Having your investment match your goals is one of the essential ingredients for achieving financial stability in the latter years of your life. As you pass through the various stages of life, these goals are constantly changing in keeping with our evolving needs.

Our risk appetite is affected by our stage of life, which will, in turn, determine the type of investment we make. It is important that the specific risks of your investments truly reflect and match where you are in your investment life cycle, if not, you may not achieve our financial goals.

An investor’s life cycle represents the various phases of life that an investor passes through and are as follows:

• Accumulation Phase

• Consolidation Phase

• Spending Phase

The Accumulation Phase covers investors up to 45 years old who should be looking to accumulate funds to spend in the latter years of their life. Their goals during this period will be to purchase a house, car, or some other essential asset. Additionally, they will accumulate funds to meet their children’s educational costs.

http://www.jamaicaobserver.com/sunday-finance/do-your-investments-match-your-goals-_134197