本文发表在 rolia.net 枫下论坛Becasue the needs and expected needs for each individual are totally different, it is hard to say which insurance policy or investment asset allocation is good until a full examination of one’s financial situation is conducted. It is the same as managing a company as managing one’s financial health. One needs to know about budgeting, savings plan and investment plan implementation and performance evaluation. Also, one needs to understand the mechanism of taxation, implications of business law and family law in terms of one’s pension plans and estate, etc. As long as one understand these complicated stuff, early retirement plans and other plans to pursue one’s personal interest can be initiated.
1. Insurance is designed to hedge risks. We all have exposure to risks, one of which is the loss of income (due to death and disability). That is where life insurance comes from. How much do you need? It depends on your desire of lifestyle of your spouse and kids. You should have enough money to have your surviving family at least keep the same life standard. Term policy is somewhat cheap in contrast with universal life. However, if you believe you can manage your money better than those fund managers, there is no need to buy UL.
2. Investment: this is the trickiest stuff. Because no one knows exactly what would happen in the future, it is hard to persuade any rational individual that the expected return would happen. However, researches have been done on this subject and the modern portfolio management theory shows that one can get relevant return on the basis of the risks she/he would like to undertake. Therefore, it is wise to aim at reasonable return and choose the right investment asset to let the time work for you. No one can beat the market for a long time. Extreme high return might exist for some short period of time, but it requires very astute understanding of investment. One time of earning a big amount of money does not mean anything other than luck. So, be realistic and learn by yourself, or if you do not believe you are much smarter than those fund managers, choose smart fund managers instead of investing by yourself. What you do then is evaluating their performance and firing those that you do not like. You can do that to get rich.更多精彩文章及讨论，请光临枫下论坛 rolia.net
1. Insurance is designed to hedge risks. We all have exposure to risks, one of which is the loss of income (due to death and disability). That is where life insurance comes from. How much do you need? It depends on your desire of lifestyle of your spouse and kids. You should have enough money to have your surviving family at least keep the same life standard. Term policy is somewhat cheap in contrast with universal life. However, if you believe you can manage your money better than those fund managers, there is no need to buy UL.
2. Investment: this is the trickiest stuff. Because no one knows exactly what would happen in the future, it is hard to persuade any rational individual that the expected return would happen. However, researches have been done on this subject and the modern portfolio management theory shows that one can get relevant return on the basis of the risks she/he would like to undertake. Therefore, it is wise to aim at reasonable return and choose the right investment asset to let the time work for you. No one can beat the market for a long time. Extreme high return might exist for some short period of time, but it requires very astute understanding of investment. One time of earning a big amount of money does not mean anything other than luck. So, be realistic and learn by yourself, or if you do not believe you are much smarter than those fund managers, choose smart fund managers instead of investing by yourself. What you do then is evaluating their performance and firing those that you do not like. You can do that to get rich.更多精彩文章及讨论，请光临枫下论坛 rolia.net