This should be configured according to the time limit of your money use and your risk tolerance.

All family assets should be distributed evenly, not in one basket.

Distribute family wealth to four accounts:

Cash account: money for daily expenses (10%)

Leveraged account: life-saving money at critical moment (20%)

Investment account: high income, funds used for investment (30%)

Capital preservation account: safe and steady, the money used for capital preservation (40%)

Only by owning these four accounts and distributing them in a fixed and reasonable proportion can we ensure the long-term sustained and stable growth of family assets.

Next, let's check whether you all have these four accounts and make a plan.

First, the cash account

This account guarantees the short-term expenses of the family. You must have this account, but the most likely problem is that the ratio is too high, resulting in idle funds or spending too much money to prepare other accounts.

Generally speaking, 3-6 months' living expenses for this account is enough, accounting for no more than 10% of family assets.

The extra money is suitable for investment in money funds or banks, and short-term capital preservation and financial management.

Second, leveraged accounts.

The purpose of setting up this account is to protect sudden large expenditures, such as major diseases or disasters, which must be earmarked for special purposes. It is most suitable to configure insurance products with high leverage ratio, and get high protection with small money, such as accidental injury, serious illness, life insurance and so on.

This account doesn't seem to have any effect at ordinary times, and many people are reluctant to spend money here. But at the critical moment, it can ensure that you don't have to sell your car or house for urgent money, and even your class will drop.

Whether the proportion of 20% is high or not is a matter of opinion, but at least it must be guaranteed to cover unpredictable major risks in life.

Third, the investment account.

S&P's proposal is 30% of family assets. Is it much lower than you think?

Of course, investment is very important, but if you can afford it, you should also be able to afford it. Especially high-risk investment, regardless of profit or loss, can not have a fatal blow to the family! Many people bought 30% stocks in the first year and made a lot of money. The next year, they used 90% of their money to buy stocks, and even leveraged them. If they lose money, it will really be heaven.

This account is generally equipped with high-risk and high-yield investment products, such as stocks and funds, which can be leveraged to buy a house.

Fourth, the capital preservation account

Generally accounting for 40% of household assets, it is also an investment, but the purpose is to ensure that the principal is not lost and resist inflation. Therefore, the asset requirement of this account is to lock in a stable rate of return for a long time and enjoy compound interest. Generally suitable for planning pensions, children's education funds, intergenerational wealth inheritance, etc.

No matter which of the above uses, the time span is very long, so there must be a fixed amount every year or month, and every little makes a mickle. And you can't extract it at will and use it for other purposes.

The most suitable investment varieties for this account are annuity insurance and long-term national debt, and a stable long-distance running champion.

Unfortunately, it is easier said than done, and many families have not set up this account. Therefore, the story of beauty when young and poverty when old is always repeated in the world.

Summary:

These four accounts are like four legs of a table, and any imbalance is in danger of tipping over.

I want to remind you that asset planning and allocation always have priority. In addition to ensuring daily expenses, we should also pay attention to the planning of living security. There is a bad saying: the poorer people don't buy insurance, the richer people love to buy insurance.

Many people think that rich people have too much money to spend, so it's no problem to buy insurance in buy buy! In fact, smart rich people all know how to spend money on the cutting edge, especially how to avoid life risks. Even if the poor have savings, they are often reluctant to buy insurance, thus exposing themselves to uncontrollable risks. Therefore, the circle of friends always sees some tragedies caused by illness from time to time. Remember, we can only talk about investment on the basis of avoiding life risks.

In addition, the proportion of S&P family assets in four accounts is not suitable for all families, but its spirit of pursuing stable growth is completely acceptable.

Someone summed up a relatively common financial management rule for families in China: 432 1:

40% investment, 30% consumption, 20% savings, 10% insurance.

What proportion is best for you?

In the final analysis, we need to understand the concept of healthy financial management advocated by these laws, and make detailed calculations according to our actual situation, such as income, liabilities, consumption habits, risk preferences, etc. , combined with our own financial goals, can achieve the best results.

Radical or conservative, it's only appropriate if you feel comfortable inside ~