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Long Term Investment Strategies by Age - Alldamoney

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Long Term Investment Strategies by Age



Investments in today's world just turned interesting. Known to go hand in hand with savings and consumption.Investment is the act of purchasing an asset or item with money saved in the hope of an increase in value .This should not be mistaken for Saving which  is income not spent or deferred consumption. Saving generally is a low risk preservation of money through let’s say putting money aside in deposit account, pension fund or to hoard cash for future consumption. While reducing expenditures like recurring cost is also classified as savings.




On the other end,  At any particular stage in life financial planning is considered by many as a crucial process that helps to secure the future for both the short and long term. To achieve a secure financial goal however, one need at least to acquire a basic financial planning skill. 



This article will focus on different investment strategies available at any particular age in life.

Investing for Young Children

With the help of a financially sound parents, an infant can start an investing program. The objective of such program is to accumulate enough assets to help fund the child’s education after high school through college most of these savings plan are offered by banks in different countries. Parents should make relatives and friends contribute to this program instead of giving gifts to the infant during occasions . The good news about this program is that small amounts can really add up. Let say u save regularly from your child’s birth. A $10 a month contribution with interest rate of 3% could add up to closely $3,000 before the child’s 18th birthday, while a $300 per month would give a massive $85,800
Investment Decisions for Young Adults

The main goal of investing at the age of about 20 to 30 years old considered a young adult should be to accumulate wealth for future prosperity. Most people from this group are about starting their first job and have started considering family and marriage. The aggressive risk taking strategy of investment should be centered on this group. They are still young and able to make mistakes and learn from it.Basically time is on their side and at this stage  they have the freedom to pursue  a more aggressive investment opportunity designed to increase personal wealth such as  investments in international firms and domestic equity funds or real estate acquisition . However, for risk adverse persons other investment options such as high interest savings accounts or a fixed deposit should be considered.

Decisions for matured adults in 40s and 50s



The investment decisions these groups make are crucial in determining their ultimate retirement savings. Most people at this stage have more earning power considered to their earlier life. Their general objective should be wealth maximization and planning for retirement, which comes with a significant reduction in income. Most people at this stage are “hooked” to either taking care of the kids, elderly parents or relatives. It’s time to accelerate the retirement saving by contributing more to retirement accounts. It is also advised to be cautious with investment strategy at this point u can’t afford to lose all. They should tolerate less risk in their portfolio as retirement nears and rather invest in secure investments such as fixed deposit or high interest earning account.


The Just before retirement comes knocking 

photo courtesy of  Keoni Cabral

As this group is getting ready to leave the workforce, their main investment objective should turn to preservation while taking note on the levels of income needed to maintain a particular lifestyle. They have spent years saving and watched it grow; now it’s time to make use of these funds for healthcare and recreational expenses. Finally, they should be writing their will to determine which assets should be given to which beneficiary

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