Financial advisors often recommend people to invest as per their age profile. Surprised? Yes, age is an important factor in determining the type of investments best suited for an individual. Your life charts and preferences and responsibilities change according to your age hence it is important to earmark funds keeping in mind your future goals.
If you fall in the age group of 20-30 years then you may have started working recently or must have completed few years at work. This is the right time to start investing. You can open a recurring deposit account and start transferring some funds into a higher interest paying account. Start creating a liquidity account that can be used in case of emergencies. You can also buy an income protection plan for future. If you fall in the age group of 31- 45, you may be married and having a family. Now you should invest in health insurance, Medi-claims, future investment plans for your children. Now you should also diversify your profile by investing in short term securities or debentures.
Follow the market closely to understand the best time to buy and sell equity in order to earn profit. It is a good time to start investing in retirement plan or pension plan If you fall in age group of 46-60 years then you are in the final stage or the top most stage in investments. Individuals manage to pay off their loans by this age and have fewer expenses. It is time that you move your investments in low risk profile to protect them. This is the ideal time to reap the benefits of your investments. These simple tips can help you.