How to make an asset allocation plan for high-net-worth customers

Taking the major shareholders, executives, professional managers and business owners of listed companies as examples, this paper talks about some suggestions on the allocation of family assets for high net worth people.

Let's talk about three hidden dangers in asset allocation of high-net-worth people: First, business owners whose corporate assets (equity) account for more than 56% of their personal assets, if they do not completely isolate their corporate assets from their family assets. Once the enterprise has risks, it will inevitably affect the quality of life of the family; Second, households with fixed assets such as real estate accounting for more than 60% of household assets have high liquidity risk and poor liquidity. Once you need cash, you need to sell the property, but when you sell the property, if you encounter a trough, you will lose a lot; Third, the debt ratio of equity pledge financing of listed companies is high. When equity financing, the stock price will be greatly discounted, and once the stock price falls, being forced to close the position will also cause huge losses. These three hidden dangers should be highly valued, and corresponding adjustments must be made at an appropriate time.

The asset allocation model around a happy life is as follows:

First, the asset allocation of ballast stones.

Mainly refers to cash or cash equivalent assets, such as national debt, gold, large insurance policies with high cash value, etc. Pursue the absolute safe return of the principal, and the assets that can be realized at any time without discount are completely isolated from the business risks of the enterprise. Even if the enterprise goes bankrupt, it will not affect personal and family life. The main purposes and functions of ballast assets are: to ensure that the basic living needs of families exceed the cash flow of 10 years; Can have dignity and high-quality pension planning; There can be a plan to inherit wealth and happiness from generation to generation and break the curse that three generations are rich.

The simple method can be to cash out some cash when the cash flow is the most abundant, or when the company's share price is high, as the family's ballast assets (large insurance policy is the best ballast assets), to solve the family's quality life (such as large cash or high current annuity insurance), retirement pension (such as large pension insurance), and basic wealth inheritance planning (such as high whole life insurance and family trust).

Second, the allocation of offensive assets

Mainly refers to stocks, funds, investment-linked insurance, corporate bonds, equity investment, etc. Its main purpose and function is to preserve and increase the value of wealth. We should seize the opportunity, seize the opportunity, and pursue higher returns under certain risks.

Third, asset allocation based on games.

This is a high-risk investment and the pursuit of high returns. Once the investment fails, it will also cause huge losses. Such as angel investment, artworks, collectibles, futures, foreign exchange and so on.

Finally, let's talk about the difficulties and challenges of asset allocation. First of all, investment is anti-human, and we should understand greed and fear. Fear when others are greedy, and dare to be greedy when others are afraid. Secondly, the timing is invalid, and you may miss those days with the biggest increase. Finally, to face the unpredictable future, after all, "black swan" and "grey rhinoceros" will coexist.

"Professional things are given to professional people!" In the face of different industries, everyone can only have professional ability and cognition if they work hard in their familiar fields for a long time. Similarly, asset allocation is also a relatively professional matter.