People have different financial conditions and different capital needs at different stages of life, which determines that the types, quantities and financial objectives of financial instruments selected by customers at different stages should also be different, so it is necessary to allocate different personal or family assets for different customers.
Why do financial advisers divide the life cycle for customers? The purpose is to divide the customer's life stages, analyze TA's different financial situation and financial objectives at different stages, and thus effectively design his personal financial planning. It can be said that life cycle theory is the basis of the whole financial planning.
The specific contents of personal financial planning include cash planning, consumption expenditure planning, education planning, risk management and insurance planning, tax planning, investment planning, retirement planning, property distribution and inheritance planning and so on.
The financial planning scheme is not standardized!
Because each family's situation, economic situation and personality are different, it is a service that emphasizes individuality. At the same time, there is also a phenomenon that customers' financial goals are similar in place, income status and risk tolerance at the same life cycle stage.
Drawing lessons from the mature theories and experiences in the world and combining with the actual situation in China, the life cycle and value model are summarized. ：
Life cycle.
From birth to death, people will go through six periods: infancy, childhood, adolescence, adolescence, middle age and old age.
Because infancy, childhood and adolescence have no independent financial resources and do not have to bear economic responsibilities, these three periods are not important periods for financial planning.
Youth, middle age and old age are three important periods of financial planning. Then the important period of financial planning can be further subdivided into five periods, namely: single period, family and career formation period, family and career growth period, pre-retirement period and retirement period.
The period from work to marriage is generally 2-8 years, and the period between the ages of 22 and 30 is characterized by low economic income and high expenses, which is often the original accumulation period of family funds. During this period, we should work hard, try to have a balance every month and make a small investment. Begin to accumulate experience for future financial management.
The period from marriage to the birth of a newborn is generally 1~3 years. At this time, the family's economic burden increased and life began to stabilize. At this time, the biggest expenditure of the family is generally the purchase expenditure. Start thinking about preparing for children's education expenses.
The period from the birth of a child to the completion of college education is generally 18~20 years. Family members will not increase, life is basically stable, and family expenses will be relatively large. At this time, we must find ways to increase the proportion of investment assets in household assets and accumulate net assets year by year.
Before a child retires from work, a family usually retires for about 10~ 15 years. At this time, the family has been completely stable, the children are independent, the family income has increased, and the expenses have decreased. The most important thing in this period should be to prepare for retirement and appropriately reduce the proportion of high-risk financial assets in the portfolio in order to obtain more stable income.
A period of retirement is called retirement period, when the family burden is lighter and the main content is exercise, leisure and entertainment. At the same time, the medical expenses increase, and the risk tolerance is reduced. In terms of asset allocation, the risk should be further reduced, with the goal of providing for the elderly.
Family model-
There are three basic family models: young families, middle-aged families and elderly families. Family income is dominated by young families under 35, elderly families over 55, and middle-aged families between these two years.
Financial planning tools.
Financial planning tools are very comprehensive: Public Offering of Fund, commercial insurance, fixed income securities, stocks, futures, hedge funds, private equity funds, foreign exchange, gold, law, personal trust and so on.
The process of financial planning-
The process is divided into six steps, namely, establishing customer relationship, collecting customer information, analyzing customer's financial situation, making financial plan, implementing financial plan and continuing financial service.
Communication skills in financial planning are very important. The success of establishing customer relationship directly determines whether the financial planning business can be carried out smoothly. Collecting customer information is the basis and necessary procedure of financial planning. At the same time, the third step is that the current financial situation of customers is the basis for achieving future financial goals.
The key point is: financial consultants must objectively analyze the current financial situation of customers and predict the future financial situation of customers before putting forward specific financial plans.
In this step of making the financial planning scheme, the financial consultant should ensure that he has mastered all the relevant information of the customer and make use of the financial objectives and requirements of the new customer to ensure the current financial security of the customer. On this basis, they can put forward specific financial goals and financial plans for customers.
In the implementation stage, we should follow three principles:
Accuracy, effectiveness and timeliness.
The implementation plan should be detailed: in this process, the customer should personally participate in the formulation and modification of the implementation plan. The financial plan itself is not immutable.
In the process of implementation, when the hypothetical conditions of the financial plan change, or the financial situation of the customer changes significantly, the financial plan should be adjusted at any time. The formulation and implementation of financial plan is a dynamic process.
Therefore, after completing the plan, the consultant should constantly adjust the plan according to the new situation for a long time to help customers better adapt to the environment and achieve the predetermined financial goals.