Abstract: A husband and wife worked at the university, one flight attendant, the young family has a good mix of income sources, but they lack the financial management and rational planning. How they implement the five-year nuclear family financial goal?
More young families balance
Mr. Lin worked at the university, the monthly income of 2 million, his wife was a flight attendant, the monthly income of 1 million yuan. Although the mortgage and basic living expenses are all very big family, but Lin family 15,000 yuan per month, or to have the balance of the two 29-year-old young people, fairly rich.
“Because my wife is flying international routes, so many of our daily necessities, clothing is to buy her back from abroad, and in fact compared to the current domestic price level, or like a good deal.” Lin said, many home eat, wear, use, and are optional foreign wife, “skin care products sometimes half or more cheaper than the domestic, to buy designer clothes at discount outlets low, the domestic piece of clothing a few thousand dollars in foreign countries may only several hundred yuan. “visible, although the brand has been the pursuit of his wife Lin, but the purchase costs than many of the domestic decline.
Each year because his wife where the airline will provide 1-2 sheets of domestic and international flights, free tickets, so they can be low-cost travel 2 times a year, and his only pay the hotel and shopping expenses.
Funded by her parents, both in Shanghai and the nearby Central bought a house, now 8,000 yuan monthly repayment, housing market 2.2 million yuan.
Never set foot in the area of investment
In terms of investment, Mr. Lin and his wife almost never involved. ”My wife always ‘flies’, the time difference often upside down, there is no time to consider investing in something, and although I thought about buying stocks and buy the fund, but up to now no practical too.” Mr. Lin said he always felt stock market too risky, and no relevant knowledge, so has been reluctant to start, “I see a lot of people back to the stock market, and can fund or a loss, so even the Fund did not dare to buy.” experienced a 2008 round down, Lam many friends around the investment funds have suffered serious losses, but now some people have a slight surplus in the stock account, but it was still heavy losses the fund account. ”This is not a greater risk that funds it?” Investment in the footsteps of Mr. Lin was locked.
“Our family now has 20 million worth of spare cash, I really do not know how to take care of.” Mr. Lin hopes his financial planner to recommend more prudent approach to investing, so he proceeds to beat the bank rate of interest. He also looked forward to say “I hope that by 2015, in addition to real estate outside the us 150 million of financial assets.”
Talk about parenting issues, Mr Lim admitted that he and his wife there is no intention of birth, “may our thoughts and very different from the previous generation, at least for now, we feel relatively comfortable life, two of the world, but also not too much a burden. “Lam think that once a baby, parents must create a better living environment for their children, do to the responsibility of parents, and now, their preparation is not adequate, how the future Or go with the flow better.
Insurance is relatively weak
Monthly payments position (units / yuan)
Income Expenditure
I have a monthly income of 20,000 for 8000 on Housing
Basic living expenses Other income 10,000 7,000
Total 30,000 Total 15,000
15,000 monthly balances
Annual balance of payments unit / million
Income Expenditure
4 0 premium expenditures year-end bonuses
2 Other income 0 Jiejia expenditure
Total 4 Total 2
Annual Balance 2
Household balance sheet units / million
Household assets household debt
Mortgage demand and cash 20 88
Loans 0 0 Other deposits
Stock 0
Since the housing 220
Total 88 Total 240
Household net worth of 152
Lin describes his wife as the wife of airlines serving the aviation accident insurance coverage, the specific amount he did not quite understand, but he has no commercial loan rates insurance.
“We have been thinking about young body should be good, there is no idea of insurance.” But just recently, a wife diagnosed with pneumonia and having first thought of buying insurance, “now is still very expensive medical costs , to use imported drugs, drugs at their own expense, the price to go straight up. “Mr. Lin said that in order to make his wife a speedy recovery, are doctors of their choice at their own expense recommended drugs than Medicare drug within a few thousand dollars in your .
“There are no insurance products can be usual outpatient and emergency, hospital costs are covered for?” Lin felt that medical insurance is worth considering.
Household asset allocation
Shenzhen Development Bank, Shanghai Hongqiao Branch Zheng Weigang
Top Ten Star Financial 2010 team – the development of deep financial team members worry the state up gold (1405.50,16.20,1.17%), investment analysts, AFP Financial Planner
Analysis of key financial indicators home
Definition of financial indicators of the actual value of the reference value of the formula the initial diagnosis
Liquidity ratio current assets / month 3-6 times 13.3 times expenditures over current assets, less efficient use of assets
In the balance of savings / year after-tax income 50% 30% -60% is reasonable
Coverage ratio of net assets net assets / total assets 63.3% of the amount of 50% of household debt is not high
The proportion of investment assets and net assets / net assets 0% 50% little or no investment assets
The proportion of security spending on security spending / revenues -15% 0% 8% are currently no family protection
The proportion of fixed assets, fixed assets / total assets 91.6%, 50% of the high proportion of fixed assets
Can be said that Mr. Lin and Mrs. Lin is typical of many young couples representative of white-collar workers, who generally have a good education, good income from work, higher quality of life. Because both still young, there is no burden on many families. Young couple at this stage, most of the focus to the cause of development, investment and protection in the less attention than the lack of experience. Now I will start with Mr. Lin family financial situation of the present analysis of the family.
Analysis of the family financial situation
In recent years, domestic prices hit record highs, for the vast majority of young families, the fixed capital expenditure is often the structure of household assets accounted for the largest share. Because it is self-occupied, can not bring investment income, so for the Lin family, fixed assets, accounting for up to 91.6%. Only through the efforts of the future, continue to accumulate interest-earning assets, increased investment income, in order to gradually improve the structure of household assets.
Lin family’s income mainly from wage income of both spouses, a single source of income too. In addition to demand deposits as there is no other investment in foreign assets, the lack of financial income families to build solid financial structure is very unfavorable. If you want to achieve financial freedom in the future, the goal is essential to increase investment income.
As Mr Lim couple are still young, a family security system for less than understanding of the current expenditures for family protection, or blank. This must be adequate attention.
Analysis of family financial goals
Lin made the family now in fact relatively simple financial goals, in order to realize except in 2015 also has 1.5 million real estate assets outside of the goal, on the assumption that all of the next five years, Mr. Lin family assets and income will not cause any changes in the structure case, the family of existing liquid assets and savings in the next five years, the balance on a regular basis into a yield of 10% or more of the investment portfolio can achieve this financial goal.
Mr. Lin is only a matter of fact referred to a short-term family financial goals. For a young family, a lot of deeper financial needs may not be known. If the child’s birth and training support of both parents, their own future pension and family health care and the ability to resist the unknown risks, and even the future of estate planning, will be increasingly in the future perceived by family, but also with the importance ofincreasingly apparent over time. Make early plans, the distance the earlier, more easily achieve financial goals.
Asset allocation and financial advice
1. Adjust the family standing cash reserves. Family standing at the cash usually only need to keep to cover the short term (eg 2-3 months) and daily household expenses, and suffered a sudden short-term risk event (such as sudden serious illness, accidents and disasters, etc.) are required for temporary emergency spending . For the Lin family, both spouses work in view of stability, better employee benefits, may invest assets of less than normal, it is recommended to keep the family cash reserve equivalent to 2 months at the expense of family life can be the size (3 million) the form of a 3-month free subscription and redemption fees or deposits of money funds. In addition the couple can also apply to commercial banks, respectively, 1 to 2 credit cards, the total amount in 5 to 10 million for daily consumption and emergency expenditures.
2. The choice of investment assets. Do not have professional investment experience for the customer, with a diversified fund portfolio of assets is an ideal investment. The current development of Chinese capital market is still in the stage of great market volatility, individual investors participate directly in capital markets, investment risks are too high. The impact on the trend of stocks are many, extremely difficult to fully grasp, there are very high on the professional quality requirements, are not suitable for individual investors to directly participate in transactions. Profitable investment planning is the most sustainable core content. The fund investment through risk diversification, risk return for investors than the optimal building configuration, suitable for long-term investment. Lin options proposed open-end fund portfolio construction, portfolio can contain 3 to 4 funds. In the current market environment can consider the establishment of an active portfolio relative to actively configure the type and standard hybrid funds accounted for 60% to 70% in the conservative hybrid / enhanced bond portfolio in bonds and 30% – 40 %. Fund selection refer to Morningstar fund rating, try to choose the long-term outstanding performance, team stability fund. Holds a portfolio of funds available in the market to achieve a relatively high average price-earnings ratio (such as 40 or more) profit-taking. In addition, monthly household income for the balance of the Fund will vote as recommended long-term investment approach, as a means of compulsory saving.
3. Diversified asset allocation. In the current serious global problem of inflation, geopolitical tensions and economic and financial situation is grim situation, in a certain period of time gold was rising trend, and gold was generally weak negative correlation between stock market and can hedge against stock market to some extent risk, so an appropriate increase in the assets is also a good spot gold investment financial means. Spot the Shanghai Gold Exchange Gold and gold jewelry sales fee compared to commercial bank gold sales to be more favorable (to avoid value added tax, consumption tax and processing costs), and the starting point is not high investment (minimum investment of individuals to 100 grams), facilitate the transfer, but also free of personal storage charges, it is suggested to buy 1-2 spot hand Au9999 gold as diverse asset allocation.
Finally, the family needs to remind Mr. Lin, the portfolio should pay attention to the timeliness and adaptability to market changes, regular assessment of the performance of underlying assets, and to adjust the frequency is generally once or twice a year.
Insurance recommended:
Insurance Agency Ltd. Shanghai Shen winner Insurance studio Yang Min
According to the actual security situation, Mr Lam family, commercial insurance on the individual at a blank stage. 2 people currently rely solely on the couple and some Social Security mandatory industry insurance industry (Lin, Department of airline crew members, forced the airline industry, insurance, and this part of the protection should not be less than 30 million personal accident insurance.) Other commercial aspects of the insurance did not mention. To this end, the following recommendations:
1, the focus shifted lead to serious health risks to the family economic blow. Once the serious health problems, it is not just a problem of expensive medical costs, more severe cases may even affect the family’s normal income.
2, the life insurance protection needs to be awareness. The role of life insurance are two aspects of the role: first, the life insurance Lin couples can have a responsibility to protect each other. Lin Lin and income between the ratio of 2:1, so when considering the life insurance protection, the protection of Mr. Lin should occupy a higher proportion of the amount. Second, life has a certain investment and financial management functions, will be part of the family assets to invest in risk aversion through life insurance is quite necessary. Life is currently scheduled in the investment rate in almost 2 to 2.5%, and the domestic most of the actual insurance policy dividend rate (scheduled rate + bonus interest rates) between about 3.5 to 4.5.Although nearly as good as any other investment products and investment returns on the edge, but its long-term stable income should be our concern.
3, the insurance plans on a regular basis, fixed. The so-called insurance plan for regular, fixed, the reason for the 2 points as to the primary concerns of the insurance plan because they were the final 2 will greatly affect the final expenditure of the family premium. Life insurance premiums under the laws of the older, the higher the premium; the same time the higher the amount insured, the premium is higher. So how to make a reasonable insurance planning the key is how to determine reasonable terms and reasonable insurance coverage amount, premium end to the economy their spending.
4 Annuity Insurance of the class of annual household income does not exceed 5% to 8%.
On the insurance plan (non-annuity)
Type of the insured amount of insurance protection guarantee of payment of
Lin 50 million long-term security of major diseases to 60 years of age 30 years or 30 years or 60 years of age
50 million life insurance protection
50 million short-term protection of accident 1 year (renewable up to 65 years) 1 year (renewable up to 65 years)
Accidental Medical 25000
Unexpected hospitalization subsidies of 500 yuan / day
Annual hospital costs protect the interests of 10 million 10 million, the highest renewal to 70 years of age to ensure protection of the interests of 40 million.
Type of the insured amount of insurance protection guarantee of payment of
Lin 30 million long-term security of major diseases to 60 years of age 30 years or 30 years or 60 years of age
30 million life insurance protection
30 million short-term protection of accident 1 year (renewable up to 65 years) 1 year (renewable up to 65 years)
Accidental Medical 15000
Unexpected hospitalization subsidies 300 yuan / day
Annual hospital costs protect the interests of 10 million 10 million, the highest renewal to 70 years of age to ensure protection of the interests of 40 million.
Coverage under the program, combined with various insurance companies now offer the products, the premium annual expenditure is expected to amount Lin: 6000 ~ 7000 yuan range; Lin annual expenditure amount of insurance: 5000 ~ 6000 range.Total household non-pension expenditure in the class of insurance premiums 1.1 million to 1.3 million, accounting for Lin family income 3 to 4%.
