This book provides some useful tools for Asian investors to help them:
1) Examine your own financial situation, 2) Establish financial management objectives, and 3) Plan for long-term financial security.
The book mainly discusses the following issues:
1) Optimize the long-term growth potential of the portfolio; 2) How to invest in the same fund; 3) The importance of asset allocation; 4) Hedging risks; 5) Use tailor-made structural products; 6) Low-risk foreign exchange transactions; 7) Successful retirement plan; 8) Reduce risks through insurance.
catalogue
1, long-term accumulation of wealth; 2. Life stage: financial goals that change with time; 3. Your financial planning: starting point and goal; 4. Cash; 5. Debt management; 6. Foreign exchange; 7. Get professional help; 8. Bond market; 9. Stock market; 10, collective investment; 1 1, derivatives; 12, protect you and your family with life insurance; 13, retired
Main point
1, the long-term accumulation of wealth
In the long run, rigorous and moderate financial management methods often have better results; At the same time, long-term investment can reduce risks.
Asset allocation: The main purpose is to distribute your investment in asset categories with low correlation with each other, so as to reduce the risks faced by the overall income.
Target-oriented asset planning, the pyramid of reasonable adjustment and balance of asset allocation-real estate, securities (funds, stocks, bonds) and cash.
2. Life stage: financial goals that change with time.
Four stages of human capital: 1) youth, 2) getting married, 3) middle age-the peak of career, and 4) retirement.
Financial planning at different stages: 1) expenditure, 2) security, 3) savings/investment.
3. Your financial planning: starting point and goal.
Income and expenditure: 1) annual income and expenditure statement, 2) balance sheet.
Three elements of wealth accumulation: 1) property distribution, 2) life stage and 3) financial planning.
4. Cash
1) holding foreign exchange; 2) inflation; 3) Cash security: (1) Rating agencies: Moody's, Standard & Poor's, Fitch; (2) Diversified investment.
5. Debt management
The key to successful lending is to control cash flow and plan ahead.
1) Reduce liabilities; 2) Establish your own credit rating; 3) Constructive use of loans: housing, education and commerce; 4) Credit card: saving money and being safe.
6. Foreign exchange
The interest account of Citibank.
Step 7 get professional help
Factors to consider when choosing an investment consultant: 1) training and qualification of the consultant, 2) what you can get from the consultant, 3) how to distinguish the value of a consultation, 4) how to choose financial media and its information, and 5) how to become a good customer.
Consultant qualification: 1) accountant and lawyer, 2) insurance broker, 3) bank, 4) stock broker. Risks and restrictions of investment.
How to judge the service quality of the other party: 1) Listen to your needs, 2) review your portfolio, 3) rebalance your portfolio, 4) avoid day trading, 5) charge transparently, 6) help you contact experts, 7) provide tax advice and 8) provide services at any time.
Warning signs-how to detect fraud? 1) There is no store after this village, 2) There is a very high return on investment, 3) Who will supervise the investment, 4) Ponzi scheme, and 5) Unusual investment.
The trap of forced sales.
Interpretation of financial media: 1) Always look at high-level financial media; 2) know the performance of your portfolio regularly; 3) Read the annual report of investment enterprises; 4) Read useful in-depth research articles carefully; 5) read serious financial books moderately; 6) Meet with the investment consultant regularly to check the performance of the portfolio.
8. Bond market
9. Stock market
10, collective investment
1 1, derivatives
12, protect you and your family with life insurance.
Three principles for purchasing life insurance: 1) Insure against important risks, 2) Compare prices, and 3) Buy policies with wide coverage.
Important risks: 1) main source of income, 2) accidental death insurance; 3) Large medical expenses; 4) Severe disability.
Insurance products can avoid tax.
13, retired
1) quality of life; 2) investment issues; 3) Inheritance.
Appendix-Basic knowledge of investment
1) liquidity, 2) compound interest, 3&; 4) inflation/deflation, 5) leverage, 6) risk and reward, 7) diversification, 8) investor psychology, 9) free trade and protectionism.