The Four Distinct Phases of Financial Planning

Phase One: The Foundation Years (Mid-20s to Mid-30s)

• Many years of earning power ahead
• Plans to buy a home and start a family
• Willing to accept some fluctuations in investment, result in pursuit of long-term financials goals

Phase Two: The Acquisition Years (Mid-30s to Mid-40s)

• Income still climbing
• Establishes a tertiary education fund for children
• Willing to accept some fluctuations in investment, result in pursuit of long-term financials goals

Phase Three: The Accumulation Years (Mid-40s to Mid-50s)

• Family responsibilities are winding down
• Begins to think of retirement
• Seeks less vilatility in investment results by emphasising more income and capital preservation and less long-term growth

Phase Four: The Reaping-The-Reward Years (Mid-50s to Late Retirement)

• Retired or about to retire
• Years of earning high income may be over
• Plans retirement activities; and assesses ability to set up trust funds for grandchildren
• Seeks lower volatility in investment results

So where are you at right now?

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