How Can We Increase The Value Of Money?

"I feel that money is always in the bank when it is placed in the bank, but I don't know how to do it." "Receive Payment for goods After the money was handed to his wife, but she did not understand. Conduct financial spanactions The money was left at home. " "At the same time, I bought it for my son. Insurance But what insurance is unknown? "

　　 Investment Introduction

In the recruitment hotline, the "gold medal planner face to face" campaign, Mr. Lee spoke of his troubles. Yesterday afternoon, Mr. Li, who knew nothing about money management, came to the Bank of the Min Sheng branch of Minsheng Bank to communicate with Li Le, one of the candidates for the annual gold medal financial planner and financial manager. The contents are as follows:

For Mr. Li's "financial novice", Li Le introduced a lot of knowledge about financial management. At the same time, it is suggested that Mr. Li can consider the fund's fixed investment and business insurance, and the cash management mode should be improved. "In particular, we should first manage our cash well and create profits for ourselves." These suggestions are very satisfying for Mr. Lee to leave, and make an appointment to discuss with Li Le next time.

"Novice" wants to manage money without knowing how to use cash.

Mr. Li is 35 years old, a businessman, married, and has a 8 year old son. The average annual income is 150 thousand ~20 yuan, but it is not fixed. Last year it earned 400 thousand yuan, and this year it is about 100000 yuan. Mr. Li owns two housing units in Chengdu, all of which are mortgage loans and a house in his hometown.

Chengdu's two houses, a set of 200 thousand yuan loan has not yet been returned, and a loan of 80 thousand yuan has not yet been returned. So when Mr. Li had savings of about 150 thousand yuan, he thought, should he repay the loan ahead of schedule?

In terms of insurance, he bought his son an insurance payment of 10 thousand yuan a year, and he had 20 thousand yuan insurance a year. However, Mr. Lee has no investment and even has no experience in investing in stocks, funds and other financial products.

After meeting Mr. Li, Mr. Li Le first asked Mr. Li to take a risk tolerance test, and calculated that the risk tolerance level of Mr. Li belonged to the "golden mean". Mr. Li said, "now I have no idea what I can do with cash. I want to pay in advance or buy another house. If I want to invest in stocks, I don't understand. I even get confused about what insurance I buy for my son."

Four steps to manage finances

Li Le suggested that Mr. Li could not buy a house in the current situation, but there was much room for improvement in the way of cash management. He could improve his family stability from several aspects and ensure the quality of life.

　　 1. Cash management

From the actual situation of Mr. Li, the current stage of income is not stable, we should strengthen the management of cash flow, maintain three months to half a year's living expenses. This part of the fund is mainly invested in Monetary Fund. Under the premise of maintaining high liquidity, the comprehensive annualized rate of return can still exceed 2%, about 6 times the current interest rate. You can also apply for a 50 thousand yuan credit line of Minsheng Bank platinum credit card as a source of temporary emergency funds.

　　 2. Children's education

It is obviously not enough for children to purchase annual insurance payments of 10 thousand yuan. It is suggested that Mr. Li make a monthly investment of two thousand yuan for his children, because the fixed investment cycle is longer (10 years), and the high risk configuration combination of index funds and equity funds can be selected. The Shanghai and Shenzhen 300 index can be selected, the CSI 500 index is collocated and the stock base set up for a long time can be estimated according to the 8% medium rate of return. After 10 years, it is possible to accumulate 365 thousand yuan of Education Fund.

Together with the cash value of the savings deposit that was purchased 10 years later, the total value of the education fund over 500 thousand yuan should be around 150 thousand yuan. It should be able to cope with all the expenses in the domestic higher education stage.

How to manage finances

　 3, whether to repay the loan ahead of time?

Whether or not to repay the loan ahead of time is mainly based on two aspects: first, whether or not they have enough early repayment capability; two, whether the funds that are prepared to repay the loan ahead of time have the investment channel that is higher than the mortgage interest rate, if there is such a channel, of course, there is no need to make repayment in advance.

From the first analysis, Mr. Li has 150 thousand savings deposits at present. He has bought a set of self occupied real estate and investment property, has purchased cars, and the child has not yet made a conservative estimate of the education expenditure in a large amount of time, according to the saving rate of 50%, and can achieve the goal of early repayment of the loan by the end of the year.

From second aspects, according to the mortgage interest rate 15% off as the standard to consider (5.049%), with a period of three years or more, we can find more investment channels than this loan interest rate.

On the whole, Mr. Lee already has the objective conditions for early repayment of loans. Whether or not to repay the loan ahead of time depends entirely on Mr. Lee's subjective risk preference. If Mr. Li is willing to take certain risks, the financial planner will carry out the comprehensive disposition of the products according to the actual risk level after carrying out the risk assessment. It is suggested to buy the bank's prudent financial products and the 100 thousand yuan set up securities dealers' financial management varieties to get the investment income exceeding the loan interest rate.

　　 4, pension planning

Mr. Li and his wife do not have social security. They should strengthen commercial insurance to achieve two basic requirements: 10% of the annual income is for insurance, and the main economic pillar of the family should be insured by 10 times the annual income.

In addition, pension arrangements can also be planned by relying on the fund's investment and investment. If we consider that Mr. Lee is retiring at the age of 60, and after 25 years of retirement, it is guaranteed that there will be a family expenditure of five thousand yuan per month. According to the current average inflation rate of 3%, assuming that the rate of return on investment before retirement is 8%, the rate of return on investment after retirement is 3%, that is, when we retire, we should prepare 3140667 yuan for retirement, and now we need to prepare 3302.4 yuan a month. In this portfolio, 1/3 is recommended to buy bond open-end funds, 1/3 as index funds and 1/3 as equity funds.