How Should You Invest As Per Your Age Group?

How Should You Invest As Per Your Age Group?

Planning for investments isn’t a one-time activity. Once you start investing, you will have to adjust your portfolio, depending upon your age. 

While you can afford to take great risks early in your career, the same might not be possible over time. So let’s learn about the procedure with which you can maximize benefits across your lifetime.

Age Groups


Experimenting and Learning: Before your 20 

Ready to start your investing journey? If so, then be glad that you are starting out this early. Though your school won’t teach you about this topic most likely, you can always learn it by yourself.

Before investing, it’s important to define your investment goals. How much money do I desire to earn from investing? Why do you wish to invest? How much risk can I handle? 

Create your own questions and answer them. This will be your starting investment plan. 

Most people in this age group are excited to learn about the subject. They also want to earn a lot of money in a very short time.

Beware: You have to realize that earning a great deal of money in the investments field won’t come quickly. Don’t fall into the trap of ‘Get Rich Quick Scheme’. 

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”

Warren Buffet 

Try to learn as much as possible since this is the best time to do so. In the modern world, there are plenty of platforms you could learn from.

  • Study the biographies of the Top Investors.
  • Take free online classes on investments.
  • To understand in-depth, go through some Investment Books.

This is also the best time to commit mistakes. The earlier you make investment errors, the more you will get to learn from them. So go out there and begin experimenting, but never gamble. Always calculate the risk to bring the odds in your favor.

What were you doing when you were 11? Well, Warren Buffet bought his first stock! If you are currently 11, then I hope you will be buying your first stock soon!


Going All-Out: Your 20s

This is the best time for you to kick-start your Investment Journey

You are able to take frequent risks in this phase. Even if your risk doesn’t pay off, you can always come back later on. You have a long way to go, my friend.

The most common problem in this period is Debt-Trap. Thinking that taking high-risk yields high returns, many people pile up large debts. Often, this turns disastrous. Not only their money is gone, but also they are unable to repay their debts. So, please avoid falling into the Debt-Trap

To-Do: Make a list of the companies that you want to hold for your entire life. If the market price is favorable, then buy them. If done effectively, these stocks will provide you the highest returns over time. 

In 1989, Warren Buffet had bought Coca-Cola shares worth $1.8 billion. He has rarely sold any of them till now. The current value of these stocks is around $20 billion. This example shows how a long term holding of stock can produce great returns in the long run.

Likewise, you would want to connect yourself with like-minded people. There will be a large number of people that are passionate about investments as you are. You can learn a lot from their experiences and mistakes. Look for networking events and seminars where you can meet them. Who knows if this changes your life completely?

Having said all this, this is the perfect time for you to Invest in Yourself. Nothing gives you more rewards in the long run than Self-Investment.

“Personal development is a major time-saver. The better you become, the less time it takes you to achieve your goals.”

Brian Tracy


Settling In: Your 30s

Won’t most of us will get married at this age? We’ll have children and start a new family of our own. 

We might not be able to dedicate as much time as earlier. This could be problematic especially for those that engage in trading on a daily basis.

The 30s is the time to think beyond yourself. You should begin planning for your children’s future – especially for their college education. Set some income aside so your children can have a secure future.

You can still afford to take risks, but it’s time to mix in some secured investment sources to balance your portfolio. These fixed investments will provide you with the risk-free, long term income. The most common one is the bond.

Career is also on the peak at this level, so your focus should also be on meeting a few of your investment goals. These may include buying a new car, new home, and so on.

“The goal of early childhood education should be to activate the child’s own natural desire to learn.”

Maria Montessori 


Mid-Life: Your 40s 

You are in the middle of your career at this point. Stick with whatever strategies that have been working in the past. You would not want to experiment a lot due to its unforeseen risk.

If you don’t yet have an investment plan, this is the perfect stage to do so. The older you get, the harder it will be to achieve your financial goals.

Having an investment plan is not only helpful for you financially, but it also will assist you in your Personal Development.

It is in your 40s when many of us will have to meet our kid’s college fees and also pay for our home mortgage payment. Irrespective of this, your retirement savings should be the key focus. If you aren’t careful with this, then you might end up very little during the time of your retirements.

“Turn your midlife crisis to your own advantage by making it a time for renewal of your body and mind, rather than stand by helplessly and watch them decline.”

Jane Brody


Pulling Back: Your 50s

So you have earned an enormous amount of money through investments. Now, let’s pull back a bit, shall we?

You have to be more conservative than ever. This would be an ideal time for many of us to switch equity with fixed incomes. Add into your bond portfolio, and increase your cash holdings too. 

If you aren’t sure how to get started, getting professional advice would be the way to go. With nominal fees, the professionals will ensure your retirement life would be fruitful. 

If you had been investing from a long term ago, then you will have gained tons of experience. So why not share your experiences with other people?

You can advise the young generation on your experiences to help them learn from your mistakes. You can also share your success story alongside.

“Wisdom is the reward of experience and should be shared.”


Retirement: After 60

As your retirement life unfolds, you will stop getting regular income. Thus, it’s essential for you to create a financial plan according to the lifestyle you would want to live.

However, in some countries, you might still be working. It doesn’t mean that your plans should differ much from those who have retired. 

If you had held a few growth stocks from a young age, you will be enjoying a great return, as Warren Buffet got from Coca Cola

Most importantly, don’t hustle too much even if you haven’t achieved your financial goal. You have given your best, and everyone around you is proud of what you have achieved in your life. 

Live your remaining time happily! 🙂

“Retirement is …. a time to experience a fulfilling life derived from many enjoyable and rewarding activities.”

If you haven’t yet planned for your investments, then this is the perfect time to do so! Amid this Coronavirus Crisis, you would also want to Develop Yourself.

So how are you planning your investment strategy? Please feel free to share your thoughts so others can learn from you.

This Post Has 27 Comments

  1. Savish

    This are gold nuggests in this mate! Wonderful, looking forward to your other blogs! Keep going 🌟

    1. Lynh

      I always regret not starting earlier. But I’ll regret even more if I never learn about investing

      1. Pro Investivity

        Very true, Lynh. You will regret not learning about investing more than not starting earlier!

  2. Amogh Balikai

    Succinct and on point article. Sharing it with my network👍

    1. Pro Investivity

      Thank you so much for your kind words, Amogh!
      I hope your network will find it useful as well.

  3. Drew

    Great points and prospective on where we should be at each point in life. The thing that changes is the amount of risk 🙂 Great Article keep them coming

    1. Pro Investivity

      Drew, Thank you so much for your wonderful words.
      Very, true – risk changes!
      Cheers!

  4. Lynh

    I like that you break it down by decades. Do you have any book about Warren Buffet to recommend?

    1. Pro Investivity

      Thank you for your comment!
      Sure, do check out Essays by Warren Buffet. It’s a collection of Buffet’s shareholder letters from Berkshire Hathaway. I’m sure you will love it!

  5. S

    Nice breakdown and great points!

  6. avihappyhub

    Great blog! Pls make articles on below topics –
    Best investment books
    Best apps in India and other countries to manage money
    How to achieve Financial freedom

  7. Jorge.L. Magezi

    This is very very important. Thanks for the knowledge mate.

    1. Pro Investivity

      Thank you for reading, Jorge! I’m so happy you found this important.

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