Trust product investment is a financial management method that has entered the middle class in the past five years.

Because trust products are financial products issued by trust institutions regulated by the China Banking Regulatory Commission, they are subject to control in terms of risk control and project selection.

Trust products generally have a fixed rate of return, which is twice as high as bank time deposits, making the masses flock to them.

The window guidance of the China Banking Regulatory Commission and the constraints of one law and three regulations such as the "Measures for the Administration of Trust Investment Companies" and the "Trust Law", as well as rigid redemption, all give trust products the characteristics of low risk and high return.

At the same time, trust can simultaneously participate in the money market, capital market, industrial investment and other unique institutional advantages, and flexible institutional arrangements allow the trust business to develop rapidly.

As of the second quarter of 2012, the trust's assets under management were RMB 5.5 trillion.

The advantages of trust financial management are: 1. Independence and security of trust property. The independence of trust property is the prerequisite for security. The so-called security is mainly reflected in three aspects.

First, trust property is not affected by factors such as politics, economics, foreign exchange control, creditor's rights litigation, mismanagement of children or beneficiaries, etc., and can be exempted from confiscation in the event of property disputes.

Second, creditors of trust property may not request enforcement or auction of the trust property.

Third, claims on trust property may not be claimed to be offset against debts that are not trust property.

This kind of security actually adheres to the oldest purpose of trusts, providing security for an individual's family property and protecting private assets from illegal infringement.

2. Flexibility of trust plans The flexibility of trust plans is also attractive for meeting the diverse investment needs of investors.

The trust deed can be continued forever or revoked at any time; the trust property can be redistributed, the beneficiaries can be changed, and the administration and operation of the trust property can be changed at any time.

In addition, using trusts to reasonably avoid taxes abroad is also an advantage that many investors flock to.

As we all know, inheritance tax is an important means to balance social wealth in Western countries. The transfer of inheritance is compulsorily levied in many countries and regions, such as the United States, Canada, and the United Kingdom, and the progressive tax rate is generally around 50%.

Therefore, the most ideal way for property owners to avoid being taxed is to establish a trust. Through the establishment of a trust, the trust property will not be affected by the death of the trustee, and considerable expenses can be saved within the legal framework.

3. Expert financial management case 1: Carefully manage pensions. Teacher Chen is a mathematics teacher in a key high school.

After retirement, Mr. Chen and his wife lived on their monthly pension. The old couple lived in a two-bedroom and one-living house they had been assigned in their early years.

Both his son and daughter are married, and they often come back to visit them. Their retirement life in their later years can be described as happy.

A year ago, when Teacher Chen was playing cards at the community's senior citizen activity center, he heard people around him discussing stocks enthusiastically.

Teacher Chen has never been exposed to this thing, but when he heard that stock investment can make a lot of money during this period, and the return is higher than depositing it in a bank or buying government bonds, Teacher Chen was a little excited.

When he got home, he immediately discussed with his wife whether he should also use some money to speculate in stocks.

Unexpectedly, after many discussions, my wife just disagreed.

The reason is simple. Teacher Chen has never been exposed to stocks. If he is cheated, his family's money will not be enough to compensate him.

Because of this, the old couple had a conflict.

Later, the daughter asked a friend to inquire and found out that there was a financial management tool called trust, which was safer than stocks and had higher annual income than banks, so she introduced it to her father.

After much consultation, the old couple finally decided to give it a try.

They spent 100,000 yuan to buy an infrastructure collective fund trust from a trust company, with a term of 2 years and an expected annual rate of return of 4.6%. Calculating the principal plus income after 2 years, the total is 109,200 yuan.

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In this way, you can avoid jumping into the stock market rashly and earn more money than banks. It really kills two birds with one stone.

Recently, the stock market has been in shock, and many elderly people who have just bought shares in the community activity center are sighing and gloomy.

Teacher Chen felt very lucky. It seemed that the decision made at that time was wise, otherwise he would have been anxious and angry now.

Comment: For some ordinary residents, especially the elderly, who have no investment knowledge and experience, bank deposits and the purchase of government bonds are still the main investment methods at present.

However, with the gradual development of financial markets, the yield gap between these conservative investments and financial instruments such as stocks is getting wider and wider.

In the face of high returns, they often become "ignorant and fearless" aggressive investors, ignoring the high risks of entering the market.

In this case, trust has undoubtedly become a more suitable investment tool.

There is no need to worry about the huge risks caused by lack of investment knowledge, and a certain investment return can be guaranteed, which can be said to complement each other.

Case 2: Establishing educational investment for children Every parent hopes to create the best educational environment and the most comfortable living conditions for their children.

According to a survey by a related media, about 300 students in the first grade of a certain middle school have spent up to 1.05 million yuan on living, studying, leisure, investment and other aspects over the past 13 years.

Statistics show that the average cost from birth to college graduation is 433,500 yuan.

It can be seen that the current funds required to raise a child almost consume a working family's lifetime savings, and the burden of education on parents is really extremely heavy.