A Practical Framework for Family Wealth

The Five Pillars of Family Asset Allocation

Create a sense of security first, then invest for growth

Allocation Framework

Build the Foundation Before Reaching for Growth

A clear allocation framework helps families balance protection, liquidity, dependable income, and long-term growth. In practice, household assets often fall into five areas: real estate, insurance protection, bank savings, safe investments, and risky investments.

Risky Investments (Growth Potential)
Real Estate + Safe Investments (Certainty and Mid- to Long-Term Planning)
Insurance Protection + Bank Savings (Protection and Liquidity)

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Real Estate

    Allocation Comparison

    From Two Layers to a Three-Layer Growth Structure

    Traditional Allocation Two Layers
    Stock and Bond PortfolioAbout 6%~10%, principal may decline
    Bank SavingsAbout 0%~3%, supports liquidity
    Growth relies mainly on market risk
    Security comes mainly from cash
    Modern Allocation Three Layers
    401k / IRA / Roth / VUL / 529 / ETF / StockTarget about 10%~15%, accepts market volatility
    IUL / AnnuityTarget about 6%~8%, does not follow market losses
    Bank SavingsAbout 0%~3%, 3-6 months of expenses
    Risky investments pursue long-term growth
    Safe investments add certainty
    Supports liquidity

    Traditional allocation often requires a tradeoff between cash safety and market risk. A modern structure adds a safe investment layer beyond cash, strengthening the family’s sense of security and certainty so risky investments can absorb market volatility with greater confidence and growth assets have more room to work over the long term.

    Interactive Calculator

    Suggested Safe Investment Allocation

    Enter an age and real estate percentage to estimate how much of total family assets may be allocated to safe investments and risky investments.

    Real Estate50%
    Safe Investments15%
    Risky Investments35%

    Allocation Example

    Sample Family Asset Mix

    • Real Estate50%Approx. 1,000,000
    • Safe Investments15%Approx. 300,000
    • Risky Investments35%Approx. 700,000

    This example is not meant to be a fixed prescription. The goal is to make sure the family has a solid safety foundation before relying on growth assets to do their long-term work.