A financial expert explains why people would rather fly to Mallorca than worry about their money.

A financial expert explains why people would rather fly to Mallorca than worry about their money.

According to a report by www.boerse-online.de, says Philipp Vorndran, partner at Flossbach von Storch, in an interview about the tendency of people to fly to Mallorca rather than worry about their investments. He emphasizes that he is no longer interested in short-term news on the stock market and discusses the mistakes that investors often make.

Vorndran explains that he expects long-term high inflation to continue in the coming decade. He advises investors to first take care of purchasing their own four walls, as real estate in Germany is not used enough as a real asset and inflation protection instrument. The property serves as an incentive to forego consumption and compulsively save, which Vorndran says doesn't happen enough in Germany.

Vorndran predicts a target return of 4 percent after taxes and inflation and talks about the returns on the stock market in the current year. He also criticizes Germans' high propensity to consume and their inadequate provision for old age.

It is expected that Vorndran's recommendations could encourage people to invest more in real estate and rethink their retirement planning. In addition, his criticism of the excessive tendency to consume could lead to consumers rethinking their spending habits and taking more precautions. Overall, this could lead to a long-term change in the financial and real estate sectors as well as consumer behavior.