Family life cycle mainly refers to the duration of different family stages. Family development will go through four stages: family formation, children's education, family maturity and retirement, and the corresponding asset allocation priorities in different stages should be different.
First, the period of family formation
Refers to the newly established family 1 to 3 years, married and having children, with increased economic income and stable life. At this stage, it is very important to arrange family construction expenditure reasonably. Financial advice: 50% growth fund, 35% bonds, insurance, 15% current savings. Insurance options include term insurance, accident insurance and low-loss health insurance.
Second, the period of children's education.
After 10 got married, children's education was put on the agenda, and education expenses and living expenses soared. At this stage, there will be a feeling of "making ends meet", so we should make a "saving" plan to reduce unnecessary expenses. It is suggested to allocate 40% growth fund, but more risk avoidance is needed; 40% of deposits, national debt or other prudent regular financial management will be used for future education expenditure. You can pay attention to some regular bank smart deposit products on Xiaoman Finance (formerly Baidu Finance) platform, and you can pay 100% within 500,000. 10% insurance can focus on the life insurance of family pillars to prevent the whole family from getting into trouble when the important pillars of the family appear "risk". Of course, we should still keep 10% of the family emergency reserve fund for family daily living expenses.
Third, family maturity.
10 in the 20 years after getting married, children gradually work, and the main pillar of the family has also entered the "career peak". At this time, the family income is at its peak, which is suitable for asset accumulation and can focus on expanding investment. It is suggested that 50% stocks or stock funds, 40% regular savings, bonds and insurance, 10% family contingency reserve arrangement. When approaching retirement, the proportion of venture capital should be reduced, and the insurance should focus on pension, health and critical illness insurance, and an appropriate pension plan should be formulated.
Fourth, the retirement period
At this stage, family investment and consumption should be conservative, and the principle of financial management is health first, wealth second, mainly for the purpose of stability, safety and preservation. It is suggested that 60% of the products are fixed-term savings and bonds, and 40% are current, short-term and high-security products.
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