We can achieve financial freedom through fixed investment index funds, but do you know the essence of fixed investment funds? Why should we invest in index funds? Let's take a look.
The essence of fund fixed investment is to transform our human assets into financial assets We work hard, earnestly learn to improve human assets and generate more cash flow, and then learn to invest in undervalued index funds to convert human assets into financial assets, which can help us generate more cash flow. We learn the skills of fixed investment index funds, reasonably manage our cash flow such as salary income, and make financial assets grow at a high speed. This is the essence behind our fixed investment, the combination of human assets and financial assets.
However, in this process, human assets are fragile and vulnerable to some risks. We can use insurance to smoothly convert human assets into financial assets, so that this process can run more safely and smoothly.
However, among financial assets, index funds have benefited well in the long run. Not every period of time has an undervalued index fund. For example, in the late bull market, when the market rose sharply, what should we do if the index fund is expensive? At this time, we should consider other investment varieties. In addition, index funds need a long investment cycle, usually more than 3-5 years, but what should we do to manage short-term funds? So we also need to master the investment methods of other asset categories, such as bond funds and monetary funds
