Family of three to manage insurance investment

Ms. Luo, who is married and has 2 children, runs a small flower shop herself. The flower shop is located next to the university and the business is better. Ms. Luo’s husband is working steadily, 5000. Family expenses are 2,500 per month. The two will not consider buying a house for a while, and the couple will pay a premium of 5,000 a year. Ms. Luo’s financial goal is to open three small stores within three years.

Financial status analysis:

Ms. Luo is a family of zero-debt, but because there is no room and no car, plus the pre-term expenses of the children and the opening of the store, the deposits are also very few, so the total amount of family assets is quite limited. Ms. Luo’s flower shop is in the early stage of operation, but she is currently in good operating condition and can basically meet the daily expenses of the family. In addition, her husband’s stability is 55,000. Both spouses have purchased a life insurance of 5,000 per year, and insurance investment accounts for a reasonable proportion of households.

BOC's financial advice:

Ms. Luo's financial goal is to open 3 small stores within 3 years, the current funding gap is 300,000 - 500,000. Ms. Luo will invest all the existing savings. If she wants to meet the minimum target of 300,000 in 3 years, the annual rate of return should reach 38%, which is not practical. In addition, all assets should not be invested in high-risk when doing asset allocation. Therefore, it is recommended that Ms. Luo can adjust her financial management goals: to extend the store opening period or reduce the number of stores, such as opening 1-2 stores within 3 years. Ms. Luo can also consider continuing to expand the existing flower shop and accumulating assets for financial management. I believe that it can bring a satisfactory level of income at a lower risk.

The analyst also suggested that Ms. Luo reserve 10,000 as a family emergency reserve to meet the family expenses of 3-6 months, and can open a BOC value-added account or invest in a money fund. Appropriately increase the weight of the male owner's illness and accident insurance, and at the same time purchase the educational insurance for the child. However, the annual premium is not more than 5,500.

Analysts pointed out that investment and financial management should start from the beginning of each month, and gradually increase the investment risk on the basis of the gradual accumulation of interest-earning assets to improve the profitability of financial assets. However, Ms. Luo’s family has no accumulated assets, so it is recommended to use a fund with a lower investment threshold as the main allocation. According to the current level of economic development and capital market, the investment of hybrid funds and bond funds can be appropriately carried out.