Financial planning is a life long planning process. After much research and analysis, the life long planning process can be categorised into four stages. Each stage has their own distinctive objectives.

Presentation1
Stage One – The Foundation Years
Age range : Mid-20s to Mid-30s
There are many years of incresing earnings power ahead. And it is at this point most people lay the foundation for fruitful life, they plan to buy a home and start family. Because of the enormous amount of time that stretches ahead of them, there should be some willingness to accept a certain degree of fluctuation in investment results in pursuit of long term Financial goals.

Stage Two – The Acquisition Years
Age range : Mid 30s to Mid 40s
For most people, their income is still climbing, and it is at this point that they decide to establish a tertiary education fund for their kids. They are still able to accept some level of investigament porfolio

Stage Three – The Accumulation Years
Age range: Mid 40s to Mid 50s
At this point, family responsibilities begin to wind down, and people start thinking about retirement. Because of this, it is vital that less volatility be accepted in their investment results. To do this, there have to be a greater emphasis on passive income generation and capital preservation. Usually, there is a trade-off between thse aims and long term growth, so at this point the emphasis on growth should be gradually reduced. The final and for many of us hopefully, the longest stage, will be the Reap the Rewards. These run from the mid 50s through to total retirement onto death itself.

Stage Four – The Reaping the Reward Years
Age range: Mid 50s to late retirement
As well as you should or unlike many people, you will be well-prepared for this great time of life. In general, at the start of this phase, people are either just retired or about to. The years of high salaries are over. The emphasis now should be plan meaningful activities and figure out how best to pass on various legacies to children and grandchildren. For most people, having a will is sufficient. However, in rare circumstances, for instance, when there is a the possibility of the individual being expose to a legal suit that can lead to banruptcy or perhaps because of guarantees unwisely given for someone else’s loan, then setting up a living trust would be wise. This would require the help of a good lawyer, but it is the best way for rich, yet vulnerable, people to protect their assets from creditors.[ad#ad-3]