| dc.description.abstract | According to the census and statistical analysis conducted by the department of internal affairs in 2009, more than 84% of the citizens were worried about their prospects. Among the concerns, “financial stability” was the most critical issue across both genders. With the trend of low birthing rate and increasingly unpredictable financial tumults, many are unable to meet the challenges of personal financial and risk management. This phenomenon often causes disruptions in personal and career planning, sometimes even future retirement.
This thesis will discuss how to effectively leverage existing, often limited, financial resources to generate added values that are otherwise not available. It aims to layout a personal and financial planning framework tailored to the needs of our citizens. In effect, the framework will not only induce the appropriate asset allocation and risk management measures, it will also judiciously leverage financial instruments to provide financial supports needed in each stage of life. Ultimately, it will guide individuals to design their own optimal plans to achieve goals of their lives.
The proposed framework of this research is developed using individual in depth case studies targeting from self employed individuals, employers, single parent, to DINK and their secondary sources. By taking into account of their subjective and objective conditions, a framework is proposed and many aspects of financial planning, including living and housing, retirement, education, taxation, and finally insurance planning are discussed. The resulting framework abides to the standards set by the International Association for Financial Planning (IAFP).
The finding of this research indicates that all family centric financial planning satisfied the 「SMART」principle. Namely, under resources constraints, individuals or families should first prioritize their objectives and develop the correct mindset before the actual financial planning. Furthermore, in order for the plan to concretely meet the goals, appropriate financial instrument must be chosen based on the risk tolerance level and risk profiles of the individuals. Although the cases examined in this research vary, retirement planning has been considered as the most important part of financial planning amongst all groups under investigation.
For reference, this research finally concludes that:
1. All individuals should engage in careful financial planning
2. Financial planning and investment must be made according to the risk profiles
3. Careful selection of financial advisor is paramount to the success of the planning
4. Government should establish complete regulatory measures for financial planning individuals or entities.
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