In our analysis of the internal rate of return (IRR) method, we found that the central IRR rate is determined using the discounting method. Here, one looks for the interest rate that makes the balance of the discounted return flows (usually the return flows are positive) with the IRR investment expenditure (usually equity and […]
Returns are of central importance in the professional life of a banker. Other financial service providers, such as pension funds, financial and investment advisors and credit intermediaries are also affected. The circle of affected professions also includes the rating agency and many a tax consultant/auditor (StB/WP) who is active in connection with Basel II. Often […]
In May and June 2009, we tested a total of 50 Internet Riester subsidy calculators – with alarming results. Only two test persons survived the by no means unusual test cases without errors. The ghost drivers among the computers formed the majority! That percentage has since dropped, as a retest showed. It is quite frightening […]
This is about software errors in forecasting upcoming tax savings that can be used to fund precautionary measures. Currently, there is a fashion to throw small computational tools on the market that are as simple as possible and at the same time provide impressive results. Tools for tax savings through the improved deductibility of health […]
The eleventh part of the series deals both with easily recognizable software errors in Riester subsidy calculators and with omitted information. Taking out a retirement plan is an investment. As with any other investment, the state subsidies in the investment phase are the focus of the customer’s interest when concluding a Riester contract – for […]
The ninth part of the series deals with the alarmingly different results of Internet Riester subsidy calculators from financial service providers. The Riester pension has meanwhile become an important guarantee for premiums in the insurance industry. From the customers’ point of view, the high level of state Riester incentives in the qualifying phase is […]
For a long time, financial service providers have been committed to providing information to their potential customers – especially when it comes to the topic of old-age provision. This is good and gratifying. But what does the practice look like? In order to find this out, around 50 Riester subsidy calculators were examined as […]
The eighth part of the series deals with Riester subsidy calculators, which all too often provide incorrect or inadequate results on the state Riester subsidy. The Riester subsidy consists of an allowance subsidy and a (supplementary) income tax subsidy, which is determined by the tax office as part of the so-called “Riester favourability test”. The […]
The fifth part of the series also deals with easily recognizable software errors. This time it is the often missing input options for different pension start dates. This leads to considerable bias in health care analyses. Even in the case of single persons, it can happen that the individual pension benefits start at different ages […]
