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Subject:  Re: Retirement, college, and Obamanomics Date:  1/1/2013  7:40 AM
Author:  AdvocatusDiaboli Number:  71161 of 90523

And that the indexed gains are the raw S&P index price, EXCLUDING dividends. That's huge. That's on the magnitude the old saw "Other than that, Mrs. Kennedy, how was the parade?"

While researching retirement investing products as well as various derivatives offered to retail investors in Germany, I have come to the conclusion that any but the most basic, transparent constructions usually come with enormous hidden fees that quite often make it difficult to even beat inflation in the long term, let alone have any real returns.
What happens to dividends is quite often a sticking point.

There is one type of German retail derivative I can recommend for long-term investments - a certificate on German performance indexes.
Primarily the DAX performance index.
This derivative issued by Deutsche Bank mirrors the performance of the German DAX (including dividends) and has absolutely no costs for the investor. Dividends are not taxed (except as gains once you sell).
It has no fixed maturity and will likely run as long as the Deutsche Bank exists. I don't think Deutsche Bank makes any money on this particular product (I don't see how). Deutsche offers a lot of other products which are tremendously expensive, however. I think this one is a loss leader.

The one disadvantage is that if Deutsche Bank goes bankrupt, you are an unsecured creditor.
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