Interest Rate

The difference between investment and financial management

1. Investment is high reward with high risk.
2. Financial management is low reward with low risk.

Bill Gates's Portfolio

Pay 10 billion for Interest-free government bonds at a 75% discount.

7.5 billion	Will return after 10 years.	financial management
2.5 billion	Investment with high risk	investment

3 rules for investment

1. Keep the principal!
2. Keep the principal!
3. Keep the principal!

4 things for taking charge of your property

1. Interest rate
2. Tax rate
3. Multiply assets
4. Turn liabilities into assets
   
   

Interest

Is your earning speed faster than the speed of interest rate changes?

Keep your principal or lose your principal?

Interest rate is a key number that affects your fortune.

• A high interest rate means inflation.
• A low interest rate means they do not want anybody to deposit in banks.
• A low interest rate also means a developed economy.

Aging in China

Demographic dividend	Population Liability
Baby boom	The elderly boom
Many young people	Many old people
Good economy	Bad economy
Inflation	Deflation

The most conventional way of financial management is for the elderly to be cared for by their children. But their children will work for the government, the bank, and the business owner.

China will become an aging society before becoming rich, with a severely declining birth rate.