Cash or liquid asset management

unitbusyManagement

Nov 18, 2013 (3 years and 8 months ago)

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Industry Research

Personal Finance

Group 5

Overview

1)
Introduction of Personal Finance

2)
4 main ways of Personal Finance

3) Introduction a big player in industry

1)
Introduction of

personal finance

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

2) 4 main ways to
personal finance

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)


3) Introduction of

a big player

Citibank

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

The End