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 |
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