Answer to Question #180458 in Economics for ackelia mclaren

Question

Discuss how an individual’s investment strategy may change as he or she goes through the accumulation, consolidation, spending, and gifting phases of life.

Answer 1

The investment strategy of a person at the stage of accumulation is potential, that is, at this stage, a person who accumulates funds, studies investment issues and analyzes possible profit;

at the stage of consolidation, there is a direct selection of investment objects and the investment process itself;

at the stage of spending, the investment potential dies out, but nevertheless, some investment activity is present;

at the stage of donation, which is the culmination of a person's investment activity, the effectiveness of investment policy is analyzed and very profitable investments are possible.