Case studies
In this Round we outline a few hypothetical wealth-creation strategies for situations people are likely to encounter at various stages of their lives. This stage of life concept revolves around the fact that you are likely to have different financial priorities when you have just started working than when you are just about to retire (or have already retired).
For example, when you are younger and are just starting to build your investment portfolio, you have different goals, such as saving a deposit for a home. If you are retired, your goal is likely to be stability of income: you are more likely to rely on the continuity of your investment to fund your lifestyle, and therefore your investment choices will be different.
We can’t discuss everybody’s situation, but you should be able to modify the strategies we outline to suit your particular situation.
A good starting point for all is that if you wish to invest you first need to have some money. Where does this money come from? In the first instance, it will be money that you have saved from your income. We have assumed that you can manage your finances, and that you earn more than you spend so that you have money left over for savings. Ideally, you should be able to save at least 10 per cent of your salary. You may be able to save more, but this can vary depending on the stage of life, dependants and your financial ...
