Industry Research Personal Finance Group 5. Overview 1) Introduction of Personal Finance 2) 4 main ways of Personal Finance 3) Introduction a big player.

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 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

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 InvestmentWith good investment, an investor can accumulate wealth which may exceed the need of financial goalTypes of investment:StockBonds and other derivativeForeign exchangeMutual 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

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

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 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

The End