Abstract
Personal finance planning , in a broad sense can be extended to a person from birth to death of all planning。“The finance” of Personal finance planning, not only mean money--material wealth but also includes a person's spiritual wealth.For example the mood of joy and the happiness of life should be included in this category.
But all of these implemented in daily life is returned to one of the most practical issues—money.Can not make bricks without straw, there is no money will fulfill some things or less than perfect.In recent years, financial planning began to appear in person and the family’s "agenda", the personal financial planning has aroused interest.
How to use the money make more money? How to use the existing money with the smaller hedge risk exposure and maximize the value?
Therefore, this paper focus on the personal finance planing in the daily life. Describes what is personal finance planning means, and its significance. The problems of finance planning in China, various tools characteristics with finance planning, useing the portfolio theory in the financial Planning, use case illustrates the application of portfolio theory.
The main content and structure is as follows:
Chapter I, introduction, the paper mainly discusses the significance, background, literature review, research ideas and research methods etc.
Chapter II, personal finance planning overview, which tells the basic concepts、meaning、value of personal finance planning, personal finance industry in the development of China's current situation and existing problems.In the final section, focusing on the financial management tools that individual and family often chooseed in the modern market, and analyzed the characteristics of various financial tools ,for example the risk, profitability, liquidity. different risk preferences of investors according to their characteristics choose their own financial management tools.
Chapter III, the effective portfolio theory, which is the core of personal financial planning. This chapter first introduces the theory of efficient portfolio involves some basic definitions, then introduce the basic concepts of the portfolio, the portfolio return and risk calculations, and finally obtained according to financial planning portfolio theory should watch out for.
Chapter IV, case study, because of different investors have different risk preferences, so the portfolio for different course. This chapter draws on multi-objective portfolio model portfolio theory. Pull two parameters in the original portfolio, the parameters represent the risk-return preferences of investors and the degree of optimism on financial markets, this portfolio designed more adapt to the different investors.Author uses actual cases, analyzing the status of a family situation and its existing portfolio, and pull into the portfolio model, by assuming the two parameter values, obtained several different portfolio options, and selected the best investment for this family. In the final section, summarizes portfolio theory applied in the importance of financial management, the existing problems and improvement measures.
Chapter V, conclusion, the paper focuses on the application of quantitative analysis of the portfolio, pulling the parameters in the model of the creative work and research of efficient portfolios in the sense of personal finance application. Finally, I pointed out several shortage of my paper, and I will research them in future.
Key words: Portfolios；Personal Finance；Financial Tools
