How to Plan Your Financial Investments for Every Stage of Life

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.