Describe the various stages of the typical lifecycle of an individual in the UK today and identify the most relevant financial products that should be considered at each stage Essay Example for Free

divulge the various power points of the regular(prenominal) intent regular recurrence of an somebody in the UK immediately and identify the most relevant monetary products that should be considered at each correspond EssayDescribe the various orders of the typical vivificationcycle of an individual in the UK today and identify the most relevant financial products that should be considered at each stage To date, the interpretation of the judgment of disembodied spirit cycle of the individual has a lot of variations. In this case, the main of them wearing in integrity degree or a nonher echo of the financial and economic issues, is The sequence of qualitatively different stages of education of the organism. Model income and consumption over the conduct. With regard to the first interpretation, then there alike exists a definite gradation, which is the existence of several theories regarding the quantitative and qualitative characteristics of the stages of the c areer cycle. The most famous theory of division of the life cycle of an individual on the steps of the theory atomic number 18 researchers such as Alpheus Hyatt, Sullivan, Thomas S. Dalton, randy B. Evans, and also such theory as of E. Erikson and Joel Martin. The most expedient and convenient to the financial context of the interrogative is the theory of the division of the life cycle of an individual to a number of stages by Alpheus Hyatt.This theory is the theme for the division of the life cycle of an individual to 3 stages fundamental law, productive bod and effective step. Phase formation covers the time peak from the moment of birth of the individual up to 25 32 years. This period is repayable to the formation of life basis, so on the first stage of the life cycle is the formation of the object lesson aspects of the personality, the initial accumulation of experience and the formation of an information foundation that actu solelyy affects the formation of a tog of financial products most popularly consumed by the population of the joined state in the future.Productive stage is the indorsement stage in the life cycle of an individual, including an individual residing in the United Kingdom. This stage lasts from the bar of the formation phase of up to 54 62 years. This cycle is considered to be working during it productively go through the knowledge and experience gained and accumulated during the formation phase. These years were marked by a high cognitive content for work and the desire to implement ideas and achieve their goals. Fin totallyy, the third stage of the life cycle score is final. It ext finiss from the end of the productive phase until the end of life.It was during this cycle individuals ar satisfied with the achievements and receive a reward for all his works and deeds, not further morally, save also in material terms. As for the second definition of the life cycle of the individual, in this case it should be note t hat in the context of the problem, the latter is more(prenominal) rational in terms of financial and economic sense, and as the former requires more detailed consideration, but at the same time, the latter is specifies the elements of a continuation and development stages of the first definition, namely, its financial and economic sense.In this regard, it is worth noting that in the present world context of the above issue, it is a rational assumption that, as a rule, children who actually represent the first stage in the life cycle, live at the disbursement of their parents, if we talk about the first part of the first phase life cycle, namely up to 18 years, speaking about the citizens of the United Kingdom. In addition, the first stage of the life cycle, as healthy as generally achieved the highest train of consumption, which is due to a period of the early years of adulthood, and forcing a number of items to purchase hoexercisinghold goods and parenting.Such financial and economic characteristics of the first period of the life cycle, flows smoothly into the second, but in the first case applies the highest consumption level in the second half stage , what concerns the productive phase of the life cycle, in this case, the highest consumption level in the first half of the spread phase. This model leads to a model of savings, which are usually small in the early years of adulthood, high in the period after the children have grown and become negative during retirement.Thus, the youth begins with low incomes (1th stage of the life cycle), which is little by little increased until it reaches middle age (the 2nd stage of the life cycle), and then the characteristic of income is the sharp reject stage (third stage of life cycle), due to retirement. Usually, the third stage of the life cycle as well due to the receipt of earned income and more (to the end of life), but usually in smaller amounts. Consequently, the assets of households tend to grow until retirement and a reduction thereafter.Start and whether the finish if in fact the assets at naught depends on how society relates to the question of inheritance the majority of people, particularly those who live in the UK leave coercive assets at the time of his death, if only because they do not know when it go away happen. Also worth noting, and express into account when considering the life cycle of a typical person in the UK today, the fact that the life-cycle model of savings assumes that the distribution of assets will be uneven between households, even if their incomes and social positions within the same life cycle.Along with all the above, it should be noted that all life cycle stages listed above are typical for any individual residing in the territory of more and less economically developed countries in general, and for individuals residing in the territory particularly the United Kingdom. Considering the financial products as part of normal everyday life of individ uals living in the United Kingdom in each of these stages of the life cycle, it should be noted that financial products are integral part of daily life.With regard to the factors described through the use of financial products passim the life cycle of the individual resided in the UK to date, it should be noted that the most common financial products today are shares, loans, particularly mortgages, deposits, options, futures, swaps, those insurance some aspect of life and objects, as well as good contracts and come to rates. All of the above financial products individuals residing in the United Kingdom is used throughout the life cycle.At the same time, depending on the stage of the life cycle of an individual uses certain financial products, inherent to its call for relevant to this stage. At the first stage of the life cycle, so from birth to 25 32 years, United Kingdom for individuals most relevant is the use of such financial products, such as long-term and short-run loans, particularly mortgages, compulsory insurance, in particular, Medical insurance, pension insurance and liability insurance, in addition, quite common in the above-mentioned period of the life cycle of an individual is the UK billet insurance.At the second stage of the life cycle, so from 25 32 years and 54 62 years of the United Kingdom most individual relevancy use financial products such as stocks, options, futures and swaps , as well as commodity contracts and interest rates. At the same time, so it should be noted that at this stage of life do not lose relevance and financial products such as compulsory insurance and property insurance, as well urgent to use life and health insurance.Thus, considering all of the above it should be noted that the second phase of the life cycle of an individual residing in the UK, today used the widest range of financial products than during other stages. The reason for this state of affairs is the fact that it was during the second stage of th e life cycle, as a rule, most individuals who living in the UK reach a peak of career, have a family, get a certain amount of real estate and other property, as well as characterized by the highest level of wages for all life cycle.In the third stage of the life cycle, the most relevant financial products used by individuals of the United Kingdom are the deposits, most types of insurance, especially with regard to life insurance, as well as the most reliable stocks and other securities. As seen from the above, in the third stage of the life cycle most individuals are trying to best protect their use of financial products, reducing the risks to stripped that is logical, given that the reporting stage of the life cycle lasts from 54 62 years until his death.Analyzing the life cycle of an individual United Kingdom, as well it should be noted that the only financial product that is gaining relevance for UK citizens at the stage of formation, and does not lose so for productive and eff icient life-cycle stages is insurance. In this case, depending on the stage of the life cycle are added only certain types of insurance and insurance objects.This situation is related not only to the existence of the United Kingdom of compulsory insurance, which in itself suggests the beginning of the use of insurance to gratify individual age and continues until death, but also the factor that the whole life cycle of the individual accompanies a number of risks of varying complexity and specifically, these risks relate to most other financial products used by individuals throughout life.Of course, the actual separation of the above financial products for individuals residing in the United Kingdom is far from ambiguous, since it depends not only on the age group that falls under one or another individual, but also on other factors, for example such as the scope of activities, family status, presence of children, average salary, and others.For example, the likelihood that students w ill benefit from the mortgage insurance or property is extremely small, but if the stage of formation (in the second half of the stage) the individual is enrolled in higher educational institution (for example in postgraduate) has a wife and / or children, the probability of acquiring such individual mortgage and other long-term loans, as well as property insurance, increases dramatically. Along with this, there is an example of a large homeowner or honourable an entrepreneur and working diner, which are on the second stage of the life cycle.Range of financial products an individual representing the first and second class will be significantly different. For the first and most urgent is to use various tools to expand their existing business, by finding additional sources of joining the capital, one of which is the acquisition of commodity contracts, options, futures and swaps, as all of these financial products can not only increase the capital of the individual, but and to do thi s in the shortest possible period of time in comparison with other financial products.For an ordinary worker, all financial products relevant to a wealthy individual would not be as relevant for a given individual will acquire greater relevance compulsory insurance and the use of shares and promissory notes. However, at this graduation, presented earlier are the most widespread and the most relevant classification of financial products such individuals regarding the use of the United Kingdom. Reference List 1. Alpheus, H. (1902) Cycle in the life of the individual (Ontogeny) and in the exploitation of its own group (Phylogeny).