Coupon can help us to save money, but make sure you haven't buy the thing that is unnecessary. You may watch the videos below to learn more.
part one:
part two:
part three:
Saturday, April 11, 2009
Sunday, April 5, 2009
A Bull In China?
Do you believe China would become the financial leading country in the coming years? Within 20 years? Or 30 years? Jim Rogers (羅傑斯), one of the world’s most successful investors, he expects China would surpass the United States as the world’s largest economy in as little as
twenty years.
Jim Rogers stated that investing in China is relatively safe as the US holds heavy liabilities, the US dollars would be difficult to stand. So investing in RMB (人民幣) would be a good choice.
Here are Jim Rogers's recommendations in his book,A BULL IN CHINA:
CHINA BLUECHEM (HKSE: 3983.HK) CHINA FOODS (HKSE: E:506.HK)
CNOOC (HKSE: E:883.HK)
twenty years.
Jim Rogers stated that investing in China is relatively safe as the US holds heavy liabilities, the US dollars would be difficult to stand. So investing in RMB (人民幣) would be a good choice.
Here are Jim Rogers's recommendations in his book,A BULL IN CHINA:
CHINA BLUECHEM (HKSE: 3983.HK) CHINA FOODS (HKSE: E:506.HK)
CNOOC (HKSE: E:883.HK)
If you are interested in Jim Rogers's thought, you can go and check this book out.
[source: http://www.businessweek.com/investing/insights/blog/images/51NzrEwI6WL._AA240_.jpg, last visited 6th April 2009]
Reference:
Jim Rogers A BULL IN CHINA, published by John Wiley & Sons Ltd.
Jim Rogers A BULL IN CHINA, published by John Wiley & Sons Ltd.
Monday, March 30, 2009
Savings
Why need Savings?
Questions on money appear in our different stages of life.'How much do I need to buy a new computer?' 'Can I afford the fee of studying overseas?' 'Should I take a loan for buying a flat?' 'Will my life be comfortable after retirement?’ Savings can help you reaching the long-term goals and being financially secure when you face unexpected incidents.
How to save money?
First, set up a budget plan to track your expenses, access your financial situation. Stick to it and have a positive cash flow.
1. Set a realistic goal
2. State the money outflow and inflow
3. Control spending
4. Adjust if needed to meet your underlying interests
Where to save the money?
Bank accounts, government bonds and insurance are reliable savings product.
Bank accounts
Saving account can be in Hong Kong Dollar and Foreign Currency; they allow you to access your savings for everyday transactions and withdrawals as well as earning interest income.
Time deposit can also be in Hong Kong Dollar and Foreign Currency, they allow you to deposit your money for a set period of time, but in return, you receive a higher rate of interest over a savings account.
Current Account allows you to write cheques for day to day payments, which gives you higher flexibility in your cash-flow and finances management.
Government bonds
When you buy government bonds, you are lending money to the government, it is generally a reliable low risk savings product and the interest rate is fixed.
Insurance
Insurance, as discussed in the previous entry, can also be a saving product. By buying traditional, money can be accumulated through paying premiums regularly.
Where to place your money is base on your preference of access (ATM? online?), your interest (low or high interest rate?), the service provided (DIY? Customer service?) and penalties that might given. So, be SMART (Specific, Measurable, Attainable, Relevant, Time-bound) on saving money and to your savings!
Questions on money appear in our different stages of life.'How much do I need to buy a new computer?' 'Can I afford the fee of studying overseas?' 'Should I take a loan for buying a flat?' 'Will my life be comfortable after retirement?’ Savings can help you reaching the long-term goals and being financially secure when you face unexpected incidents.
How to save money?
First, set up a budget plan to track your expenses, access your financial situation. Stick to it and have a positive cash flow.
1. Set a realistic goal
2. State the money outflow and inflow
3. Control spending
4. Adjust if needed to meet your underlying interests
Where to save the money?
Bank accounts, government bonds and insurance are reliable savings product.
Bank accounts
Saving account can be in Hong Kong Dollar and Foreign Currency; they allow you to access your savings for everyday transactions and withdrawals as well as earning interest income.
Time deposit can also be in Hong Kong Dollar and Foreign Currency, they allow you to deposit your money for a set period of time, but in return, you receive a higher rate of interest over a savings account.
Current Account allows you to write cheques for day to day payments, which gives you higher flexibility in your cash-flow and finances management.
Government bonds
When you buy government bonds, you are lending money to the government, it is generally a reliable low risk savings product and the interest rate is fixed.
Insurance
Insurance, as discussed in the previous entry, can also be a saving product. By buying traditional, money can be accumulated through paying premiums regularly.
Where to place your money is base on your preference of access (ATM? online?), your interest (low or high interest rate?), the service provided (DIY? Customer service?) and penalties that might given. So, be SMART (Specific, Measurable, Attainable, Relevant, Time-bound) on saving money and to your savings!
Sunday, March 22, 2009
Investment Views on an individual Stock~
As we are not registered members of Hong Kong Securities and Futures Commission, so we cannot provide an investment suggestion for you, but we can share my views on a stock - Zijin Mining Group Co., Ltd (紫金礦業, 2899)
Profit Increase
In the Annual Report of Zijin Mining Group Co., Ltd, their profit had increased about 20% to 3.06 billians in 2008. It shows that they have good strategies for their business in the gold industry. During the period of economic recession and financial tsunami, Zijin still gains 20% profits; while the economy is recovering, we expect Zijin would have profits this year, it will surely affect the stock price directly.
More Than the Market Return
When we choose a stock for investment, we need to know that we need to get more return but higher risk, or get less return with lower risk and more stable. For me, I am aggressive for my investment portfolio, so i will choose stocks which are having higher beta with the market. Beta is a measure of relationship between stock and market, for example, the beta of Zijin is 1.165, that mean this stock's price will increase 116.5% when the market return increase 100%.
Quantitative Easing (量化寬鬆貨幣政策)
The US Federal Reserve announced that they will buy as much as $300 billion of long-term Treasuries within six months and more than double of its mortgage-debt and corporate debt purchases. For basic analysis, the market predict this action of US Federal Reserve will produce more and more US Dollars to satisfy their policies. It will stimulate the inflation, then it will increase the demand of gold in the world as gold is an asset which can safe from the inflation. The price of gold will increase when the demand of gold increase, and then the price of gold will affect the profit of Zijin as their business is in gold industry.
Conclusion
After my analysis, I think Zijin will have a large potential of profit increase in the future. Therefore, I think target price of Zijin in short term is $6.5 , and the cut-loss price is $ 4.7 . For the year end in 2009, it may become $7.5 to $8 .
Reference:
Foundational Information of Zijin
[http://www.aastocks.com/eng/fundamental/ma.asp?symbol=02899&funda=1]
Annual report of Zijin
[http://www.zjky.cn/Portals/0/%E5%85%AC%E5%91%8A(0)/LTN20090323002_C.pdf ]
Quantitative Easing
[http://enews.nobleapex.com/eNewsLetter/files/E-Newsletter/index.htm#2]
Profit Increase
In the Annual Report of Zijin Mining Group Co., Ltd, their profit had increased about 20% to 3.06 billians in 2008. It shows that they have good strategies for their business in the gold industry. During the period of economic recession and financial tsunami, Zijin still gains 20% profits; while the economy is recovering, we expect Zijin would have profits this year, it will surely affect the stock price directly.
More Than the Market Return
When we choose a stock for investment, we need to know that we need to get more return but higher risk, or get less return with lower risk and more stable. For me, I am aggressive for my investment portfolio, so i will choose stocks which are having higher beta with the market. Beta is a measure of relationship between stock and market, for example, the beta of Zijin is 1.165, that mean this stock's price will increase 116.5% when the market return increase 100%.
Quantitative Easing (量化寬鬆貨幣政策)
The US Federal Reserve announced that they will buy as much as $300 billion of long-term Treasuries within six months and more than double of its mortgage-debt and corporate debt purchases. For basic analysis, the market predict this action of US Federal Reserve will produce more and more US Dollars to satisfy their policies. It will stimulate the inflation, then it will increase the demand of gold in the world as gold is an asset which can safe from the inflation. The price of gold will increase when the demand of gold increase, and then the price of gold will affect the profit of Zijin as their business is in gold industry.
Conclusion
After my analysis, I think Zijin will have a large potential of profit increase in the future. Therefore, I think target price of Zijin in short term is $6.5 , and the cut-loss price is $ 4.7 . For the year end in 2009, it may become $7.5 to $8 .
Reference:
Foundational Information of Zijin
[http://www.aastocks.com/eng/fundamental/ma.asp?symbol=02899&funda=1]
Annual report of Zijin
[http://www.zjky.cn/Portals/0/%E5%85%AC%E5%91%8A(0)/LTN20090323002_C.pdf ]
Quantitative Easing
[http://enews.nobleapex.com/eNewsLetter/files/E-Newsletter/index.htm#2]
http://www.businesspundit.com/wp-content/uploads/2008/09/gold.jpg
Monday, March 9, 2009
Risk management – Insurance
For the person who wants to have a saving, but he/her cannot save money autonomy himself/herself. Through the discipline of paying insurance premiums regularly, the wealth of the person can be accumulated by buying traditional insurance.
For the person who wants to guarantee his/her life, he/she can buy medical insurance and accident insurance in order to protect hid/her life. If that person gets a serious illness or get a traffic accident, the cost of living in hospital and doing an operation can be claimed. So that buying insurance can save your money and it will not affect your plan.
Guaranteed Cash Value
A sum of money is guaranteed within your policy and may be available for emergency purpose or business opportunities. Alternatively, if your need for life insurance changes, you may wish to use the cash for retirement or other purposes.
Reduced Paid-Up Insurance
In later years and even before the policy is fully paid up, if your life insurance needs gave diminished, you might decide to stop premiums and take a paid-up policy for a reduced amount. Lower dividends will be credited to reduced paid up policies.
Dividends
The dividends you receive are your share of the company’s divisible surplus. They are credited to your policy on its anniversary date and may be applied under one of a variety of dividend options provided by the company.
The illustration is based on current dividend scale which is neither a guarantee nor an estimate of future results. Dividends left on deposit will be credited with interest at a rate that will change from time to time.
Dividends paid depend on a number of factors including investment earnings, claims experience, and expenses incurred by the company. The actual dividends paid may change and the actual values may be higher or lower than those illustrated.
For the person who wants to guarantee his/her life, he/she can buy medical insurance and accident insurance in order to protect hid/her life. If that person gets a serious illness or get a traffic accident, the cost of living in hospital and doing an operation can be claimed. So that buying insurance can save your money and it will not affect your plan.
Guaranteed Cash Value
A sum of money is guaranteed within your policy and may be available for emergency purpose or business opportunities. Alternatively, if your need for life insurance changes, you may wish to use the cash for retirement or other purposes.
Reduced Paid-Up Insurance
In later years and even before the policy is fully paid up, if your life insurance needs gave diminished, you might decide to stop premiums and take a paid-up policy for a reduced amount. Lower dividends will be credited to reduced paid up policies.
Dividends
The dividends you receive are your share of the company’s divisible surplus. They are credited to your policy on its anniversary date and may be applied under one of a variety of dividend options provided by the company.
The illustration is based on current dividend scale which is neither a guarantee nor an estimate of future results. Dividends left on deposit will be credited with interest at a rate that will change from time to time.
Dividends paid depend on a number of factors including investment earnings, claims experience, and expenses incurred by the company. The actual dividends paid may change and the actual values may be higher or lower than those illustrated.
Tuesday, March 3, 2009
Methods of wealth management
There are many wealth management tools for managing your assets. You can manage your money or assets in a systematical way.
Risk management: Risk is an uncertain issue. We cannot know when the risk would appear, so we need to have a suitable risk-management skill. For personal risk management, there are some ways to manage personal risk, for instance, life insurance and medical insurance.These tools can help you to manage your uncertain risks and do not affect your original plans.
Bond: It is a low-risk investment in the financial market. The popular bond is the US Treasuries bills/bonds. However you will get a lower return in this investment as bond is a kind of low-risk investment. After you buy a bond, you can receive interest in a period and get back the principal in the maturity day of the bond.
Stock: This investment tool is a risky investment but the most popular one in Hong Kong. You can buy stocks through banks. Also easy to get more information in society such as Hang Seng Index (HSI) to consider the investment action in stocks.
Fund: Fund is an investment portfolio which is holding more than one asset in your whole investment plan. I think all of you have invested in fund as your Mandatory Provident Fund (MPF) is one example of investing in funds.
Product: It also is a risky investment. You can buy gold, oil, rice etc. which are real assets in the world affecting by demand and supply. If you predict the gold will have a higher demand in the future, you can buy it first and then sell it in the future as to gain the premium.
Risk management: Risk is an uncertain issue. We cannot know when the risk would appear, so we need to have a suitable risk-management skill. For personal risk management, there are some ways to manage personal risk, for instance, life insurance and medical insurance.These tools can help you to manage your uncertain risks and do not affect your original plans.
Bond: It is a low-risk investment in the financial market. The popular bond is the US Treasuries bills/bonds. However you will get a lower return in this investment as bond is a kind of low-risk investment. After you buy a bond, you can receive interest in a period and get back the principal in the maturity day of the bond.
Stock: This investment tool is a risky investment but the most popular one in Hong Kong. You can buy stocks through banks. Also easy to get more information in society such as Hang Seng Index (HSI) to consider the investment action in stocks.
Fund: Fund is an investment portfolio which is holding more than one asset in your whole investment plan. I think all of you have invested in fund as your Mandatory Provident Fund (MPF) is one example of investing in funds.
Product: It also is a risky investment. You can buy gold, oil, rice etc. which are real assets in the world affecting by demand and supply. If you predict the gold will have a higher demand in the future, you can buy it first and then sell it in the future as to gain the premium.
Monday, March 2, 2009
Basic Lesson for Beginners
People always do not know how to start managing wealth efficiently. Here are some basic concepts for you to monitoring or revaluating your money.
- Assessment: One's personal financial situation can be assessed by compiling simplified versions of financial balance sheets and income statements. People may ask, "Why I need to write statements about my finanicial situation like what corporates do? My wealth is not that much." However if you hold statements on hands, surely it can help you to have a clear mind on how much you have or what kinds of asset you are holding. A personal balance sheet lists the values of personal assets (e.g., car, house, clothes, stocks, bank account), along with personal liabilities (e.g., credit card debt, bank loan, mortgage). A personal income statement lists personal income and expenses. It can help you to know how much you earn and how much you spend and you can make a balance on your wealth. :)
- Setting goals: Three examples are "retire at age 65 with a personal net worth of $200,000", "marry before age 30 with a budget of $150,000" and "buy a house in 5 years paying a monthly mortgage servicing cost that is no more than 25% of my gross income". It is common for you to set up several goals, some short term and some long term. Setting financial goals helps directing financial planning. And importantly, you know what you want to have.
- Creating a plan: The financial plan details how to accomplish your goals step-by-step. It could include, for example, reducing unnecessary expenses, increasing one's employment income, or investing in the stock market. These can help you to achieve your goals as soon as possible.
- Execution: Execution of one's personal financial plan often requires discipline and perseverance. Many people obtain assistance from professionals such as accountants, financial planners, investment advisers, and lawyers.
- Monitoring and reassessment: As time passes, one's personal financial plan must be monitored for possible adjustments or reassessments. Time must be spend on here as to monitor you are walking towards your ongoing goals. :)
These are the basic knowledge for you to step into the personal wealth management area, remember to ask first if you begin to invest. ;D
Reference:
http://en.wikipedia.org/wiki/Personalfinance
http://www.invested.hk/invested/en/html/section/elearning/tools/video/video_index.html
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