Read the first book to understand investment and financial management

Chapter 46 Retirement plan, how will you support yourself after 30 years (2)
As for what kind of investment portfolio can accumulate its sufficient security pension, everyone's plan and tools may be different.But two principles should be followed, one is long-term stable investment, and the other is rational allocation of portfolios.Financial management tools that are more suitable for pension plans include bank savings, government bonds (the longer the term, the greater the interest rate risk), corporate bonds with high credit ratings, dividend pension insurance, and income stocks (there are relatively stable cash dividends every year, At present, there are no real income stocks in the domestic stock market), open-end funds (try to choose prudent ones with less risk), moderately priced commercial housing, and low-risk trust products (the risk of trust is proportional to the rate of return), etc.

Some people say that compound interest is one of the greatest miracles in the world. Regardless of whether this statement is exaggerated or not, the power of compound interest makes it possible for everyone to accumulate a solid pension fund.

For a simple calculation, suppose a 30-year-old young man invests 10 yuan now and maintains an average annual rate of return of 10%. After that, no additional investment will be made, but all the interest earned will be invested.Then 10 years later, he will have 2594 million yuan. In another 10 years, his wealth will be 6727 million yuan. By the time he is 60 years old, this money will reach 17449 million yuan. , and finally owned 10 million yuan.We can find that the later, the wealth grows faster.And if he didn't start managing money until he was 70 years old, then the above conditions would remain the same, and he would only have 453 million yuan by the age of 35.In the last five years of financial management, the difference in final income was 70 million yuan.This is the power of compound interest.

Therefore, for anyone who manages money in order to build his dignity in his later years, time is very precious. The earlier he manages money, the sooner he can realize his dream and accumulate enough pension.

Time flies by like a fleeting horse, and the elderly care project should not be careless.The sooner you plan, the sooner you will benefit, and you can plan and arrange your retirement life in advance, so that you can live a happy life without worrying about food and clothing in your later years.

Planning pension should take into account the current income level
Assuming that Mr. A is 30 years old and works until he is 60 years old, then he has 30 years to arrange his own pension plan.

[-]. Pension budget

According to the current standard of living, the basic living consumption of a couple is about 12 yuan a year.Live a little more comfortably, about 3 yuan.So how much will it cost in 30 years?I am afraid that it is difficult for anyone to give a definite answer.If it is simply calculated on the basis of a 5% increase in annual consumption, then after 30 years, these two figures will be 5 yuan and 13 yuan respectively.Subtracting the endowment insurance provided by their employers, all they need to prepare is the part of the money that makes them live more comfortably, which is about 8 yuan per year.

[-]. Preparatory plan

A now spends 70 yuan a year to arrange pension plans.If you invest 70 yuan per year and achieve an annual rate of return of about 8%, then you will have about 30 million yuan in 856 years.But according to the above calculation, it costs 8 yuan a year, and the money will be spent in 10 years. Could it be that after they are 70 years old, they can only live on a little social security pension?Don't forget that the consumption level is increasing year by year, and the income level cannot remain unchanged forever. If the investment in the pension plan is appropriately increased year by year, the situation will be very different.

The following is the calculation result obtained after comprehensive consideration of these factors.

The hypothetical conditions are as follows: start to implement the pension plan at the age of 30, and invest 70 yuan in the first year; then increase by 5% every year, calculated according to the annual rate of return of 8%, and the amount owned by the age of 60 will be 150 million yuan.According to such a financial plan, A's affluent old age life is completely guaranteed.

When it comes to investment methods, the most important thing about pension investment is safety, so government bonds are the first choice.Maybe some people don't understand, isn't it meant to achieve an 8% annual rate of return?How can the current national debt be so high?Please note that the plan is calculated based on a 5% increase in annual consumption, and now, our price level has not risen, but has dropped slightly, so the current annual rate of return of 3% is still satisfactory.The second is the new fund. Although the current performance of some new funds is very good, its profitability is always based on the stock market, and it is relatively risky, so it is only listed as the second.

[-]. Principles of financial management

(1) Live within your means.Only by developing good savings habits can we ensure a safe and worry-free life for the rest of our lives. (2) Portfolio diversification.Adopt an aggressive investment strategy and implement investment diversification. (3) Avoid high-cost liabilities. (4) Formulate contingency plans.The most important thing is not the cash itself, but the way to realize it in time. (5) Take care of the family and support the old and the young. (6) Do a good job in property planning.That way, family members know what to do with your property in the event of an accident.

Elderly people are in a high-risk period in life in terms of economy, medical care, and life care. When they are young and able to work, early preparations for the funds and sufficient protection required for old age can make their lives stable and worry-free.According to statistics, the average life expectancy of men in my country is 69 years old and that of women is 74 years old.With the continuous advancement of technology, the average life expectancy of people continues to increase. The number of elderly people over the age of 80 is increasing at an average annual rate of 46%.For families and individuals, it is necessary to make a retirement pension plan for yourself.

Since the most basic requirements of pension plans are to pursue principal security, moderate returns, resist inflation, and have certain mandatory principles, it is necessary to separate pension plans from other investments.Commercial endowment insurance, as an important supplement to China's endowment security system, is a good choice for endowment planning, because it can flexibly plan and choose independently according to one's own financial ability and future expectations, so purchasing commercial insurance has become a popular choice for people to plan their endowment life. The most important way.

Suggestion: The supplementary pension obtained by purchasing commercial pension insurance accounts for 25% to 40% of all future pension expenses.

When choosing commercial insurance to formulate a pension plan, you must first pay attention to the protection function so that you can still have a stable income after retirement. This is the most important function; the second is to pay attention to value preservation, which depends on the pension you plan for your future Whether the money can meet the consumption level at that time; the third is to buy insurance as soon as possible. Although the pension is a matter of 55 or 60 years old, the younger the age, the lower the insurance price and the lighter the burden on oneself.

To establish an endowment insurance plan, you should not be unrealistic and ambitious. You should do what you can, fully consider the current income level, and make a reasonable choice in combination with your daily expenses, future life expectations, and inflation.

People are retired, financial management cannot be "retired"

After the elderly retire, they generally have some savings or retirement funds for retirement, but in the face of changes in the market economy and increasing expenditures, the elderly also have the need to "make money with money" for financial management.So, how to conduct investment and financial management, that is, "make money with money" and avoid investment losses?

Priority should be given to investing in safety against risk.Although there are many types of investment at present, not every investment is profitable.Generally, if the investment income is large, the risk is also large, and this kind of investment is not suitable for the elderly.At present, the vast majority of elderly families should stick to the interest income from deposits and national debt as the main guidance, and avoid too high a price.It would be more appropriate if most of the pension money is deposited in the bank or used to purchase treasury bonds, financial bonds and other investments.Because, although the interest income of these relatively conservative investments is not high, they are based on the actual situation of elderly families, and the first goal is to ensure the success of their large-scale investment. The investment income is both safe and Safe and risk-free.

In the investment activities of deposits and bond purchases, attention should also be paid to the country's investment policy orientation and changes in interest rate levels. Because the elderly have strong analytical and judgment skills, they can pay attention to grasp key investment varieties and use investment strategies flexibly.Any household investment is inseparable from the country's economic background. In recent years, in order to expand domestic demand and stimulate consumption, the country has continuously lowered deposit interest rates and imposed personal income tax on deposit interest.At this time, tax-free treasury bonds and financial bonds with higher interest rates should be the main types of investment for elderly families to generate wealth.For savings deposits, when it is predicted that the interest rate will go down, the deposit period should be "longer" to lock in the high interest rate space of your deposit in a certain period of time in the future; The deposit should be "short" in order to minimize the interest loss caused by early withdrawal and transfer.If there is a large sum of funds that is temporarily idle, but it will come in handy in the near future, you may wish to deposit a "notification deposit". The following fixed deposits; or to deposit for half a year, even for 3 months, is always higher than the interest rate of current deposits.In short, we should proceed step by step and use various investment strategies flexibly.

Under certain prerequisites, a small number of elderly people may wish to moderately invest in the combination of "safe investment + risk investment" such as buying and selling stocks, but they must not use urgent money for risk investment.Paying attention to safety in investment does not mean that risky investment cannot be made.In fact, any successful person who invests and manages money in contemporary society has made a combination of "safe investment + venture capital" investment, the purpose of which is to exercise oneself and seize opportunities skillfully.

In addition, according to the principles of "safety", "liquidity" and "profitability", if the elderly choose the proportion of investment portfolio, the proportion of savings and national bonds should account for more than 85%, and the rest of the investment can be distributed in corporate bonds, funds, etc. , stocks, insurance, collections, and industrial investment.In addition, the elderly should not engage in excessively stimulating and varied investment activities, and everything should be beneficial to the improvement of physical and mental health.

Retirement does not mean "retirement" in financial management.After retirement, you can choose financial products with low risk according to your own economic situation to conduct appropriate financial management, increase income, and make your life more stable and comfortable in old age.

(End of this chapter)