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The exchanges are going crazy because of the coronavirus. What now?

In Coronavirus What Investors, Travelers, Employees and Entrepreneurs Should Know Now. Anyone who also invests in stocks, funds or ETFs in their long-term asset accumulation should not be guided by emotional, short-term decisions, but should reflect on their planned investment horizon. The stock exchanges often react to unexpected events with large price fluctuations. Private investors who, for example, regularly invest with a savings plan could even benefit from short-term price drops in the medium to long term because they are currently buying more at lower prices. Actively managed funds offer the advantage that investment professionals can keep an eye on current developments and react accordingly.

I have booked a trip to a country affected by the coronavirus. Can I cancel?

If you want to cancel your vacation for fear of being infected with the coronavirus, you have to expect to be left with at least part of your costs. Important: First of all, talk to the provider. Many respond accommodatingly and make rebooking possible, for example. In most cases, however, cancellation fees will apply, regardless of whether it is a package tour, flight, train or hotel. Anyone who has booked their trip individually does not enjoy any superior protection. Here you depend on the goodwill of airlines and hotel operators. The amount of the cancellation fee depends on the booking conditions.

Does my cancellation insurance pay?

In principle, the risk of infection with the coronavirus is not covered by travel cancellation or travel interruption insurance. Even if the customer has booked a trip to a crisis area for which there is an official travel warning, there is no insurance cover, and no cancellation costs will be reimbursed. Insured reasons for withdrawal, on the other hand, are serious illness, accident injury or pregnancy.

I have booked a trip – and would like to take it too. But my airline cancelled the flight? What now?

According to the consumer advice centres, it is currently difficult to assess whether the traveller is entitled to additional compensation payments under the Passenger Rights Ordinance when the flight is cancelled. If the airline informs you of the cancellation of your flight more than 14 days before the departure date, you are usually not entitled to such a compensation payment.

Whether the airlines have to pay compensation in the current Corona crisis depends on whether they can invoke “force majeure”. Airlines are not liable if they can prove that they were not responsible for the cancellation. This is the case, for example, in the event of take-off bans, air traffic controllers’ strike or bad weather. However, it is currently questionable whether the Corona crisis is also included. If not, the airline would have to reimburse the traveller for financial damage caused by the flight cancellation. For example, cancellation fees for hotels, rental cars and booked excursions or concert tickets that expire. According to the consumer advice centres, travellers must allow compensation payments made by the airline to be offset against possible claims for damages.

TRY TO CHANGE YOUR BOOKING

Anyone who gets the message that a flight has been cancelled should contact their airline immediately. Perhaps it is possible to rebook to another flight free of charge, also with another airline or an alternative journey by train? Then the holiday does not entirely fall into the water. If that is not possible, you should contact the hotel and rental car provider immediately to keep the cancellation fees fixer. Collect and document all costs incurred to claim appropriate compensation from the airline.

Due to suspected coronavirus, my children’s kindergarten or school closes for two weeks. Can I stay at home, then?

If the child is ill, it is possible for a short time to care for the child at home. This entitlement is limited to 10 working days per child and parent (single parents 20 working days). If the child is healthy and kindergartens and schools are closed, no parent can stay at home for a short time, provided that no alternative care option is available. In both cases, the employer must be informed immediately. It should be clarified whether home office, reducing overtime or unpaid vacation can be used for this time.

What insurance does the company provide if entrepreneurs have to close their business due to quarantine temporarily?

Official quarantine measures or orders that are explicitly issued against the insured person or the company itself in the event of an epidemic or epidemic are deemed insured events. On the other hand, if the government quarantines a particular region, as is the case in Italy, for example, and the company is located in that region, there is no insured event.

PRACTICE FAILURE INSURANCE

The practice failure insurance offers insurance protection for doctors and specific freelancers such as lawyers or physiotherapists if they have to interrupt their business activities due to quarantine. The insurance covers the fixed operating costs for a period of usually one year.

BUSINESS CLOSURE INSURANCE

This type of insurance pays the event of interruption damage if the company is closed as a result of a reportable epidemic. The duration of the benefit, as well as the amount, depends on the respective tariff or the individual agreement.

IMPORTANT TO KNOW: With existing contracts, companies may refuse coverage for insurance claims caused by the coronavirus. That is because some companies have finally listed notifiable diseases in the terms and conditions, and the new virus is not insured because a notification requirement was only subsequently issued.

PROPERTY BUSINESS INTERRUPTION INSURANCE

There is no insurance coverage through this insurance because the virus is an epidemic and does not pose a property hazard such as fire or tap water.

How to optimize your retirement provision. Unit-linked annuity insurance is becoming more popular, also because the potential for returns is convincing in the current market environment. The public presentation often neglects what other advantages they have. With unit-linked pension insurance, the name says it all: the pension contributions are invested in investment funds. The larger the equity component, the higher the potential for returns. It is true that this also increases the risk of price fluctuations.

But that has nothing to do with the persistently low-interest-rate environment that is currently causing problems for classic, guaranteed interest policies. The unit-linked variant, like other retirement provision products, has other, sometimes too little-known advantages:

  1. TAX BENEFITS: While investors who save directly in equity funds have to pay tax on dividends or realized price gains when switching funds – selling units in the previous fund and buying the new one – the income from unit-linked pension insurance remains tax-free during the savings phase. The compound interest effect is entirely significant.  When they are paid out, the insured also receives a tax bonus if their insurance contract has been in effect for at least twelve years. In this case, they only have to tax half of the income at their tax rate. This is usually significantly lower at retirement age than in working life. Anyone who chooses a lifelong annuity payment instead of a lump-sum payment only needs to set the income portion of the monthly payment, which is dependent on the retirement age, at their tax rate.
  2. LIFELONG ACHIEVEMENTS: Insurance coverage is another argument in favour of unit-linked pension insurance. “On average, people are getting older. Many underestimate their need for financial security. This is precisely where the insurance comes into play: If you choose to pay a pension, the payments are made from the agreed start of the pension – and for life, “says Miriam Michelsen.
  3. ALL-ROUND SUPPORT: The closer you get to the start of retirement, the more critical it is to protect the contract credit you have already earned against possible exchange rate losses. Therefore, it can make sense to replace a riskier asset class like stocks with lower risk asset classes like bonds. If requested, the insurer will undertake the corresponding reallocation of the contract balance into lower-risk funds for the customer. This means that they do not have to follow developments in the markets themselves but can leave that to the professionals.

Relief for Those With Health Insurance. Shutdown, short-time work, loss of profit – due to the pandemic, many people currently have to cope with financial bottlenecks. Of course, nobody wants to risk their health insurance coverage.

The good news in advance: Short-time work does not influence the coverage. For those with statutory health insurance, the protection continues even if work is entirely idle during this time. For privately insured persons, the following principle applies Anyone who was insured in private health insurance before short-time work will also remain in short-time work – even if the shorter working hours reduce their salary so much that they have to (re) insure themselves legally. In this case, the employer’s allowance increases. The burden is reduced to zero in individual cases. In the case of privately insured self-employed persons, nothing changes in the contributions that are due month after month. However, there are ways to reduce them temporarily.

New: Easier Change To The Basic Tariff

For those who are dependent on social assistance due to the current Corona situation, there are now reliefs. Those affected can switch to the basic tariff of their health insurance. This tariff offers services that are comparable to statutory health insurance. However, the problem up to now has been that the insured person could not quickly return to the old tariff. In any case, a new health check is usually due, which may trigger higher risk surcharges. The legislature has now changed that: People with private health insurance who are temporarily in need of help and switch to the basic tariff can now switch back to their original tariff without a new health check if they have overcome the need for help within two years of the change.

Go To The Standard Rate

An alternative is the so-called standard tariff, in every private insurance company offers. This is also a kind of emergency tariff based on the catalogue of statutory health insurance companies. It is often a few cheaper than the introductory rate. The significant disadvantage: You can only switch to this tariff if you were already privately insured before 2009. The return to the original tariff is also usually linked to a health check – at this point, the new law only refers to the basic tariff.

Slimming Down The Existing Tariff

In general, the insured person can also reduce his contributions by taking out a different, less comprehensive tariff from his insurer. For example, he renounces treatment by the head physician in the hospital or the assumption of costs for alternative practitioner services. Here, however, it remains the same: If the insured person wants to return to the full scope later, a health examination is generally due beforehand. However, there are a few providers who, especially in the current situation, do without it or offer other options to lower the contributions, for example, deferments temporarily. It is worth asking.

Insure Legally Switching to statutory health insurance is only an option in exceptional cases. Instead, there must be compulsory insurance in statutory health insurance. This is the case, for example, when receiving unemployment benefit I. Besides, there is age: from the age of 55, a change is generally difficult. In some instances, family insurance through the spouse in the statutory health insurance scheme may be possible. However, the whole matter is very complicated. A decision without advice is difficult for most to make.

When it comes to fund savings, investors can choose between passive (ETF) and active investment styles. We explain the main differences between the two approaches.

The Passive Style: ETFs

Exchange-traded funds, or ETFs for short, are becoming increasingly popular with private investors. The keys to success are the relatively simple design of these funds. The performance of the funds is, therefore, easy to understand because it closely follows the respective index.

Advantages: Since ETFs do not require active management, they are usually cheaper than managed equity funds. Stock selection is very transparent, and ETFs are well suited for passive buy-and-hold strategies.

Please note: The exchange-traded index funds are not the only patent solution for asset accumulation, because an ETF is not only subject to the opportunities, but also to the risks of the respective index—passive investing works particularly well when the stock markets are up for a long time. However, if an index is down, the corresponding ETF follows this path unchecked.

Conclusion: The “passive” investment style using ETFs is particularly suitable for investors who want to participate in the general development of the capital markets – knowing that they can never do better than the market as a whole. Experienced investors, in particular, can use ETFs as a mix when they want to bet on specific markets.

The Active Style: Asset Management Funds

Asset management funds are investment funds that, in addition to stocks or bonds, can use a wide range of assets such as real estate, raw materials or precious metals. Professional fund managers make the selection of investment goals that are suitable for the respective risk profile of the asset management fund.

Advantages: The investor benefits from active protection against market risks. The fund management can intervene in difficult phases on the stock exchange, reduce the equity quota and switch to more promising asset classes.

Please note: Risk appetite and the choice of asset classes for asset management funds depend heavily on the investment philosophy of the respective asset manager. Since the fund’s portfolio can be composed very differently, direct performance comparison with equity funds or ETFs is not necessarily meaningful.

Conclusion: Asset management funds are an ideal basis for long-term asset accumulation. When selecting funds, private investors should pay attention to high management quality and performance over a more extended period of time (at least five years), which also includes avoiding sharp price falls.

Your Risk Appetite Is Decisive

Private investors should decide individually based on their market knowledge, whether active or passive investments represent the right investment strategy. The selection of ETFs and asset management funds should always match the risk appetite and preferences of the investor. A mixture of both worlds can also represent a sensible investment strategy.

Thousands of people soon have fewer monthly accounts due to short-time work benefits and loss of earnings how anyone can cut their budget for a few months.

Potential Savings In Times Of Corona: How To Reduce Expenses In The Short Term

CHECK ONGOING POSTS

The yoga class is cancelled, the fitness studio is closed. According to consumer associations, members do not currently have to pay their contributions. Because of the sports studio cannot offer its service, there is a breach of contract. The Corona crisis is not an extraordinary reason for termination. But until the studios and yoga schools usually reopen, you can leave the contract on hold and do not have to pay any contributions. It is best to contact the provider and clarify the details.

Some fees have to be weighed up: Does the small private ballet school where the daughter takes lessons to have to close if all members immediately stop paying? Or also the private music school? Depending on how tight your budget is (and how long the Corona restrictions will last), everyone has to decide with a sense of proportion whether they should continue to pay for the time being. The same applies to membership fees.

MAKE INSURANCE CONTRIBUTIONS EXEMPT

Should someone run into payment problems with an insurance company due to the Corona crisis, it is generally possible to suspend a contract or reduce the premiums. Different options are depending on the division and provider. However, it does not make sense to terminate existing insurance in a panic, as important insurance protection for risks such as an occupational disability or property damage to home and furnishings is lost. With many insurance companies, however, it may be possible to defer the contributions or give them a limited contribution exemption.

PUT THE SECOND CAR OUT OF SERVICE

If both partners now only work in the home office or hardly have to drive to the employer due to short-time work or childcare, the second car can perhaps stay in the garage for the next few months. The existing motor vehicle insurance does not have to be cancelled to bridge a car-free period. If you deregister the vehicle, the insurance cover can pause, and the contract is made free of charge.

LET OLD-AGE PROVISION CONTINUE

Many companies offer the option of deferring contributions. The contributions can be suspended for a specific time – with the great advantage that the insurance cover remains in place during the deferral period.

An alternative without receiving insurance cover is the temporary exemption from contributions. With many companies, insurance cover can be put back into effect after six months at the latest without a new health check.

OPTIMIZE CONTRACTS

If you switch to cheaper electricity, internet or mobile phone contract provider, you can quickly save a few hundred euros a year. Comparison portals on the Internet help to find inexpensive alternatives for the desired services.

GET TICKETS REFUNDED

Lots of concerts, soccer games and other events were already cancelled in March and for the coming weeks. You can now have the money for the tickets refunded. This is how a financial cushion can be built up. But here too, depending on the provider, solidarity is required: Small theatres and artists, in particular, are struggling to survive due to the Corona crisis.

TAKE A CLOSE LOOK AT BOOKED VACATIONS

Anyone who is in acute financial need as a result of the pandemic should review already booked vacations for the rest of the year – and cancel them in good time. In this way, a financial buffer can currently be built up when advancing payments that have already been made flow back into the account. If your financial situation has relaxed by summer or autumn, you can always treat yourself to a little break in the sun at the last minute.

If you are still unsure how to go on with your annual vacation: Check the cancellation conditions of the hotels, holiday apartments and flights in detail now – and note in the calendar until when a free cancellation is possible. Then you can still make a decision.

CANCEL SUBSCRIPTIONS

In general, now is an excellent opportunity to review all fixed costs. A few examples: Do I still read all the newspapers and magazines to which I have subscribed? Do I use all streaming services such as Amazon, Maxdome, Netflix and Spotify? Some pay-TV providers have offered to reimburse costs due to the Bundesliga break and to suspend the subscription if requested. The pandemic is not a reason for termination.

SUBMIT YOUR TAX RETURN QUICKLY

Take advantage of the long weekends without leisure activities and meeting friends to prepare your tax return for 2019 because many employees can hope for a tax refund, which can bring a small financial buffer for the account.

Make Sustainable, Powerful Investments – After Checking The Facts. Sustainable investments are the trend. MLP selects suitable funds based on what is known as an SRI approach: It shows how recommendable an investment is – ecologically and economically. Sustainability is not a temporary fashion topic, but a prerequisite for economic success. It is just becoming apparent that companies that think long-term can cope better with the challenges of the current crisis.

Sustainability Not At The Expense Of Returns

Good for your conscience but bad for your money? This prejudice persists with some investors. They fear that more profitable companies will disappear from the investment focus because they are sometimes not very environmentally friendly. Susan Dreyer, director of the non-profit organization Carbon Disclosure Project (CDP), sees it differently: “Unsustainable business practices cause operational problems and result in lower profits for companies.” to act sustainably.

Holistic Analysis

Various sustainability ratings, which was co-developed by the CDP, can provide initial indications for selection – but they often fall short. Accordingly, it is not easy for laypeople to find investments that meet not only comprehensive sustainability criteria but also provide attractive long-term performance.

Clear Criteria

In addition to the classic criteria of return, risk and volatility, selection criteria are the so-called SRI properties (stands for social responsibility investment). These take into account that the sustainable orientation of a company does not just result from environmental friendliness – but from the interplay of ecological, social, ethical and economic aspects. The so-called ESG criteria (see below), which are divided into three basic sustainability areas, also appear in the SRI analysis:

the ecological balance of a company [E = Environment],

the social commitment of a group towards its employees, customers and society [S = Social],

the economic basis and compliance with the law. [G = Governance]

This enables a much broader analysis than just a climate rating, for example – and creates the greatest possible transparency for the respective fund.

Offer For Every Type Of Sustainability

Personal advice is recommended to find the right option for your own investment mentality from the growing range of sustainability funds.

What are the reasons for the success of sustainably managed companies?

Companies that take sustainability criteria into account have more practice in managing risks overall. They are also more willing to innovate because they are actively helping to shape the transition to a sustainable economy on their own initiative. A significant point when it comes to sustainability is good corporate management, also known as governance. Companies that people enjoy working for do better. It has always been like this.

Defy The Stock Market Dip With Savings Plans. The current turbulence on the stock markets – triggered by the corona pandemic – is worrying many private investors. Those who invest long-term in funds or ETFs through savings plans can relax and wait for the roller coaster ride. The corona crisis has led to significant price fluctuations in the global financial markets. And some investors need good nerves when they are currently looking into their portfolio. But don’t panic: Anyone who regularly invests in investment funds or ETFs with savings plans, for example, and has a long investment horizon, is well-armed against such rollercoaster rides on the stock exchanges.

The Time Of Entry Is Secondary

Many retail investors worry about missing the ideal timing to invest in their stocks. It would be right for you if you don’t want to invest a large amount at once, but want to invest a certain amount in fund or ETF savings plans every month, you don’t have to worry about the right time to start. Because at the beginning there is little capital in the savings plan. For example, if you buy fund units for 100 dollars every month for ten or 15 years, more units will automatically be purchased when the price is low than when the price is high. This phenomenon is known as the cost-average effect. It also means: With a savings plan, you even benefit from stock market prices that have fallen in the meantime – provided that the prices have risen again at the end of the investment period – because you can buy a relatively large number of fund units for the same money.

In addition, the compound interest effect makes savings plan profitable if income and distributions are reinvested. Perseverance is, therefore, more important than timing when building long-term wealth.

Asset Accumulation: Be Patient

In the current phase of low-interest rates, there are hardly any real alternatives to equity funds, especially for younger savers. Your own risk appetite should always be taken into account; For example, in which the system height is larger or smaller. Because anyone who invests their money in the financial markets has to realize that things are not only going up on the stock markets but also going down in the meantime. The last few weeks have shown this impressively. With an investment horizon of 10, 15 or even 20 years, you can accumulate substantial capital even with small contributions. Savings plans bring a lot of constancy to wealth accumulation – and that pays off in the long term—another advantage: Fund saving is hugely flexible. You can top up, lower or pause the savings rates at any time, invest a more considerable sum in between or have short-term access to capital in the event of a financial bottleneck.

Plan Your Exit Well

When and at what price you sell the accumulated fund units at the end of your savings period, however, has a significant impact on the success of your investment. Ideally, you should therefore gradually move into secure investments in good time before the planned end of the term – if you need the money, for example, for a major purchase or retirement provision.

There are different situations in life in which more money is needed in the short term than the current financial scope allows. Whether for a new car, living room furniture or an exclusive vacation. If you want to fulfil a wish at short notice, cover a few unexpected expenses or have to bridge other liquidity bottlenecks, an instalment loan from a bank can be the solution.

What is an instalment loan, and how does it work?

In principle, most loans can be referred to as an instalment loan or instalment loan. The name only describes that a specific loan amount is paid out and then repaid with interest over a predetermined period. The instalment loan is paid out when all the necessary documents from the borrower have been received by the bank, checked and loan approval has been given. Depending on the lender, payouts within a few days are realistic and, for example, debt rescheduling to replace existing liabilities at lower interest rates is possible.

Calculate the loan instalment: what will the instalment loan cost me?

The costs for a loan include the monthly interest to be paid or the additional costs incurred during the term of the loan, e.g. for special repayment requests. But there are also lenders with free unique repayment options.

Instalments with the instalment loan

The instalments of the loan are made up of interest and repayment payments for the loan amount taken out. The monthly instalment to be paid then depends on the chosen loan term for the instalment loan.

Instalment loan: repayment plan

A repayment schedule helps keep track of current and future payments on a loan. Here it is shown, for example, how high the respective monthly remaining debt is. Banks speak of an outstanding repayment if the repayments are made beyond the regular monthly rate. The option of outstanding repayment can be agreed in the loan agreement.

Additional costs for the instalment loan

Payment protection insurance can make the loan more expensive. This is intended to protect the borrower in the event of unemployment, accident or death. Here they have to weigh the costs and benefits and consider how high the risk of unexpected unemployment is. Often these services are already covered by other insurances.

What do I have to pay attention to with an instalment loan?

There are numerous essential points that borrowers should pay attention to before applying for an instalment loan. A loan is only issued if the bank classifies the customer as creditworthy, but you should also assess your finances yourself.

1. Do not ignore existing liabilities

Are you already using your overdraft facility over a more extended time or are you paying off an expensive old loan? Make sure you get an overview of your current loans before applying for a new one. Especially in the case of the overdraft facility, rescheduling to an instalment loan can often be cheaper. For this, however, the terms of the loan should be carefully considered, and professional advice is recommended.

2. How stable is your financial situation?

Of course, completely unpredictable events can always occur, but to a certain extent, you can estimate your financial stability for an instalment loan. For example, if you have a fixed-term employment contract, you should not take out a loan that is paying off longer than your employment contract is valid.

3. What should the instalment loan be used for?

Even if you do not have to specify a purpose for an instalment loan, you should still consider what it should be used for. A frequent tip from financial experts is generally only to take out planned and deliberately selected loans. Zero per cent financing in the store leads to spontaneous decisions that you later regret.

4. Early repayment penalty

If you want to repay a loan earlier than actually stipulated in the contract, the bank is in many cases entitled to an early repayment penalty. In the case of ordinary instalment loans, the amount of this compensation is set by law at a maximum of one per cent of the remaining debt.

Instalment loan: which term should I choose?

In addition to the general conditions, the loan term determines the amount of the monthly instalments. What should you make the decision about the loan term dependent on?

Duration no longer than necessary

The longer the loan term, the more difficult it becomes to assess financial security. Whether they will have the same job in 10 years is impossible to predict. For this reason, they choose the term of the loan as short as possible.

Instalment loan: term depends on the use The idea here is not to burden yourself with a purchase that is already in the past. A simple example of the term would be a vacation. Here, the repayment term should end as soon as possible after the trip is over.

Are you ready for your retirement yet?

Comprehensive retirement planning helps you to arrange everything vital for yourself and your family in good time so that you can then relax and devote yourself to all the things you enjoy.

Retirement Income And Investment

A particularly important aspect of retirement planning is income planning. Together we will discuss your ideas about retirement and derive your financial needs from this. We shed light on the primary sources of income in retirements – such as the statutory pension, private pension insurance, rental income and investment income – and explain how they are treated for tax purposes and what you ultimately have at your disposal. If there is a supply gap between your forecast income and expenses in retirement, recommend for you on how you can maintain your standard of living as best as possible. If you have taken out life insurance for your retirement provision, you can look forward to a nice sum of money in the years to come. Together we will discuss how you can invest the expiring life insurance sensibly. A key point in retirement planning is an investment strategy that is tailored to you. Which type of investment is okay for you depends on your willingness to take risks and on whether you want to withdraw your saved assets in full or in regular partial amounts.

The topic of inflation is also taken into account: there are often large sums in comparatively secure checking and call money accounts, which currently have low-interest rates. The capital market, on the other hand, attracts with higher potential returns but reacts sensitively to geopolitical influences. We advise you on alternatives to investing that will not eat up your money by inflation. A stronger focus on real assets can be recommended.

A good, additional source of income in retirement is regular rental income: Maybe you are already a landlord or are thinking about a property as an investment, but shy away from the associated expenses? Let’s talk about how you feel about real estate as an investment – and how you can embed it sensibly in your retirement planning!

Make the right provision: how is your insurance going?

If you are dealing with your future retirement, you should not ignore the topic of insurance – after all, these must continue to suit your life situation even after you reach retirement age. You can then certainly do without some things, for example, labour legal protection. Other insurance companies may offer cheaper alternatives or better services. And last but not least, we advise you on the question of whether you need new insurance in retirement – for example, special accident insurance that supports you in an emergency with a lump-sum payment and targeted assistance.

A possible need for care in old age is also an issue that indeed worries many of us. Rightly so, as the statutory long-term care insurance often does not even cover the running costs. To be well protected in the worst-case scenario – and last but not least, to protect the children from financial access by the state as well as possible – the right care provider is essential. Together with you, we will find out whether, for example, care pension insurance is an option for you, which has a very comprehensive range of benefits, or whether you should rely on necessary protection through care daily allowance insurance. If there is a need for care in the family and the person concerned cannot bear the costs themselves, the spouse or relatives have to pay them financially in a direct line. In many cases, the children are therefore obliged to support their parents. You can find out in our advice about how you can ensure financial security here and what to consider when it comes to parental support.

Arrange Tomorrow Today: Wills, Power Of Attorney And Living Will

Many people feel the need to arrange their financial success while they are still alive. There are many reasons for this: For example, does the legal succession not correspond to your ideas? Do you live in a blended family or a relationship without a marriage license, and would you, therefore, like to make an individual arrangement? Then we will be happy to inform you to what extent you should regulate your estate succession with a will.

Besides, we address two other documents, the power of attorney and living will, with which you can make necessary arrangements at an early stage. The health care proxy is relevant if you – due to an accident, illness or old age – can no longer regulate your affairs on your own. You can designate a person to make personal and financial decisions for you when you are no longer able to do so. In a living will, you specify precisely which medical measures you want in the event of illness or injury – and which you do not. Together with our cooperation partners, we support you in creating legally valid documents in these areas and thus realizing your ideas.

What Executives Can Learn From The Corona Crisis. The corona pandemic poses significant challenges for superiors and decision-makers. Which characteristics count now and which lessons can be learned from the crisis. Since the beginning of March, the corona crisis has also ensured that many things have changed overnight in companies. Suddenly a large part of the workforce was in the home office or had to work under special security measures. In this exceptional situation, managers, in particular, were asked to create new structures quickly.

Survey: Many Superiors Have Coped Well With The Crisis So Far

That seems to have worked well in many places. According to a recent survey by the online job platform Stepstone, the majority of employees give their superiors good marks for their crisis management. Two-thirds believe that their manager will master the crisis in the best possible way. Sixty per cent think their boss has created a good structure for their everyday work and every second respondent said that their boss is currently paying particular attention to the mood in the team and the emotional state of his employees.

Expert draws long-term lessons for leadership!  But by no means all leaders in companies and governments have so far managed to master the COVID-19 crisis with a sense of responsibility, competence, a clear head and real sympathy observe leadership.

The Most Important Lessons For Managers From The Corona Crisis

In your opinion, what is a cardinal error in times of crisis?

It is fatal when those in charge of a crisis want to keep control over everything and over-centralize decision-making. People at the highest management level must empower the people who take on leadership roles at the forefront of a crisis to act independently. For this purpose, orientation must be created through exact values ​​and principles. If decisions are made according to these principles, any errors may not be punished.

What role does time play in such a situation?

A crucial one. The corona crisis has already taught us that countries have gotten the most lightly of it so far, whose governments take drastic measures against the spread of the virus at an early stage. Quick and decisive action by managers in such an acute crisis – without wasting time – is, therefore, an essential lesson that we should take with us. This also means giving preference to speed over perfectionism when making decisions. First of all, the stabilization of the situation and damage limitation is paramount. Then it is crucial to prepare for the time after the crisis. Quick decisions are not always made for all employees and those affected. This is to be expected.

Nevertheless, leadership requires having the courage to do the right thing. Capable leaders also communicate lousy news and uncomfortable truths when necessary, and they don’t shy away from making potentially unpopular decisions, regardless of whether their job depends on it. Effective crisis management requires strengths such as determination, accountability and moral courage.

Many employees are worried – for their health, but also their job and financial security. How should leaders address these fears?

Empathy and empathy are essential in an environment that is characterized by emotions and fears. Through clear, frequent and empathic communication, managers can show real interest and signal that they care about their employees and their situation.

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