Investment Timeline

“The more you sweat in peace; the less you bleed in war”

Likewise, the more money we’re able to put away today, the sooner we’ll be able to claim our financial freedom and start enjoying all our hard work.

The first and the foremost thing that an investment gives you is financial freedom. If you start investing your money earlier, you need not worry about your future financial needs. To achieve this one should follow a timeline to invest and plan for a financially happy life.

There’s no hard-and-fast rule for how much we should save. Steady contributions and a long term outlook would help us reach the retirement goal.

At Twenty Five

Stocks would be the ideal investment choice. Although stocks carry more risk than bond or cash equivalent investments, stocks have the potential for higher long term returns. Even though stock prices are highly volatile, investing early gives plenty of time for investments to give good returns.

Married at Thirty

When a family is started, one should cut back on unwanted spending and invest the surplus amount. At this stage, one can invest aggressively in Stocks, Equity Funds, Gold ETFs, Mutual funds, SIPs etc. One can also take an insurance Plan to cover the risk.

Changes at Forty

Life undergoes a lot of changes. Upbringing children would call for more responsibilities in life. Investment in Long term Fixed Deposits, Child Plans, Equity Funds and Gold ETFs will be the ideal choice at this stage. Tax planning will also have to be taken care of.  After forty five it is advisable to stop investing in equity funds and SIPs in balanced funds. Also top up the child plans with any windfall while continuing to invest in Gold and Gold ETFs.

Focused at Fifty

This will be the tight time to shift some of the investments to less risky portfolio. It is prudent to gradually shift investments from equity funds to MIP or Debt Funds. Start equity exposure to Child Plans. Goals are very near, hence cautious approach is required.

Smooth Sailing at Sixty

Payouts from child plans can fund child education. Gold ETFs can be encashed to buy gold for the child’s wedding. It is recommended to move the rest of the savings into less volatile investments. This is the apt time for tapping the nest eggs.

Finally

Investing is not like throwing seeds into the wind, leaving it to chance where they’d fall and grow. Investing is more like shooting arrows at a target – the target being no less than the bull’s eye.

Make a timeline. Make a plan. Invest and allocate funds for your future. Make money work for you while you earn and be secure after your retirement.