Many have already realized that you need to take out a baby loan even if you do not need the loan, because if you have a baby, it will be interest-free, while you can put the money into Hungarian government paper, for which you get 4.5% interest. That way, your net profit on nothing is 4% a year (there is a 0.5% management fee on an interest-free loan).
However, there is an even better way to make money.
Since you have a baby, you can use the self-help fund and get a 20% tax refund.
Moreover, not only you, but even your relatives, your spouse, your parents, your brothers and sisters. I wrote more about it here:
Why not combine the two and make a lot more money with it?
When you know you are going to have a baby, you are requesting a baby loan. Even if you don’t want more than one child. (Our guru will help you arrange your loan for free.)
The 10 million you receive will then be paid into a self-help fund.
The bottleneck here is that you can claim a $ 150,000 tax credit after a maximum of $ 150,000 per year. (We do it all for this money.)
If your baby is born this year, you (if you pay personal income tax because you are not unemployed or catapulted) will pay 750 thousand of the 10 million you received from the state without interest. If you have a child next year, you will pay this year and next year.
However, your spouse will have a child too, so he or she will do the same (if you pay income tax because you can claim the $ 50,000 tax credit from it).
But we won’t stop here
As described in the article above, your parents, your parents’ parents, and even your brothers and sisters do the same. Here are three things to keep in mind:
what they need to claim back, ie pay taxes and not use a tax credit to a voluntary pension fund or health fund, because it goes out of the same envelope;
either before you give birth to your child or to your partner as a beneficiary (everyone can only do their own relative, your mother-in-law is not related to you in this respect).
Make the payment even before the baby is born.
Then you pay the money you paid after the child was born, or at least 6 months after the payment, and all your relatives who made the money (at Izys up to $ 2 million per person, other funds may change) just because you became a child in the family.
So, ideally, you get a yield of about 15% for half a year, which corresponds to 30% a year.
Not 20% because the treasury also deducts its own costs
After you take the money or pay it back (you get the 20% tax credit again if you haven’t reached the $ 750,000 annual deposit limit) and spend it on diapers, medicine, or pick it up with your next baby. If you do not want this, you can still invest it in government securities at a rate of 4.5% per annum.
If you want to make the most of your opportunity, if you have more than half a year before your baby is born, you first buy a six-year government bond, then pay it into the self-help fund.
In the best case scenario (the baby will be born next year and there are enough non-retired relatives in the family) you will get back $ 1.5 million in tax credit in half a year.