Create a New Forum Admin Login Member Login Contribute to Voyager Search VoyForums Help Desk VoyForums Exchange VoyForums Directory/Categories VoyForums Homepage VoyForums News FAQ - Frequently Asked Questions

[ Show ]

Support VoyForums

[ Shrink ]

VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time ]

Subject: The financial life-cycle Author: Nizam MD [ Next Thread | Previous Thread | Next Message | Previous Message ] Date Posted: 06:36:19 07/07/05 Thu On our journey through life we tend to go through stages. The stage we find our self in will have an impact on our financial planning. Modigliani and Brumberg (1954) devised a model to explain these stages. Here is a simplified version: 1. Individual supported by parents * income very low * few financial decisions 2. Young single * income barely matches expenditures - no significant savings * financial decisions tend to be mostly short term * purchase car, clothes, music systems * budgeting is important 3. Young couple, no children * income greater than expenditures - some savings * purchase home furnishings * purchase home 4. Couple (or individual) with children * income approximately equal to expenditures * upgrade house * purchase children's toys, clothing, and supplies * purchase life insurance * college tuition expenses * debt management is important 5. Empty nesters * income greater than expenditures * purchase investments * retirement planning is important * tax considerations are important 6. Retired * income less than expenditures * live off of savings * purchase medical and nursing services * estate planning is important These financial activities need not occur in the stages as described. In fact, it is beneficial to do many of them as early as you can. Estate planning, investment planning, and retirement planning should all be done as soon as possible. [ Next Thread | Previous Thread | Next Message | Previous Message ]