What Should Your Portfolio Look Like in Your 30s, 40s, and 50s?
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki
Start investing as soon as you can and you’ll enjoy time’s magical power of compounding. The greatest advantage in investing is time, so the younger you begin investing, the more time to have for your initial dollars to grow and compound.
But how you invest will depend a lot on where you are in life, and your portfolio will look significantly different depending on where you are in life.
Here are the investments you should make during each decade of your life.
The Best Investments for Your 30s
If you’re in your 30’s you have 30 years or more to profit from the investment markets before you’re likely to retire. The temporary declines in stock prices won’t hurt you much because you have years to recoup any losses. So, if your stomach can handle the stock price volatility, now’s the time to invest aggressively.
Invest in Your Workplace 401(k) or 403(b)
Most employees enjoy matching contributions from their employer for any investment into this account. That’s free money! Shoot to contribute 10 percent to 15 percent of your salary now, to set yourself up for a secure financial future.