Let’s face it. The world is getting to be more uncertain than it was a few decades ago. Real estate, once a solid investment in western countries like the US and Ireland, is now facing a crisis. What was once an asset that appreciates overtime has now been found to be depreciating in some geographical areas. Insurance, once the corner stone of security, is becoming less of it in the wake of natural disasters and near-collapse of insurance companies. Claiming insurance has been ever so difficult as it is hampered by the technicalities stated in the fine print. Stocks, once the golden goose that laid the golden eggs, has become so unpredictable and has made investors to scramble for whatever is left. Because of such turmoil in the finance and investment world, it is even harder to get credits and loans from financial institutions let alone get a job.
But in every event there are always opportunities. The Great Depression has produced more millionaires compared to other times in US history. And great investors make more money when the stock market crashes. So it is not just attorneys and lawyers that see a silver lining in this type of market turmoil. Is it luck? Or is it being prepared and spotting the right opportunities? Most likely it can be the combination of both. The former is dictated by events you cannot control however, the latter is something you can control and take charge of. And depending on what stage of life you are in, there are different approaches that you can take in terms of taking charge of your financial future. Listed below are the different life stages in financial planning and investments.
Acquisition Stage (18-35 years old; open to all ages)
The acquisition stage is also known as the starting out stage and is usually characterized by getting an education (such as a university degree), learning a new skill and getting that first job. Better termed as acquisition because for some people who are in a much advance stage in life, they may need to revisit this stage due to unfortunate events in their life such as having a divorce, been victims of stockmarket crashes or other financial mishaps, having been bankrupt, etc. For them they may need to revisit the acquisition stage by getting an education that is more relevant to today’s job market and getting that first job again in a brand new industry.
The interesting thing about life stages in the financial and investment context is that it does not follow a linear path and some financial life stages can reiterate for some. But even those who follow a linear path, where they got their education and settled down (whether thru marriage or staying single) may opt to acquire more education because of changing demands in the labor market.
Investment Guide
College Degrees
Invest While Studying
Online Associates Degree
Choosing The Best Online School
Studying Another Language
Barometers for Investments
Financial Guide
Improve Your Credit Rating
Understanding Car Insurance Coverages
Settling Down Stage (36-50 years old)
This stage is characterized as the individual settling down in marriage or has settled to become single. Usually at this stage there is mortgage involve and the supplementary investments are starting to become less of the volatile type.
For others who have been financially well, this is also the stage where business either is going well, or has gone south. The former are investing in other markets such as the share market, real estate, forex, etc.
Investment Guide
Futures Trading – Is It For You?
Online stock market investing
Forex Trading – What You Should Know
Owning A Home
Financial Guide
Mortgage Insurance Protection
Avoid Foreclosure
Why A Small Business Attorney?
Downside Of Filing Bankruptcy
Prime Time Stage (51-65+ years old)
At the peak of one’s earning capacity, this stage is characterized by preparing for retirement by contributing more to one’s own social security account (called Superannuation in Australia). It’s also a time for paying off any mortgage and other debts in order to enjoy a full retirement life later on.
The downside is that if you are engaged in business, it’s not a good position to experience bankruptcy especially if a global financial crisis (such as that of 2009) triggered your business’ downfall. Also more couples are getting divorced during this stage and for most the experience leaves bitter and painful memories – and not to mention a depleted bank balance.
Investment Guide
Investing In Dividend Growth Stocks
Retirement Stage (66+ years old)
Ideally enjoying the fruit of one’s labor, this stage also requires to be vigilant with inflation to ensure that one’s pension is not being eaten by the high cost of living.