is called "the most robust asset allocation model". Poole's quadrant diagram of family assets divides assets into four parts, which have different functions and different investment channels. Among them, the money to be spent accounts for 1%, the life-saving money accounts for 2%, the investment money accounts for 3%, and the capital preservation and appreciation money accounts for 4%, also known as the 4321 law.

1. Daily expense account, that is, the money to be spent (1%)

It is about 3-6 months' living expenses. This part is not only the cash in your wallet, but also many other non-cash forms, such as credit cards. If you put the daily money into the balance treasure, you can get higher income than the bank deposit. At the same time, you can use this money to protect the short-term expenses of your family. Daily life, clothes, beauty, travel, etc. should all be paid from this account.

2. Leveraged account, that is, life-saving money (2%)

Leveraged account is to solve the large expenses caused by emergencies, and it must be earmarked for special purposes, so as to ensure that you or your family have enough money to save their lives in case of accidents and serious diseases. This part of the money can be deposited in the bank as a notice, or it can be divided into several parts for fixed deposit.

3. The investment income account, that is, the money that generates money (3%)

The investment income account is mainly used for financial management and investment. Financial management is as important as work, which requires early consideration and study in advance. Large-scale Internet platform wealth management products can be tried, and the income can be about 5-7%. Graded fund A is also a good wealth management product with less risk, and P2P products of listed companies or large platforms can also buy income of about 7-1%. In the short term, the risk is still controllable.

4. In the long-term income account, the money with capital preservation and appreciation (4%)

This part is mainly for protecting the family, which must be used and needs to be prepared in advance. Including some low-risk wealth management products, such as bank wealth management, national debt, money fund, convertible bonds and insurance.

configuration should vary from person to person. There are standard answers to math problems, but financial management is different. The situation of each person and family is different, and there will be different needs at different stages of the individual or family, which need to be targeted. Of course, even if the configuration is different, the four parts of the model are indispensable, only the proportion and distribution method can be adjusted.

Second, the family life cycle theory

Families, like people, have a process of growth, development and change, and their family structure and main financial goals will be different in different periods. After all, money is limited, so we should use it in the cutting edge. No matter consumption or investment, different strategies are needed in different periods for the choice of wealth management tools, wealth management products and product maturity and liquidity.

(1) Single period: saving money and increasing value for emergency house purchase.

When you are single, apart from work, the most important thing is to form a family. At this time, the biggest expense should be buying a house. At this stage, we should improve our working ability as much as possible, save more money and use this money to make simple investments to increase its value. At the same time, we should make a good budget to ensure that we can pay the down payment when we need to start a family, so that we can have a warm nest.

(2) Family formation period, from marriage to having children: buying a house and hardware to save money.

when a family is formed, it is necessary to pay attention to work and children. This period is a leap in our salary growth. During this period, the work pressure is great, and the new members of the family will consume a lot of energy and money, which requires us to balance.

(3) Family growth period: the special emergency goal of asset appreciation in educational planning.

During the family growth period, because the work tends to be stable, the income reaches the highest point in the life cycle. During this period, our main concern is the education of our children and the appreciation of assets.

(4) When the family matures, the children work, and the parents' special goal of retirement and old-age support is urgent

When the family matures, the children have already worked, and with their own age, it is more important to be healthy and provide for the elderly.

III. Rule 72

Rule 72 is actually a formula: 72/ compound interest rate = time to double assets

This rule explains three truths:

1. It takes time to accumulate wealth;

2. The rate of return is very important;

3. The power of compound interest is terrible;

assuming that the compound interest rate of return after financial allocation is 8%, according to the 72 rule, 72/8=9, the assets will double in about 9 years, and it is a very long process to persist in 9 years, which requires us to have enough willpower. Of course, if the compound interest rate is raised to 15%, and according to the 72 rule, 72/15=4.8, then we only need about 5 years to double our assets and shorten the time by half. If we have 1W investment funds and the annual rate of return is 15%, we will get about 66W after 3 years of investment. Isn't it terrible?

IV. Eight Financial Planning

Financial planning contains many contents, and it is divided into eight modules:

1. Cash planning: mainly planning our present and future cash needs to ensure that we have an appropriate amount of cash in hand;

2. Planning of consumption expenditure: planning of consumption level and structure, and consumption expenditure such as buying a house, a car and personal credit;

3. Education planning: children's education;

4. Risk management and insurance planning: money to prevent accidents, whether it is insurance or other means, needs to be prepared;

5. Tax planning: planning and arranging business, investment and wealth management activities in advance, and avoiding taxes reasonably;

6, investment planning: according to their own situation, configure the appropriate wealth management product portfolio, so that our Qian Shengqian;

7. retirement planning: to ensure that the elderly can live a life of "a sense of security, a sense of security and happiness";

5. Other common sense of financial management:

Rule p>28: We should focus mainly (8%) on a few high-return activities

Rule 35: The amount of repayment of loan principal and interest every month should not exceed 35% of income at most

Rule 1: The best ratio of risky products to deposits is (1-age.

For example, if you are 35 years old, you should invest 65% in high-risk products, and the other 35% can be invested in low-risk products such as Yu 'ebao, bank savings and national debt.

Immunization strategy: Immunization strategy is generally used to refer to bond investment, which can be applied to family risk prevention. Buy term life insurance and medical insurance for the main source of wealth in the family, and then consider children and others.