Sima Qian in “Historical Records” wrote: “The wealth of the Road, Mo wins to, but more than a clever person, who less than humble.” This is the ancient understanding of the significance of financial management. The twenty-first century, professionals have wealth tied up what is not, effective use of their wealth to enhance the quality of life, rich meaning of life, the need for more wisdom.
Personal finance market in China, in 2005, due to increase in the size and financial resources more variety, known as the “financial first year”, now has access to a popular rising in the spring. According to McKinsey’s survey shows that in the past 6 years, the Chinese market, personal finance the annual business growth rate of 18% expected in 2006, China’s personal finance market will reach 57 billion U.S. dollars, the future growth of the financial markets 10% -20% annual rate leaps and bounds. Personal finance market is not only financial institution in the eyes of the “cake”, but also test the wisdom of investment in the game field.
Recently, the agency announced the ranking in 2005 showed that income financial products, financial products are good and times, the gap and the poor, number one is a bank issued a HK-year product, its revenue earnings for the year Hong Kong dollar deposit 5.86 times, while the last one came in RMB financing products, the annual yield is only 2.72%, basically the equivalent of time deposits. Therefore, investors choose how to establish investment philosophy and financial products, wealth preservation and appreciation for the essential.
However, many people for the “Personal Finance” concept is not very clear, and even the existence of errors, such as the risks and benefits, as well as recent and future trends in the timing of judgments and other aspects and the overall lack of full understanding of considerations. With many problems, the reporter interviewed the Master and Dr. Zhang Wei Fang Jianqi. Their theory and practical personal finance has a strong foundation and rich experience. We strive to reports out of the profound scholastic form, highlighting the fresh, practical features, the real draw to the reader to play the role of financial management.
Reporter: Do you work in the personal finance industry for many years, your personal and family financial management is how to recognize it?
Fangjian Qi: The international authority of the professional bodies to personal finance is defined as “living through the financial planning to cover the gap between current situation and the behavior of the target,” “rational use of financial resources to develop and achieve personal goals in life program . ” Since the work done 5 years of psychological counseling reasons, in my mind there is a very clear impression is: family and marriage, family happiness and family or financial highly correlated. I understand the main aspects of the financial management, there is a difference at home and abroad. More individual basis of foreign and domestic more than that family as the unit. So, my personal understanding of financial management also has a strong family color, that is, “is to achieve financial well-being and improve family life, family life level, people have done in terms of money and the specific implementation of the long-term planning.”
Sufficient to maintain the one hand through the Financial expect your standard of living, on the other hand to avoid risks, and for their own children do a background, this is the best financial goals. Fiscal first focus is to pursue a long-term financial balance, standing financial point of view, a person’s life can be divided into seven phases, each phase of the financial demand situation will be different, so people in the financial O’clock To focus on long-term, to ensure to have a long-term financial balance. The second focus of financial management is to be done in various stages of the family short-term financial balance. For example, many families are now burdened with the heavy car loan, mortgage burden, particularly worried about unemployment and sickness or other accident, through the financial plan, one can guarantee not to devalue the money at home, on the other hand there are unexpected When can deal with.
Reporter: Do you believe that the personal or family financial management should avoid the errors are what?
Fangjian Qi: First of all, there must be proper financial management concepts and behavior. Some people think that financial management is stingy, some people think that financial management is an investment, these are relatively one-sided understanding. The basic idea of financial management should be: first, insurance, and then the emergency, then the loan and, finally, investment and consumption; rather than in reverse order to financial management. Currently, most people may have been the first of consumption, investment, after the loan, I think it is not desirable.
Second, to overcome the financial management is the idea in order to obtain high-yield errors. Financial goal is to “sort out the wealth, value-added life.” Combing through the wealth means to achieve this purpose to enhance the standard of living. Only through this concept to guide people not to take the money with money, money management as to avoid people going into the blind pursuit of profit and return on financial errors. So, I think that the ultimate goal of financial management is not “more money by making money” and should be “appropriate use of money with more money.” Because of the higher expected return, the potential risks and losses will be greater. To the blind pursuit of higher returns, are likely to cause financial chaos, more money the less money is very difficult to achieve financial balance. For example, I once did a radio and a host live financial planning program, one listener called and said his father would not let him financial management, his father told him “you are the reason the reason for will jump. ” This shows that in the financial existence of his father on the concept of “financial management is to obtain high-yield” such errors.
In addition, the financial management must pay attention to make good use of “financial leverage” This is the “double-edged sword.” Taking into account the “financial leverage” to gain amplification, but also must not forget the “financial leverage” on the risks but also have the same amplification. For example, a person in the real estate the rising period, the use of loans to buy several sets of a real estate for rent, the purpose is to have access to greater benefits in the future. In his thinking, his use of the “financial leverage” to gain amplification, but he ignored the “financial leverage” amplification of risk. Also proved this: the location, he received only a rented house rent, the other sets are not rented out to do so, he had to bear the enormous pressure of repayment.
Reporter: In your opinion, the most in the financial management process should avoid is the kind of financial means?
Fangjian Qi: Money must be avoided “dumbbell” financial management, is a typical “no risk or low risk income products + very high risk income products” financial portfolio. This asset allocation approach, similar to a two big middle small dumbbell, so named for the “dumbbell” finances. “Dumbbell” way of managing money, the end of the financial management is very aggressive species, such as stocks, foreign exchange, investment property; the other side, in contrast, is a very conservative financial management species, such as savings, bonds and so on. In the high-yield, high risk and low-risk, between low-income financial products, almost no “mean” the transition of products. “Dumbbell” asset allocation, the family assets to invest in high-risk and high return financial products and investment in low-risk and low return financial products, accounting for the majority of the proportion of household assets, often 95% or more, or even 100%. For example, a family with 100 million yuan of assets, but may demand deposits of 50 million and 50 million shares, one end of a very conservative investment, but do not make money in the plate, the other end of the plate to invest in risky, no transition between sections. By the middle of bonds, funds and other financial products to the transition, a result of the plate is not to make money constantly shrinking, to make money extremely risky. As people are likely to increase financial literacy, so that the family is gradually less.
Reporter: Do you have any suggestions for white-collar financial management?
Fangjian Qi: Note organize their financial management, for example, depends on the necessary safeguards are not, is there a large number of inappropriate asset allocation (savings, stocks) and so on. On more than 1 million a month income families, how to finance it?
First, families need to prepare contingency reserve. The purpose is to reserve in the event of unemployment and their own misfortune, there is cash to pay for this part of the ultra-short-term financial costs. The amount of the general reserve of 9 months by the family’s gross monthly expenditure on the line. In addition, the reserve requirement to have very good liquidity, it would be best to demand deposits, notice deposits and money funds which can be realized in the form at any time to prepare for emergency expenses.
Second, prepare the necessary commercial insurance. The first is to buy accident insurance. If you are a pillar of the family, the main source of household income, more than the responsibilities and obligations, it should be in line with the principles of investment after the first security, a certain amount to buy their own insurance. How much on the specific commercial insurance appropriate, should first calculate the liabilities of the family, and then select the appropriate insurance coverage, but the insured amount at least equal to or greater than the family’s debt. Thus, when an accident occurs, the whole family will not have a greater economic loss. Second, is to buy some serious illness insurance, my advice line at least 10 million yuan.
Third, the cost of buying enough for old-age insurance. Like a leafy tree to remain healthy and strong, it has the same need for a large root system to support the truth, like a person in a good old-age security in old age, he should at least start from 35 years to consider their own pension plan key , at the latest 40-year-old should also be started in the execution. If a person retiring at age 60, lived to be 80 years old. So 20 years after retirement is like tree branches and leaves, also need time to prepare for 20 years, that is, at least 40 years old to start their own retirement savings and pension plan reserves to make his old age adequate protection for retirement. Of course, if a man wants to retire early, he’s pension plan should also think ahead.
Fourth, the focus of financial products for investment. Protection of the above three points are discussed in class financial management. The investment is also an important part of financial management, people can pick up the slack and lack of investment. Each family should choose according to their characteristics and investment financial products. 2006 to focus on products such as trust, I think trust is a moderate risk of financial products more suitable for the family have sufficient funds to invest. In addition, as a relatively high transparency of the Fund, should also be a good investment choice, the domestic funds have just 4 years of development experience and prospects. Fried gold, is a “Strip”, there should be many opportunities, but do not chase sell, a qualified financial experts to help you. In addition to speculate in gold directly, as well as gold and silver coins, jewelry, gold bars, paper gold, and many other varieties to choose from; for art collections, high-end people may wish to focus, but because it involves various fields of knowledge, but also need to be careful.
In addition, the white-collar workers themselves take the initiative to focus financial knowledge, financial products and financial markets. Through self-understanding of basic financial knowledge, financial planner can also be active and contact and communication, listen to their suggestions and comments, and inappropriate time to change their existing financial management concepts, improve their financial management skills; not blindly buy financial products, especially some of the risks and benefits not commensurate financial products.
related to hot words: family financial balance
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