“If you give up when it’s winter, you will no doubt miss the promise of your spring, the beauty of your summer and the fulfillment of your autumn.”
Some might compare the years in our lives to the seasons in a calendar year. Financial advisors can help their clients build financial plans based on these important years of their lives.
During the first phase, the spring of life (0-20 years), individuals are graduating college and growing into the people and professionals they are to become. At this phase of life, they have the longest amount of time available to invest in the market, and therefore should reap the rewards of compounding interest. Financial advisors should encourage these individuals to establish a financial plan for the future and invest aggressively.
Starting your savings early
The summer of life (20-40 years) is when clients begin to recognize the value of stability. During these years, most clients have established a career and perhaps gotten married and had children. This phase of life is also known at the “accumulation” phase, and financial advisors should continue to counsel clients to invest aggressively in the market. While they may be raising kids and busy with a career, these individuals still have many years for their investments to grow.