The Wealth Cycle Guide For Investors

 

Many of the online businesses want to target good investors.  But without proper planning, they end up in huge and wasteful marketing expenses.  It is the normal practice to classify and target investors according to their age.   The normal understanding is that young people can invest in long-term plans and accommodate high-risk options.  Aged people need a regular income and less risky options.

In the life cycle approach, all the investors are grouped in terms of age alone.   The financial condition of the investor is completely ignored.

But every investor is unique and their investment motives may be different.  Hence a wealth cycle guide may be a much more useful approach:

  1. The Accumulation stage:

 

During this stage, the investor’s primary motive will be to build wealth for a financial goal which is quite some time away.  Hence long term investment is possible for him.

The needs may be for retirement or higher education expense of children.

 

  1. The Transition stage:

 

In this stage, the financial goal of the client will be in near future.  For example, an investor in 50’s nearing retirement needs to adjust his investment according to the age of his retirement.

 

  1. Reaping stage:

 

This is the cashing out stage where the investor will be ready to meet his expenses for which he had saved all the years.  For example, a person had planned and saved for 10 years to undertake a star cruise journey.  The reaping stage will be the 10th year just before the start of the travel.

 

  1. The Intergenerational transfer stage:

 

Investor up to early 50’s may not feel the need to transfer the wealth to the next generation.  But investor nearing 70’s may feel such a need.  So the help of a financial advisor who is well versed in legal aspects as well as estate planning is needed at this stage.

 

  1. The sudden wealth stage:

 

Sometimes events like winnings from contest/lottery etc. result in a sudden inflow of huge amount.  The investor may not have expectation or knowledge to invest.  So it is better to seek guidance from a good financial planner, banker or insurer to invest the money in safe avenues.

 

There are many avenues to invest money like online trading and cryptocurrency.  There are numerous apps like crypto VIP club, crypto code, bitcoin loophole etc which can be used for cryptocurrency trading.  In most of the apps, automated trading bots are in-built.