Finance School of Management The Life cycle In portfolio selection, the best strategy depends on an individuals personal circumstances (family statuS, occupation, income, wealth). Illustrations Young couple: buy a house and take out a mortagage loan older couple: sell house and invest in assets provding a steady stream of income Investing in stock market: Chang (30, a security analyst)/ Obi(30, an English teacher) Buying insurance policies: Miriam(a parent with dependent children)/ Sanjiv(a single person with no dependents) uesTc6 Finance School of Management The Life Cycle ❖ In portfolio selection, the best strategy depends on an individual’s personal circumstances (family status, occupation, income, wealth). ❖ Illustrations – Young couple: buy a house and take out a mortagage loan / older couple: sell house and invest in assets provding a steady stream of income. – Investing in stock market: Chang (30, a security analyst) / Obi (30, an English teacher). – Buying insurance policies: Miriam (a parent with dependent children) / Sanjiv (a single person with no dependents)