Retirement provision is a long-term affair; leverage securities are designed for the short term.

Often their term is only a few months, or they expire worthless at certain price thresholds.

The contradiction in terms of retirement provision with a ten, twenty or thirty year perspective is obvious.

But that does not rule out that the two can go together.

Daniel Mohr

Editor in the economy of the Frankfurter Allgemeine Sonntagszeitung.

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It all depends on a sensible mix. Anyone who has neglected to start retirement provision in good time and thinks shortly before closing time that they can compensate for the omissions with the leverage effect of high-risk financial products is taking an enormous risk. Yes, leverage products multiply the return opportunities by a certain factor, which can be two, but also five, ten or twenty. But they also multiply the risks. A price movement of five percent in the wrong direction with a leverage of 20 leads to a loss of 100 percent and knocks out the paper.

Leverage products are suitable as a small component in the portfolio of experienced investors.

They shouldn't be the only or essential foundation of retirement planning.

Anyone who has taken out private pension insurance, capital-linked life insurance, a Riester insurance contract and still saves money on the savings account has very conservative, largely reliable components in their retirement provision.

The remaining money can therefore also be used to speculate in leverage securities without jeopardizing the basic structure of retirement provision.

The market for leverage products also offers a great variety.

The investor can choose between hundreds of thousands of products.

An index fund with leverage of two on a broadly diversified index is certainly to be valued differently than a multi-leveraged product on a gold mining share.