Most investors have failed to realize that there should be a relationship between their age and the kind of investments they should have their monies in. Interestingly, your age should help dictate how you invest your money. Whether you just got your first employment letter, or you are mid way through your active employable years, or retirement comes up in few months matters a great deal to what and what not to invest in.
Really, how many septuagenarians will engage in active rugby or horseback riding? These are risky sport activities and aren’t designed to suit the old. Same methodology applies to investing, not every investment product will suit your age. As people age, needs and priorities change too. So your investments should also be planned to meet those changing needs and priorities.
As a young graduate, you might have more apetite to engage in risky investments like stocks. If you lose your money, there’s at least solace in the fact that you still have many years ahead of you to probably recover those losses, while you still continue with your paid employment over a long term. However, when retirement beckons, it is advisable you reduce your exposure to risky investments. At such older age, you probably would have accumulated enough money over the years of employment and will not want to put it in risky assets such as stocks. You might want to consider safer instruments like bonds. Losing so much at that age can be disastrous given that you don’t have much time to mess around like the young graduate.
At Meristem, our wealth advisors are always available and willing to help you structure your investments to suit your age because we understand that your age plays a significant role in selecting your investment options and keep you ahead of the game.