The poor are poor, the rich are rich

Chapter 97 5 Choosing the Right Investment for You

Chapter 205 Choose the investment that suits you

When you do anything, you must choose what suits you, and if you do something that is not suitable, the result can only be counterproductive.Just imagine, if Yao Ming is allowed to switch to weightlifting, will he dominate the world like he is on the NBA court?The same is true for investment. If you go to an investment project where others have made money, you may lose everything.

Therefore, what suits us is the best, so how should we choose the investment that suits us?Experts suggest that we pay attention to the following points:

First, choose an investment that matches your risk tolerance.The investment of different investors should be different.Prudent investors pay more attention to the safety of funds and can choose investment tools with fixed income such as treasury bonds; while those investors who are willing to take greater risks in order to obtain more returns and value-added investors can concentrate on choosing common stocks, especially those with Common stock with growth potential.Of course, these investments should be based on the risk that your net worth can bear.Otherwise, regardless of their own risk tolerance, blind investors will often suffer heavy losses.

Second, choose investments that are closely related to your hobbies.With the increase of people's economic income and the improvement of living standards, investment products such as stamps, calligraphy and paintings, jewelry, antiques, and coins have also begun to enter the homes of ordinary people.Obtaining rich economic benefits and spiritual edification by investing in collectibles is a beautiful thing that kills two birds with one stone.

In addition, choosing an investment that suits you should also be based on your family income.Listed below are investment plans suitable for different income levels for your reference.

1.Investment suitable for low-income and middle-income families
Low- and middle-income families are a relative concept, and there are different division methods in regions with different levels of economic development.For example, in Beijing, a family of three with an annual income of 5 yuan or less is considered a low- and middle-income family.

Ms. Wang is 24 years old this year. She works as a kindergarten teacher. Her monthly income is about 2500 yuan. She has only worked for one year.Her boyfriend is in the army, and the expenses are small, but the income is not high, only about 2000 yuan.Miss Liu plans to marry her boyfriend in 2012.Their current assets are all bank deposits, about 10 yuan, and they plan to buy a second-hand small apartment in the suburbs, with a down payment of more than 6 yuan.I want to rent it out for a few years first, and then simply renovate it for my own use before getting married.Having studied economics, she formulated an investment plan that suits her:
(1) Appropriate risk taking is better than risk avoidance.Investment can be based on one's own risk-taking ability, and appropriate and proactive risk-taking in order to obtain higher returns.For example, the rate of increase in medical expenses is much higher than that of deposits. If you want to obtain comprehensive medical services in the future, you must pursue higher investment returns now, and therefore must bear greater investment risks.

(2) Buy second-hand small houses in the suburbs and invest appropriately.You can buy a second-hand house with a 20-year [-]% combination loan, leaving funds, and converting bonds is a good investment direction.This kind of bond usually has interest income, and when there is a price difference, it can also be converted into stocks to make a lot of money.Investing in this kind of bond will not affect the major arrangement of the family's house purchase due to the loss of principal, and has the possibility of earning high returns.

(3) Investment protection insurance.Ms. Liu considered that her boyfriend works in the army, and all kinds of guarantees are sound.

2.Investment suitable for middle and high-income families
At present, there are about many Chinese urban families that can be called "middle and high-income families". The annual income of these families is around 10 RMB; Personal deposits in commercial banks account for more than 12% of the total, and contribute more than half of the profits of the entire Chinese banking industry.

Rising wealth is contributing to changes in investment attitudes and industries among middle and high income earners in China.This change is first manifested in the willingness of "affluent" customers to make multiple comparisons when choosing personal financial service products.In the survey, 73% of the respondents believe that it is worthwhile to invest in choosing personal financial service products, while this proportion is only 56% in Asia as a whole.At the same time, the proportion of these "rich" customers who are willing to pay for good personal financial services is also higher than the overall level in Asia.In other words, middle- and high-income earners in China are more willing to pay relatively high prices for good financial products and services.

Another change is in borrowing.People are more and more willing to take loans from banks. 62% of the respondents said they would like to borrow money for consumption. This does not include mortgage products, and the proportion of young respondents who hold this view is as high as 93%.However, Chinese banks are currently unable to meet these loan needs.McKinsey’s report pointed out that middle and high-income earners in China are relatively low in satisfaction with current financial institutions, with only 65% ​​of respondents satisfied with current financial institutions, which is lower than the overall level in Asia of 75% in Asia. Ranked third from the bottom among countries and regions.These wealthy clients have increasingly been attracted by foreign banks.

Chinese local financial institutions need to establish a risk assessment system for retail customers as soon as possible, considering the profitability of each customer group and product.But now most banks lack a performance measurement system, neither can determine who is the best customer, nor can they measure the profitability of each customer group.In addition, there is a need to segment customers, especially to provide differentiated services for the 4% of "affluent" customers.

Therefore, the investment planning of these middle- and high-income families generally focuses on personalized financial services, and various new financial products and financial instruments are the objects of their favor.

3.Investment plans suitable for high-income earners
A family with an annual income of more than 20 yuan will increase consumption and investment in tourism and education. For families with an income of 6 to 10 yuan, about half of the people are willing to increase tourism consumption, and then increase education, household appliances, housing consumption, and purchases. Willingness for computers, family cars, communication tools, insurance, fitness and entertainment.However, these high-income families are saturated with the necessities of life, and they are in the upgrading period of consumption structure. There are too few consumer goods that can satisfy this group of people, and the market is too slow.

When wealthy families make investment plans, they first consider automobiles, housing, and education.Plus, high-income hierarchies are willing to invest the majority of their income.Statistics show that regardless of existing investment or future investment, high-income families are targeting securities investment, such as government bonds and stocks.Therefore, it is necessary to formulate corresponding consumption and investment plans before investing.

(End of this chapter)