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

Describe the different exhibits of the typical purport motorbikes/ act of an single(a) in the UK today and direct the about germane(predicate) fiscal products that should be considered at each stage To date, the interpretation of the concept of spiritedness cycle of the single(a) has a lot of variations. In this case, the main of them wearing in one point or an opposite echo of the pecuniary and economic issues, is The sequence of qualitatively different stages of development of the organism. role framework income and consumption over the flavour-time.With regard to the setoff definition, then there as rise as exists a trusted gradation, which is the organism of several theories regarding the quantitative and qualitative characteristics of the stages of the life cycle. The some famous theory of office of the life cycle of an individual on the steps of the theory are 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 question is the theory of the division of the life cycle of an individual to a play of stages by Alpheus Hyatt.This theory is the basis for the division of the life cycle of an individual to 3 stages institution, oil-bearing phase and effective step. Phase defining covers the while period from the moment of birth of the individual up to 25 32 years. This period is ascribable to the formation of life basis, so on the counterbalance stage of the life cycle is the formation of the moral aspects of the personality, the initial accumulation of experience and the formation of an information foundation that truely affects the formation of a set of financial products most comm save consumed by the population of the United soil in the future.Productive stage is the trice stage in the life cycle of an individual, including an individual residing in the United Kingdom. This sta ge lasts from the end of the formation phase of up to 54 62 years. This cycle is considered to be run lowing during it productively apply the acquaintance and experience gained and accumulated during the formation phase. These years were marked by a high capacity for work and the desire to implement ideas and achieve their goals. Finally, the third stage of the life cycle score is final. It extends from the end of the productive phase until the end of life.It was during this cycle individuals are satisfied with the achievements and receive a reward for all his kit and boodle and deeds, not only morally, but also in material terms. As for the second definition of the life cycle of the individual, in this case it should be noted that in the context of the problem, the latter is more intellectual in terms of financial and economic sense, and as the former requires more detailed consideration, but at the said(prenominal) time, the latter is specifies the elements of a continuatio n and development stages of the first definition, namely, its financial and economic sense.In this regard, it is charge 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 expense of their parents, if we lambast about the first part of the first phase life cycle, namely up to 18 years, discourse about the citizens of the United Kingdom. In addition, the first stage of the life cycle, as well as mostly achieved the highest level of consumption, which is due to a period of the early years of adulthood, and forcing a number of items to purchase abode 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(prenominal) stage , what concerns the productive phase of the life cycle, in this case, th e 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 later on the children have come upn and become negative during retirement.Thus, the youth begins with low incomes (1th stage of the life cycle), which is gradually change magnitude until it reaches middle age (the 2nd stage of the life cycle), and then the characteristic of income is the sharp decline 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 ho pulmonary tuberculosisholds tend to grow until retirement and a reduction thereafter.Start and whether the finish if in fact the assets at zero depends on how society relates to the question of inheritance the majority of people, curiously those who living in the UK leave positive assets at the time of his death, if only because they do not know when it will happen. Also worth noting, and take into depend 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 dispersion 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 all individual residing in the soil of more and less economically developed countries in general, and for individuals residing in the territory curiously the United Kingdom. Considering the financial products as part of normal everyday life of individuals living in the United Kingdom in each of these stages of the life cycle, it should be noted that financial products are intact part of daily life.With regard to the factors described through the use of financial products throughout 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 commodity contracts and interest rates. whole of the above financial products individuals residing in the United Kingdom is utilise 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 needs 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-term 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 property i nsurance.At the second stage of the life cycle, so from 25 32 years and 54 62 years of the United Kingdom most individual relevance 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 the 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 final payment 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 minimum that is logical, prone(p) 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 efficient 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 Unite d Kingdom of compulsory insurance, which in itself suggests the beginning of the use of insurance to meet 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 will turn a profit 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 postgr aduate) 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 home thrower or just 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 this 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 acqui re 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 evolution of its own group (Phylogeny).