Life Phases

Common Needs/Wants

Solutions

Getting Started

Financial stability; emergency savings; avoidance of consumer debt;

modest retirement savings; contingency plans for death, disability, and financial set-backs

Live within means; save for emergencies in pass-book savings, money market fund, and CDs; save for retirement in IRA and ?401(k); buy term insurance

Early Accumulation

All of the above plus home purchase; education savings for children; increased retirement savings and insurance coverage

Continue above plus establish ?529 education funds invested in mutual funds and fixed-income investments; buy permanent life insurance; have business establish SEP IRA and continue IRA using mutual funds, and annuities; invest in long-term growth and income mutual funds

Primary Accumulation

All of the above plus increased non-qualified investments and life and disability coverage; estate planning

Continue above plus place/purchase permanent insurance in irrevocable trust; diversify investment portfolio; purchase vacation residence

Pre-Retirement

All of the above plus business continuation; life insurance for estate equalization; conservative investments

Continue above plus execute business continuation agreements; purchase estate equalization life insurance; make investment portfolio more conservative with more fixed-income investments and annuities

Post-Retirement

All of the above plus effect business buy-outs; sufficient retirement income that lasts for life; continue wealth transfer techniques; estate plan that works

Continue above plus effect business buy-outs; maintain conservative investment portfolio made up primarily of fixed-income investments; monitor retirement income resources; keep estate plan up to date