As we all know, inflation is also the driving force for our investment and financial management. If the annual living expenses of a working family are 50,000 yuan now and the annual inflation rate is 3%, then the annual living expenses will become126438+040,000 yuan in order to maintain the current quality of life in 30 years. Don't forget that inflation is superimposed, and the level of inflation is likely to accelerate rather than be uniform.
Besides, money has time value. Even without inflation, money today is more expensive than tomorrow. Therefore, if you sacrifice your currency use right today and save it, the bank will give you interest, which is the reward for your "sacrifice" enjoyment. Why do you say that you must choose a mortgage for 30 years to buy a house, and how long must you choose the payment method for buying insurance? Because money is the most precious now, don't care about that interest. 10 years later, you will feel that it is all floating clouds.
Three elements of compound interest: initial investment, rate of return and investment period.
Of these three points, the investment period is the most important. Suppose you start investing 1 1,000 yuan every month at the age of 30, with an annual yield of 9%. If it is maintained for 30 to 60 years, the income will be 1.78 million. But if you start investing at the age of 40, and invest 2,000 yuan a month for 20 years, the income is only 1.34 million! Just delay the investment 10 year, even if you invest more 1000 yuan every month, the income will be reduced by 440 thousand! Therefore, the compound interest effect is good and the time cannot be less.
Similarly, if you invest 1 0,000 yuan per month, if you start investing at the age of 40, you must earn more than10.78 million in principal and interest income at the age of 60. But in reality, it is very difficult (and the risk is higher) to achieve the annual average rate of return above 16%, and the annual rate of return of 9% is relatively easy to achieve. (For example, Zhu Meng series product Zhu Meng 1 1 currently recommended by Zhongrong Kunrui Fund Company, with investment of 2 years, performance comparison benchmark (annualized) 12%, minimum investment period of 6 months, expected annualized rate of return of 9%, and risk rating of r 2 robust). (Add fhzm 168, invest in excellent assets of infrastructure projects, and grasp the new direction of asset allocation in 2020).