In 2024, wealth preservation should not be underestimated! 4 major challenges faced by 300,000 depositors
Chinese have a little money in their hands, and after depositing it in the bank, it will be put into the bank, especially those who have a large amount of money at home.
However, from 2024 onwards, families with savings of more than $300,000 will face four major problems, so be careful with your finances!
Inflation leads to a decrease in the purchasing power of deposits.
With the adoption of loose monetary policy by the ** banks, a large amount of money has entered the financial market, but some funds have also entered the commodity market. As a result, the real value of people's bank deposits is constantly depreciating year after year for goods related to daily life. At the same time, deposit rates have continued to fall, and even have a downward trend, and it is no longer realistic to rely on deposit interest to protect against inflation.
Faced with this challenge, savers must find strategies to deal with inflation. If you are not willing to take the investment risk, you can consider buying investment options such as large certificates of deposit, structured certificates of deposit, and treasury bonds. While the yield on these investments is not always higher than the inflation rate, it is at least slightly higher than the yield on fixed deposits.
Deposit rates continue to fall.
Since 2023, major banks have lowered their deposit rates, with three-year deposit rates now generally below 3% and one-year deposit rates below 2%. Deposit rates have fallen to record lows, which means that savers are earning less and less interest.
Until 2024, deposit rates are likely to continue to fall, and interest income will be lower for households with deposits of more than $300,000. It is recommended that you consider investing in large certificates of deposit and buying** bonds to obtain higher interest income on your deposits.
Carefully analyze business decisions.
Nowadays, the number of unemployed people is increasing, and it is becoming more and more difficult to find a job, which has become a real problem for many people. With the decline in bank deposit rates, many people are starting to consider the possibility of setting up their own company. However, the road to entrepreneurship is fraught with great risks. With declining incomes, reduced purchasing power, and increasingly competitive markets, it is becoming increasingly difficult for entrepreneurs to survive in this environment. At the same time, soaring rents mean that most of the profits of entrepreneurs are taken by landlords.
From 2024 onwards, people with household savings of more than $300,000 should think carefully before considering starting a business. If you need a lot of money to start a business, which is extremely risky, you can choose to deposit this money in a bank to ensure the safety of the funds. For entrepreneurs with relatively low risk, it is possible to develop a reasonable business plan, choose competitive industries and projects, and avoid impulsive behaviors to increase the likelihood of success.
Don't invest your money.
Seeing that the interest rate on bank deposits is declining, and the price of goods has been ** year after year, many people have withdrawn money from the bank and are ready to invest in high-yield varieties such as **, currency, **. However, the current investment environment is not optimistic, and blind investors may face a greater risk of loss.
For most savers who lack basic financial knowledge and experience, rushing into the capital market to invest is almost dead. Rather than playing with the capital market without security, it is better to keep the funds in the bank with peace of mind, at least the principal and interest have a certain degree of protection.
Flatly.