Disclaimer: The content of this article is written with authoritative information combined with personal opinions, and the source of the literature and screenshots have been marked at the end of the article, please be aware.
Retirement is an important time in life, and how to properly manage pensions, savings and investments has become the focus of many retirees.
However, when it comes to managing personal finances, confusion often leads to unnecessary troubles and losses in one's life.
In this year and next, especially in the context of the ever-changing financial environment, retirees should keep a clear head and pay attention to the following five things to ensure financial security.
1. Diversify deposit risk
Diversifying your deposit risk is a super important financial management strategy! Don't put all your savings in a bank, especially those small and medium-sized banks.
Although the state has a certain insurance system for deposits, if all your money is piled up in one bank, if something goes wrong with that bank, your large deposits can be dangerous.
Therefore, we recommend that you spread your money to several banks, each with no more than 500,000 yuan, which is like buying an insurance policy for your own money.
Even if a bank fails, it will only affect part of the money and protect your personal property.
Let's imagine a scenario: you have a basket of eggs with ten in it.
Now, you decide to put those eggs in five different baskets, two eggs in each basket.
Let's say one of the baskets drops, you'll only lose two eggs instead of all ten.
In this way, your losses are greatly reduced.
Similarly, if you spread your money across different places, such as deposit accounts, stocks, bonds, real estate, etc., then even if one of the investments goes wrong, the others will still be able to maintain their value.
That's why experts always advise investors not to put all their eggs in the same basket.
The principle of decentralized deposits applies not only to personal finance, but also to businesses and financial institutions.
If a company puts all its resources into the same project or market, then once there is a problem in this project or market, the business may be in trouble.
Conversely, if a company spreads its resources across different projects, products, or markets, it will be able to maintain a strong financial position even if some of them are affected.
So, remember to spread the money to several banks, and don't exceed 500,000 yuan each.
That way, even if something goes wrong with one family, your money is still secure.
Protecting your money is protecting your future!
2. Protection of personal information
In this digital age, each of us needs to pay extra attention to the security of personal information.
Especially for retirees, it is particularly important to protect their bank account information.
When handling bank accounts, it is important not to easily disclose bank account numbers and passwords to bank staff or other personnel.
Sometimes, bank staff may ask for account information from the elderly person to operate.
They may give various reasons claiming that they need this information to complete some necessary procedures.
However, the elderly must always be vigilant because even bank staff can have cases of misconduct.
Therefore, whether it is at the bank counter, telephone, or on the Internet channel, account information cannot be disclosed at will, so as not to be stolen by criminals and lead to the loss of funds.
If seniors do need to bank, there are a few safer options available.
First, they can choose to use the self-service offered by the bank.
These services typically include ATMs, online banking, or mobile apps.
Through these self-services, seniors can complete a variety of banking operations, such as checking balances, transferring money, or paying bills, without revealing account information.
Seniors can also choose to visit a bank counter in person.
While this may take some extra time and effort, it is a relatively safe way.
At the bank counter, seniors can communicate directly with bank staff face-to-face to ensure that their account information will not be stolen by criminals.
At the same time, bank counters are often equipped with various security features, such as surveillance cameras and security access control systems, which can effectively protect against potential risks.
Seniors can also contact the bank's customer service department by phone.
However, when communicating by phone, it is important to confirm the identity of the other party and ensure that the call is made by the bank's official customer service department.
Don't trust calls from strangers to avoid falling victim to scams.
3. Rational choice of investment products
Retirement is a new stage of life for many seniors, and they may want to invest to earn some extra income.
A bank deposit is the deposit of funds into a bank account, which usually has a high level of security.
Banks usually offer a certain interest rate as a return for deposits, and the principal amount of deposits is usually protected by the bank's deposit insurance system, which can be protected to a certain extent even if the bank has problems.
In contrast, the benefits and risks of wealth management products are more diversified.
Some wealth management products may offer higher returns, but they are also accompanied by higher risks, and investors may face the risk of losing their funds.
For the elderly, there is more emphasis on the security and stability of funds as they may be in the stage of fixed income.
Therefore, when choosing investment products, they should give priority to those wealth management products with relatively low risk, such as bank fixed deposits or low-risk funds.
Although the returns of these products may not be as attractive as those of high-risk investment products, they can provide relatively stable returns and are more secure in terms of capital security.
Of course, just like picking chili peppers in the wet market, the elderly should also consider their taste buds and taste goals when choosing investment products. Some people may like to be spicy to the point of tears, and are willing to take a little risk in pursuit of spicier and more exciting gains; Some people may prefer a light and refreshing taste, and prefer a safe and reliable investment method, after all, chefs can't satisfy their tastes with a pot of hot sauce!
Seniors can also opt for some solid investment strategies to ensure financial security.
For example, they can be like a chef preparing recipes, scattering money everywhere and investing in all kinds of different things, just like in a cafeteria in the investment world, all kinds of risks can be determined!
In addition, you can also take out a magnifying glass regularly, take a closer look at your investment menu, and adjust it at any time, after all, the taste of the market may change at any time, and you must keep the taste fresh at any time!
4. Inform your family of your financial situation
For retirees, good communication with family members is the cornerstone of a stable relationship.
After retirement, older people often have more free time, while family members may be busy with work and life.
In this case, the elderly may feel lonely and lost.
By maintaining good communication with their families, the elderly can feel cared for and valued, which is essential for the mental health of the elderly.
In daily communication, family members can understand the needs and wishes of the elderly, so as to better care for and love them.
When it comes to finances, older people should be open and honest with their families.
After retirement, the financial resources of the elderly may be mainly pensions and savings.
If the elderly person hides their savings, the family may not be able to keep up to date with the financial situation of the elderly person.
In the event of a sudden illness or accident in the elderly, family members may be in a difficult situation and unable to provide timely support.
In addition, after the death of an elderly person, if the family does not know about the financial situation of the elderly, it may bring trouble and disputes to the inheritance.
Seniors should share their financial information with their families to keep them informed about their savings.
Discussing financial planning with your family can better ensure your family's financial security and harmony.
In family financial planning, the elderly and their families can discuss how to use their savings, how to plan for retirement, and how to deal with unexpected situations.
Through discussions with family members, the opinions and needs of all parties can be fully taken into account to formulate a more reasonable and feasible financial plan.
In addition, family members can also provide financial advice and support to the elderly to help them manage their finances better.
5. Arrange the deposit period reasonably
When choosing a deposit, we are often faced with a key decision: what is the best term to choose for the deposit? While some people may be tempted to opt for long-term deposits for higher interest yields, the truth is that long-term deposits are not always the best option.
Instead, we recommend keeping the deposit period between 1-2 years in mind, which can bring us practical benefits in a variety of ways.
Although long-term deposits may offer higher interest rates, the interest losses incurred on long-term deposits can be considerable in the event of an emergency when early withdrawal is required.
In contrast, if you choose a deposit tenor of 1-2 years, you can minimize the interest loss, because even if the deposit is withdrawn early, we only have to pay a relatively small amount of liquidated damages or interest losses.
Life is bound to encounter various accidents and emergencies, such as sudden illnesses, family emergency expenses, or other unexpected situations.
In these cases, we may urgently need funds to solve the problem, and choosing a deposit term of 1-2 years can ensure that we can withdraw funds in a timely manner, deal with unexpected situations, and ensure the safety and stability of life.
The economic situation is changing all the time, and interest rates are likely to fluctuate with it.
In contrast, long-term deposits can put us in an unfavorable interest rate environment, while choosing a 1-2 year deposit term allows us to reassess market rates more frequently and reallocate them when the time is right.
epilogue
Retirement is a wonderful time in life, and managing your personal finances properly is an important part of ensuring your retirement well-being.
In this year and next, retirees should keep a clear head, avoid some easy mistakes, and protect their property.
Diversifying deposit risks, protecting personal information, rationally choosing investment products, informing family members of their funds, and reasonably arranging the deposit period are important measures to ensure financial security.
Reference source: Research on Household Asset Allocation of the Elderly in Mainland China, Yu Yingqi, Southwestern University of Finance and Economics
https://kns.cnki.net/kcms2/article/abstract?v=WdAl4K16JyW7VJytVPdhplSvxWJIW6wavSRcK6dHe6r3Agtr8IVruYdUmiJoQ8wIyRNZGiZrTv_e0zJ-389bo38skdpcFg_x--59OkEgeyKWRntUd2i09NHBDbPEg8uH9nUKGNvrREt3FwqSsErHPw==&uniplatform=NZKPT&language=CHS