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Chapter 258 Choosing the Right Portfolio for You
Based on the principle of risk diversification, it is necessary to diversify funds into different investment projects.In terms of specific investment projects, it is also necessary to make a diversified allocation of the assets to make the investment proportion just right.Any optimal investment portfolio must diversify risk.When building a portfolio, use the formula of "one hundred minus current age", which means that a person who is 60 years old should invest at least 40% of his funds; 30% of the funds are invested.

Portfolios can be broadly categorized into three different models, Aggressive, Moderate and Conservative, and age is an important consideration in deciding which model to use.Everyone's needs are different, so there is no one-size-fits-all investment portfolio and should be designed according to individual circumstances.

When you are 20 to 30 years old, because you are still far away from retirement, your risk tolerance is the strongest, and you can adopt a positive growth investment model.According to the formula of "one hundred minus current age", investors can invest 70% to 80% of their funds in various securities.This part of the investment can be further combined, for example, invest 25% in common stocks, 25% in funds, and the remaining 25% in fixed deposits or bond purchases.

From 30 to 50 years old, family members gradually increase during this period, and the degree of risk taking needs to be relatively conservative compared with the previous period, but the goal is still to grow the principal as soon as possible.During this period, at least 50% to 60% of the funds should be invested in securities, and the remaining 40% to 50% should be invested in investment targets with fixed income.The funds invested in securities can be allocated as 40% to invest in stocks, 10% to buy funds, and 10% to buy government bonds.

At the age of 50 to 60, children have grown up and it is the peak period of earning money, but risks need to be controlled and one should concentrate on saving vigorously. The investment method of "100 minus age" is still applicable, at least 40% of the funds will be invested in securities, and 60% of the funds will be invested in investment targets with fixed income.

After reaching the age of 65, most investors will store most of their funds in relatively safe fixed-income investment targets during this period, and only invest a small amount of funds in stocks to resist inflation and maintain the purchasing power of funds.Therefore, 60% of the funds can be invested in bonds or fixed-income funds, 30% in stocks, and 10% in bank deposits or other targets.

In the investment process, don't blindly follow the traditional investment concept, the most important thing is to learn to formulate corresponding plans according to your actual situation.

family life made easy

Before investing, most people have doubts. To overcome these obstacles, you need to master a lot of professional knowledge and information, learn more, think more, and enrich yourself with knowledge.

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