I came across some interesting data recently which stated that those of us in our 30’s, 40’s and 50’s should be making age-appropriate investing decisions concerning each decade of our life!
Slightly bemused by the concept, it got me thinking that when it comes to investments, the key is perhaps to begin as early as you possibly can, and by early I’m talking early 20’s here. That way you give yourself ample opportunity to access more time for your money to grow and compound.
Best Investment Opportunities in Your 20’s and 30’s
This may be the best time of all to invest more aggressively than you would in your later years. You are less likely to be hurt by stock prices which temporarily decline as you will have many more years ahead of you at this rate to recoup such losses.
- Try investing in your workplace: Look at matching your employer contributions regarding a 401(k) or a 403(b).
- Consider investing in a Roth IRA: If you don’t have access to a 401(k), or perhaps you merely want to contribute more money for your retirement, provided you meet income guidelines, there is the possibility to invest up to $5,500 here after tax.
- Look at investing in stock funds and some bonds: Consider financing from 70% to 85% in stock funds while placing the remainder in bonds and cash investment opportunities.
- Invest in Real Estate: At this stage, it can make excellent financial sense to buy real estate with an investment in a home, especially if you think you’ll be staying put for a few years to come.
- Finally, consider investing in yourself! Your 20’s and indeed 30’s are a great time to consider getting that degree or improving your existing qualifications. This is a great time as well for gaining more and more work skills, all ultimately leading to an increased salary with extra to invest with!