Four Elements of Wealth Composition

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Family Asset Dashboard

Comprehensive grasp of family asset and liability status, establish clear financial condition monitoring system

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Asset Management

Statistics of real estate, cash, investments and other assets

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Debt Monitoring

Track mortgages, car loans and other debt situations

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Net Worth Growth

Analysis of asset net value change trends

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Consumption Control Manual

Rational consumption decision system, avoid impulse spending, optimize family expenditure structure

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Behavioral Management

Consumer psychology analysis and control

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Decision Framework

Large expenditure decision process

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Trigger Identification

Identify and avoid consumption traps

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Investment Evaluation Template

Scientific investment decision system, covering funds, stocks, real estate and other investment types

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Fund Investment

Index funds and active funds allocation

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Stock Analysis

Value investing and growth investing strategies

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Real Estate Investment

Real estate investment timing and regional selection

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Policy Planning Guide

Macroeconomic policy analysis and response strategies, impact of international situation changes on family finances

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National Policy

Monetary policy, fiscal policy impact analysis

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International Situation

Global economic change response strategies

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Strategy Adjustment

Investment strategy adjustments under policy changes

Risk Control System

Five Major Risk Types

Establish comprehensive prevention and control system for various risks families may face, ensuring financial security.

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Unemployment Risk

Risk Scenarios

  • Layoffs due to economic recession
  • Industry transformation eliminating positions
  • Corporate business difficulties
  • Personal skill mismatch

Response Plans

πŸ’° 6-12 months living expense reserve
🎯 Side business income development
πŸ“š Continuous skill enhancement
🀝 Network maintenance
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Health Risk

Risk Scenarios

  • Major illness treatment costs
  • Chronic disease long-term medical expenses
  • Accident injury medical costs
  • Family member health issues

Response Plans

πŸ›‘οΈ Critical illness insurance coverage
πŸ₯ Medical insurance supplement
πŸ’ͺ Healthy lifestyle
🩺 Regular health checkups
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Accident Risk

Risk Scenarios

  • Traffic accident casualties
  • Natural disaster losses
  • Accidental disability impact
  • Family property losses

Response Plans

πŸ›‘οΈ Accident insurance protection
🏠 Property insurance allocation
πŸš— Adequate auto insurance
⚑ Emergency plan development
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Economic Crisis Risk

Risk Scenarios

  • Inflation reducing purchasing power
  • Major financial market volatility
  • Real estate market adjustments
  • Severe exchange rate changes

Response Plans

🎯 Diversified asset allocation
πŸ’Ž Inflation-resistant asset allocation
πŸ’° Cash flow management
πŸ“Š Regular portfolio adjustment
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Political & Economic Change Risk

Risk Scenarios

  • Major policy and regulatory adjustments
  • International relations impact
  • Tax policy adjustments
  • Industry regulatory policy changes

Response Plans

πŸ“° Policy information tracking
🌍 Moderate overseas asset allocation
⚑ Flexible strategy adjustment
🎯 Compliant business investment

Family Insurance Configuration Plan

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$4,500
Annual Insurance Cost
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Whole Family
Coverage
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Annual
Regular Renewal

Insurance Configuration Principles

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Adults First, Then Children

Adults are the family's economic pillars, prioritize protecting adults' life and health

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Health First, Then Investment

Health protection takes priority over investment-type insurance

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Adequate Coverage

Determine coverage reasonably based on family income and debt

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Reasonable Premium Control

Annual premium expenditure should not exceed 10% of family income

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Life Insurance Configuration

Protection Purpose

Provide economic support for family after death of main economic pillar

Configuration Plan

Main Economic Pillar: $450,000-750,000 coverage
Secondary Income Source: $150,000-300,000 coverage
Insurance Term: Until retirement age
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Health Insurance Configuration

Protection Purpose

Cover major illness treatment costs, supplement inadequate social insurance

Configuration Plan

Critical Illness Insurance: $75,000-150,000/person
Medical Insurance: Million medical insurance
Special Needs: High-end medical supplement
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Accident Insurance Configuration

Protection Purpose

Disability, death and medical expenses caused by accidental injuries

Configuration Plan

Adult Accident Insurance: $150,000 coverage
Children Accident Insurance: $30,000 coverage
Special Protection: Additional traffic accident coverage
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Property Insurance Configuration

Protection Purpose

Loss protection for family property, vehicles and other physical assets

Configuration Plan

Auto Insurance: Compulsory + Commercial comprehensive
Home Insurance: House and furniture appliances
Liability Insurance: Third-party liability protection

Asset Liquidity Planning

Three-Layer Liquidity Structure

Divide assets into three liquidity levels based on fund usage time and risk tolerance

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High Liquidity Assets

20-30%

Main Uses

Daily expenses, emergency fund, short-term investment opportunities

Asset Types

Bank checking accounts Money market funds Short-term financial products Bond repos

Configuration Goals

  • 6-12 months living expense reserve
  • Emergency funds available anytime
  • Capital preservation with guaranteed returns, safety first
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Medium Liquidity Assets

40-50%

Main Uses

Medium-term financial goals, education fund reserves, home exchange funds

Asset Types

Bond funds Balanced funds Bank wealth management Time deposits

Configuration Goals

  • 1-5 year investment horizon
  • Steady returns, controllable risk
  • Annual return rate 5-8%
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Low Liquidity Assets

30-40%

Main Uses

Long-term wealth appreciation, retirement pension, wealth inheritance

Asset Types

Equity funds Real estate Equity investments Commercial insurance

Configuration Goals

  • 5+ year investment horizon
  • Pursue higher returns
  • Annual return rate 8-15%

Investment Decision Framework

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Market Analysis System

Macroeconomic Analysis

  • GDP growth trends
  • Inflation level changes
  • Monetary policy direction
  • International economic environment

Industry Prosperity Analysis

  • Industry development cycle
  • Policy support intensity
  • Technological innovation trends
  • Competitive landscape changes

Market Sentiment Analysis

  • Investor confidence index
  • Capital flow trends
  • Valuation level highs and lows
  • Technical indicators
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Risk Assessment Model

Risk-Return Ratio

Analysis of expected return vs maximum drawdown ratio

Correlation Analysis

Correlation assessment between different assets

Stress Testing

Portfolio performance under extreme market conditions

Liquidity Risk

Asset liquidation capability and time costs

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Portfolio Optimization Strategy

Asset Allocation

Equities: 30-70%
Bonds: 20-50%
Cash: 5-20%
Alternative Investments: 0-20%

Dynamic Adjustment

  • Quarterly asset allocation review
  • Active adjustment for market changes
  • Life cycle allocation adjustment
  • Risk-return rebalancing

Financial Goals Tracking

Fifth Life Financial Planning (2025-2031)

Financial goals corresponding to the Twelve Lives Model achieved in phases

2025-2026
Monthly Income $1,500

Implementation Strategies

  • AI skill monetization: programming development, content creation
  • Investment foundation building: index fund DCA
  • Insurance system improvement: basic protection in place
  • Emergency fund: reserve 6 months living expenses
In Progress
2026-2027
Monthly Income $4,500

Expected Strategies

  • Side business scaling: multi-platform operations
  • Investment portfolio optimization: stock-bond balanced allocation
  • Education fund launch: children's education reserves
  • Real estate investment assessment: primary residence optimization
2027-2028
Monthly Income $9,000

Expected Strategies

  • Knowledge productization: courses, consulting, tools
  • Equity investment participation: quality project investments
  • Tax planning optimization: reasonable tax avoidance arrangements
  • Insurance upgrade: high-end medical, wealth inheritance
2028-2031
Monthly Income $15,000-30,000

Expected Strategies

  • Financial freedom achievement: passive income covers expenses
  • Diversified asset allocation: overseas asset allocation
  • Family wealth management: wealth inheritance planning
  • Charity participation: social value creation

Wealth Strategy Monitoring System

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Monthly Monitoring

Income & Expenditure Analysis

  • Income structure change analysis
  • Expenditure category proportion statistics
  • Savings rate target achievement
  • Budget execution deviation analysis

Investment Performance

  • Investment portfolio returns
  • Asset class performance comparison
  • Risk indicator monitoring
  • Market trend tracking
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Quarterly Review

Strategic Assessment

  • Financial goal achievement progress
  • Investment strategy effectiveness analysis
  • Risk control measure inspection
  • Insurance protection adequacy assessment

Strategy Adjustment

  • Asset allocation ratio adjustment
  • Investment portfolio optimization
  • Risk management strategy update
  • Financial goal modification
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Annual Planning

Comprehensive Review

  • Family financial situation panoramic analysis
  • Insurance protection plan annual adjustment
  • Tax planning scheme optimization
  • Wealth inheritance plan update

Future Planning

  • Next year financial goal setting
  • Investment strategy direction adjustment
  • Family major expenditure planning
  • Risk management system upgrade