The poor are poor, the rich are rich

Chapter 72 4 Investment and Financial Planning for Retirement

Chapter 154 Investment and Financial Planning for Retirement

Retirement should be regarded as a relatively leisurely period. There is no need to worry about going to work, and you don’t have to be bound by the nine-to-five schedule. Personal expenses are relatively small. So how should you manage your money during this period?Let's take a look at a case.

Professor Li, 60 years old, was rehired by a university after retirement.His wife is 55 years old and has just retired.His son is 26 years old, has worked for 3 years after graduating from university, and is unmarried.

Professor Li's family has an annual income of 5.4 yuan, including 3000 yuan a month from the couple's pension, and 1500 yuan a month from the school's re-employment salary.The existing bank deposit is 50 yuan, the husband and wife both have social pension insurance and medical insurance, and the existing four-bedroom and two-living house worth 60 yuan.

Professor Li doesn't like investing in high-risk instruments such as stock market and futures, but he wants to achieve his financial goals through investment: donate 30 yuan to buy a house when his son gets married; maintain the current level of retirement life in the next 20 years; establish a reserve fund 20 yuan will be used for future medical expenses or as a gift to the son's next generation as an education fund after 20 years.

case study:

At present, Professor Li's family net assets are 111 million yuan, including 51 yuan in cash and cash equivalents, and 60 yuan in real estate, accounting for 45.9% and 54.1% respectively. Fixed assets account for a large proportion, and financial assets are too single.Considering the factor of inflation, it is recommended to consider other investment channels to maintain asset appreciation.Professor Li’s family’s annual income is 5.4 yuan, total family expenditure is 4.05 yuan, including 1.65 yuan for daily expenses, 1.2 yuan for health care and tourism, and 1.35 yuan for the year.Professor Li and his wife have a relatively stable source of income, with ample liquidity of assets and no debt, but the savings rate is low and the consumption rate is high.It is recommended to appropriately increase wealth management income or reduce consumer spending.

The risk tolerance of the elderly decreases with the reduction of income, while health factors will lead to increasing expenses.If you want to maintain your original standard of living after retirement, you should carry out retirement planning as early as possible.Therefore, when the elderly invest in financial management, they must first guard against risks, and then pursue returns.

1. Cash planning advice.With the growth of age, the medical expenses of the elderly will gradually increase. According to the family expenses of Professor Li, an emergency reserve fund of about 2 yuan should be reserved.Emergency reserves can consider bank deposits, money market funds or short-term bank wealth management products in order to obtain relatively high capital liquidity and recent returns, especially money market funds, "zero subscription fee rate" and "zero redemption fee rate" It can reduce the cost of investment, provide more short-term profit space and good liquidity.

2. Risk management advice.From the perspective of risk control, the elderly should first consider insurance products.But in the insurance industry, the options available to seniors are very limited.Domestic insurance companies generally limit the insured age to less than 65 years of age, while major disease insurance limits the age to less than 60 years of age.Judging from the old-age insurance products currently on the market, Professor Li can consider buying an accidental injury insurance specially designed for the elderly; in addition, he can also consider buying professional health insurance. Risk, the insurance premium budget is about 1 yuan.

3. Investment planning suggestions.After carrying out the family emergency reserve fund and insurance coverage, it is recommended that Professor Li make diversified investments in the remaining bank deposits.Among them, 10 yuan is to buy stable income products, such as certificate-type or electronic treasury bonds, or bank wealth management products with more than one year; the remaining 1%~60% of financial assets participate in floating-income investment portfolios, of which about 70% is 20% If 10 yuan is allocated to growth assets, you can consider choosing hybrid or stock funds with greater potential for medium- and long-term value-added.The remaining 29 yuan is allocated to stable assets, of which bond funds and capital preservation funds are the main ones.For the existing savings balance, after about 3 months of emergency reserve, you can also invest the entire amount in stock funds, bond funds (or treasury bonds) and money market funds (or bank deposits) at this ratio.At the same time, considering that the son will live alone after marriage, he can also carry out the house exchange plan, that is, sell the current four-bedroom and two-living house, buy a two-bedroom and one-living house to live in, and invest the remaining funds according to the above ratio.

From the above cases, we found that financial management during retirement is also very important.The financial management during retirement is also different from that during normal work. We need to plan and prepare early.

(End of this chapter)