The best way to invest your money to get rich is to do it with time: the younger you start, the better. Of course, investing at 30 is not the same as at 50; today we explain the best strategy on how to invest money according to your age.
Investing money is not something that you only have to consider once you’re rich. Although it is a low amount, the ideal is that you try to invest some money every month, and you should start doing it as soon as possible.
Start investing at 30 will give you a huge advantage for the future. The more time passes, the more your money will increase. Of course, the best strategy to invest varies according to age. It is not the same to invest your money at 33 years than at 58. This must be taken into account to reduce the risk to a minimum and increase profitability.
Today we explain how to invest money according to your age … and remember: it’s never too early or too late to start doing it …
How to invest money at 30?
The 30 is when you can take more risks. Think you have more years to make up for possible losses, so take advantage of it. In addition to starting to invest money in a pension plan or a savings account for your retirement, it’s time for you to start profiting from your money.
For this, from The Balance recommend investing at least 70% and up to 85% in stock funds because, despite being the most risky, they are the ones that can give you the most long-term return. The remaining percentage invest in bonds. If you have a fixed position it is also a good time to invest in the real estate market buying a house. Just do not forget the most important thing: invest in yourself. It is essential that you take advantage of these years to improve your skills and keep training, it will compensate you in the future.
How to invest money at 40?
If you have postponed the savings until 40 is time for you to adopt a quick strategy. In addition to opening a pension plan – or a savings account – you also have to plan your investment portfolio. In this case it is advisable to reduce the risk and invest 60% in stock funds and 40% in bonds; yes, everything depends on the risk you are willing to take.
How to invest money at 50?
At this age you have to start reducing investment in stock funds, and increase it in bonuses or cash. Of course, before deciding first you have to value how much you have saved for your retirement, what pension you will receive from the state, and what lifestyle you want to take. You may not need to spend the money from your investments until later because you have enough with your retirement savings and the pension you receive, in which case you can assume a little more risk.