Builders are investors in the process of building their portfolio and can usually afford to be a little more aggressive. If you are a Builder, you want to focus on building your savings with investment options that offer higher potential growth opportunities such as stocks. Also, Builders should secure proper life insurance, medical, disability, car and homeowners coverage. Builders should mainly focus on their investment portfolio on growth strategies, not current income. Providers are investors who are in the middle stage of life and need to focus on accumulating assets.
Providers are more likely to have such expenses as children's college tuition and wedding expenses.
If you are a Provider, you should be contributing heavily to your retirement savings plan and an education fund as well for your children. You also need to maintain adequate insurance coverage in this stage. Providers generally should have both growth and income as their investment goals. If you are a Builder or a Provider and you are saving for a college education for a younger child, allocate funds for educate into stocks. As your child gets closer to college age, move to more fixed-income investment such as bonds.