Tackling the challenge of "the tide is gone"? It is recommended that those who have sufficient deposits must do 4 things
Preface. As the nation's deposit rates continue to fall, savers face more financial planning challenges. In times of economic uncertainty, individuals with large deposits on hand must adjust their strategies early to ensure the safety and growth of their funds. In this article, we'll give you 4 key tips to help you stay financially secure and grow your goals amid the challenges of falling interest rates.
Diversify deposit risk.
With deposit rates declining, it is no longer safe to concentrate all your money in the same bank. Diversifying your deposit risk is a simple and effective risk management strategy. Determining the credit rating and risk level of different banks, and spreading deposits across several banks, can help reduce the financial losses caused by bank failures. In addition, for depositors whose deposits exceed the limit of insurance payouts, diversifying deposits also guarantees full compensation in extreme cases.
Extension: Diversifying your deposits not only helps to reduce risk, but also increases the security and flexibility of your funds. As long as you understand the characteristics of each bank's products and services, and choose the right type and maturity of deposits, you can maximize the safety and value of individual deposits.
Diversified asset allocation.
In addition to deposits, personal assets can also be diversified to reduce overall investment risks and improve the rate of return on funds. Investing funds in different investment products, such as certificates of deposit, bonds, principal-protected wealth management products or bonds, can help diversify asset allocation. Different types of investment products have different risk-return characteristics, and the relationship between risk and return can be more balanced through the reasonable allocation of funds.
Degree: Diversified asset allocation is an important part of an investment strategy. When choosing investment products, you should combine your own risk appetite and investment objectives to allocate a reasonable proportion of funds. Through diversified investment, you can effectively avoid the risks brought by a single investment and obtain more stable asset appreciation.
Maintain cash liquidity.
In financial planning, maintaining a certain amount of cash liquidity is crucial. While many people tend to keep large amounts of cash at home, this is not a wise choice. With the right amount of cash on hand, you can cope with emergencies and emergency expenses, and ensure the daily life and personal financial security of your family. At the same time, cash liquidity also helps you act quickly when investment opportunities arise.
Degree: Wealth management is not only about asset appreciation, but also about security and quality of life. Keeping enough money can deal with various emergencies and ensure the flexibility and stability of personal finances.
Choose your deposit term carefully.
The choice of deposit maturity has a significant impact on the liquidity and yield of funds. While long-term deposits can guarantee higher interest rates, they also limit the flexibility of funds. Therefore, when choosing a deposit period, you need to make a reasonable choice based on your individual's capital needs and investment plan. For savers who anticipate the need for early withdrawals, it may be more appropriate to opt for a shorter-term deposit.
Extension: Choosing a deposit term carefully is an important part of financial planning. When evaluating deposit products, factors such as interest rate levels, financing needs, and risk tolerance should be considered to optimize the use of funds. Reasonable allocation of the maturity of the deposit according to the individual's financial situation and future plans can help to achieve the best capital appreciation.
Summary. In the current economic environment, individuals with large deposits in hand must respond to the challenge of falling deposit rates in a variety of ways. In addition to strategies such as diversifying deposit risk, diversifying asset allocation, maintaining cash liquidity, and prudently choosing deposit tenors, strengthening financial literacy, using fintech tools, setting up contingency plans**, exploring the bond market, and working with professional financial advisors can also help people better manage and cherish their personal assets. Personal financial planning must be individualized, tailored to local conditions, and flexibly respond to the ever-changing market in order to achieve financial goals and ensure financial security.