How and where to invest at different stages of your life

financialexpress.com:

Having a resilient investment portfolio tailor-made to each life stage is essential for financial security and success. During early adulthood, the goal is to invest for financial growth, considering that income is low relative to their future. Investments are risky, but yield the financial benefits needed. Mid-life calls for a balance of stability and growth, with investments primarily going into real estate, bonds and other stable growing investments.

As the retirement stage nears, the focus shifts to income generation and capital preservation, with a heavy allocation towards more stable assets for sustaining retirement years. Adjustments and rebalancing are key at every life stage.

People in their 20s and 30s are at the beginning of their promising careers. This means that income is relatively low, and young adults poise themselves for financial growth. Early financial planning puts them at a significant advantage in the later years, taking more risks while investing is on the cards as there is a long horizon of investments ahead for them.

“The key here is to master the fundamentals of personal finance, which will further aid in the future. Mutual Funds, ETFs, Stocks are a few investment opportunities that will yield sizable results. Some strategies to follow while investing is the 50:30:20 rule, where the person spends 50% of their income on necessities, 30% on wants and desires and the remaining 20% goes towards savings and investments. This ensures decent financial growth and savings during their maiden career years,” says Swati Saxena, Founder & CEO, 4 Thoughts Finance.

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As the mid-life comes around, the focus shifts from financial growth to