A Matrix Investment Strategy Concerning Raise The Funds For Early Retirement Plans

Theory of portfolio optimization is an important part of the modern finance investment theories; it is also one of the important research content in economics which aims to attain the portfolios of the maximum investment's return with the given value of the risk or of the minimum investment's risk with the given level of the investment's return. It mainly uses mathematical facilities such as convex analysis, random analysis, non-smooth analysis, (nonlinear) linear programming etc, combined with the basic method of modem portfolio theory. By setting up mathematical models, it discusses the investment rules of finance market and offers theoretic guide for investors.This text mainly studies the portfolio strategy within financial realm for actual problems concerning raising the funds for early retirement plans. It puts forward a portfolio strategy based on bonds and savings. Then, it sets up three mathematical models: the fixed income model, the floating income model and the continuous investment model based on floating income. Furthermore, it goes into detail the basic principle and the calculation steps of the simplex algorithm. In addition, it puts forward a method about finding out a basic feasible solution in order to use the simplex algorithm to solve this kind of models.All of the mathematical models put forward in the text are linear models. However, the continuous investment model differs from the continuous single period's investment models or the several periods' investment models within stock certificate's portfolio realm. It adopts the method of continuous supplemental investment year by year and deduces new constraints, then solves and analyzes the model. In addition, the article aims at an actual problem concerning raising the funds for early retirement plans, solving each model quantificational, then analyzes through a contrast and gives a reasonable investment suggestion which is useful in actually. However, the continuous investment model has not display advantage in this actually problem, it may surpass the other models and have better applied foreground for large investment plans.In this article, it doesn't consider the influence of the factors, such as trade tax etc, upon the portfolio strategy. Therefore, it can join trade tax and join various stock certificates, for example, stocks, funds etc, into the portfolio strategy in the future, it can also make use of the different risk norms to draw up a more excellent strategy.