Read the first book to understand investment and financial management

Chapter 38 Different types of family financial planning (3)
In addition, Ms. Zhang can properly purchase fixed-term funds and invest a fixed amount every month. The fund company will use the "average cost method" of buying fewer shares when the net value of the fund is high and buying more shares when the net value of the fund is low. The cost reduces the investment risk and makes the income more stable.This part of the assets can be used as the daughter's education fund or as their own pension security fund.

4Insured by oneself to protect daughter
Ms. Zhang is different from ordinary single nobles. All considerations will be based on children.But this naive idea may not be correct.For a single-parent family, the single father or mother is the main source of income for this small family, and all material foundations for minor children are mainly provided by the parents around them.Therefore, keeping yourself is the greatest care and protection for your children.

In addition to investing conservatively and purchasing medical insurance, critical illness insurance, and pension insurance for themselves, single parents must also consider purchasing a full life insurance with the children as the beneficiaries for their minor children. If the budget is insufficient, choose term life insurance. Those with sufficient budget can also choose whole life insurance to prevent their children from growing up smoothly in the event of an accident.In addition to adequate protection for yourself, if you have spare capacity, you can purchase children’s insurance for your child’s education expenses. Remember to add the “premium waiver” function to the policy to prevent yourself from being unable to pay the child’s policy premium after you lose your ability to work. Policy validity.

Single people have little income and can’t do it alone. When managing money, you must first consider your own actual situation and adopt a safe plan. On this basis, you must consider the long-term, plan ahead, do a good job in house purchase and retirement planning, and make appropriate investments to seek to maintain and increase the value of family wealth.

"421" families actively manage financial resources for the elderly and children

The one-child policy has shaken the tradition of extended family care for the aged.At present, this phenomenon is very obvious in major cities. The couple are both only children, and there are four elderly people who need to be taken care of, and there is another only child who needs to be raised. This is the current "421" family in China.The following case is the epitome of such a family - "421" families need more financial management.

[-]. Case information

Mr. Zhao and Mrs. Zhao stepped onto the red carpet two years ago, living a sweet life together, as if they were the happiest people in the world, carefree all day long.Although there is a bank housing loan of 50 yuan, for the new couple, there are no other big expenses, and the monthly payment of the house is not a problem.But this year, after Mrs. Zhao became pregnant and gave birth to Qianjin Tiantian, the cost of the child was higher than expected, and the couple began to worry.

Another headache for Mr. Zhao is that Mr. Zhao's father is old and in poor health. This year he spent nearly 6 yuan on hospitalization. Although he has medical insurance to cover part of the cost, he still has to bear part of the cost.

It turned out that both Mr. Zhao and Mrs. Zhao were only children, and their family belonged to a typical "421" family.Mr. Zhao is 28 years old and works in an IT company with a monthly salary of about 80 yuan after tax.Mrs. Zhao is 25 years old and works for a commercial bank with a monthly income of 60 yuan after tax.

When they got married in July 24, they took out a loan to buy a house in Beijing that cost 7 yuan at that time.

In order to save interest as much as possible, both parents poured out their pockets, down payment of 50 yuan, and the remaining 50 yuan can only be borrowed from the bank.Both Mr. Zhao and his wife have housing provident funds. They pay 15 yuan and 12 yuan a month respectively. The balances in the housing provident fund accounts are 55 yuan and 3 yuan respectively.Mr. Zhao uses the provident fund to apply for a loan, and the principal and interest will be repaid in equal amounts for 10 years. The loan interest rate is 441%, and the monthly repayment is 5160 yuan.

Due to the short working hours of the husband and wife, and the large expenditures for marriage, buying a house and decorating the new house, the family savings are very small, only nearly 5 yuan in bank demand deposits.In addition, Mr. Zhao saw that his old classmates made a lot of money by speculating in stocks, so he also invested 5 yuan in the stock market, but he is still caught up to now.

The companies of Mr. Zhao and Mrs. Zhao both provided five insurances and one housing fund, but neither the two nor their parents and children had any commercial insurance.Usually, Mr. Zhao likes to play tennis, and spends about 5 yuan a month on socializing with friends; Mrs. Zhao spends 5 yuan on beauty and fitness every month; Monthly electricity bills, telephone bills, property fees, Internet access fees, etc.) need 10 yuan, daily food and beverage miscellaneous expenses are about 10 yuan, eating out is about 10 yuan, and the annual family clothing and leisure expenses are about 50 yuan.Family transportation costs about 1 yuan per year.In addition, since the parents of the couple are not in Beijing, a total of 1 yuan will be paid to both parents every year.Britney's annual expenditure is about 1 yuan.

[-]. Analysis of family financial status

1 "421" families need financial management more

Mr. Zhao's family belongs to a middle-income family. The two pay attention to the quality of life and spend a lot. The annual savings ratio is 11%. The family's accumulation of wealth is not fast.The ratio of investment to net assets is low, and the debt ratio and liquidity ratio are relatively appropriate.But as Mr. Zhao and his wife's parents grow older and their daughter Tiantian grows up, the family burden will gradually increase.And the daughter Tiantian was born not long ago, no matter what happens in the future, Mr. Zhao and his wife hope that Tiantian can have enough living expenses and study expenses.In addition, Mr. Zhao is still a super car fan, hoping to buy a car with a price of about 15 in the next few years.

For "421" young families, facing such financial pressure is not a good thing.Mr. Zhao and Mrs. Zhao, who have never cared much about daily expenses, must be realistic and try to save money without reducing the quality of life.

Now Mr. Zhao and Mrs. Zhao feel that their income is not enough, but in the face of increasingly fierce competition, it is very difficult to increase their salary in their current positions. In this case, they should open up other channels to increase family income through financial management , and effectively manage cash and other current assets.

2Family Financial Planning
(1) Cash planning.The balance of the provident fund account will be repaid next year's mortgage.

Both Mr. Zhao and Mrs. Zhao’s income is relatively stable. It is enough to keep enough cash around for one month’s expenses, and another two months’ expenses for backup, which can exist in the form of currency funds.

Considering that Mr. Zhao and Mrs. Zhao have been paying the housing provident fund, the current housing provident fund account balance is 85 yuan, so Mr. Zhao should withdraw this money, of which 61920 yuan will be used to repay the housing loan for the next year, and the rest will be used to invest.Because Mr. Zhao is applying for a housing provident fund loan, the loan interest rate is relatively low, so there is no need to repay the loan in advance. At the end of each year, Mr. Zhao and Mrs. Zhao’s housing provident fund account will have a balance of 324 yuan, so the loan repayment expenses can be saved every year. 324 yuan.

(2) Consumption planning.It is recommended to postpone the car purchase plan for two years.

At present, the family's monthly food and beverage miscellaneous expenses are about 10 yuan, and eating out is about 10 yuan. These two expenses can be reduced by 10 yuan, so that 120 yuan can be saved every year.

The couple’s plan to buy a car is recommended to be postponed for two years, because repaying the loan through the housing provident fund will reduce the family’s loan repayment expenditure by 1498 yuan. After two years of steady investment, the money saved, plus the current stock assets in the With the final value after two years, Mr. Zhao can easily buy the car he likes.

(3) Insurance planning.Different family members have different protection needs.

Mr. Zhao's family protection is obviously insufficient, which means that the family's ability to resist unexpected risks is very weak. Once unexpected expenses occur, the whole family will fall into financial crisis, and even endanger the children's growth funds.

Therefore, it is necessary to purchase some supplementary commercial insurance for the couple and their children, mainly life insurance, critical illness insurance and accident insurance.

In particular, Mr. Zhao works in the IT field, and his busy work can easily cause physical overdraft, and he is the economic pillar of the family. Therefore, critical illness insurance and life insurance are particularly important for Mr. Zhao. It is recommended to purchase life insurance with an insured amount of 10 yuan and Critical illness insurance with an insured amount of 10 yuan.

Tiantian is still young, so there is no need to buy accident insurance for the time being, and she mainly buys health insurance.However, Mr. Zhao's parents are not in good health, and the retirement benefits of the unit are not very good. You can buy some medical insurance for his parents. Mrs. Zhao's parents have better benefits, so accident insurance and critical illness insurance should be considered first.

It is suggested that Mr. Zhao's family insurance premiums should be about 17 yuan per year, and this year's insurance premiums should be paid by the existing demand deposits.

(4) Children's education planning.Invest 5 yuan in growth funds every month.

It is recommended to invest 5 yuan in the growth fund every month to accumulate for Tiantian's future tuition fees.Assuming that the average return of the growth fund is 15% in the next 8 years, the accumulation of small amounts will add up to 173019 yuan when Tiantian is in college, which is enough for Tiantian’s four-year college expenses.

(5) Investment planning.The annual balance is invested in hybrid funds.

Mr. Zhao's family currently has a relatively low ratio of investment to net assets. Through the previous planning, the family has increased security and can have more funds for investment.Moreover, both Mr. Zhao and his wife are risk-loving investors, so they can consider choosing investment varieties with high risks and high returns.

Since investing in stocks is risky and requires time and energy, it is not suitable for Mr. Zhao and his wife who are busy with work and have no investment experience. It is recommended to replace them with partial stock funds.

In addition, the annual balance of Mr. Zhao's family can be invested in a mixed fund, because the main purpose of this money is to provide for the family's unexpected medical expenses or other large expenditures, and at the same time, it can also obtain higher investment returns.If this fund is not used when buying a car in the future, part of it can also be used for car purchase.

"421" families have old and young, young and old, with high daily expenses and heavy life pressure. It is necessary to effectively manage family cash and other liquid assets, save expenses, control consumption, and at the same time open up other channels to increase family income through financial management.

(End of this chapter)