Post-Covid Wealth Management Strategy

by Jeffrey Liu

  • Hippo guide
  • Objective.
  • Buy an umbrella on a sunny day and plan ahead
  • The key to the idea of financial management lies in the cognition and attitude of money
  • If you don't know me yet (profile)
  • The real story happens between you and me
  • Can a 25-year-old pension be many times that of a 50-something?
  • On the scope of financial management and hippo wealth services

The foreword

At some point in your life, your life will change dramatically because of someone or event, for better or worse, you can't predict, but your life plans, directions, and trajectories from now on are bound to change to varying degrees.

A new crown outbreak in 2020 has undoubtedly cast a terrible shadow over the world, and it has made history as the world's largest pandemic since the Spanish pandemic, leading to the biggest economic halt since the Great Depression of 1930; it has created the biggest drop in oil prices since OPEC's inception, leading to the biggest central bank intervention in history; and it has allowed Buffett, the 89-year-old world's richest man, to witness the first of its kind in a month.

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What is really powerful about this outbreak is that it lasts long enough to trigger some fundamental social change and phase change.



One of the most significant changes is people's understanding of "risk" and their perceptions and attitudes towards consumption and financial management.


Even before the outbreak, people had long been bored with the statements that "plans can't keep pace with change", "you never know which comes first tomorrow and accidents" and "how fragile and precious life is". But the feeling is not profound, perhaps because a lot of times only they have experienced some kind of accident, can feel the same way about these words. However, the new crown outbreak has triggered a change in thinking and behavior for all mankind.



Post-epidemic society, whether it is high net worth people, or ordinary investors and users, the awareness of wealth risk resistance has been significantly strengthened, but also more rational.



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UBS, the global wealth manager, also said in a previous Investor Watch survey that the outbreak had affected people's perceptions of wealth and a deeper understanding of risk, prompting many investors to rethink their needs for capital in terms of popularity, long-termity and inheritance. Of these, 56 per cent were concerned that their savings were not enough to cope with another outbreak, and 83 per cent wanted more financial guidance from professional financial advisers.



At the same time, the outbreak has always been a relatively comfortable and stable environment for the younger generation, especially after 90, 95 people pulled out of the "comfort circle", more deeply aware that the existing strength is really difficult to resist large-scale risks. Therefore, this group of young people's risk awareness quickly established and enhanced, began to reflect and re-layout their own consumption concept, consumption habits and financial philosophy, for long-term life planning.



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During the outbreak, searches for the keyword "Income Protection" on the Internet peaked in March.

Photo credit: Google Trends

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During the outbreak, searches for the keyword "Life Insurance" on the Internet peaked at the end of May.

Photo credit: Google Trends

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During the outbreak, Australians' online searches for the keyword "Superannuation" also peaked in March and again became a hot search keyword at the end of April. Photo credit: Google Trends



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During the outbreak, searches for other related topics about life insurance and pensions in Australia have skyrocketed.

Photo credit: Google Trends





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Buy an umbrella on a sunny day and plan ahead

As a wealth planning financial planner, I have always emphasized the concept of wealth management is "two legs to walk the road of wealth, one is protection, one is value-added." Most people only care about value added and leveraged investments, so I often say that a lot of people jump there on stilts and legs. Once the risk occurs, it is very easy to fall and even cause fatal injuries.



Insurance is a sunny day to buy umbrellas, put there seems useless, but it rain can be directly taken out to shield you from the rain, but if the outside has been pouring rain, you do not have umbrellas, this time to buy umbrellas, or can not buy umbrellas, or need to spend more energy and detours to buy, perhaps or not suitable for their own umbrella.



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The same is true of the family, and no one wants the wealth that has been created so hard that some uncontrollable risks have been put to the fore. As a result, not only will current wealth be affected, but future uncalculable cash flows will also be hit hard. For individuals and families, at different stages, insurance planning will be different, and the greatest significance of insurance is to plan for quality of life, so that the disease has some medical treatment, old support, risk when there is prevention, and will not let the quality of life due to unexpected risks and rapid decline.





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Financial management is the idea of reason,

The key lies in the perception and attitude of money


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In my communication with clients, I am often surprised that there are many people, including those with high net worth who can't tell the difference between insurance and investment.



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Essentially, the value of insurance is protection, preparation for future risks, and investment is used to add value. China's insurance is equivalent to Australia's financial management. Wealth management in Australia includes wealth protection, wealth appreciation, and wealth inheritance, in fact, wealth management.



I often see customers calculating how much money they can make in the future by buying insurance now, but insurance is money management, not investment, and protection is costly.



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Insurance is one of the specific ways of operation of financial management, we need to have a correct understanding of financial management with the times, I also believe that financial business is a kind of thinking habits permeated in daily life, the sooner training, the sooner the benefit, then I am willing to through their own professional knowledge and ability in the financial field for more than 10 years, to help more people manage wealth.





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If you don't know me yet



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I love the financial affairs I am now engaged in, and this love is what I have seen and heard, many chance coincidences and opportunities led me to make the decision to start sharing the knowledge of insurance finance, because I see not only a lot of Australians, especially our Chinese in Australia in the insurance area has a lot of blind spots, know very little, so can not better manage and protect their wealth. So, wanting to help ourselves better was one of the biggest reasons I was inspired to transition from a WESTPAC financial trainer to a bilingual financial planner.







The real story happens between you and me



Knowing my friends, I should remember that in 2018, as a volunteer, I helped a family of four who were living in Sydney's north at the time, and they were in a state of disarray because of a sudden fire. The couple, who were badly burned, the two minor children in unattended care, the high cost of future rehabilitation, the child's upbringing and schooling, including the reconstruction of the house, all became a mountain, making the family miserable.



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Many enthusiastic people have extended a helping hand. Well, as a volunteer, I felt very sorry for their experience, so after being fully entrusted by my family, as a volunteer to help my husband and wife to run a series of insurance claims, and finally successfully obtained a large amount of compensation from the insurance company.



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Sometimes financial management is not just a matter of not wanting to, it is actually a consciousness, an awareness and later become a habit.



For example, the simplest "Australian pension" is a way to save money and prepare for retirement. All the investments, insurance, and security inside are knowledgeable for one purpose: your retirement. But many people either don't know they can get a pension (especially if they come to Australia on a short-term visa), or they have a pension, but they never close it in their accounts, or they have several pension accounts at the same time, each of which may have invested in different products and strategies, and charges separate management fees, pays insurance premiums, or doesn't know, or doesn't pay enough attention to these overlapping expenses.





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How many times can a 25-year-old pension be in his 50s?


I have an uncle in Australia who is nearing retirement age and once asked me to check my pension information. I found his account from LAST SUPER, but was surprised to find it was less than A$1,000. To know that my uncle has been in Australia for more than 30 years, has been self-employed, but never know how to use pension value-added tax avoidance, selling insurance and other knowledge, so in the coming retirement, pensions this could have made his old age more comfortable way of financial management basically has nothing to do with him. But by this time, there was no way to make up for it.



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At the same time, I know a very young student who came to Australia for 6 years, has always been a student sign, part-time during college, the employer is also helping her pay her pension, and this new crown outbreak also made her lose her job. However, as the Australian government eased the economic impact of the outbreak on the population, in April it temporarily issued a new policy of "early retirement pensions" of up to A$10,000. The money, like an emergency fund for her, suddenly greatly mitigated the risk to all aspects of her life.



These are just two very small and simple life cases, and during the outbreak there have been many financial scams, many illegal elements take advantage of people's income reduction, tight funds, want to get an early pension psychological attack, so that many people suffer losses. I think one of the biggest problems is the lack of awareness of risk and blind spots for financial products, and of course the lack of awareness of cyber security.



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On financial management



So this goes back to the hippo wealth management philosophy I summed up in an oil poem on August 18, 2018:

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Wealth management is like planting trees, choosing soil and choosing farmers

Risk management is guaranteed and germination results are often cared for

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The main safe haven for wealth protection is insurance. Insurance is the equivalent of a moth you're building a wealth kingdom, and it doesn't make you richer, but it keeps you from getting richer. I hope hippo wealth is not only a professional financial services organization, but also a financial and business education platform, can pragmatically help you enhance the awareness of risk and wealth, because this directly affects your personal, family wealth and assets of the status quo and future value.

So in my daily work, my most important thing is communication, and I hold the "three non-principles" in communication:

1

Don't talk about "high-yield, risk-free" products

2

Don't talk about the theory of "getting rich in the short term"

3

Don't make "unseerable" promises

I think that only if we really stand in the customer's perspective, for the benefit of customers, and at the same time the most real information to my customers, they will trust me, trust hippo wealth, our cooperative relationship can be healthy and long-term, meaningful.

This long and valuable financial journey

Let me protect your wealth


Hippo Wealth continues to plough deep into the three major sectors and is committed to addressing the five pain points of our financial management path: high debt, high taxation, high risk, low interest/income, and difficult inheritance.



1。

Personal protection

(Personal Insurance)

Introduce you to the Australian insurance system and use Australian personal business insurance to transfer risk, protect wealth, pass on wealth, and build a wealth mohe. For example, life insurance, income protection. "Spend small money, keep big money, enjoy peace of mind." " 。

2

Self-Management Pension (SMSF)

Pensions are a legal tax haven in Australia. Explain the Australian pension system, understand the different types of pension accounts, and meet your post-retirement wealth needs by planning SMSF early, such as buying property through pensions and SMSF investment strategies;

3

Investment in Quality

For you to select high-quality investment products, explain the investment products profit model and risk management, to meet your (short-term, medium-term, long-term) wealth value-added needs. For example, bond, equity, Australian quality stock analysis and trading services.

Conclusion:

Plan ahead, transfer risk, and establish safeguards

Everyone has their own ideals, everyone's money is hard-won, in the face of risk, billionaires and ordinary bosses surname is the same, the common people are facing the risk of major illness accidents and old-age care, and rich people, when the wealth accumulated to a certain extent, how to protect wealth, inheritance of wealth is the most important, so they need to pay more attention to financial and operational risks. In today's society, although many things can be self-tringing, but finally, professional things still need to be handed over to professional, reliable people to do.

Hippo Wealth Introduction 

Hippo Wealth Pty Ltd (ABN 476 449 228 14) is a bilingual financial brand strategic partner and ASIC authorized representative of Sequoia Financial Group (ASX:SEQ) (www.sequoia.com.au) (AFSL 341506)

Hippo Wealth is independent of all insurance wealth management products, based on the best interests of customers, do due diligence, select high-quality products, through remote or face-to-face, for the whole of Australia (Chinese /English) customers to provide wealth protection, value-added heritage and other financial services.

I want to bring more value and benefits to you on this long, valuable and meaningful journey of wealth that will protect you and your family.

Disclaimer