No matter how old you are, it’s never too late to start investing. In fact, investing is one of the smartest things you can do to secure your financial future. But where should you start? And how should your investment strategy change as you get older?
Bill Schantz will now guide you in investing at every stage of life, from your 20s to your 60s and beyond.
Investing Your Money at Every Age per Bill Schantz
In Your 20s
According to Bill Schantz, at this stage of life, you have a major advantage when it comes to investing: time. Because you have decades ahead of you before retirement, you can afford to take more risks with your investments. That means you can afford to invest in growth-oriented assets like stocks, which tend to be more volatile but have the potential to generate higher returns over the long term.
Of course, you don’t have to put all of your money into stocks. A diversified portfolio that includes both stocks and bonds is a good idea. Just remember that you can afford to take more risks when you’re young, so don’t be afraid to invest in assets that may be more volatile.
In Your 30s
By your 30s, you may be starting to think about saving for a major life goal, like buying a home or starting a family. That means it’s time to start thinking about how to balance risk and reward in your investment portfolio.
You may want to consider investing in less volatile assets like bonds, which can provide a steadier stream of income. But you should still keep some money in stocks since they offer the potential for long-term growth.
It’s also important to start saving for retirement in your 30s. In case you have a 401(k) offered by your employer or any other retirement savings plan, be sure to take advantage of it. And if you don’t have access to a workplace retirement plan, open an IRA and start contributing as much as you can.
In Your 40s
As per Bill Schantz, you’re likely getting closer to some of your major financial goals by your 40s. For example, you may be getting ready to send your kids to college or save for a comfortable retirement. That means it’s important to start thinking about how to make your money work hard for you.
One way to do that is to invest in assets that offer the potential for both growth and income. That could include stocks that pay dividends as well as bonds and other fixed-income investments.
It’s also important to start thinking about how to protect your wealth. That means diversifying your portfolio across different asset classes and investing in insurance policies that can help safeguard your finances if something unexpected happens.
In Your 50s
By your 50s, you’re getting closer to retirement age. That means it’s time to start thinking about how you’re going to generate income in retirement.
If you haven’t already done so, now is the time to start saving for retirement. If you have a 401(k) or other workplace retirement plan, be sure to contribute as much as you can. You may also want to consider opening an IRA and contributing to it on a regular basis.
In addition, you may want to start thinking about how to generate income in retirement. That could include investing in dividend-paying stocks, bonds, and other fixed-income investments. Or you may want to consider taking withdrawals from your retirement accounts once you reach retirement age.
Bill Schantz has mentioned some useful ways to invest your money. No matter what stage of life you’re in, investing is a smart way to secure your financial future. By starting early and taking advantage of compound growth, you can build a nest egg that will last a lifetime.
By diversifying your portfolio and investing in assets that offer both growth and income, you can generate the cash flow you need to fund your lifestyle in retirement.