In financial planning, your working and productive years can be divided into different phases as follows:-
Phase 1 – the foundation years between age mid-20 to mid-30.
These are the years whereby you are starting on your working career and hence have Many years of earning power ahead. It is also the time where you may be planning to buy a home and starting a family. In investments, you may be willing to accept some fluctuations in investment results in pursuit of long term financial goals
Phase 2 – The acquisition years between mid-30 to mid-40
During this phase your income is still climbing and you may be willing to continue to accept some fluctuations in investment results in pursuit of long term financial goals. During these years you would also have established a tertiary education fund for children
Phase 3 – The accumulation years mid-40 to mid-50
Your family responsibilties will be winding down and you will begin to think of retirement. You will seeks less volatility in investment results by emphasing more income and capital preservation and less long term growth
Phase 4 – The reaping the reward years mid-50 to late retirement
You will probably be retired or about to retire. Your years of earning high income may be over and you will be planning retirement activities and assesses ability to set up trust funds for grandchildren. In investment, you seeks lower volatility in investment results