What does the early, mid and late stage refer to in your model portfolio guide?

0
0
Marked as spam
Asked on August 27, 2021 3:02 pm
1 views
0
Private answer

Hey there,

They effectively refer to 'stage of investing' - so where are you at in your investment cycle. Early stage investor means that you are just starting out, likely younger in age and have a long-term runway. Because of this, you are likely to have a higher risk tolerance or can afford to take on higher risk.

Late-stage refers to those that are closer or at retirement, likely older may be less risk averse and have a greater need for capital preservation.

Mid-stage is somewhere in between.

We used to have age designations (millennial, gen-x, boomer) but it lead to more confusion because everyone's situation is different. Someone who is 40 might be a late stage investor because they are focused on capital preservation, maybe even close to retirement and has a lower risk appetite. Another 40 year old, might be right in the middle and finally, one might just be starting out - not planning on retiring for another 20+ years and is looking to be more aggressive.

Hope this helps.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on August 28, 2021 8:18 am