Industry Research Personal Finance Group 5. Overview 1) Introduction of Personal Finance 2) 4 main ways of Personal Finance 3) Introduction a big player.
Published byModified over 4 years ago
Presentation on theme: "Industry Research Personal Finance Group 5. Overview 1) Introduction of Personal Finance 2) 4 main ways of Personal Finance 3) Introduction a big player."— Presentation transcript:
Definition the study of personal and family resources considered important in achieving the goal, how people spend, save, protect & invest their resource.
Why Financial Plan? easier to spend than to save income - expenditure = savings income - saving = expenditure *** to achieve a financial goal what do you want to do with the money?
Uses of Financial Planning maximizing earnings and wealth practicing efficient consumption finding life satisfaction reaching financial security accumulating wealth for retirement & an estate
Processes of Financial Planning Evaluate your financial health Define your financial goals Develop a plan of actions Flexibility, Liquidity, Protection, Minimization of taxes Implement your plan Review, re-evaluate and revise your plan
Financial Life Cycle Early year - wealth accumulation approaching retirement - golden years the retirements years
Principles of Personal Finance Risk-return trade-off time value of money Risk diversification All risk is not equal The curse of competitive investment market Taxation Effect
Principles of Personal Finance Importance of Liquidity Nothing happen it without plan Knowledge is the best protection Protect yourself against major catastrophes Time Dimension of Investing The Agency Problem
Principles of Personal Finance Pay yourself first Money isn ’ t everything Just do it
Market Potentials MPF Longer life expectancy Reform of public health policy Decline of deposit taking business China ’ s entry into WTO
Model of Financial Planning Managing your money Protect yourself with insurance Managing Investment Retirement and Estate Planning
A)Managing your money Cash or liquid asset management Using credit/Loan Home and automobile decision
B)Protecting yourself with insurance Life and health insurance Property and liability insurance
C)Managing your Investment With good investment, an investor can accumulate wealth which may exceed the need of financial goal Types of investment: Stock Bonds and other derivative Foreign exchange Mutual Fund
D) Retirement and Estate Planning Retirement Plan Property management (mortgage)
Background -Belongs to Citigroup, Global Consumer Group -Services: Diverse consumer product offerings, banking services, credit cards, loans and insurance - Industry-leading role: Advanced technology, a strong worldwide presence and a powerful global franchise in New York -Target: Individual consumers and small businesses up to $10 million in annual sales
Personal Finance- Products 1) Managing your money Checking Savings ATM/Debit Cards/Credit Cards Pricing Packages Lines & Loans
Loans Checking Plus ® (Variable Rate) Use this cedit line for overdraft protection. Or borrow funds from it directly whenever you need cash. Installment Loan This fixed rate, unsecured loan from Citibank for up to $25,000 is ideal for one- time purchases & debt consolidation.
. Citibank Home Equity Line of Credit Use the equity in your home to secure a Citibank home equity line. It's a variable rate credit line of up to $500,000 you can use for most anything. Citibank Home Equity Loan Use the equity you've built up in your home to secure a Citibank fixed rate loan of up to $500,000.
The Student Loan Corporation Citibank can help you afford the education of your choice. Apply for a student loan & get a preliminary credit decision in minutes.
2) Protecting yourself with insurance insurance
Insurance CitiTerm SM Life Affordable term life coverage Choose how much you need & how long you need it Can be converted to a permanent policy in the future
Family Protection SM Life Find out immediately if you qualify for coverage online Term life coverage from $25,000 to $150,000 No medical exam required Long Term Care Qualified healthcare expenses covered, up to the amount of coverage you select Helps you protect your assets & maintain your independence
3) Managing your investment Investing Small Business
Investing Online Investing Cititrade ® Trading & account information Financial tools & calculators Research powered by Citicorp Investment Services affiliate Salomon Smith Barney Customer Service
Financial Center Financial Executive face-to-face Open an account & discuss investment options Place orders for stocks, bonds, & mutual funds And much more!
4) Retirement and estate planning Individual Retirement Accounts Mortgages
No Annual fee No minimum purchase. However, some products within your IRA may have minimums. CDs, for example, have a $250 minimum. To apply, fill one out online. Individual retirement account(IRA)
Types of IRAs Traditional. Annual contribution may be deductible. Earnings aren't taxed until you start withdrawals. Roth. May provide greater tax savings & withdrawal flexibility than Traditional IRAs. Eligibility is based on income. Transfer or Direct Rollover. Transfer or rollover assets (as permitted) from a 401(k), another employer-sponsored retirement plan, or another financial institution.
Citibank First Mortgage Loans In the market for a new home? Visit citimortgage.com to see which Citibank mortgage suits you best. Then apply online & get a preliminary credit decision in minutes