Before asset allocation, the first task is to confirm the risk tolerance according to the family's financial situation and financial management objectives, then determine the reasonable asset allocation ratio, then select the appropriate financial management products, and finally form an asset allocation plan.
For generally stable families, the asset allocation plan should leave enough liquidity, especially for families with housing loans. If there is not enough mobility, families will lack adequate protection when they encounter major events such as unemployment and serious illness, and there are great potential risks. It is suggested that 20%-30% of family assets should be allocated to deposits, money funds and short-term wealth management products, so as to obtain higher income as much as possible on the basis of ensuring the liquidity of funds.
Second, medical security, old-age care and other issues are often very sensitive to a family, and it is necessary to choose appropriate commercial insurance to protect the health and occupational safety of yourself and your family. Therefore, for the sake of health and medical security, it is suggested that every family should pay attention to the allocation of insurance assets, such as spending 10%- 15% to buy commercial insurance, critical illness insurance, personal insurance and so on. The investment of insurance assets is to avoid the burden of treatment expenses when family members are physically ill.
Third, after allocating current assets and insurance assets, we can allocate medium and long-term assets according to the risk preference of families. Investors with high risk preference can invest in securities, while those with low risk preference can allocate bank wealth management products or bond funds with relatively low risk.
For workers who have a fixed income every month, the fixed investment of the fund is a relatively simple and effective investment axis, which can form the habit of saving, adhere to the balance for long-term investment, and obtain higher returns. Investors can also try some investment methods other than traditional financial management methods, such as investing in gold to hedge and investing in collectibles. Investors with larger assets can also choose industrial investment, which is the investment mode with the highest rate of return and the highest risk among all investment and financial management channels.
Whether it is a high-income family or a low-income family, we should not only focus on simple savings in financial management, but also conduct diversified asset allocation, try a variety of financial products with different risks and returns, such as bank wealth management products, money funds, stock investment, etc., and rationally allocate family property so that assets will continue to increase in value.