Life Stages and Financial Products Essay Example | Topics and Well Written Essays - 2000 words

Life Stages and Financial Products - Essay Example Most individuals assume that they have a lot of time on their hands and this could prevent them from building a strong portfolio. Failure to start early at this phase could deny one the opportunity of enjoying interests that accrue from time. Additionally, starters may struggle with minimal income, so this could be a challenge. Student debt may also trouble persons in this category as they attempt to cover their living expenses in the process (Koh, 2012). Young people often want to have fun and enjoy the benefit of not being tied down by responsibilities. They may be focusing on climbing the career ladder and getting to know what they really stand for. Perhaps the biggest challenge for young professionals is that they lack information on how to invest. They may be boggled by a plethora of information available on financial security. Some may purchase cars at this stage or do so later. Starting a young family is the next phase. Usually, one will get married and start having children. It may begin in the late twenties or early thirties. At this stage of life, people will need to think of relocating to a bigger house that will accommodate more people. Additionally, concerns about merging two people’s financial lives together may arise. Matters to do with health and education for the young children also need to be addressed. It is often necessary to plan for a rainy day as several dependants are in the picture (This is Money, 2013). Expenses at this time will often rise as children and family members can be quite expensive.