This is a typical basic type of balanced financial portfolio. The items in each sections are examples of types of contents. So for instance, under Protection, you can have only Term Insurance without others. And for the Savings, you can have only Personal Saving Accounts.
The main purpose of this Pyramid is to show a stable foundation of personal financial portfolio. One should always build their Pyramid with good foundations like Protection and Saving before they do investment. As investment risk is unavoidable, a solid base will hold up the investment in bad times.
Personally I had came across some high net worth clients who has the above Pyramid without the base of Protections. They had very solid Net Assets like cash and properties as their base. However I would still recommend them to get Term insurances to cover for unforeseen circumstances while setting aside funding for long term cares at the later age. This is important as I do not wish to see their “Savings” to be depleted by lack of protections.
The Pyramid at the right is also rather common for young adults. They may or may not have strong base of Protections or Savings, however they like to do lots of investment. This kind of higher risk portfolio are more suitable for young adults who has nothing to lose with lesser liabilities like children and ageing parents.
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