Industry Research Personal Finance Group 5. Overview 1) Introduction of Personal Finance 2) 4 main...
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Transcript of Industry Research Personal Finance Group 5. Overview 1) Introduction of Personal Finance 2) 4 main...
Overview
1) Introduction of Personal Finance
2) 4 main ways of Personal Finance
3) Introduction a big player in industry
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 goalwhat 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 actionsFlexibility, Liquidity, Protection,
Minimization of taxes Implement your planReview, 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
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
C)Managing your InvestmentWith good investment, an investor can accumulate wealth which may exceed the need of financial goalTypes of investment:StockBonds and other derivativeForeign exchangeMutual Fund
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.
Insurance
CitiTermSM 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 ProtectionSM 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
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!
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 IRAsTraditional. 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