So if we save 10 thousand a month, how should we distribute the money? How can financial management ensure the safety of family assets and realize the preservation and appreciation of wealth?
Today, I will introduce you to an open financial management tool-index fund, which was made by Buffett's lazy people. Index fund is definitely the first choice for personal and family financial management tools, and it is also very simple and convenient to learn. This financial management tool can be easily used by everyone, and the income is also very considerable, especially suitable for Xiaobai and financial planners who want to easily allocate family assets.
Funds can be divided into active funds and passive funds according to investment methods. Active fund is a fund selected by the fund manager. Many have short-term performance appraisal, and fund managers often make short-term transactions in order to achieve short-term goals.
The index fund we introduced today is a passive fund, which only allocates stocks according to the index, and does not artificially select stocks. From the historical performance, 80% of active funds can't outrun index funds. The annualized rate of return of an index fund last year was 30%. If you invest 1 10,000 per month, you can work out an annual income of 36,000, which can easily overcome inflation.
Buffett once said that buying index funds means buying national luck. As long as the national economy develops normally, index funds can rise for a long time.
A good index fund can not only pay dividends, but also enjoy compound interest to improve income. As long as you choose the right index fund to buy, buy when it is undervalued, hold positions when it is reasonably valued, and sell when it is overvalued, you can stably obtain high returns and easily allocate assets for individuals and families, which is simply an investment artifact of financial management.