The Financial Life-Cycle


 At each stage of ones life there are needs to be met, questions to be answered and appropriate financial products and services to be coordinated and secured for a successful financial future.

The financial life -cycle for most begins with their first car, first job, first apartment...basically this is the time to purchase and understand Auto and Home insurances. This is an introduction to the concepts of insurance underwriting and  risk management. Hopefully the first job introduces participants to Group insurances such as Health insurance, Group life coverages in the event of Death (likely the first chance to consider their own mortality). The most important lesson of this stage is to manage, avoid and eliminate credit card debt. Failure to manage cash flow (short term) basically makes success a life long dream to be chased and not likely achieved. 

The next stage is the creation of wealth by saving before spending (budgeting) ( a concept frequently missed in current culture), the purchase of personal  life insurance to cover family needs, and initial participation in a qualified retirement (long term) plan possibly with employer participation.

If the individual is able to manage a budget and the cash flow of their life, the habit of saving and investing should become a priority of the successful person or couple. Diversification of the investment portfolio(medium term) leads to learning about tax management factors and investment choices that may be appropriate for the age and risk tolerance of the situation.

Success in the above have set the stage for Retirement planning when the time is right. Learning about lump sum options or Joint and survivor options are critical at  this time. Personal savings in IRAs both Roth and Traditional enter the picture and are key components to successful retirement in coordination with any employer plans.

Following retirement, the value of income distribution strategies becomes a priority and challenge for many. The current array of financial products and services can meet the needs of families,individuals and business owners.

Estate planning is the final stage and can give the next generation a jump start on financial security, completing the circle of Finances in the life-cycle.

In your family ... may the circle go unbroken!


Successful People:

  •  Set aside money Regularly
  •  Put their money to work
  •  Leave it alone to work for them
  •  Prepare for death and disability

 It Takes Discipline!