Chapter 1 Flashcards
Name 3 age cohort groups
Generation X (1965 - 1977)
Late Baby Boomers (1955 - 1965)
Early Baby Boomers (1946 - 1954)
___ are groups of individuals that share a common experience based on when they were born.
Age Cohorts
Members of this group entered adulthood in the 1980s and early 1990s. They are mainly focused on building families, raising children and buying homes.
Generation X
Members of this group entered adulthood in the 1970s and early 1980s. They are focused on maximizing wealth for their retirement.
Late Baby Boomers
Members of this group became adult in the late 1960s and early 1970s. They are looking forward to retirement, but may not be as prepared for financial retirement as previous generations.
Early Baby Boomers
The following way of categorizing wealth accumulators is called \_\_\_. It is periods of time that there are few changes in how he or she lives. For example, Independence from parents Family build after marriage Career evolution Family maturity Pre-retirement Career change Health challenge or change Single due to divorce or death Retirement
“Life Stages”
These are events that move a client from one life stage to another.
Examples Death of a spouse Critical illness Divorce Job transfer Job promotion Financial setback Financial windfall
“Life transitions”
Prior to 1980, what were the four pillars of the financial services industry?
investment dealers,
life insurance companies,
trust companies,
banks
What are three classification schemes that advisors can use to categorize their prospective clients?
Age cohort
Accumulation stage
Life stage
Asset liquidation is a wealth accumulation issue associated with which life stage?
Career change
Which of the following is considered a life transition
A. University graduation
B. Divorce of parents.
C. Buying a house.
D. Job promotion.
Job Promotion
What accumulation issue is common to both life-build and mid-life stage?
A. Children’s education.
B. Home purchase.
C. Legacy needs.
D. Benevolence.
Children’s education
