Typical Family Analysis

The family is the most basic unit of society, and exhibits economic behaviors such as division of labor, production, consumption, investment, savings, education, and retirement protection. In this chapter, by following the principle of “structure follows strategy,” we analyze and establish family’s financial goals, optimize the asset allocation structure of the family under the guidance of these financial goals, and match the asset allocation structure of the family with its family development strategy. This, certainly, is the fundamental principle of family asset allocation. In the actual analysis for a particular family, a customized analysis should be conducted according to the situation of that family. To attain the family’s financial goals, family financial planning should be conducted by optimizing the allocation of family assets to ensure sufficient support for the realization of the family development strategy.