We often compare family wealth to a reservoir, where the water is disposable money, with a water inlet above and a water outlet below. The water inlet is income and the water outlet is expenditure. Sometimes there may be water leakage at the bottom of the reservoir, which is what we often call emergencies, such as diseases and accidents.

water inlet

The water intake, that is, the income part, has active income and passive income. Active income is the exchange of time and labor for money, mainly including wages, bonuses, remuneration for manuscripts, labor income and so on.

Passive income, also known as income after sleep, is income that can be obtained without labor, generally including rent and interest.

water outlet

Let's look at the water outlet, which is the expenditure part. Generally, it includes daily expenses such as food, clothing, housing, entertainment and human feelings, as well as unexpected expenses such as accidents and diseases, as well as future rigid special expenditures such as pensions and education funds. The more outlets there are, the faster family fortune will lose.

In the face of unexpected expenses, in addition to the loss of active income at home, there are also medical expenses and rehabilitation nursing expenses, which further affect daily expenses and special expenses. For this reason, some families even have to sell their houses, cars and other assets to cope with unexpected expenses. Is there a better tool to deal with unexpected expenses and protect daily and special expenses?

? 02? ? What is the function of insurance?

Then we have to talk about the role of "insurance" as a tool in the wealth reservoir.

Our return to the essence of "insurance" is a safe and reliable guarantee, and then it is extended to a guarantee mechanism, a tool for planning life finance, a basic means of risk management under the condition of market economy, and an important pillar of the financial system and social security system.

Therefore, as long as we make good use of insurance to ensure comprehensive and adequate protection, we can not only resist sudden risks, but also ensure that we can spend money when we should, and at the current level, we can also ensure that we can spend money in the future.

? 03? What are the different functions of each insurance?

Life/pension insurance

Life is the most precious, whether it is death caused by illness or accident, it will not only leave grief for family members, but also leave many unfinished responsibilities and regrets. So we use life insurance to solve this most extreme risk-death risk, so that love is light without debt.

accident insurance

We often say that we don't know which comes first, tomorrow or accident. In the face of an accident, it may be a minor injury or pain, or it may leave a lifelong scar or disability. One of the biggest functions of accident insurance is to give corresponding disability compensation according to the level of disability, so we will solve the risk of accidental disability through accident insurance and minimize the impact of physical disability.

critical illness insurance

When a serious illness comes, our active income is likely to stop, and during this period, our family living expenses and other aspects are as usual, as well as rehabilitation expenses after treatment, so we will solve the problem of income loss and rehabilitation expenses through serious illness insurance and reduce the economic impact brought by serious illness.

medical insurance

At present, China's social security system is gradually improving. When we go to the hospital, we can see that there are two parts on the bill: social security reimbursement and personal expenses. The expenses of personal expenses vary according to the size and severity of the illness. Faced with this part of the cost, we solve it through different types of medical insurance, that is, medical insurance mainly solves the problem of medical expenses.

annuity insurance

As we all know, our time to earn money is limited, and most of our active income is generated in the working stage before the age of 50 or 60. There are many immediate responsibilities at this stage, such as daily expenses, education expenses and alimony. So much so that we don't have much time and energy to think about things that need long-term planning, such as old-age care. However, with the increase of age and the shortening of income line, we may face that children have better educational choices and retire. To this end, we will plan the education fund and pension for our children or ourselves in advance through annuity insurance, so that children and the elderly will not be restricted by the present.

Although insurance can't avoid risks, it can give a sum of money when risks come, so that the normal cash flow of families can continue.

Then how can we reasonably distribute the water in the reservoir, that is, the assets at home?

? 04 ? Asset allocation model

We can divide the water in the reservoir into four parts: the money to be spent, the money to be saved, the money to be born, the money to be insured and the money to be appreciated. This distribution method is also the Standard & Poor's family asset allocation chart, which is a reference model obtained by investigating 65,438+10,000 families with stable wealth growth.

The money to be spent

This is a short-term consumption that requires daily expenses. It's always in your cell phone and wallet. Generally, the amount is the family's living expenses for 3-6 months, accounting for about 65,438+00% of the assets.

Life-saving money

That is, the money for risk protection. The money needs to be earmarked to solve the sudden large expenses of the family. We use the high leverage of insurance to transfer the risks of accidents, medical treatment, serious illness and death, and the expenses account for 20% of the assets.

Money to make money

That is, the money in the investment account, including investment in stocks, futures, gold, real estate and so on. What needs to be remembered is that investment is not equal to financial management, and there is a certain risk of loss, so this account accounts for about 30% of assets.

Capital preservation and currency appreciation

Ensure adequate security, annuity insurance, trust, bonds, etc. With the characteristics of safe principal, stable income and sustained growth, it is a stable asset that can maintain stable value-added for a long time, accounting for 40% of the assets.

The above asset allocation ratio only provides a scientific idea for planning funds, because each family's income and expenditure, family structure and period are different, so it is not static, and it also reminds us not to put all our money in one basket.

Finally, I hope that each of us will have a guarantee against sudden expenditure of the reservoir, and also prepare the rigid special expenditure in the future in advance, so as to keep the inflow speed faster than the outflow speed and accumulate more wealth for life.