How to finance for novices?
Novice can choose financial products according to risk, income and duration. Investors with low risk tolerance can choose products with risk level R2 and below, while investors with high risk tolerance can choose products with risk level R3 and above.
Risk is in direct proportion to income. Under the same risk level, you can choose financial management with high yield; Investors with high liquidity requirements can choose financial products with short investment period, while investors with low liquidity requirements can choose financial products with long investment period.
First, the piggy bank. For children, it may be the safest to put money in the piggy bank in the form of cash. However, cash cannot increase in value here. There is also a risk of being stolen or spent. Even some elderly people have the experience of being gnawed by mice when they put their savings in the shoe box, so it is better to put the money jar. Although our country still has interest on saving money, in fact, some countries such as Japan and Europe have negative interest rates, and the amount of money in banks will shrink. Perhaps the way of saving money in a piggy bank is really a method.
Second, deposit. Saving money in the bank is probably the most acceptable way. Although, for everyone, this deposit is a series of figures recorded in personal accounts or passbooks. But for these figures, the state has generally established a deposit insurance system to protect them. The deposit insurance system is the country's limited liability system for deposits. The principal and interest within a certain amount can be fully guaranteed. For ordinary people, a deposit insurance system is enough.
Third, national debt. It is also safe to put money in national debt. After all, national debt is guaranteed by the country's reputation, and the country will ensure that it is paid on time. But buying bonds depends on robbing. National debt is generally issued by the Ministry of Finance through the bank underwriting syndicate. There is a limit on the amount of treasury bonds issued each time. If you want to cash in advance, you can do so, but you need to be charged by the bank a handling fee of no more than 1 ‰, and lose some interest at the same time.
Fourth, bank financing. Bank financial products are also divided into risks. The higher the risk, the higher the income. Generally, the security of some parts below PR3 is very high, with few losses, and the corresponding interest rate is generally around 4% - 5%.
In fact, many bank financial products invest in stocks, bonds or funds to earn high returns. In order to cut the risk of financial products of banks, the state requires banks to set up special bank financial subsidiaries to divide limited liability.
Fifth, the stock market. The sharp fall of the stock market a few days ago has given many of us the opportunity to copy the bottom. However, it is better to participate in the stock market investment through long-term fixed investment. After all, it is difficult for individuals to judge the right buying opportunity, and long-term fixed investment can effectively avoid risks. The stock market is actually one of the most insecure places in investment and financing, but it is also the most profitable way, second only to futures or spot investment products with leverage.
Sixth, insurance. Insurance is one of the safest investment and financing tools. The insurance can be carried out in strict accordance with the insurance contract, but the insurance requires a handling fee. If we invest 10000 US dollars, perhaps one to two thousand US dollars will be charged as account establishment and management fees, insurance agent commissions, etc., which will lead to short-term losses. However, even if the life insurance company fails, the insurance contract will not be invalidated, and the CBRC will designate a new insurance company to undertake insurance policies. Therefore, insurance is the safest way of investment and financing.
We should understand the difference between investment and finance and insurance. The principal of our investment and wealth management will not be used, and the service charge will be collected in a clear way. If we recover the principal, we can generally get it back. The premium charged by the insurance company belongs to the insurance company. It has nothing to do with individuals anymore. The insurance company will only perform according to the insurance contract.
Seventh, real estate. In fact, real estate is a very simple way of investment and financing. No matter the price rises or falls, at least the house is there. You can live by yourself or rent to others for rent. Of course, the vast majority of people put their money in their houses as an investment and financial tool, hoping that the houses can increase in value.
