Read the first book to understand investment and financial management

Chapter 45 Retirement plan, how will you support yourself after 30 years (1)
Social security can only maintain the most basic life

For an elderly person who lives a happy old age, the main monthly expenses include daily expenses such as food, clothing and transportation, as well as "pleasure expenses", such as listening to music, traveling, and keeping pets.This requires sufficient sources of funds in old age without a stable job income.Where did the money come from?
Now most urban residents have been included in the social security system and can receive pensions after retirement, but the existing social security system alone cannot achieve this goal.Shanghai is a place where my country's social security system is relatively developed. Some people have done calculations. According to the current pension withdrawal ratio, the social security system can only provide the most basic living security under the premise of a stable increase in the average social wage in the future. The pension provided Basically, it can only reach about one-third of the annual income before retirement, especially for high-income groups.That is to say, if you only rely on the pension from the social security system, your life before and after retirement will change drastically.It can be said that in the next few decades, it is unrealistic for retirees to rely on the social security system to achieve a fulfilling old age.

In addition, due to changes in the social value system and the impact of family planning, a couple in the future may have to take care of four elderly people, and children will no longer be able to support them in the future.In this way, the traditional pattern of relying on society and relying on children to provide for the elderly will change. Therefore, the only way to obtain a satisfactory old age life is to rely on oneself.Combining the social security systems of some developed countries and the evolution of China's national conditions in the next few decades, if there are no retired young people, if they do not have a generous pension fund, it may not be easy to maintain a dignified and decent old age life .

Some financial experts remind that endowment insurance has not been fully popularized in cities, and it is even blank in rural areas. As the population gradually ages, the only child will bear heavy economic pressure, which will cause a series of social problems.At this time, it is particularly important to increase the proportion of insurance assets.

At present, the proportion of families of three is getting higher and higher, and it is common for these families to pay more attention to children than adults when buying insurance, which is exactly the opposite of the views of financial experts.Children are of course important, but insurance and financial management reflect the avoidance of family financial risks. The financial loss and impact of an accident on an adult’s family is much higher than that of children.Therefore, the correct principle of insurance and financial management should be to buy life insurance, accident insurance and other products with strong protection functions for adults first, and then buy some health and education insurance for children according to their needs.And in terms of capital investment, adults should take the majority.

Different stages of life, different professional backgrounds, buy different insurance.An important principle is to buy what you need.Just entered the society, there are many factors of change, and there is not enough social security, so the insurance purchased should be mainly accident insurance and personal insurance.At this time, even if the income is not much, you must not forget to participate in the pension insurance.If the unit does not bear the burden, you have to pay for the insurance yourself.After getting married, starting a business, giving birth to a baby, and accumulating certain assets, health insurance, family property insurance and other insurance types should be supplemented in time.After the age of 50, health insurance becomes essential.If you think about buying medical insurance after the age of 60, it will be too late-many insurance companies refuse to accept it, and even if they accept it, the premium will be much more expensive than buying it earlier.

The current social security system can only maintain the most basic life. With the rise of commodity prices, it is unrealistic to rely on the social security system to achieve a rich old age life in a few decades.This requires you to make retirement plans as early as possible, manage your finances through multiple channels, and provide a solid guarantee for your future elderly life.

Start preparing a million-dollar pension fund

Nowadays, many young people focus their financial management goals on houses, cars and children's education, and don't think too much about their retirement life, which is quite dangerous.Especially for the current high-income class, if they do not have a certain amount of accumulation, their quality of life will be greatly reduced if they rely solely on pensions after retirement.

So, how much pension does everyone need to live a comfortable life?According to relevant financial experts, considering that most people's demand for money will decrease after retirement, such as housing costs, children's education costs, etc. will decrease, while medical care, travel and other costs will rise, and several costs will increase and decrease each other. We assume that the cost of expenditure is reduced by 50% compared with that of working, which should be a relatively large reduction. Even so, the pension is still not enough to maintain a high standard of living.

Calculated according to the ideal annual increase of per capita social wages and bank interest rates, young white-collar workers in their 30s and 1s will need to prepare a pension fund of no less than [-] yuan in the future. This figure has not taken inflation into account. The absolute amount It is quite a lot.

To prepare a pension fund of more than one million yuan for yourself, obviously you can't expect pie in the sky.The only way is to start making more money and manage your money well from now on.Financial management is not like buying a lottery ticket. Once you win the first prize, you can once and for all.Financial management is a lifetime thing, so accumulating pension requires lifelong financial management.Lifetime financial management refers to a person's comprehensive use of various investment and financial management means in the long time span of his life and in the broad space of the life stage, and the arrangement and planning of personal family assets with the goal of focusing on personal family life arrangements.

It should be said that the biggest purpose of financial management is to cope with various uncertain factors with a certain source of income. Therefore, the key to the success of life-long financial management is to maintain confidence, patience and normalcy in the process of investment and financial management.This requires:
First, do financial planning early.Set a reasonable life-long financial management goal, formulate a scientific long-term investment and financial management plan, and strictly implement it.

Second, save and invest early.Due to the compound interest effect of funds, the earlier savings and investment, the better. From the first day of work, you should contribute to your retirement plan.

Again, purchase proper insurance.Insurance can not only protect the family from economic losses caused by unexpected events, but also has a certain function of forced savings and financial management, and can have a fairly stable income in the future.

Then, take reasonable risks.The relationship between investment return and risk is directly proportional.To obtain a satisfactory return on investment, you must bear certain investment risks.Investment risks should be reduced and avoided through a reasonable investment portfolio.

Last but not least, invest in the long term.Long-term investment is the only way to obtain long-term and stable capital growth.The average rate of return of short-term, gambling-like investment behavior for getting rich overnight is often lower than long-term stable investment returns, and at the same time, it also bears high risks.

Of course, all financial management needs to deal with numbers and money. Judging from foreign experience and the current domestic actual situation, due to the existence of the power of compound interest, young white-collar workers do not need to save most of their funds for retirement. A more reasonable investment ratio It is to set aside 10% of income every month to save in banks, buy funds, buy stocks, and buy insurance. As long as a certain rate of return can be maintained, a pension of one million yuan can always be accumulated after retirement.

Cultivate the habit of life-long financial management, persist in investment, persevere, contribute to the pension project, and through the compound interest effect of funds, the dream of a million-dollar pension will surely be realized.

The sooner you start building a retirement plan, the better

If you're in your 30s or [-]s, start saving now and you'll be financially secure for decades to come.

People tend to spend their lives in a daze, forever struggling to reach their next financial goal.Once they enter the workforce, they buy a car and a house before turning their attention to child support and education through college.Finally, in their 50s and 15s, they focus on pensions and spend the next 20 to [-] years working to save enough for themselves.

However, if you dig deep into the potential of saving and save wildly in your 30s and [-]s, this lifelong financial passive situation can be avoided.Listed below are just a few of the benefits of saving early.

It is not easy to rely entirely on salary every month, and you have to worry about dealing with the next big expenditure from time to time.The advice of financial experts is to tackle this problem at a young age.

If you've saved a decent chunk of money in your 20s and 30s, you have a lot of leeway in how you spend it.Yes, in your 50s you can shrink your pension savings and use your cash to buy another house, go on a more luxurious vacation, or financially support your children.But if you continue to save aggressively, you can retire in your [-]s.

(End of this chapter)