The gifting phase is similar to, and may be concurrent with, the spending phase. In this stage, individuals believe they have sufficient income and assets to cover their expenses while maintaining a reserve for uncertainties. Excess assets can be used to provide financial assistance to relatives or [...]
Archive for the ‘Investment’ Category
November 16th, 2010 - 3:35 pm § in Investment, Spending Phase
Spending Phase
The spending phase typically begins when individuals retire. Living expenses are covered by social security income and income from prior investments, including employer pension plans. Because their earning years have concluded (although some retirees take part-time positions or do consulting work), [...]
November 15th, 2010 - 3:34 pm § in Consolidation Phase
Consolidation Phase
Individuals in the consolidation phase are typically past the mid- point of their careers, have paid off much or all of their outstanding debts, and perhaps have paid, or have the assets to pay, their children’s college bills. Earnings exceed expenses, so the excess can be invested to provide for [...]
November 14th, 2010 - 3:32 pm § in Accumulation Phase, Investment
Accumulation Phase
Individuals in the early-to-middle years of their working careers are in the accumulation phase. As the name implies, these individuals are attempting to accumulate assets to satisfy fairly immediate needs (for example, a down payment for a house) or longer-term goals (children’s college education[...]
June 10th, 2010 - 2:54 pm § in Investment
Preparing Yourself for the World of Investing
Bulls, bears, stocks and bonds. Many people enjoy the notion of saying that they are investors, but few are actually prepared to invest in the right way. Investing is like a boxing match in that there must be adequate preparation and training before a boxer ever steps into a gym. Like a boxer, an in[...]