The purpose of this paper is to examine the cohort effect on different stages of the financial life cycle and the extent of planning for a financial safety net. A total of 990 questionnaires were distributed randomly in the Klang Valley of Malaysia which is the largest and most cosmopolitan region resulting in a 55.2% return rate. Analyses using hierarchical and ordinary regression were applied on four hypotheses. The results revealed that age cohort variables made significant contribution to life cycle retirement planning, particularly the younger age cohort. Strong relationship was found between current financial resources and consumption for all age cohorts. On the other hand, there were no significant effect between current financial resources and age cohorts except that the older age cohorts were relatively more significant predictors. The implication was that not only should their individual perceptions of retirement planning become an increasingly important part of people  s long-term commitment throughout their life-cycle, it must also assume the role as a self-directed life-long learning process, in view of the ever-changing and complicated financial environment. Consumption pattern would have reduced post retirement. During their retirement years, healthcare will become ever so important as the elderly cohorts will have different degrees of health, illness, and disability. This can translate to higher cost within the same age cohort.

The downfall of the mortgage industry in US has seen fingers being pointed to the government sponsored entities (Fannie Mae and Freddie Mac), while the roots cause of the formation of these entities were never closely followed. Originally the creation of the GSE was to create liquidity in the mortgage industry as part of public policy in providing housing for the middle and lower income group. Over time, resulting from a weak regulated environment saw the GSE suffering and now this left questioning the effectiveness of the initial policy.

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