How to Plan Your Financial Investments for Every Stage of Life

How to Plan Your Financial Investments
for Every Stage of Life
A great lifestyle at retirement is the most desired achievement of any individual.
Whatever you may have earned spent or invested throughout your life, it is
going to be reflected in the lifestyle that you maintain at your retirement. A
dream retirement of any person is to retire with enough bank balance so that one
can spend the rest of his life without worrying about money.
Achieving that financial goal is not a task of a day, month or a year. One needs
to work consistently for a long span of time to achieve the same. A disciplined
financial life starting from the first day of earning is needed to maintain to reach
that summit of life. A personal finance planner is must have for every stage of
life so that you can reach the milestones of life without a financial hiccup. Here
we have come with a financial planner which will guide you through every
stage of your life in managing cum investing your money in a proper way.
When You Are In Your Twenties
This is the time when most of us start earning. One can consider this part of life
as the best time as money is in abundance and very minimal financial
responsibilities. Most of the youths are yet to get married at this stage hence the
daily expenses are the only expenditure for most of them. The maximum
number of this age group people are found to spend most of their earnings in
lifestyle which is not correct if you see this from financial perspective. This is
the time when people are at high risk tolerance zone. One can have more risk
associated investments for an attractive return. This is even the best time for
investing in long-term investments like purchasing a home, investing in equity

etc. The ideal ratio of earning to savings/investment should be 40:60. This the
time when one has to build the base on which a stable financial life is going to
be settled.
When You Are In Your Thirties
This is the time when most of us get married and starts a family. A family is just
the other name of an added social and of course a financial responsibility for
both the spouses. Your expenses are going to be increased hence to maintain the
balance between the expenditure and investment, you are to change the ratio.
This time the earning to savings ratio should be 50:50. This means that one
must be assured of saving at least half of the family income. The investment
you can opt should be of mid risk level. Some of the investment options
matched for this stage of life is health insurance, mutual funds, equities, real
estate, and debt instruments.
When You Are In Your Forties
By this stage of life, one must have added a new responsibility to the life in the
form of children. Bringing up your child in the best possible way is definitely a
costly deal for anyone. But in another hand, your income must have increased
significantly by now. In this stage, you should invest only thirty percent of your
income as saving more than that will create a financial pressure on your family.
The best investment in this stage of life is prepaying your existing home loan.
Prepaying a home loan is considered to be the best investment as it makes you
save a huge amount which was about to be paid in interest payment. The next
investments that can be done is a health insurance, life insurance, child plans,
pension plans, unit-linked insurance plans, gold, and recurring deposits.
When You Are In Your Fifties
This is the stage of your life when your children are pursuing their higher
education or might have started earning. This time one must be focused on the
retirement savings. If you were disciplined with your finance in past years, you
can afford to buy properties or upgrade existing ones. If not properties, one can
even invest in real industries as an additional source of income if you decide to
lease them out. This is the time when your money should work for you. Be
assured that you are going to retire with enough money so that you don't
become a financial burden to your children. One must try to think about the cost
of living, healthcare etc while keeping inflation in consideration. Gaining a
financial peace of mind at retirement is very important. One has to plan this
stage of life in such a way that after 5 to 10 years, you should not need to work
to earn money.

In Your Sixties And Seventies
The time of your retirement has finally arrived. This was the time for which you
probably have wanted the best. This phase of life must be passed with lots of
comfort and peace of mind. You are going to get the returns from investing
judiciously all these years. Here you are going to get the reward of the financial
investments which you have done in earlier stages of life. Even it is advised to
invest 20 percent of your monthly income so that you don't need to be in worry
of drying up the liquid fund. One should invest in short term investments which
are considered to the best at this stage of life. A senior citizen savings scheme is
one of the investment types which is preferred by many at this stage of life.
The key to enjoying success and prosperity in every stage of life is to have a
disciplined financial habit from the very beginning your earning stage. There
are numerous financial investments in India which a person can avail for a
better life. When you start early, you get enough time to build your property,
have proper financial investments and a good amount of savings. Every stage of
life comes with some financial milestones to hit. Knowing your milestone will
help you to create and protect your wealth in the present and in the future.