How To Invest At Any Age
Financial Planning For All
If you feel like you’re too early or too late to start investing in your retirement, keep in mind that learning investing strategies can happen at any phase of your career.
Throughout your career, there are opportunities to invest more aggressively or opt for lower-risk investments when your income isn’t as high. Keep on reading for practical investment strategies for your retirement.
Investing Isn’t A One-Time Thing
Investing evolves as you age, meaning your priorities in your mid-20s drastically shift when you're in your mid-30s. Just as your tastes in television shows change over time, your financial strategies should adapt to your income, goals, and life stage. Don’t feel too bad if your aggressive approach to investing in your 40s hits a lull in your 60s—your priorities have shifted and that’s okay.
What Determines Your Wealth?
Your wealth is a combination of your savings (financial capital) and future earnings (human capital). When you are young, you have less financial capital but abundant human capital. This stage in life can be exciting because you are exploring different career avenues and investment opportunities.
What Determines Your Wealth?
As you grow older, your human capital converts into financial capital through saving and investing. At this stage, you are entering a period of more financial stability and often higher income.
Understanding where you are on this path helps you prioritize and manage risk effectively.
Understanding How Asset Allocation Can Help You
Asset allocation allows you to allocate your assets into more than one investment type, so the adage “don’t put all your eggs in one basket” really applies here. Asset allocation should reflect the current stage of your financial journey, and this can change over time, so you may need to move things around depending on your situation.
