Early Earning Years - up to age 35
At this time, clients will be starting their careers, building their net worth, purchasing a home, and possibly starting a family.
It is common for individuals in this phase to prioritize near term saving, and near-cash, liquid investments to have in case of emergency.
Where cash is available, the primary objective for investments in this phase will be growth.
Examples: The Story of Miss X
Mid-Earning Years - age 35 - 55
The stage in an investor's life where expenses generally decrease, and income and savings increase.
At this time, growth is still very important and the investment horizon remains long-term.
Due to the higher level of employment income individuals in this phase possess, tax-efficiency becomes increasingly important.
Examples: The Story of Dr. X
Peak Earning Years - age 55 to retirement
Investors in this phase of their financial life cycle are typically earning the highest level of income they ever will from employment.
As retirement looms near, preservation of capital begins to be of the utmost importance.
As a result, investments will become less growth focused, and the perceived risk of assets in the portfolio will be minimized.
Examples: The Story of Mr. and Mrs. S
Retirement Years
The phase in life where individuals reap the rewards of their hard work.
Employment income drastically decreases at this point, and clients will commence depending on their invested capital for income.
As a result, portfolios will typically consist of lower risk, income focused investments.
Examples: The Story of John Doe
