Investment Tips: How to change preferences as per your age slabs

11 Mar Investment Tips: How to change preferences as per your age slabs

You will need financial planning throughout your life. To do so, you will require to reassess your investments as your preference and needs change with age. Any long-term investment requires proper planning. Below we will provide you with some investment tips to help you manage your preferences as per your age slob.

While in Your 20s

• Invest in Yourself: Your health is your wealth. Invest in your health by joining a fitness center and eating wholesomely instead of wasting your money in pubs.
• Develop a saving habit: If you adapt to a wholesome way of life, you could lower your bills and possibly put your personal finance in order. Your 20s is the right time to learn and start saving for your future investments.
• Emergency Funds: Once you start earning, you automatically begin having monetary responsibilities. For this reason, you should build an emergency fund for the sole purpose of fulfilling your obligations in the event your income gets disrupted.
• Invest aggressively: With a long-lasting career ahead of you, chances are you will be able to handle short-term dangers and invest in equities with long-term positive prospects.

While in Your 30s

• Insurance Covers: To secure the financial life of your dependents, consider having life insurance coverage. Also, consider having a health insurance cover to protect your investments. Additionally, insurance cover on other insurable assets could minimize your liabilities.
• Child Education: One of the most crucial financial objectives should be the education of your child/ren. Therefore, you should start investing early to accumulate the required amount of funds.
• Manage EMIs: Sometimes you may need to take loans to acquire assets such as cars and a home. However, ensure that the outgoing cash on your account of equated month-on-month installments (EMI) does not exceed fifty percent of your monthly income.
• Investment: Maintaining a manageable level of EMIs is essential in ensuring that you can continue to invest while still saving. With about thirty years of earnings left, you can continue taking short-term risks with a long-term return goal.
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While in Your 40s

• Financial goals: At this point, you should evaluate the target that you have archived and those not yet archived. After evaluation, plan, and prioritize the goals that you are yet to archive.
• Prepare for retirement: You cannot avoid some financial goals, such as retirement planning. With so many other financial goals archived, this is the right time to concentrate on your retirement planning. Plan and allocate bigger parts of your savings to building a retirement corpus.
• Investment: Increase the debt proportion in all your investment portfolio. The increment will reduce the market risks that come as a result of lower equity exposure.
• Borrowing: At this time, repay your loans and avoid any further debt. In case you need to borrow, avoid expensive loans.
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While in Your 50s

• Health: As you age, you are likely to get sick. For such cases, build a health emergency fund alongside your insurance health cover.
• Stable portfolio: At this age, you require stability over returns. Start shifting your money from equity to debt depending on the market conditions.
• Loans: Start repaying all your loans and avoid any payment on EMI mode or purchases that require debt.
• Retirement funds: Managing your personal finance well ensures that you do not liquidate your assets and maximizes the retirement corpus.
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Keeping your finances in order can save you from the financial burden such as bad debts and an unaffordable lifestyle. At Acorn Consulting Asia, we can help you with investment tips for informed decision-making.