr
So what's in the German 401k type retirement funds? Bonds?
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21 sats \ 0 replies \ @wingalt 9 Apr
There is no investment fund, it is a Ponzi scheme where the current payers cover the current retirees. It works when demography plays in your favour but like any Ponzi once you run out of new entrants the Ponzi collapses it's just a matter of when and how much money printing will be flooded to clean up the mess (same applies to France, Italy...)
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0 sats \ 0 replies \ @TomK OP 8 Apr
Of course. But most of the pensions paid come from a so-called pay-as-you-go system in which employees and employers pay the current pensioners and pension contributions.
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