You may not know how to put an egg in some refrigerators. You need to know the first step that may be opening the refrigerator. And you need to know the second step that may be putting the egg in some refrigerators. You need to know the step 3 that may be closing the refrigerator.
This is not a joke, but tells us that any complex problem can be disassembled into executable steps. The three critical problems you need to be solving:
• What to buy?
• How much?
• When to buy?
For the questions: Buy what? How much?
The most important principle: Don't touch products you don't understand.
Because the most important thing in investment is not to lose money. Investing in products that you don't understand can easily become someone else's leek.
But how to expand the scope of investment? That is to turn products that you don't understand into familiar ones, and then become proficient ones through continuous learning.
There are many types of investment products. I think it is easier for those who are new to the market to divide them according to their achievable goals.
In fact, the common people's investment and financing goals are mainly three: security, liquidity and profitability.
To achieve these three goals, investment products can be divided into lots of kinds:
1: Cash (assets meeting liquidity).
It is characterized by withdrawal at any time, which can be used as cash, but can also obtain very low returns when idle, mainly monetary funds.
When it comes to funds, many people think of fund managers with millions of yuan per year. In fact, the scope of funds is very wide. In short, funds are a collective financial tool. When you don't know what to invest, you can give money to fund managers.
It is equivalent to that the fund manager gathers all our money and then invests in some basic financial products together. That is, he mixes a lot of different cream and jam as a big cake and then cuts it into several pieces. Each of us buys one of the pieces.
2:Insurance (assets satisfying security)
Insurance is a very tangled financial product. On the one hand, people traditionally believe that insurance sellers are fraudsters. On the other hand, with the rising awareness of people in recent years, people are increasingly aware that insurance can be used as a safe property, which is indispensable in asset allocation.
So whether to invest in insurance or not?
It is the same principle. You can judge only after you understand it.
Insurance can be said to be the most difficult financial products that ordinary people can access to understand, because insurance companies design products to make you not understand.
One of the basic principles of finance is that the more complex an investment tool is, the more difficult it is to calculate its advantages and disadvantages, and the more unfavorable it is to buyers. Because casino operators are always smarter than gamblers.
All financial products, like all gambling, cleverly hide the real data of risks and returns, and the better they are hidden, the more fish will catch the bait.
