Ch 1 - The Canadian Wealth Accumulation Market Flashcards
Define wealth management
the provision of financial products and services to high-net-worth clients.
3 wealth accumulation classification schemes
- Age cohorts
- Wealth accumulation Stages
- Life Stage and Life Transition
3 Age Cohorts
- Generation X
- Late Baby Bommers
- Early Baby Boomers
Generation X preoccupations
- building families
- Raising children
- buying homes
Late baby boom preoccupations
- Maximizing wealth for their retirement.
- Funding post-secondary education for their teenaged children
- Insurance
Early baby boom Preoccupations
paying their expenses in retirement.
Wealth accumulation stages
- Seed-money formation
- Mid-life growth
- Pre-retirement consolidation
- Retirement
Seed Money Formation Focus
accumulate sufficient wealth (or “seed money”) to create a base for future growth.
Mid-life growth Focus
continuing to accumulate wealth with a focus on achieving long-term goals.
Pre-retirement consolidation Focus
impending retirement
Retirement Myth
Retired people turn savings into income.
Not true Many seniors continue to accumulate wealth into retirement
What is a Life Stage
Periods of time with few changes in how client lives, acts, and thinks.
Life Transition
- Events that move a client from one life stage to another
* Need to reexamine priorities or reallocate wealth.
three life transitions associated with the transfer of wealth
- Death of a parent
- Death of a spouse
- Divorce
