1. Poole’s household asset allocation model

It is known as the “most robust asset allocation model. Poole’s household asset quadrant diagram divides assets into four parts. The functions of investment are different, and the investment channels are different. Among them, 10% is spent, 20% is life-saving, 30% is investment, and 40% is capital-preserving and appreciation. It is also known as the 4321 law. .

1. Daily expenses account, that is, money to spend (10%)

About 3-6 months of living expenses, this part is expressed in more than just It is the cash in your wallet, and it also includes many other non-cash forms, such as credit cards. Put the money you spend on daily life into Yu'e Bao. It is convenient to deposit and withdraw, and you can get higher returns than fixed deposits in banks. At the same time, you can use it to save money. To protect the family's short-term expenses, daily life, buying clothes, beauty, travel, etc. should be spent from this account

2. Leverage account, which is life-saving money (20%)

Leverage accounts are used to deal with large expenses arising from emergencies, and must be earmarked to ensure that you or your family have enough money to save your life in the event of an accident or serious illness. This amount of money can be used as a notification in the bank. Deposit, or split it into several installments to make fixed deposits.

3. Investment income account, which is the money that generates money (30%).

The investment income account is mainly used for making deposits. Financial management and investment. Financial management is as important as work. You need to think about it early and learn in advance. You can try large-scale Internet platform financial products, which can get about 5-7% returns. Graded Fund A is also a good financial product with less risk. You can also buy P2P products from listed companies or large platforms with a profit of about 7-10%. In the short term, the risk is still controllable.

4. Long-term income account, capital preservation and appreciation (40%)< /p>

This part is mainly money to protect the family, money that must be used and needs to be prepared in advance. It includes some low-risk financial products, such as bank financial management, treasury bonds, currency funds, convertible bonds and insurance.

Configuration should vary from person to person. There are standard answers to math questions, but financial management is different. Each person and family’s situation is different, and there are also different needs at different stages of the individual or family. , need to be targeted. Of course, even if the configuration is different, the four parts of the model are indispensable, and only the proportion and distribution method can be adjusted.

2. Family life cycle theory

Families, like people, go through a process of growth, development and change. At different times, the family structure and main financial management goals of the family will be different. After all, money is limited, so it should be used wisely, whether for consumption or investment. Different strategies are needed in different periods for the selection of financial tools, financial products, product terms and liquidity.

(1) Single period: save money and increase value for emergency house purchase.

When you are single. , apart from work, the most important thing is to start a family. At this time, the biggest expenditure should be buying a house. At this stage, you should improve your work ability as much as possible, save more money and use this money to make simple investments to increase its value. At the same time, you must make a good budget to ensure that when you need to start a family, you can pay the down payment so that you can have a warm home.

(2) Family formation period, from marriage to having children: Buying a house and purchasing hardware to save money for emergencies.

When a family is forming, what needs to be focused on is work and children. This period is a jump period for our salary growth. During this period, the work pressure is very high, and with the addition of new members to the family, it will consume a lot of energy and money, and we need to balance it.

(3) Family growth period: emergency special goals for asset appreciation in education planning.

During the family growth period, as work becomes more stable and income reaches the highest point in the life cycle, our main concern during this period is the education of our children and the appreciation of assets.

(4) When the family matures, the children work and parents retire and provide for the elderly. Special goals

When the family matures, the children are already working. As they grow older, their physical health and safety are more important. Retirement.

3. The Rule of 72

The Rule of 72 is actually a formula: 72/Compound interest rate of return = the time it takes for assets to double

This rule explains three things Reason:

1. The accumulation of wealth takes time;

2. The rate of return is very important;

3. The power of compound interest is terrible;

Assume that the compound interest rate of return after financial allocation is 8%. According to the rule of 72, 72/8=9, the assets will double in about 9 years. Persisting in 9 years is a very long process and requires us to have enough Willpower. Of course, if the compound interest rate of return increases to 15%, according to the rule of 72, 72/15=4.8, then it will only take about 5 years for our assets to double, which is shortened by half. If we have 1 million investment funds and an annual rate of return of 15%, we will get an income of about 66 million after 30 years of investment. Isn’t it terrible?

4. Eight Major Plans for Financial Management

Financial management includes a lot of content, and financial planning is divided into eight modules:

1. Cash planning: mainly for our current and Plan for future cash needs to ensure that you have an appropriate amount of cash on hand to cope with it;

2. Consumer expenditure planning: planning of consumption level and structure, consumer expenditures such as buying a house, buying a car, and personal credit;

3. Educational planning: children’s education;

4. Risk management and insurance planning: money to prevent accidents, whether it is insurance or other methods, needs to be prepared;

5. Tax planning: advance planning and arrangement of business, investment, and financial management activities to reasonably avoid taxes;

6. Investment planning: configure appropriate financial product portfolios according to our own circumstances, so that our money can make money ;

7. Retirement and pension planning: ensure that the elderly can live a life of "care for the elderly, have a happy life in old age";

5. Other financial management knowledge :

Rule of 28: We should focus mainly (80%) on a small number (20%) of high-return activities

Rule of 35: The amount of monthly loan principal and interest repayments , the maximum should not exceed 35% of income

Rule of 100: The best proportion of risk products in deposits is (100-age)%.

For example, if you are 35 years old, the ratio of investing in medium and high-risk products should be 65%, and the other 35% can be invested in lower-risk products such as Yu'e Bao, bank savings, and government bonds. .

Immunity strategy: The immunity strategy is generally used to refer to bond investment, and this can be applied to family risk prevention. Purchase term life insurance, medical insurance, etc. for the main source of wealth in the family, followed by children and other people.