Your age and life situation should play a big role in the investment choices that you make. For e.g, if you are thinking about getting married, you may be considering buying a home. However, if you’re in your 40s, you may be saving for retirement or your children’s education. Below are some sample asset mixes to show you how investments change at different stages of life. Remember, that you must examine your present situation and financial goals in order to decide the amount of risk and the mix of assets that will be best for you.
Middle years (36 to 45 years)
At this life stage, you may be earning a higher salary than in your earlier years but you may also have a lot more responsibilities such as children to support or help through school, saving for retirement and debt in the form of mortgages, loans or credit cards. As a result, you may wish to shift your investments toward less risky options like fixed income investments, bonds, mutual funds and real estate.
Here are some additional tips:
- Save as much as you can for your retirement
- Comparison shop for alternatives
- Save any financial windfall you receive
- Plan a strategy for having a home and a mortgage