Six Major Stages Of Life: Financial Strategy

Human life, from Economics When we are independent, we must manage finances in a planned way. According to the different living conditions of different stages of life, how do we effectively avoid financial management? risk At the same time, do well in all periods of life. Conduct financial transactions What about the plan?

Single period

(before joining the marriage: 2~5 years)

The key point of financial management is to accumulate funds for future families. The key point of financial management is to work hard and lay a good foundation. Some savings can also be taken for high-risk investments, with the aim of learning investment experience. In addition, because the burden is relatively low, the premiums of young people are relatively low, and they can buy some life insurance for themselves, reducing the decrease or burden of income caused by accidents.

Investment recommendations: 60% of the savings can be invested in financial stocks such as stocks and funds with high investment risk and long term returns. 20%, regular savings should be chosen; 10% insurance should be purchased; and 10% should be deposited as demand deposits for rainy days.

The priority of financial management is: money saving plan, asset appreciation plan, emergency fund, housing purchase.

Family formation period

(before marriage to the child's birth: 1~5 years)

The key point of financial management: this period is the peak period of family consumption. Although economic income has increased and life has stabilized, household basic necessities are relatively simple. In order to improve the quality of life, it is often necessary to pay for larger family construction costs, such as buying more high-grade daily necessities, and buying housing loans every month. At this stage, the emphasis of financial management should be on the reasonable arrangement of expenses for family construction. After a little accumulation, we can choose some more radical financial tools, such as partial stock funds and stocks, so as to achieve higher returns.

Investment recommendations: 50% of the accumulated capital can be invested in stocks or growth funds; 35% investment in bonds and insurance; and 15% in demand savings.

Financial priorities: purchase of housing, acquisition of hardware, money saving plan, contingency fund

Children's university education period

(after 4~7 years)

Financial management: Children's education and living expenses are soaring at this stage. It will not be difficult for families who have accumulated wealth. Therefore, we can continue to develop investment and create more wealth. Those families that are not yet well-off are usually heavily burdened. They should focus their children's education and living expenses on their financial management so as to ensure their children complete their studies successfully.

Investment suggestion: 40% of the accumulated funds will be used for the investment of stocks or growth funds, but we must pay attention to strict control of risks; 40% for bank deposits or treasury bonds to meet the educational expenses of their children; 10% for insurance, and 10% for family reserve.

Financial priorities: Children's education plan, debt plan, asset appreciation plan, emergency fund

Family growth period

(children born to University: 9~12 years)

The key point of financial management is that the biggest expenses of the family are children's education expenses and health care fees. But with the enhancement of children's self-care ability, parents can start their own businesses according to their experience, such as venture capital investment and so on. The purchase of insurance should be focused on education funds, parents' self protection and so on.

Investment recommendations: 30% of capital can be invested in real estate in order to obtain a long-term stable return; 40% invest in stocks, foreign exchange or futures; 20% investment banks' time deposits or bonds and insurance; 10%, demand savings, for household urgent use.

Priority of financial management: Children's education planning, asset appreciation management, contingency fund, special goal programming

Family maturity

(children work before their parents retire: about 15 years)

Financial focus: during this period, because of their ability to work and economic conditions have reached the best, coupled with the children's independence, family burden gradually reduced, so it is suitable for accumulation of wealth, financial management should focus on expanding investment. When choosing investment tools, it is not appropriate to choose too many ways of venture capital. In addition, a pensions should be stored and the money will remain unshakeable. Insurance is one of the more robust investment tools. Although the returns are low, it is conducive to the accumulation of pension and asset preservation.

Investment recommendations: 50% of the investment capital can be used for stocks or similar funds; 40% for time deposits, bonds and insurance; and 10% for demand savings. As retirement age approaches, the ratio of venture capital investment should gradually decrease. In terms of insurance demand, we should gradually focus on pension, health and major disease risks.

Financial priorities: asset value management, pension planning, special goal planning, contingency fund

After retirement

The key point of financial management: we should aim at our old age. Investment and expenses are usually conservative. Physical and mental health is the most important. In this period, it is best not to invest in new ventures, especially in venture capital.

Investment recommendations: 10% of the investment capital can be used for stock or equity funds; 50% invest in regular savings or bonds; and 40% demand savings. For families with relatively large assets, they can use legal tax saving measures to effectively transfer their property to the next generation.

Financial priority: pension planning, heritage planning, special target planning, emergency fund