China has long been the world's largest "saver", and recent unexpected events have led to increased risks in investment and real estate markets, making many people more inclined to keep their money in the bank or keep it in their hands, believing that "they have money in their hands and they have the bottom of their hearts".
However, in the past two years, some people have a lot of cash but "can't sleep at night", why is this?How to prepare?
The reason why it is "hard to sleep" with cash in hand
People with large amounts of cash in their hands are facing enormous challenges. This challenge is not an isolated one, but an inevitable one. Behind the phenomenon we see are many causes of anxiety:
Inflation:Prices have risen recently, and daily necessities such as fruits, vegetables and eggs have **sharply**. The purchasing power of $1 million in cash will be significantly diminished in the future, and this trend is likely to continue for several years.
The real estate market is cooling:In the past, buying a home was a hedge against inflation. However, the real estate market has changed drastically in the past two years, resulting in people no longer buying houses easily. Many people have fled the property market and cannot effectively invest their cash in their hands.
Bank interest rates fall:In order to stimulate economic growth, banks have continuously lowered deposit rates. Even if you choose a fixed deposit with the highest interest rate, the current 4% yield will not protect against inflation.
Downturn in the wealth management market:Some people consider investing **or**, but the market risk is higher. Many enterprises are in trouble, and experts are difficult to **future**, which makes small ** hesitate.
Entrepreneurship is risky:Some people want to start a business, but the reality of a large number of business failures is prohibitive, and investing is no longer easy.
These causes people with cash in their hands to feel anxious and have trouble sleeping.
How to manage the cash in hand reasonably?
3. Ways to avoid problems First, do a good job of reasonable cash planning. Combine your income, spending needs, risk appetite and investment goals to plan an appropriate cash allocation to ensure adequate daily expenses, emergency funds and investment funds.
Generally speaking, daily expenses can account for about 10% of total cash, emergency reserves are about 20% of the total, and the remaining 70% or so can be used as investment funds. Of course, these ratios can be adjusted according to the actual situation of the individual.
Second, choose a diversified investment path. In the current market environment, it is difficult to guarantee safety and income from a single investment channel. Therefore, you should choose a diversified investment path to diversify risks and increase returns.
You can choose different types and time limits of investment products according to your personal risk appetite and investment period, such as bonds, foreign exchange, options, etc. You can also invest in potential industries or projects based on professional knowledge and hobbies, such as technology, education, medical care, culture, tourism, etc.
Finally, develop a flexible investment strategy. Adjust your investment strategy at any time according to market changes and personal circumstances, and flexibly respond to various risks and opportunities.
It is necessary to pay attention to the economic situation and policy changes at home and abroad, analyze the impact on various industries and markets, and seize the opportunity. Regularly evaluate the performance and risk profile of the portfolio, and adjust the investment structure and proportion in a timely manner according to the return target and risk tolerance. All while maintaining liquidity and flexibility to respond to unexpected events or identify better investment opportunities.
Finally
The state strictly investigates the behavior of retirees in order to maintain social fairness and the rule of law. The purpose of this strict investigation is to ensure the fair distribution of pensions and maintain social stability and people's well-being. The improvement of the old-age security system is directly related to our lives. Through this initiative, we hope to remove those who have tarnished their pension reputations and build a fairer and more sustainable pension system, where retirees who really need help can be supported and cared for. Investments